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SPRING 2023 HOMEBUYER S G U I D E B O O K

S TA RT BUILDING YOUR WE A LT H T HROU G H HOM EOWNERS HIP ANDREW BYRD LOAN OFFICER N M LS 11173 3 6 c 208 818 3768 o 208 292 4213 andy byrd w vbk com w v bk com andrew byrd CALL ME TEXT ME SCAN QR COD E OR CLICK HERE TO LE ARN MORE

The process of Closing Your Home Loan BEHIND THE SCENES Start Get pre qualified 1 Discuss loan options that suit you 2 Complete application provide documents 3 Negotiate purchase 4 Moves into file process 5 Title work appraisal processing 6 Underwriting 7 Conditions 8 Cleared for closing 9 Schedule close with all parties Close First time Homebuyers in Oregon and Idaho could save BIG on their state Taxes while earning 4 00 APY on their Savings1 Celebrate You own a home Click below to learn more about the First Time Homebuyer Savings Account OREGON BUYERS IDAHO BUYERS

Your Trusted Local Home Loan Lender The Givens Experience Delivering an extraordinary client and borrower experience through quicker loan close times and the culture that is WVBK At Willamette Valley Bank our mission is to be the BEST mortgage bank in the WORLD by transforming the experience and expectation of home financing Our CULTURE is built on core slogans that each team member at WVBK lives and embodies every day The most important of these slogans are Leave No Loan Behind An unswayed focus on the borrowers We Do It For The Borrowers We obsess over our customers not our competitors Programs Being a self funding lender allows us to offer a variety of products for you including manual underwriting and loan programs down to 600 credit score to those who qualify Rates We re very cognizant of the importance of competitive rates which is why we monitor and analyze our rate position daily Communication With milestone updates through the loan process we help you spend less time worrying about the status of your loan and more time preparing for your new home In residential lending there should be certain things which are just standard we like to call these the Givens Some lenders talk about great service Availability competitive pricing or their programs like they are special Here at Willamette We re here for you every step of the way Give us a call text email or stop Valley Bank we feel those things should be a GIVEN by your local branch We re here to help make this process feel as smooth as possible Dan King EVP Residential Lending

CHOOSE THE RIGHT Down Payment For You Home Loan Programs Conventional Purchase loans which meet Fannie Mae and or Freddie Mac guidelines and typically require minimum of 3 5 2 down FHA Federal Housing Administration Purchase loans which require a minimum of 3 5 2 down USDA United States Department of Agriculture USDA Loans offer a 0 2 down payment option for any buyer who is under the household income cap and is willing to live in USDA rural areas A home mortgage program that does not require a down payment if you are purchasing in an eligible rural area VA Veterans Affairs These loans are available to active duty retirees veterans or surviving spouses of the U S Military who meet program restrictions Jumbo A loan is considered jumbo if the amount of the mortgage exceeds loan servicing limits set by Fannie Mae and Freddie Mac 2023 limits are 726 200 for a single family home in all states except Hawaii Alaska and a few federally designated high cost markets where the limit is 1 750 000 Construction Contact me today to see if you qualify for construction financing Refinance Replacing an existing loan with another under different terms to take advantage of a better interest rate lower monthly payments or to take out cash 0 5 2 Ideal for borrowers with limited savings or first time homebuyers who may be unable to save a substantial amount for a down payment Keep in mind you ll be required to purchase Private Mortgage Insurance PMI to protect the lender in case of default Government backed loan programs such as FHA VA and USDA loans may have more lenient credit requirements and lower down payment thresholds 5 19 2 PMI will still apply until you reach 20 equity in your home however you can request PMI removal once you ve achieved 20 equity Depending on your location and eligibility down payment assistance programs may be available to you as well 20 2 By putting 20 down you can avoid purchasing PMI saving on monthly mortgage payments A larger down payment also signifies lower risk to lenders often resulting in access to more competitive interest rates A higher down payment may also give you an edge in competitive markets as sellers often prefer buyers with stronger financial standing

