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At Willamee Valley Bank our mission is to be the BEST mogagebank in the WORLD by transforming the experience and expectationof home nancing. Our CULTURE is built on core slogans that each team member at WVBK lives and embodies eve day.In residential lending there should be ceain things which are just standard, we like to call these the “Givens”. Some lenders talk about great service, competitive pricing, or their programs like they are special. Here at Willamee Valley Bank we feel those things should be a GIVEN.Dan King - EVP, Residential LendingLeave NO LOAN BehindWE Do It FOR THE BorrowersAn unswayed focus on the BORROWERS.Obsessing over our Customers, not our competitors.YOUR LocalHOME LOAN LENDER3
EXPERIENCEDelivering an extraordina client and borrower experience through quicker loan close times and the culture that is WVBK.PROGRAMSBeing a self-funding lender allows us to oer a variety of products for you, including manual underwriting and loan programs down to 600 credit score to those who qualify.RATESWe’re ve cognizant of the impoance of competitive rates, which is why we monitor and analyze our rate position daily.COMMUNICATIONWith milestone updates through the loan process, we help you spend less time woring about the status of your loan and more time preparing for your new home.AVAILABILITYWe’re here for you eve step of the way. Give us a call, text, email, or stop by your local branch. We’re here to help make this process feel as smooth as possible.The Givens4
# 1Community BankIN THE NATIONSINCE 2019No. 1 on the list of 200 top performing publicly traded bankswith less than $2 billion of assets by American Banker Magazine.5
LESS THAN 5%*Low down payment programs can be more expensive because they may require mogage insurance or a higher interest rate. Look closely at your total fees, interest rate, and monthly payment when comparing options.Ask about loan programs such as:• Conventional & FHA loans that may oer low down payment options.• VA, which oers a zero down payment option for qualifying borrowers.• USDA, which oers a similar zero down payment program for eligible borrowers in rural areas.5%-19%*You may have to pay higher interest rates or fees. Lenders require private mogage insurance (PMI). PMI is an insurance policy that allows you to make a lower down payment by insuring the lender against loss if you fail to pay your mogage.20%+*A higher down payment likely provides the lowest rates and most options. However, think twice if the down payment drains all your savings because a lower rate doesn’t necessarily mean it’s the right loan for you. CHOOSE THE RIGHTDOWN PAYMENT FOR YOU*Terms of repayment and annual percentage rates va based on individuals credit criteria. Percentage provided as general information for program. 6
HOME LOAN PROGRAMDOWN PAYMENT REQUIREMENTSCONVENTIONALFHAJUMBOVAUSDA/RURAL3-5%* DOWN3.5-5%* DOWN10-20%* DOWN0%* DOWN0%* DOWNLOANPROGRAMMINIMUMDOWN PAYMENT*Terms of repayment and annual percentage rates va based on individuals credit criteria. Percentage provided as general information for program. 7
First Time Homebuyers2% Annual Percentage Yield ‡Account available to eligible residents of Oregon and Idaho. *For more information and detailed requirements, borrowers in Oregon visit www.oregon.gov/dor/programs/individuals/pages /rst-homebuyers.aspx, borrowers in Idaho visit hps://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3022. Borrowers should consult their own tax advisors to determine if they are eligible for tax deductions. †hps://www.fdic.gov/regulations/resources/rates accurate as of 2/2/2022. ‡Interest earned available for First Time Home Buyer Savings Accounts. Annual Percentage Yield (APY) is current as of 4/27/2022. Interest is paid monthly. Account required minimum deposit of $100. Fees may reduce earnings. Ask an employee about applicable fees and terms.Opening a savings account withWILLAMETTE VALLEY BANKTo purchase your first homeMay help reduce your taxes*& help you earn up to 33x thenational average† on your savings!8
