Learn about first time home buyer programs to purchase real estate. First time home buyer loan programs are our there to help you buy your first home. Down payment assistance and special government programs can help with closing costs. HomeBoom.com is a great place to search for the perfect house.

1. Land Home
Financial Services
First-Time Homebuyers Presenation
Sean Safholm, RVP, Northern California
NMLS/CA-DOC #121627

2. Land Home Financial Service’s Inc.
Built on Knowledge, Commitment & Trust Since 1988
Our Mission…
To provide diversified funding options and consistent,
superior, personalized service to our clients and partners,
including: homebuyers, mortgage brokers, builders,
manufactured home retailers, and real estate agents.

3. Are you ready to buy a home?
If you’re like many today,
owning your own home is a
major part of the your
dreams.

4. Are You Ready to Buy a Home?
• Your Employment Status
• Your Credit History
• Down Payment
• Can you afford the monthly
mortgage payment?
• How much home can you afford?

5. Your Employment Status
• If you have been working for two years or more, you are
considered to have steady employment.
• You do not have to have held the same job for two years
in order to be approved for the loan.
• If you have been fired because of excessive absences,
have large gaps in your employment history, or have dips
in your income level that are difficult to explain, you most
likely should delay purchasing a home until you have a
more consistent work history.

6. Your Credit History
• You will be asked to list all your debts, the amount you
pay each month, and how long before these debts are
paid in full.
• It’s important to disclose all debts and any difficulty you may
have had in the past in repaying these loans.
• Land Home will order a credit report to verify the
information and to check on how well you have paid your
bills.
• Three credit reporting companies provide credit reports:
Experian, Trans Union Corporation, Equifax
• If your credit report shows that you do not have good credit
you may need to delay trying to buy a home and take steps
to improve your credit.

7. Down Payment
• When you are purchasing a home, you will need a down
payment and “closing costs.”
• Down payment can be as low as 3.5% (FHA products) or as
much as 20% (Conventional Financing).
– There are some loan programs that provide down payment
assistance.
• Some areas have programs to help first-time homebuyers.
• 3% down payment conventional programs
• VA 100% financing options for those who qualify

8. Can you afford the monthly
mortgage payment?
• The amount of your home loan payment will depend on
how much you borrow, the term of the loan, and the
interest rate.
• There are other expenses that will be added to your
monthly payment.
– taxes, homeowner’s insurance, PMI Insurance
• If your down payment is less than 20 percent, you should
not need to pay private mortgage insurance (PMI).

9. Facts About the Lending Process
You’re ready to buy a
home.
What do you do first?

10. Facts About the Lending Process
• The Advantages to Becoming Pre-approved
• What Documents Will I Need for My
Loan Application?
• Mortgage Products

11. The Advantages to
Becoming Pre-approved
• You will know exactly how much house you can afford,
eliminating the guesswork and potential disappointment.
• You’re in a better position to negotiate a lower price
because the seller knows your offer is good.
• Once the appraisal and title work’s done, you could
close on a home faster.
• It’s like shopping for a home with the money in
your pocket.
• A pre-approval is generally good for approximately
90 days.

12. What Documents Will I Need
for My Loan Application?
• Personal Information
• Debt Disclosure
• Pay Stubs/W2s
• Income Tax Returns
• Other Income
• Loan Application for
Home Purchase
• Child Support
• Rental Income
• Evidence of Funds for
Down Payment
• Bank Account or Other
Asset Verification
•
Other

13. Mortgage Products
• Government
– FHA Loans
– Veterans Administration
– USDA
– HomePath
• Fixed-Rate Mortgages
• Adjustable Rate Mortgages (ARM)
• Conforming Loans
• Jumbo Loans
• Non-Conforming Loans

14. Finding the Right Home For You
Now that you have been
pre-approved it’s time to
starting hunting for your
dream home.

15. Finding the Right Home For You
• Where do you want to live? What type
of home do you want? How much should you
offer? These are some of the questions that are
most likely going through your mind.
• One of the best ways to start this process is to
hire a reputable Real Estate Agent.

