OLD REPUBLIC TITLE

A Guide to the HomeBuying Process

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Table of Contents

Finances.............................................................................................. 2

Buyer Qualification Worksheet......................................................... 3

Debt Qualification Worksheet........................................................... 3

Principal & Interest Chart.................................................................. 4

What do I want in a home?................................................................ 5

Home Comparison Chart................................................................... 5

Making An Offer.................................................................................. 6

Steps of Closing - the Seller, You, & Your Realtor.......................... 7-8

Loan Application Process & Checklist............................................. 9

Steps of Closing - From Contract to Policy..................................... 10

Moving and Closing Checklist.......................................................... 11

After Closing....................................................................................... 12

Notes................................................................................................... 13

Old Republic Title Locations............................................................ 14

The information provided has been obtained from sources believed to be reliable. However, no investigation has been made to determine the accuracy of such information. No person or entity should rely on the accuracy of these materials without conducting a thorough, independent investigation of the same. Old Republic National Title Insurance Company, its officers, agents and employees have no liability, expressed or implied, relating to these materials.

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GarlandFirewheel Town Center

650 Beebalm LaneSuite 260

Garland, TX 75040972.455.6700

Fort WorthCityview Centre

4608 Bryant Irvin RoadSuite 454

Fort Worth, TX 76132817.292.0186

PlanoLegacy Town Center7500 Dallas Parkway

Suite 175Plano, TX 75024

469.237.3659

Mansfield1405 N. Highway 287

Suite 101Mansfield, TX 76063

817.453.8104

Arlington1241 W. Green Oaks Blvd.

Suite 101Arlington, TX 76013

817.457.3930

Addison4006 Beltline Road

Building III, Suite 120Addison, TX 75001

972.455.6700

Flower Mound3020 Corporate Court

Suite 400Flower Mound, TX 75028

972.906.1160

DallasPreston Center - Commercial

8201 Preston RoadSuite 450

Dallas, TX 75225214.239.6400

Colleyville1210 Hall Johnson Road

Suite 150Colleyville, TX 76034

817.428.0888

Dallas15110 Dallas Parkway

Suite 102Dallas, TX 75254

972.419.3003

Where You Have a Title Need - We’re Here for You!

FinancesHow much home can I afford?

In general, your monthly mortgage payment should be at most 28 percent of your monthly gross pay (gross pay is your total compensation before any deductions). In addition, your monthly debt plus your mortgage payment should be no more than 36 percent of your gross take-home pay. Debt includes items such as student loans, credit cards, child support, alimony, and car payments. If you are married, you can add both incomes together to qualify. Just remember that you have to add the debts of both individuals as well.

Prequalify for a mortgageBeing prepared is one of the smartest things you can do to help the home buying process run smoothly. Prequalifying for a mortgage gives you an estimate of what your loan program and the amount you can borrow might look like in advance. This can give you a big advantage at different stages of your house hunt, from helping you prepare your budget and set your expectations to strengthening your negotiating position with the seller when you’re making an offer on a home.

Advantages of Prequalifying - You’ll get an estimage of your borrowing power, which will allow you to focus your house huntin on homes you can afford. - Being prequalified can demonstrate to sellers that you’re serious about buying - Completing the actual mortgage application later on can go faster since you’ve already provided some of your information as part of the prequalification process.

What lenders considerBefore you can expect to prequalify for a mortgage, understand that lenders will be consid-ering your financial situation and certain factors.Among other thing, lenders will consider the following: - Credit History. If you have a good credit score and have paid your bills on time, you’ll be in better shape, but having some credit issues may not automatically disqualify you. - Debt-to-income ratio. This figure is what you owe (your total debt, including housing costs, credit cards, car loans, etc.) in relation to your total income before taxes. Many lenders require that your total debt be no greater than 36% of your gross monthly income. Prequalification vs. preapprovalPrequalification and preapproval are typically two different processes. Prequalification is based on summary information you provide about your income and assets (which may or may not be verified), while preapproval is based on actual verification of your income, credit and assets and is a lengthier and more involved process.Prequalification gives you an estimate of your borrowing power whereas preapproval provides proof to real estate agents and sellers that you’re approved for a specific loan amount.

2

Notes

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12

After Closing

1. You will receive from the County Clerk’s Office the original recorded Warranty Deed that transferred title of the property to you. Store this document in safekeeping as you may need it in the future for reference purposes. Note: A deed is not like a car title - you do not need the original to the property. Once the deed is recorded, your title is of public record with the County Clerk.