Stay current on existing accounts.Call your mogage professional with anyquestions or concerns about your credit.Maintain your current employment.Be prepared for full nancial disclosure.Talk with your Willamee Valley Bank loanocer before making large deposits intoyour bank account.Don’t apply for new credit.Don’t close existing accounts.Don’t max out credit cards.Don’t make major purchases includingfurniture or vehicles.Don’t consolidate your debt.Don’t pay o collections or “charge-os.”Don’t become self-employed or 1099.Don’t omit liabilities from your application.Do These ThingsDon't Do These Things9
CONVENTIONALPurchase loans which meet Fannie Mae and/or Freddie Mac guidelines and typically require minimum of 3-5%* down.FHA (Federal Housing Administration) Purchase loans which require a minimum of 3.5%* down.USDA (United States Depament of Agriculture)USDA Loans oer a 0%* down payment option for any buyer who is under the household income cap and is willing to live in USDA/rural areas. A home mogage program that does not require a down payment if you are purchasing in an eligible rural area.VA (Veterans Aairs)These loans are available to active duty, retirees, veterans or surviving spouses of the U.S. Milita who meet program restrictions.JUMBOA loan is considered “jumbo” if the amount of the mogage exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — 2022 limits are $647,200 for a single-family home in all states (except Hawaii and Alaska and a few federally designated high-cost markets, where the limit is $970,800).CONSTRUCTIONContact a WVBK loan ocer to see if you qualify for construction nancing.REFINANCEReplacing an existing loan with another under dierent terms to take advantage of a beer interest rate, lower monthly payments, or to take out cash. HOME LOAN PROGRAMS*Terms of repayment and annual percentage rates va based on individuals credit criteria. Percentage provided as general information for program. 10
HOME$TART PROGRAMQualied borrowers who meet the income restrictions could receive up to $7,500 in grant funds for down payment or closing costs. Program is rst-come, rst-served while funds are available.NAHIThe Native American Homeownership Initiative is a down payment and closing cost assistance program oered to qualifying Native American, Native Alaskan and Native Hawaiian homebuyers who meet the income restrictions and who complete a homebuyer education course. Qualifying NAHI paicipants may receive up to $15,000 in grant funds. Program is rst-come, rst-served while funds are available. IDAHO HOUSINGIdaho Housing oers down payment and closing cost assistance to homebuyers who meet qualications, 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.WASHINGTON BONDBorrowers that meet the income restrictions and complete a homebuyer education course may be eligible to receive a percentage of the mogage loan amount to use toward down payment through the Home Advantage loan OR the Conventional HFA Preferred loan. DOWN PAYMENT PROGRAMS11
Mortgage RatesWHAT ARE THEY TODAY?NOW MAY BE THE RIGHTTIME TO BUY OR REFIBuying a home is a huge step in your life. Doing a mogage checkup at the right time is equally as impoant. Peorming a regular mogage checkup is an impoant step to achieving your nancial goals.Is it time for a Mortgage Checkup?It depends on your loan type and goals. Do you want to:• Consolidate debt?• Eliminate mogage insurance?• Remodel your kitchen?• Reduce your mogage payment?• Reduce your loan term?• Take cash outWe suggest peorming a mogage checkup one year aer your loan closes, and eve 6-12 months aer that.12
���������Mortgage InterestMortgage PointsLocal Property TaxHome OfficeMoving ExpensesEnergy-Efficient CreditAdjusted BasisMedical ImprovementsHome Rental*This adveisement does not constitute tax advice. Borrowers should consult their own tax advisors.PossibleHOMEOWNERSHIPTax Deductions*13