16. What to look for
in a Real Estate Agent
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A Full Time, Hard-Working Professional
Fully Aware of Market Conditions and Available Financing
Backed by Professional Marketing Management
Associated with a Reputable Real Estate Firm
Aware of Recent Property State and Local Requirements
Willing to Cooperate with All Brokers
Committed to the Highest of Ethical Standards
Associated With a Strong Team of Lenders, Inspection
Companies, Title Companies and other Real Estate
Service Professionals
• Last but not least – Do you like this person?

17. Finding the Right Home For You

18. The Home Buying Process
After searching and looking at
many houses, you succeeded in
finding
the home of your dreams.

19. The Home Buying Process
• No doubt you are very excited and ready to start
packing. But, there are still a few more things that
have to happen before you can move in.
• The following slides will give you insight on what
the final process will involve.

20. Making an Offer
You should consider several things when
deciding how much to offer:
1. Asking price vs. comparable home sales
2. Current market conditions
3. Other potential offers
4. How much you want the house
5. The home’s condition
6. If you’re approved for a loan, etc.

21. Making an Offer
Next is the Purchase Agreement:
•
Your agent will supply you with the purchase
agreement to sign. This indicates the amount of
your offer.
•
You’ll put down “earnest money,” a deposit to show
that you’re willing and able to buy the home.
•
Earnest money is generally a small percentage of
the asking price and is later applied to your home’s
down payment.

22. Making an Offer
The Counter Offer:
•
Your agent presents your offer to the seller’s agent
who in turn presents it to the seller.
•
Most offers request a response within 24 to 72
hours. They will sign your contract accepting your
offer, decline your offer or submit a counter offer.
•
If they present you with a counter offer, you can
either agree with their terms or make another
counter offer. This process continues until
everyone comes to an agreement.

23. Escrow
• Escrow is the neutral third party who handles the
transfer of documents and monies involved in the
closing of a Real Estate Transaction based upon
written instructions from the buyer, seller and
lender involved.
• After the offer is accepted you would put an
“Earnest Money” deposit with an Escrow Company,
Attorney, or a closing company depending upon the
State in which you live.

24. Escrow
The Escrow Process:
•
Lender’s/Real Estate Agent’s request to open
escrow is received.
•
Title Insurance is/or has been ordered.
•
Lien information is requested and loan payoff
information is ordered.
•
Title is reviewed for Judgments., Assessments, Homeowner
Dues, Leased Fixtures, Probate Matters, Encroachments.
•
Loan documents are prepared by Lender and
received by escrow.
•
Escrow prepares closing documents and estimated
settlement statement.

25. Escrow
The Escrow Process Continued:
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Separate appointments are scheduled for buyer and
seller to sign closing documents.
Buyer deposits necessary funds to close transaction.
Escrow prepares funding package which is delivered to
the lender for approval.
Recording documents are delivered to Title Company.
Upon lender approval, closing documents are recorded
and wired funds are received.
Upon receipt of recording numbers, final settlement
statements are issued and checks are disbursed.

26. The Home Inspection Process
• After your offer has been accepted you will need to set
up a home inspection.
• Your real estate professional can help find a reputable
inspector, and will negotiate to get you the most for
your money once the inspector’s report is final.
• If you negotiate repairs as part of the purchase, ask for
a “walk through” before finalizing the paperwork.
• Ask your real estate expert about home protection
plans, which may save you money in the near future.

27. The Appraisal Process
• Your lender will require that an appraisal of the property
be completed by a certified appraiser.
• You will normally have to bear the expense of
the appraisal.
• The appraisal compares the home you are purchasing
to similar homes that have recently sold in the
surrounding area.
• The purpose of the appraisal is to ensure that the
appraised value of the home, based on comparable
sales, justifies the loan amount you will obtain from
the lender.

28. The Title Search
• A title search is the process of investigating the
ownership history of the property you plan to purchase.
• Trained personnel investigate public records to
determine the “chain of title,” which is the history of the
ownership and claims upon a piece of land.
• By law, county records have to be kept on all property
transfers, wills, liens, tax matters, etc., and these are
the types of records searched in order to determine a
“chain of title.”
• The end product of a search is knowledge of potential
and actual encumbrances upon a title.

29. The Title Search
• Liens on a property need to be paid off or knowingly
assumed by the new owner before transfer of title
can occur.
• A Title Company will make sure that this happens.
• Easements and other factors need to be known.
• It has to be determined whether the seller of a property
actually has the right to sell that property.