2. You will receive from Old Republic Title an Owner Policy of Title Insur-ance. This document should also be stored for safekeeping with your other important papers. Always verify names and legal description on the policy prior to storing in safekeeping.

3. You will receive a coupon book or other instructions about making your monthly loan payments from your lender. If you do not receive the coupon book or instructions in time to make your first payment, call your lender to assist you.

4. Make certain to file for your homestead exemption with the various taxing authorities who collect taxes on your property. You must be the owner of the property on January 1st to file for this exemption or other exemptions you may qualify for and can do so anytime between January 1st and April 30th.

5. If your property taxes are being excrowed/impounded by your mort-gage company, forward any tax notices you may receive in the mail to your lender so they can pay the taxes in a timely manner.

6. It is the taxpayer’s responsibility to be certain the property is rendered in the taxpayer’s name for the upcoming tax year - contact the County Appraisal District for assistance in making certain this is done.

3

Buyer Qualification WorksheetFHA/ConventionalMortgage Amount

Available Funds1. Savings Account $______________________2. Investments (stocks, bonds and mutual funds) $______________________3. Insurance (cash value) $______________________4. Gifts - Conventional Gifts - FHA (family member or blood relative) $______________________5. Other $______________________6. Monthly Salary $______________________Gross Monthly Income $______________________(A)

Mortgage PaymentPrincipal & Interest (Use chart on following page) $______________________Taxes $______________________Hazard Insurance $______________________PMI (Private Mortgage Insurance) $______________________Homeowner Assocation Dues $______________________Total Mortgage Payment $______________________(B)

Income QualificationFor FHA: Take 29% of line (A)For Conventional: Take 33% of line (A)(Assuming at least 10% down payment)Total Mortgage Payment (B) must not exceed line (C) $______________________(C)

Debt Qualification Worksheet

Monthly ObligationsTotal Mortgage Payment $______________________Auto Payments* $______________________Monthly Charge Card Payments (minimum payments) $______________________Loans* $______________________Child Support/Alimony $______________________Child Care Expenses (FHA Only) $______________________Other Monthly Payments $______________________Total Monthly Obligations $______________________(D)

Allowable ObligationsFor FHA: Gross Income (A) x 41% orFor Conventional: Gross Income (A) x 38%Total Monthly Obligations (D) must not exceed line (E) $______________________(E)*You need only count debts that will extend beyond six months (FHA) or 10 months (CONV). However, if an obligation is greater than $100 per month, it may count against the buyer even if it has less than the allowed time.

11 4

Buyer Moving and Closing ChecklistImmediately upon acceptance of the final contract: � Order a home inspection � Provide your lender with a copy of the contract and discuss locking in your interest rate8 weeks before the move: � Get estimates on truck rentals and reserve a moving truck � Draw a floorplan of your new house and try to decide what furniture will stay or go � Use up items that can’t be moved6 weeks before the move: � Get copies of records from doctors, dentists, lawyers, accountants, etc. � Make arrangements to transfer your children’s school records4 weeks before the move: � If necessary, arrange for storage � If you are moving yourself, figure out how many boxes you need � If you are moving yourself, figure out what size truck you will need by calculating the cubic feet of the boxes plus large furniture pieces.3 weeks before the move: � Begin packing items that you won’t need � Arrange to cancel utilities and services at your old home and have them installed at your new home. � Make travel and hotel reservations if needed � Organize car license, registration, and insurance2 weeks before closing date: � Schedule the closing with the title company � Work closely with your lender and verify that an appraisal has been ordered � Contact insurance company to set up homeowner’s policy to be in effect the day of closing � Provide your homeowner’s insurance information to the title company and your lender � Arrange to transfer all bank accounts to new branches � Cancel delivery services for your old house and schedule for the new house � Send in a change of address form to the post office1 week before closing date: � Make contact the the lender to ensure that closing date is on schedule � Get directions to the closing title company’s office � Make sure you have certified funds for closing - your lender will be able to give you the amount, if any, that you will bring to closing. � Transfer all medical prescriptions to a pharmacy near your new home Day before closing: � Review the HUD-1 (Closing Statement) with your Realtor for accuracy � Conduct a walk through to verify the condition of the house and repairs, if any, are completeClosing/Moving Day: � Bring photo ID to closing � Bring ceritfied funds � Bring any additional documents requested by lender or title company � Check to make sure that no leave-behind appliances are running at your old house

Principal & Interest ChartUse the chart below to determine your monthly principal and interest payments at various interest rates for either a 15- or 30-year term.