Since 2014, WVBK has secured over $1,500,000 in down payment assistance* for our borrowers with up to $7,500 each in Grant Funds to use toward closing costs or the down payment on their home.Native American, Native Alaskan,& Native Hawaiian borrowers could receive Grant Funds to use toward closing costsor down payment up to $15,000†HOME$TART GRANTNAHINATIVE AMERICAN HOMEOWNERSHIP INITIATIVE *Amount accurate as of 1/4/2022 †For qualifying Native American, Native Alaskan and Native Hawaiian borrowers who meet the income restrictions and who complete a homebuyer education course. Program is rst come, rst served while funds are available.14
PITIThe components that make up your monthly mogage payment: principal, interest, taxes, mogage insurance, homeowner’s insurance, and HOA.PRINCIPALThe amount of the loan that has not been paid back to the lender.INTERESTA fee charged for borrowing money, typically paid in monthly installments.PROPERTY TAXA tax charged by local government and used to fund municipal services.MORTGAGE INSURANCEProtects lenders against some or most of the losses that occur when a borrower defaults on a mogage loan.HOMEOWNER’S INSURANCECombines protection against damage to a dwelling and its contents including re, storms, or other damages with protection against claims of negligence or inappropriate action that results in someone’s inju or propey damage.ESCROWAn account established by a third pay to act as intermedia for the buyer and seller. This can also refer to the impound account for monthly collection of taxes and insurance aer the loan closes.LTVLoan to Value: ratio of loan amount to value of home.DTIDebt to Income: ratio of monthly income to monthly debt in percent (%).USEFUL TERMS & DEFINITIONS15
PAYMENT HISTORY = 35%In the calculation of your FICO credit score, no factor is more impoant than your payment histo. That histo is comprised of many complex components, but ultimately, expes say, it’s prey simple: pay your bills on time, eve time.TOTAL DEBT = 30%If you want to earn a good score, you’ll need to pay aention to your amounts owed–the second most impoant factor used to calculate a borrower’s FICO score.YEARS OF CREDIT HISTORY = 15%It may not be the most impoant factor, but if you don’t have a long credit histo, you can probably forget ever having a peect score. Plus, without at least some length of credit histo, you won’t have a score at all.NEW CREDIT = 10%Taking on too much new credit too quickly can hu 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.CREDIT SCORE GAUGE<600Needs Work600-680Average680-740Good740+ExcellentTHE FIVE COMPONENTS OF YOURFICO SCORE16
Vs.*Borrowers should consult their own tax advisors to see if they are eligible for tax deductions.OWNImprovements Benet YouRather Than The LandlordPotential For HomeTo Rise In ValuePaint The Walls AnyColor You Want! Get The Pet You’veAlways Wanted!Possible Tax Write-os& Advantages*RENTYour Landlord GetsAll Potential Tax BreaksNo Home Equity Gained &Possible Rent IncreasesLimited AbilityTo Customize HomePet Limitations &Extra Costs No Tax AdvantageTo Renting17
SELF-FUNDINGVS WAREHOUSE LINESWillamette Valley BankUnderwriters go o of AUS ndings.Other LendersUnderwriters may ask forAdditional conditions not on AUS.AUS FindingsHow we useAUTOMATED UNDERWRITINGSOFTWARE (AUS)CLEAR TOCLOSECLOSINGDISCLOSUREDOCS FUNDINGCLEAR TOCLOSECLOSINGDISCLOSUREPRE-DOC QCWait for 3rd payPRE-FUND QCWait for 3rd payDOCS FUNDINGWillamette Valley BankSelf-funds loansMortgage Bank / CompanyUses warehouse lines18
Get pre-qualiedDiscuss loan options that suit youNegotiate purchaseComplete application& provide documentsMoves into le processTitle work • appraisal • processingUnderwritingConditionsCleared for closingSchedule close with all paiesCelebrate! You own a home!Start2345678910CloseBEHIND THE SCENESThe process ofCLOSING YOUR HOME LOAN19
WVBK CAN LENDIN ALL 50 STATES14DAYS TOCLOSE14DAYS TOCLOSE1220DAYS TOCLOSEDAYS TOCLOSE21DAYS TOCLOSE20
States with Local WVBK OcesOur fastest close times in 202123DAYS TOCLOSE23DAYS TOCLOSE16DAYS TOCLOSE22DAYS TOCLOSE21
Readyto begin your Home LoanJourney?www.LetsTalkHomeLoans.comGet Pre-Qualified Today22
WWW.WILLAMETTEVALLEYBANK.COMSubject to qualifying credit approval. Willamee Valley Bank is not acting on behalf of or at the direction of FHA, VA, HUD, or the Federal government.