Return to flip book view

HOMEBUYER S GUIDEBOOK

SCOTT PLUMB LOAN OFFICER NMLS 917621 c 971 283 1574 o 503 485 2222 scott plumb wvbk com wvbk com scott plumb CALL ME TEXT ME

START BUILDING YOUR WEALTH THROUGH HOMEOWNERSHIP SCAN QR CODE OR CLICK HERE TO LEARN MORE

Your Trusted Local Lender

At Willamette Valley Bank our mission is to serve everyone with personalized care and outstanding service We are a locally focused bank and mortgage operation in the heart of the Pacific North West Small enough to ensure our customers are cared for on a personal level and large enough to sustain the needs of customers nationwide

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 Celebrate You own a home

First time Homebuyers in Oregon and Idaho could save BIG on their state Taxes while earning 4 00 APY on their Savings1 Click below to learn more about the First Time Homebuyer Savings Account OREGON BUYERS IDAHO BUYERS

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 2024 limits are 766 550 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

CHOOSE THE RIGHT DOWN P AYMENT FOR YO U 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 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 Don t apply for new credit Don t close existing accounts Don t increase credit card balances Don t make major purchases including furniture or vehicles Don t consolidate your debt Don t pay off collections or charge offs Don t become self employed or 1099 Don t omit liabilities from your application DON T DO THESE THINGS

THE FIVE COMPONENTS OF YOUR 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 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 New Credit 10 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 HOMEOWNERSHIP STARTS HERE 550 620 Credit Score you may qualify for down payment assistance programs 621 700 Credit Score Conventional FHA USDA 700 850 Credit Score Jumbo

TEMPORARY BUYDOWNS YEAR ONE WILLAMETTE VALLEY BANK HAS THREE BUYDOWN OPTIONS TO FIT THE NEEDS OF BUYERS SELLERS IN TODAY S CHANGING MARKET 1 0 BUYDOWN 1 00 LOWER THAN NOTE RATE RETURNS TO NOTE RATE FOR LIFE OF LOAN 2 1 BUYDOWN 2 00 LOWER THAN NOTE RATE 1 00 LOWER THAN NOTE RATE RETURNS TO NOTE RATE FOR LIFE OF LOAN 3 2 1 BUYDOWN 3 00 LOWER THAN NOTE RATE 2 00 LOWER THAN NOTE RATE 1 00 LOWER THAN NOTE RATE RETURNS TO NOTE RATE FOR LIFE OF LOAN YEAR YEAR YEAR FOUR THREE TWO HOW DOES A RATE BUYDOWN WORK 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 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

Rest easy knowing your home loan is in the hands of the 1 COMMUNITY BANK IN THE NATION 4 Time Winner3 American Banker Magazine

DOWN P AYMENT A SSIS T A NCE 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 Washington Bond Borrowers that meet the income restrictions and complete a homebuyer 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

AVAILABLE GRA NT S Home tart Program Qualified borrowers who meet the income restrictions could receive up to 15 000 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 receive up to 25 000 in grant funds Program is first come first served while funds are available Since 2017 WVBK has secured over 1 5 million in Home tart grant funds making the dream of owning a home possible for over 280 families and counting

10 DAYS TO CLOSE 12 DAYS TO CLOSE 20 DAYS TO CLOSE 8 DAYS TO CLOSE 16 DAYS TO CLOSE

States where WVBK has funded loans States with Local WVBK offices Our fastest close times in 2023 8 DAYS TO CLOSE 9 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 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

30 DAY LOAN CLOSING GUARANTEE IF WILLAMETTE VALLEY BANK FAILS TO CLOSE YOUR LOAN WITHIN 30 DAYS WE WILL PAY THE SELLER 5 0004

MORTGAGE PRODUCT OVERVIEW5 Buying a home is a big choice something a lot of people dream of and work towards for years Being there to help make that possible is what WVBK loves doing most We know what support our homeowners need because we ve been doing this for 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 CONVENTIONAL FHA VA 766 550 higher in some counties Base loan amount can not exceed 115 of the FHA statutory Mortgage limits 1 500 000 USDA RURAL Varies based on county Minimum down payment As low as 3 0 3 5 0 0 with full entitlement 0 0 Max DEBT TO INCOME Max DTI can vary by loan ask me for details ANNUAL PMI Paid Monthly 80 LTV requires PMI 95 LTV 0 80 premium can vary 95 or less 0 85 call for details No PMI 0 35 Minimum Credit score 620 550 580 581 Seller contributions 90 LTV 3 75 90 LTV 6

RENT VS OWN Your Landlord Gets All Potential Tax Breaks No Home Equity Gained Possible Rent Increases Limited Ability To Customize Home Pet Limitations Extra Costs No Tax Advantage To Renting Improvements Benefit You Rather Than The Landlord Potential For Home To Rise In Value Paint The Walls Any Color You Want Get The Pet You ve Always Wanted Possible Tax Write offs Advantages6

USEFUL TERMS DEFINITIONS PITI The components that make up your monthly mortgage payment principal interest taxes mortgage insurance homeowner s insurance and HOA 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 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

Let s Talk Home Loans I am looking forward to guiding you through your home loan journey Please contact me with any questions you may have or if you are ready to get started 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 2 5 2024 1 Interest earned available for First Time Home Buyer Savings Accounts Annual Percentage Yield APY is current as of 2 5 2024 Interest is paid monthly Account requires minimum deposit of 100 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 First time Home Buyer aspx Borrowers should consult their own tax advisors to determine if they are eligible for tax deductions 2 Percentage of downpayment referenced are program minimums Home loan products are available to those who qualify Terms of repayment and annual percentage rates vary based on individuals credit criteria WVBK is not acting on behalf of or at the direction of FHA HUD VA or the Federal government 3 No 1 on the list of 200 top performing publicly traded banks with less than 2 billion of assets by American Banker Magazine 20192022 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 5 Terms of repayment and annual percentage rates vary based on individuals credit criteria Percentage provided as general information for program Automated underwriting software approval required 6 Borrowers should consult their own tax advisors to determine if they are eligible for tax deductions

Ready to begin your Home Loan Journey Click here to Start searching for your dream home today