30. Title Insurance
• Title Insurance is insurance that protects the lender
(lender’s policy) or the buyer (owner’s policy) against loss
arising from disputes over ownership of a property.
• If a claim is filed against the property, you could lose your
entire home and property and still be liable to pay off the
balance of your mortgage.
• Title insurance will, in accordance with the terms of your
policy, assure you of a legal defense – and pay all court
costs and related fees. Also, if the claim proves valid, you
will be reimbursed for your actual loss up to the face
amount of the policy.

31. Homeowner’s Insurance
• You’ll need homeowner’s insurance before you close.
• No lender will give you a mortgage without it.
• It’s important that your equity in the home and your lender’s
investment are insured against damage. And you’ll want a
policy that covers your personal belongings too.
• It is best to contact three reputable Insurance agencies to
compare pricing.
• Check with your loan agent for the minimum requirements.

32. Closing
• The closing is the finalization of a real estate sale and
loan transaction.
• It’s customary to take a final walk through of the property before
the closing.
• At the time of closing you will need to pay the closing costs.
• Closing costs are estimated at the beginning of loan processing
with a “Good Faith Estimate” of settlement charges.
• When borrowers sign their closing documents, a final statement
showing all fees will be provided.
• The timing of your closing is important schedule it to your
best advantage.
• Before your closing, you’ll receive a document that outlines all of
the costs you’ll be paying at closing.

33. Closing
• You’ll be asked to bring a valid picture ID, a certified check, if
applicable, and any other additional required documents.
• Closing can be attended by any number of people and may or
may not include the seller, the lender, you, the seller’s mortgage
holder, respective attorneys, the real estate agent, the managing
agent (if it’s a condo) and the title company representative.
• Everyone signs the documents and they are then sent to the
lender for review.
• Once the lender has approved the documents funding is done
and the recording takes place the following day.
• After all has taken place you will then receive
the keys to your new home.

34. Closing
Possible Closing Cost:
• Credit Report
• Processing Fee
• Escrow Deposit for Taxes
and Insurance
• Transfers Taxes
• Loan Discount Points
• Title Company
• Closing Fee
• Buyer’s Attorney Fee
• Title Insurance
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Homeowner’s Insurance
Underwriting Fee
Survey Fee
Home Inspection
Pest Inspection
Recording Fees
Courier Fee
Prepaid Interest
Application Fee

35. Prepare to Move-in
• Before rolling out the welcome mat, consider
some moving-in basics, such as, arranging for the
electricity, water and gas to be turned on,
cleaning or replacing the carpet, and notifying
your local post office of your new address.
• Keep in mind the best time for renovations is often
before you move in.

36. Why You Should
Choose Land Home…
We’ve built our reputation on
Knowledge, Commitment,
and Trust Since 1988.

37. Why You Should
Choose Land Home…
You have a lot invested – emotionally, financially, and
mentally – in this process. We’ve been helping to create and
advise homeowners for more than 25 years.
Our products and services are custom-built around the
understanding of a your needs and how to best enable you,
the possibility of homeownership.

38. Why You Should
Choose Land Home…
• Mortgage banker, in business since 1988
• Celebrating 25 successful years in business
• Fannie/Freddie seller servicer
• In-house underwriting, doc drawing, and funding to insure
a smooth loan transaction!
• Staffed with several on site direct endorsement
underwriters.
• On-site Appraisal Management Team
• Excellent personalized customer service

39. Sean Safholm
RVP, Northern California
858-774-0009 • Sean.Safholm@lhfs.com
NMLS/CA-DOC #121627
Equal Housing Opportunity Lender. Rates, Program, Fees, and Guidelines are subject to change without notice. Restrictions apply. Not a commitment to lend. Land Home only conducts business in states we are
approved to. Land Home Financial Services 2356 Gold Meadow Way, Suite 120, Gold River, CA 95670. NMLS #1097894. Licensed by the Department of Business Oversight under the California Finance Lenders
law - #6073599. CA Department of Business Oversight - 916-324-6624. California - Bureau of Real Estate Branch Office License Endorsement #00988341. 10-15-13