INTEREST RATE FACTORS PER $1,000Interest Rates

Term 15 Years

Term 30 Years

Interest Rate

Term 15 Years

Term 30 Years

4 7.40 4.77 8 9.56 7.34 4.25 7.52 4.92 8.25 9.70 7.51 4.50 7.65 5.07 8.50 9.85 7.69 4.75 7.78 5.22 8.75 9.99 7.87 5 7.91 5.37 9 10.14 8.05 5.25 8.04 5.52 9.25 10.29 8.23 5.50 8.17 5.68 9.50 10.44 8.41 5.75 8.30 5.84 9.75 10.59 8.59 6 8.44 6.00 10 10.75 8.77 6.25 8.57 6.16 10.25 10.90 8.96 6.50 8.71 6.32 10.50 11.05 9.15 6.75 8.85 6.48 10.75 11.21 9.33 7 8.99 6.65 11 11.36 9.52 7.25 9.13 6.82 11.25 11.52 9.71 7.50 9.27 6.99 11.50 11.68 9.90 7.75 9.41 7.16 11.75 11.84 10.09

1. Find the appropriate interest rate from the chart above.

2. Look across the column to the appropriate term to determine your interest rate factor.

3. Multiply the interest rate factor by your loan amount in $1,000s.

AN EXAMPLEInterest Rate = 6.25 Desired term = 15 years Interest rate factor per $1,000 = 8.57 Mortgage = $200,000 Monthly Principal & Interest = $1,714 (8.57 x 200)

REMEMBER: Be sure to add your monthly insurance premium and your property tax to your principal and interest to determine your total monthly payment.

NOTE: These figures represent mere estimates. We strongly recommend that you talk with a reputable mortgage specialist to determine the actual amount you will pay each month in principal, interest, taxes and insurance (PITI).

7

5

Steps of The Closing ProcessFrom Contract to Policy

Title searched. Includes: search of

the history of property, own-ers of record,

liens, and clouds on title.

Abstractorbegins

title search.

Loan applicationprocess begins.

After receiving instructions from lender, information is

compiled:survey,

legal documents ordered,insurance, andtermite report.

Credit History, appraisal,

Information gathered andpackaged for underwriting.

Buyer submitted forloan approval.

Loan applica -tion includes:

buyers income stability,

credit, assets,

tion of property value.

Mortgage Company Old Republic Title

Old Republic Title receiptes contract.

Title work isreviewed by examiner.

Closer and assistant workon pre-closing issues.

Old Republic Title receives closing instructions from

lender.

Preparation of documents. All parties advised of closing time

and cert ed funds amount.

Commitment to issue title insurance forwarded to all

parties.

CLOSING and FUNDINGLegal Documents RecordedTITLE INSURANCE ISSUED

Buyer approved. Lender sends closing info to title company.

Title work begins. Tax info ordered and transaction team

6

10

It is extremely beneficial for you to have an idea of what you want and what you need in a home before you start looking.

The Home I Am Looking For:

- is in the price range of ______________ to ______________.

- is the following age: 1-5 yrs. 6-15 yrs. 6-25 yrs. 26+ yrs. any age

- is this style: 1 story 2 story Multi-Level Patio home Townhome Condominium

- has features I NEED: _____# Bedrooms _____# Baths Garage Family Room Dining Room Study/Office Landscaped Square Feet ________ Other ______________

- has features I WANT: fireplace pool wet bar hot tub brick exterior stone exterior wood exterior skylight nice view- is located in this area:

___________________________ ___________________________

- is close to: schools shopping restaurants highway access major employers church synagogue park golf lake other__________

Address:PriceSquare FootageLocationCurb AppealNeighborhoodLot SizeDrivewayYard/LandscapingBedroomsBathroomsKitchenAppliancesStorageGarageDeck/PatioPool/Hot TubHeat/ACTaxesSchoolConditionPersonal PropertyEnergy EfficientRoom SizesLayoutQuality“Personality”

Property Comparison Chart

What Do I Want in a Home?

9 6

Making an Offer

Oral promises are not legally enforceable when it comes to the sale of real estate. Therefore, you need to enter into a written contract, which starts with your written proposal. This proposal not only specifies price, but all the terms and conditions of the purchase. REALTORS® usually have a variety of standard forms (including Residential Purchase Agreements) that are kept up to date with the changing laws. When you use a REALTOR® these forms will be available to you. In addition, REALTORS® cover the questions that need to be answered during the process. In many states certain disclosure laws must be complied with by the seller, and the REALTOR® will ensure that this takes place.