DO These Things DON T Do These Things Stay current on existing accounts Call your mortgage professional with any questions or concerns about your credit Maintain your current employment Be prepared for full financial disclosure Talk with your Willamette Valley Bank loan officer before making large deposits into your bank account T H E F I V E C O M P O N E N T S O F YO U R FICO Score Payment History 35 In the calculation of your FICO credit score no factor is more important than your payment history That history is comprised of many complex components but ultimately experts say it s pretty simple pay your bills on time every time Total Debt 30 If you want to earn a good score you ll need to pay attention to your amounts owed the second most important factor used to calculate a borrower s FICO score Years of Credit History 15 Don t apply for new credit It may not be the most important factor but if you don t have a long credit history you can probably forget ever having a perfect score Plus without at least some length of credit history you won t have a score at all Don t close existing accounts New Credit 10 Don t increase credit card balances Don t make major purchases including furniture or vehicles Don t consolidate your debt Taking on too much new credit too quickly can hurt your FICO credit score However adding new credit to an old troubled account may actually help your score Confused Welcome to the complex world of the FICO credit score Types of Credit 10 Want good credit Responsible use of a single loan can get you there But if you want a top credit score the kind that gets you the best rates the highest limits and the sweetest deals you re going to have to mix it up a bit Don t pay off collections or charge offs Don t become self employed or 1099 Don t omit liabilities from your application HOMEOWNERSHIP STARTS HERE 550 620 Credit Score 621 700 Credit Score 700 850 Credit Score you may qualify for down payment assistance programs Conventional FHA USDA Jumbo

Temporary Buydowns 2 1 BUYDOWN 3 2 1 BUYDOWN YEAR ONE 1 0 0 LO W E R 2 0 0 LO W E R 3 0 0 LO W E R T H A N N OT E R AT E T H A N N OT E R AT E T H A N N OT E R AT E R E T U R N S TO N O T E R AT E F O R L I F E O F LO A N 1 0 0 LO W E R 2 0 0 LO W E R T H A N N OT E R AT E T H A N N OT E R AT E YEAR FOUR YEAR THREE 1 0 BUYDOWN YEAR TWO T H R E E B U Y D OW N O P T I O N S TO FIT THE NEEDS OF BUYERS SELLERS I N T O D AY S C H A N G I N G M A R K E T R E T U R N S TO N O T E R AT E F O R L I F E O F LO A N 1 0 0 LO W E R T H A N N OT E R AT E R E T U R N S TO N O T E R AT E F O R L I F E O F LO A N H O W D O E S A R AT E B U Y D O W N W O R K A seller funded rate buydown allows you to ease into homeownership with a lower starting mortgage payment This program could save you thousands and may Rest easy knowing your home loan is in the hands of the 1 Community Bank IN THE NATION SINCE 2019 3 make your offer more attractive in this changing market Call me today to discuss how a Temporary Buydown may be the right choice for your next home purchase American Banker Magazine

Down Payment Assistance Down payment assistance is money that s made available to consumers to help them cover the upfront cash required by a lender to buy a home The funds typically come from federal and state housing agencies banks and local nonprofit housing authorities in the form of grants or low or no interest rate loans National DPA Little or no down payment may be possible with a National Down Payment Assistance Second Mortgage Available Grants Home tart Program Qualified borrowers who meet the income restrictions could receive up to 7 500 in grant funds for down payment or closing costs Program is first come first served while funds are available NAHI The Native American Homeownership Initiative is a down payment and closing cost assistance program offered to qualifying Native American Native Alaskan and Native Hawaiian homebuyers who meet the income restrictions and who complete a homebuyer education course Qualifying NAHI participants may Washington Bond Borrowers that meet the income restrictions and complete a homebuyer receive up to 15 000 in grant funds Program is first come first served while funds are available education course may be eligible to receive a percentage of the mortgage loan amount to use toward down payment through the Home Advantage loan OR the Conventional HFA Preferred loan Idaho Housing Idaho Housing offers down payment and closing cost assistance to homebuyers who meet qualifications reducing the amount of cash they ll need up front to purchase a home Homebuyers must complete a homebuyer education course and meet program income restrictions Since 2017 WVBK has secured over 1 5 million in Home tart grant funds making the dream of owning a home possible for over 500 families and counting

10 DAYS TO CLOSE States where WVBK has funded loans 8 States with Local WVBK offices Our fastest close times in 2022 DAYS TO CLOSE 12 8 DAYS TO CLOSE DAYS TO CLOSE 20 9 DAYS TO CLOSE DAYS TO CLOSE 16 DAYS TO CLOSE 16 DAYS TO CLOSE 17 DAYS TO CLOSE

Lock Shop The Benefit Finding a home takes time but that doesn t mean you have to lose out on an interest rate that works for you Willamette Valley Bank will lock your rate 30 DAY LOAN CLOSING GUARANTEE for up to 75 days so you can take your time shopping for the right home with confidence your rate is waiting for you when you ve found it The Details NO Upfront fees Offered on 30 Year Fixed Conventional High Balance FHA VA and USDA Available for purchase transactions only 60 or 75 day locks only Purchase agreement required within 30 days of lock to maintain the lock IF WILLAMETTE VALLEY BANK FAILS TO CLOSE YOUR LOAN WITHIN 30 DAYS WE WILL PAY THE SELLER 5 0004