After the offer is drawn up and signed, it will usually be presented to the seller by your REALTOR®, by the seller's REALTOR® if that's a different agent, or often by the two together. In a few areas, sales contracts are typically drawn up by the parties' lawyers.

What the offer contains:

The purchase offer you submit, if accepted as it stands, will become a binding sales contract (known in some areas as a purchase agreement). It's important, therefore, that it contains all the items that will serve as a "blueprint for the final sale." These purchase offer items include such things as:

-Address and sometimes a legal description of the property -Sale price -Terms -- for example, all cash or subject to your obtaining a mortgage for a given amount -Seller's promise to provide clear title (ownership) -Target date for closing (the actual sale) -Amount of earnest money deposit accompanying the offer, and whether it's a check, cash or promissory note, and how it's to be returned to you if the offer is rejected -- or kept as damages if you later back out for no good reason -Method by which real estate taxes, rents, fuel, water bills and utilities are to be adjusted (prorated) between buyer and seller -Provisions about who will pay for title insurance, survey, termite inspections and the like -Type of deed to be given -An “Option Period”-time allowed to the buyer to have a certain amount of days, usually around 7, to “option out” of the contract and only lose the “Option Fee”, usually $100, but not the earnest money. -A time limit (preferably short) after which the offer will expire -Contingencies, if any

General:Picture ID with Social Security Number Payment to cover application fee. Name and complete address of all landlords (past 2 years).

Income:Employment history, including names, addresses, phone numbers, and length of time with that company (past 2 years). Copies of your most recent pay stubs and W-2 form (past 2 years). Verification of other income (social security, child support, retirement). If you are self-employed: Copies of signed tax returns including all schedules (past 2 years), and a signed profit and loss statement for the current year. If you are retired: tax returns (past 2 years). If you have rental property income: Copies of all lease agreements.

Assets:Copies of all bank statements from checking/savings accounts (past three months). Copies of all stock/bond certificates and/or past statements/retirement accounts.Prepare a list of major household items and their values. Copies of title documents for all automobiles, boats, or motorcycles. Face amount, monthly premiums, and cash values of all life insurance policies (Cash value may be used for closing costs or down payments. You need documentation from the carrier indicating cash value).

Creditors:Credit cards (account numbers, current balances, and monthly payments). Installment loans (car, student, etc.) Same details as for credit cards. Mortgage loans (property address, lender with address, account numbers monthly payment and balance owed on all properties presently owned or sold within the last 2 years). Bring proof of sale for properties sold. Childcare expense/support (name, address, phone number).

Other:Bankruptcy – bring discharge and schedule of creditors. Adverse credit – bring letters of explanation. Divorce – bring your Divorce Decrees, property settlements, quitclaim deeds, modifications, etc. VA only – bring Form DD214 and Certificate of Eligibility. Retirees – bring retirement and/or Social Security Award Letter.

Loan Application Checklist

Loan Application ProcessNow that you’ve found the ideal home in the perfect location that is affordable to your financial situation, it’s time to finalize the loan application. The mortgage loan professional will assist you throughout the loan application process. Once your home is selected, your offer is accepted and the contract is written up, the lender will provide you with a GOOD FAITH ESTIMATE of estimated closing costs for your purchase. At this time, the lender will run a credit report, order an appraisal of the property, verify debt ratios to income, and assist you with any additional requirements.

Either the Seller’s agent or the Buyer’s AgentCopy of the contract along with the earnest money is delivered to the title company.

Upon execution of contractCopy of the contract is sent to the Buyer’s lender to start loan approval process.

Upon completion of the inspection an inspection report will be provided to the Buyer. The Buyer and Buyer’s

Agent will review the report and request any necessary or desired repairs in the form of an amendment sent to the

Seller and Seller’s Agent.

Negotiations of repairs are generally performed and finalized before the expiration of the option period set

forth in the contract.

Inspection reports are reviewed and repairs, ifany, are negotiated.

SellerBy date set forth in the Repair Amendment, or if no

date was set then prior to the Closing Date set forth in the contract.

Repairs, if any, are completed and receipts given to Realtor

Buyer or Buyer’s Agent

Inspections are scheduled BuyerInspections take place during the option period set forth in the contract.

After discussing available times with the Buyers and Sellers the Buying and Selling Agents will contact the Title Company to schedule the closing for their clients.

Final Loan Approval Buyer and Buyer’s Agent should keep in contact with the lender to ensure that deadlines for the loan approval are

met.

Final approval should be received by date set forth on the Third Party Financing Addendum.

Closing is scheduled with the Title Company Anytime prior to the close date. Generally done 1-2 weeks prior to closing.

Closing All parties attend their scheduled closings at the title company.

On the close date specifed in the contract.

Exchange of Posession of property Selling and Buying Agents should discuss with their perspective clients regarding how the exchange of keys,

door openers, etc will be handled.

Upon closing and funding unless otherwise specifed in the contract.

Disconnect/Transfer of UtilitiesBuyer may choose to perform a Walk Through

Sellers and Buyers are responsible for contacting the proper utility providers in order to disconnect/transfer

utilites in/out of their name.

Prior to the closing date. The transfer/disconnect is generally scheduled for the day change of posession

takes place.

WhoWhat WhenUpon execution of contract

Steps of the Closing ProcessThe Seller, You, and Your Realtor

Who does what, and when?

7 8

9 6

Making an Offer

Oral promises are not legally enforceable when it comes to the sale of real estate. Therefore, you need to enter into a written contract, which starts with your written proposal. This proposal not only specifies price, but all the terms and conditions of the purchase. REALTORS® usually have a variety of standard forms (including Residential Purchase Agreements) that are kept up to date with the changing laws. When you use a REALTOR® these forms will be available to you. In addition, REALTORS® cover the questions that need to be answered during the process. In many states certain disclosure laws must be complied with by the seller, and the REALTOR® will ensure that this takes place.

After the offer is drawn up and signed, it will usually be presented to the seller by your REALTOR®, by the seller's REALTOR® if that's a different agent, or often by the two together. In a few areas, sales contracts are typically drawn up by the parties' lawyers.

What the offer contains:

The purchase offer you submit, if accepted as it stands, will become a binding sales contract (known in some areas as a purchase agreement). It's important, therefore, that it contains all the items that will serve as a "blueprint for the final sale." These purchase offer items include such things as:

-Address and sometimes a legal description of the property -Sale price -Terms -- for example, all cash or subject to your obtaining a mortgage for a given amount -Seller's promise to provide clear title (ownership) -Target date for closing (the actual sale) -Amount of earnest money deposit accompanying the offer, and whether it's a check, cash or promissory note, and how it's to be returned to you if the offer is rejected -- or kept as damages if you later back out for no good reason -Method by which real estate taxes, rents, fuel, water bills and utilities are to be adjusted (prorated) between buyer and seller -Provisions about who will pay for title insurance, survey, termite inspections and the like -Type of deed to be given -An “Option Period”-time allowed to the buyer to have a certain amount of days, usually around 7, to “option out” of the contract and only lose the “Option Fee”, usually $100, but not the earnest money. -A time limit (preferably short) after which the offer will expire -Contingencies, if any

General:Picture ID with Social Security Number Payment to cover application fee. Name and complete address of all landlords (past 2 years).

Income:Employment history, including names, addresses, phone numbers, and length of time with that company (past 2 years). Copies of your most recent pay stubs and W-2 form (past 2 years). Verification of other income (social security, child support, retirement). If you are self-employed: Copies of signed tax returns including all schedules (past 2 years), and a signed profit and loss statement for the current year. If you are retired: tax returns (past 2 years). If you have rental property income: Copies of all lease agreements.

Assets:Copies of all bank statements from checking/savings accounts (past three months). Copies of all stock/bond certificates and/or past statements/retirement accounts.Prepare a list of major household items and their values. Copies of title documents for all automobiles, boats, or motorcycles. Face amount, monthly premiums, and cash values of all life insurance policies (Cash value may be used for closing costs or down payments. You need documentation from the carrier indicating cash value).

Creditors:Credit cards (account numbers, current balances, and monthly payments). Installment loans (car, student, etc.) Same details as for credit cards. Mortgage loans (property address, lender with address, account numbers monthly payment and balance owed on all properties presently owned or sold within the last 2 years). Bring proof of sale for properties sold. Childcare expense/support (name, address, phone number).

Other:Bankruptcy – bring discharge and schedule of creditors. Adverse credit – bring letters of explanation. Divorce – bring your Divorce Decrees, property settlements, quitclaim deeds, modifications, etc. VA only – bring Form DD214 and Certificate of Eligibility. Retirees – bring retirement and/or Social Security Award Letter.