Mortgage Product Overview Buying a home is a big choice something a lot of people dream of and work towards No Home Equity Gained Possible Rent Increases Potential For Home To Rise In Value USDA RURAL Limited Ability To Customize Home Paint The Walls Any Color You Want Varies based on county Pet Limitations Extra Costs Get The Pet You ve Always Wanted 0 0 No Tax Advantage To Renting Possible Tax Write offs Advantages5 years We do it for the borrowers is our motto and we mean it Reach out to me to start the process and I ll help you find the loan to fit your needs Max Loan Amount Minimum down payment 726 200 higher in some counties As low as 3 0 Max DEBT TO INCOME ANNUAL PMI Paid Monthly VA Varies based on county 1 500 000 3 5 0 0 with full entitlement Max DTI can vary by loan ask me for details 80 LTV requires PMI 95 LTV 0 80 premium can vary 95 or less 0 85 call for details OWN Improvements Benefit You Rather Than The Landlord We know what support our homeowners need because we ve been doing this for FHA VS Your Landlord Gets All Potential Tax Breaks for years Being there to help make that possible is what WVBK loves doing most CONVENTIONAL RENT No PMI 0 35 Minimum Credit score 620 550 580 581 Seller contributions 90 LTV 3 75 90 LTV 6

Useful Terms Definitions Let s Talk Home Loans PITI The components that make up your monthly mortgage payment principal interest taxes mortgage insurance homeowner s insurance and HOA I am looking forward to guiding you through your home loan journey Principal The amount of the loan that has not been paid back to the lender Interest A fee charged for borrowing money typically paid in monthly installments Property tax A tax charged by local government and used to fund municipal services Please contact me with any questions you may have or if you are ready to get started Mortgage Insurance Protects lenders against some or most of the losses that occur when a borrower defaults on a mortgage loan Homeowner s Insurance Combines protection against damage to a dwelling and its contents including fire storms or other damages with protection against claims of negligence or inappropriate action that results in someone s injury or property damage Escrow An account established by a third party to act as intermediary for the buyer and seller This can also refer to the impound account for monthly collection of taxes and insurance after the loan closes LTV Loan to Value ratio of loan amount to value of home DTI Debt to Income ratio of monthly income to monthly debt in percent Seller Concession A seller concession is a portion of the buyer s closing costs and prepaid expenses that the seller agrees to pay for lowering the overall upfront costs for the buyer All rights reserved This is not a commitment to lend as products are subject to credit approval Terms subject to change without notice Willamette Valley Bank is not acting on behalf of or at the direction of FHA VA HUD or the Federal government Loan program information is accurate as of 4 21 2023 1 Interest earned available for First Time Home Buyer Savings Accounts Annual Percentage Yield APY is accurate as of 4 21 2023 but may change at bank discretion Interest is compounded quarterly and APY assumes principal and interest remain on deposit for term Fees may reduce earnings Account required minimum deposit of 100 Ask an employee for information about applicable fees and terms For more information and detailed requirements idaho borrowers visit https legislature idaho gov wp content uploads sessioninfo 2020 legislation H0483 pdf Oregon borrowers visit www oregon gov dor programs individuals Pages Firsttime Home Buyer aspx Borrowers should consult their own tax advisors to determine if they are eligible for tax deductions Subject to qualifying credit approval 2 Terms of repayment and annual percentage rates vary based on individuals credit criteria Percentage provided as general information for program 3 No 1 on the list of 200 top performing publicly traded banks with less than 2 billion of assets by American Banker Magazine 4 Contact your WVBK Loan officer for a list of all terms and conditions Valid in WA OR ID only Borrower s must respond to all requests for additional information and or documentation including Disclosures within 1 business day if borrower is unable to obtain documentation from 3rd parties that results in a delay in closing the Guarantee is void Once the Willamette Valley Bank Mortgage Application is submitted by the Borrower s there cannot be any change in Borrowers employment or any other change in Borrowers loan qualifying information that has an adverse effect on Borrowers loan qualifying eligibility Interest rate must be locked within 10 calendar days of WVBK receiving the fully executed Purchase and Sale Agreement If day 10 falls on a weekend or holiday it will roll to the following business day Borrower must receive and accept the Terms and Conditions

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