Loan Application Checklist

Loan Application ProcessNow that you’ve found the ideal home in the perfect location that is affordable to your financial situation, it’s time to finalize the loan application. The mortgage loan professional will assist you throughout the loan application process. Once your home is selected, your offer is accepted and the contract is written up, the lender will provide you with a GOOD FAITH ESTIMATE of estimated closing costs for your purchase. At this time, the lender will run a credit report, order an appraisal of the property, verify debt ratios to income, and assist you with any additional requirements.

7

5

Steps of The Closing ProcessFrom Contract to Policy

Title searched. Includes: search of

the history of property, own-ers of record,

liens, and clouds on title.

Abstractorbegins

title search.

Loan applicationprocess begins.

After receiving instructions from lender, information is

compiled:survey,

legal documents ordered,insurance, andtermite report.

Credit History, appraisal,

Information gathered andpackaged for underwriting.

Buyer submitted forloan approval.

Loan applica -tion includes:

buyers income stability,

credit, assets,

tion of property value.

Mortgage Company Old Republic Title

Old Republic Title receiptes contract.

Title work isreviewed by examiner.

Closer and assistant workon pre-closing issues.

Old Republic Title receives closing instructions from

lender.

Preparation of documents. All parties advised of closing time

and cert ed funds amount.

Commitment to issue title insurance forwarded to all

parties.

CLOSING and FUNDINGLegal Documents RecordedTITLE INSURANCE ISSUED

Buyer approved. Lender sends closing info to title company.

Title work begins. Tax info ordered and transaction team

6

10

It is extremely beneficial for you to have an idea of what you want and what you need in a home before you start looking.

The Home I Am Looking For:

- is in the price range of ______________ to ______________.

- is the following age: 1-5 yrs. 6-15 yrs. 6-25 yrs. 26+ yrs. any age

- is this style: 1 story 2 story Multi-Level Patio home Townhome Condominium

- has features I NEED: _____# Bedrooms _____# Baths Garage Family Room Dining Room Study/Office Landscaped Square Feet ________ Other ______________

- has features I WANT: fireplace pool wet bar hot tub brick exterior stone exterior wood exterior skylight nice view- is located in this area:

___________________________ ___________________________

- is close to: schools shopping restaurants highway access major employers church synagogue park golf lake other__________

Address:PriceSquare FootageLocationCurb AppealNeighborhoodLot SizeDrivewayYard/LandscapingBedroomsBathroomsKitchenAppliancesStorageGarageDeck/PatioPool/Hot TubHeat/ACTaxesSchoolConditionPersonal PropertyEnergy EfficientRoom SizesLayoutQuality“Personality”

Property Comparison Chart

What Do I Want in a Home?

11 4

Buyer Moving and Closing ChecklistImmediately upon acceptance of the final contract: � Order a home inspection � Provide your lender with a copy of the contract and discuss locking in your interest rate8 weeks before the move: � Get estimates on truck rentals and reserve a moving truck � Draw a floorplan of your new house and try to decide what furniture will stay or go � Use up items that can’t be moved6 weeks before the move: � Get copies of records from doctors, dentists, lawyers, accountants, etc. � Make arrangements to transfer your children’s school records4 weeks before the move: � If necessary, arrange for storage � If you are moving yourself, figure out how many boxes you need � If you are moving yourself, figure out what size truck you will need by calculating the cubic feet of the boxes plus large furniture pieces.3 weeks before the move: � Begin packing items that you won’t need � Arrange to cancel utilities and services at your old home and have them installed at your new home. � Make travel and hotel reservations if needed � Organize car license, registration, and insurance2 weeks before closing date: � Schedule the closing with the title company � Work closely with your lender and verify that an appraisal has been ordered � Contact insurance company to set up homeowner’s policy to be in effect the day of closing � Provide your homeowner’s insurance information to the title company and your lender � Arrange to transfer all bank accounts to new branches � Cancel delivery services for your old house and schedule for the new house � Send in a change of address form to the post office1 week before closing date: � Make contact the the lender to ensure that closing date is on schedule � Get directions to the closing title company’s office � Make sure you have certified funds for closing - your lender will be able to give you the amount, if any, that you will bring to closing. � Transfer all medical prescriptions to a pharmacy near your new home Day before closing: � Review the HUD-1 (Closing Statement) with your Realtor for accuracy � Conduct a walk through to verify the condition of the house and repairs, if any, are completeClosing/Moving Day: � Bring photo ID to closing � Bring ceritfied funds � Bring any additional documents requested by lender or title company � Check to make sure that no leave-behind appliances are running at your old house

Principal & Interest ChartUse the chart below to determine your monthly principal and interest payments at various interest rates for either a 15- or 30-year term.

INTEREST RATE FACTORS PER $1,000Interest Rates

Term 15 Years

Term 30 Years

Interest Rate

Term 15 Years

Term 30 Years

4 7.40 4.77 8 9.56 7.34 4.25 7.52 4.92 8.25 9.70 7.51 4.50 7.65 5.07 8.50 9.85 7.69 4.75 7.78 5.22 8.75 9.99 7.87 5 7.91 5.37 9 10.14 8.05 5.25 8.04 5.52 9.25 10.29 8.23 5.50 8.17 5.68 9.50 10.44 8.41 5.75 8.30 5.84 9.75 10.59 8.59 6 8.44 6.00 10 10.75 8.77 6.25 8.57 6.16 10.25 10.90 8.96 6.50 8.71 6.32 10.50 11.05 9.15 6.75 8.85 6.48 10.75 11.21 9.33 7 8.99 6.65 11 11.36 9.52 7.25 9.13 6.82 11.25 11.52 9.71 7.50 9.27 6.99 11.50 11.68 9.90 7.75 9.41 7.16 11.75 11.84 10.09

1. Find the appropriate interest rate from the chart above.

2. Look across the column to the appropriate term to determine your interest rate factor.

3. Multiply the interest rate factor by your loan amount in $1,000s.

AN EXAMPLEInterest Rate = 6.25 Desired term = 15 years Interest rate factor per $1,000 = 8.57 Mortgage = $200,000 Monthly Principal & Interest = $1,714 (8.57 x 200)

REMEMBER: Be sure to add your monthly insurance premium and your property tax to your principal and interest to determine your total monthly payment.

NOTE: These figures represent mere estimates. We strongly recommend that you talk with a reputable mortgage specialist to determine the actual amount you will pay each month in principal, interest, taxes and insurance (PITI).

12

After Closing

1. You will receive from the County Clerk’s Office the original recorded Warranty Deed that transferred title of the property to you. Store this document in safekeeping as you may need it in the future for reference purposes. Note: A deed is not like a car title - you do not need the original to the property. Once the deed is recorded, your title is of public record with the County Clerk.

2. You will receive from Old Republic Title an Owner Policy of Title Insur-ance. This document should also be stored for safekeeping with your other important papers. Always verify names and legal description on the policy prior to storing in safekeeping.

3. You will receive a coupon book or other instructions about making your monthly loan payments from your lender. If you do not receive the coupon book or instructions in time to make your first payment, call your lender to assist you.

4. Make certain to file for your homestead exemption with the various taxing authorities who collect taxes on your property. You must be the owner of the property on January 1st to file for this exemption or other exemptions you may qualify for and can do so anytime between January 1st and April 30th.

5. If your property taxes are being excrowed/impounded by your mort-gage company, forward any tax notices you may receive in the mail to your lender so they can pay the taxes in a timely manner.

6. It is the taxpayer’s responsibility to be certain the property is rendered in the taxpayer’s name for the upcoming tax year - contact the County Appraisal District for assistance in making certain this is done.

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Buyer Qualification WorksheetFHA/ConventionalMortgage Amount

Available Funds1. Savings Account $______________________2. Investments (stocks, bonds and mutual funds) $______________________3. Insurance (cash value) $______________________4. Gifts - Conventional Gifts - FHA (family member or blood relative) $______________________5. Other $______________________6. Monthly Salary $______________________Gross Monthly Income $______________________(A)

Mortgage PaymentPrincipal & Interest (Use chart on following page) $______________________Taxes $______________________Hazard Insurance $______________________PMI (Private Mortgage Insurance) $______________________Homeowner Assocation Dues $______________________Total Mortgage Payment $______________________(B)

Income QualificationFor FHA: Take 29% of line (A)For Conventional: Take 33% of line (A)(Assuming at least 10% down payment)Total Mortgage Payment (B) must not exceed line (C) $______________________(C)

Debt Qualification Worksheet

Monthly ObligationsTotal Mortgage Payment $______________________Auto Payments* $______________________Monthly Charge Card Payments (minimum payments) $______________________Loans* $______________________Child Support/Alimony $______________________Child Care Expenses (FHA Only) $______________________Other Monthly Payments $______________________Total Monthly Obligations $______________________(D)

Allowable ObligationsFor FHA: Gross Income (A) x 41% orFor Conventional: Gross Income (A) x 38%Total Monthly Obligations (D) must not exceed line (E) $______________________(E)*You need only count debts that will extend beyond six months (FHA) or 10 months (CONV). However, if an obligation is greater than $100 per month, it may count against the buyer even if it has less than the allowed time.

FinancesHow much home can I afford?

In general, your monthly mortgage payment should be at most 28 percent of your monthly gross pay (gross pay is your total compensation before any deductions). In addition, your monthly debt plus your mortgage payment should be no more than 36 percent of your gross take-home pay. Debt includes items such as student loans, credit cards, child support, alimony, and car payments. If you are married, you can add both incomes together to qualify. Just remember that you have to add the debts of both individuals as well.

Prequalify for a mortgageBeing prepared is one of the smartest things you can do to help the home buying process run smoothly. Prequalifying for a mortgage gives you an estimate of what your loan program and the amount you can borrow might look like in advance. This can give you a big advantage at different stages of your house hunt, from helping you prepare your budget and set your expectations to strengthening your negotiating position with the seller when you’re making an offer on a home.

Advantages of Prequalifying - You’ll get an estimage of your borrowing power, which will allow you to focus your house huntin on homes you can afford. - Being prequalified can demonstrate to sellers that you’re serious about buying - Completing the actual mortgage application later on can go faster since you’ve already provided some of your information as part of the prequalification process.

What lenders considerBefore you can expect to prequalify for a mortgage, understand that lenders will be consid-ering your financial situation and certain factors.Among other thing, lenders will consider the following: - Credit History. If you have a good credit score and have paid your bills on time, you’ll be in better shape, but having some credit issues may not automatically disqualify you. - Debt-to-income ratio. This figure is what you owe (your total debt, including housing costs, credit cards, car loans, etc.) in relation to your total income before taxes. Many lenders require that your total debt be no greater than 36% of your gross monthly income. Prequalification vs. preapprovalPrequalification and preapproval are typically two different processes. Prequalification is based on summary information you provide about your income and assets (which may or may not be verified), while preapproval is based on actual verification of your income, credit and assets and is a lengthier and more involved process.Prequalification gives you an estimate of your borrowing power whereas preapproval provides proof to real estate agents and sellers that you’re approved for a specific loan amount.

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Notes

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Table of Contents

Finances.............................................................................................. 2

Buyer Qualification Worksheet......................................................... 3

Debt Qualification Worksheet........................................................... 3

Principal & Interest Chart.................................................................. 4

What do I want in a home?................................................................ 5

Home Comparison Chart................................................................... 5

Making An Offer.................................................................................. 6

Steps of Closing - the Seller, You, & Your Realtor.......................... 7-8

Loan Application Process & Checklist............................................. 9

Steps of Closing - From Contract to Policy..................................... 10

Moving and Closing Checklist.......................................................... 11

After Closing....................................................................................... 12

Notes................................................................................................... 13

Old Republic Title Locations............................................................ 14

The information provided has been obtained from sources believed to be reliable. However, no investigation has been made to determine the accuracy of such information. No person or entity should rely on the accuracy of these materials without conducting a thorough, independent investigation of the same. Old Republic National Title Insurance Company, its officers, agents and employees have no liability, expressed or implied, relating to these materials.

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GarlandFirewheel Town Center

650 Beebalm LaneSuite 260

Garland, TX 75040972.455.6700

Fort WorthCityview Centre

4608 Bryant Irvin RoadSuite 454

Fort Worth, TX 76132817.292.0186

PlanoLegacy Town Center7500 Dallas Parkway

Suite 175Plano, TX 75024

469.237.3659

Mansfield1405 N. Highway 287

Suite 101Mansfield, TX 76063

817.453.8104

Arlington1241 W. Green Oaks Blvd.

Suite 101Arlington, TX 76013

817.457.3930

Addison4006 Beltline Road

Building III, Suite 120Addison, TX 75001

972.455.6700

Flower Mound3020 Corporate Court

Suite 400Flower Mound, TX 75028

972.906.1160

DallasPreston Center - Commercial

8201 Preston RoadSuite 450

Dallas, TX 75225214.239.6400

Colleyville1210 Hall Johnson Road

Suite 150Colleyville, TX 76034

817.428.0888

Dallas15110 Dallas Parkway

Suite 102Dallas, TX 75254

972.419.3003

Where You Have a Title Need - We’re Here for You!

OLD REPUBLIC TITLE

A Guide to the HomeBuying Process

www.oldrepublictitle.com/dfw

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