California Buyer's Guide : simplebooklet.com

I am so excited you have chosen to utilize ourCalifornia Buyer's Guide! After years of seeingbuyers struggle to effectively navigate thepurchase process and thrive after closing, I'vecompiled this guidebook to cover every aspect ofthe process from pre-approval through closing andbeyond. It includes educational materials coveringthe most common questions buyers ask, to-do listsand worksheets to help you navigate variousstages of the process, resources to help youassemble a team of professionals that can help youbuild a well-rounded financial profile and more! Asyou'll discover, your work as a homeowner doesn'tend the day you close on the purchase. In fact,that's when the stakes get even higher to ensurethat you are making the most of your investmentand getting proper advice on all aspects of yourfinancial world. I hope you will put this guidebookto good use and then tell others about itafterwards! Enjoy, Californiabuyer's Guide

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The information and examples in the book are for informative purposesonly and any mortgage application is subject to credit and incomeverification.NJ Lenders Corp. NMLS ID: 35286; www.nmlsconsumeraccess.org; NJLenders Corp. is licensed in the following states: California - LicenseNumber 41DBO-170875; Colorado - Regulated by the Division of RealEstate; Connecticut Mortgage Lender License No. 8566; Florida MortgageLender License No. MLD583; Georgia Mortgage Lender License No. 70814.Maryland Mortgage Lender License No. 19642; Massachusetts MortgageLender License ML35286; New Hampshire Mortgage Banker License -License/Registration #: 24507-MB; New Jersey Residential MortgageLender License No. 9100938. Licensed by the N.J. Department of Bankingand Insurance; New York Licensed Mortgage Banker NYS Department ofFinancial Services Mortgage Banker License No. B500605 and ExemptMortgage Loan Servicer Registration No. B500605; North CarolinaMortgage Lender License No. L-202120; Ohio Residential Mortgage LendingAct Certificate of Registration No. RM.804990.000; Pennsylvania MortgageLender License No. 22105; South Carolina-BFI Mortgage Lender / ServicerLicense MLS - 35286; Tennessee Mortgage License No. 244997; Texas-SMLMortgage Banker Registration; Virginia NMLS ID No. 35286(www.nmlsconsumeraccess.org). Virginia Broker License No. MC-3196;Lender License No. MC-3196. District of Columbia Mortgage Lender LicenseMLB35286. Rhode Island Lender License No. 20224433LL; Broker LicenseNo. 20224434LB; Washington Consumer Loan Company License No. CL-35286. This information is not a loan commitment or an offer to extendcredit as defined by 10 CFR 1026.2. Program rates, loan terms andconditions are subject to change at any time and may vary based on theindividual borrower's eligibility and credit history. NJ Lenders Corp. is anEqual Housing Lender. © Mark Maimon 2023

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Experience a Higher Level of Lending Our team’s goal on every transaction is to helpour clients make fully informed decisions thatbest suit their needs. We understand how amortgage fits into an overall financial plan andcan seamlessly explain complex financialconcepts in a way that is easy for all tounderstand. Our comprehensive advice helpsyou capitalize on market conditions to ensurethe success of each transaction. We also havevast resources to help educate those around uson the topics of personal finance, wealthcreation and protection and investing in realestate and a network of incredible financialprofessionals we can connect you with uponrequest. This is what it means to experience a Higher Level of Lending!

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Mark Maimon has closed more than $2 billion in total loan volumesince entering the mortgage industry in 2002 and has been rankedamong the top loan originators in the nation every year since 2006.Named a "Power Originator" and "Hot 100 Mortgage Professional"by Mortgage Professional America magazine, Mark regularlycontributes to national publications, podcasts, and training for topreal estate firms and financial organizations. Mark's bi-coastal teamhas a client roster that includes award-winning entertainers,professional athletes, high net worth individuals, real estateinvestors, first-time buyers, and everything in between. He alsodeveloped a national Bridge Loan program that services over25,000 real estate agents nationwide that is expanding rapidly intothe senior living community space. Mark's team has built an impeccable reputation based on theirunrivaled creativity in addressing challenging loan scenarios, theirability to clearly and effectively explain complex concepts and theirkeen understanding of how decisions made during the mortgageprocess can affect a client's long-term net worth. Thesecharacteristics, along with each team member's unwaveringintegrity, attention to detail, easy-going demeanor, and endlessdrive to educate those around them are what set them apart fromthe rest. Licensed in: CA, CO, CT, DC, DE, FL, GA, MA, MD, NC,NH, NJ, NY, OH, PA, RI, SC, TN, TX, VA & WA.Meet Mark maimonMark MaimonNMLS# 3550 (310) 341-3106mmteam@njlenders.commarkmaimon.com@thebridgeloanguy

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MEET OUR TEAMWork with our team and you’ll have a group ofincredibly committed, friendly, creative andknowledgeable advocates on your side – each withroughly 2 decades of mortgage experience. Whatmakes our team unique is that we are experts inunderstanding underwriting guidelines whichhelps us proactively anticipate potential hurdlesbefore they appear and create more efficient andseamless transactions for our clients. We also haveteam members whose sole responsibility is to findways to make a client’s experience better. We’dput our team up against any in the industry! Danny Jassen Annemarie Federlein Gabi FeuerNicole Obenshine Taryn Rodriguez

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Team Website (markmaimon.com)Learn more about our team, educational opportunitiesand our philanthropic mission. Financial Wellness ForumJoin us for live and recorded interviews with experts onimportant topics related to personal finance and realestate. "On the Mark" PodcastLearn how to become more well-rounded financially,build and protect wealth and pass it on to futuregenerations. Social AccountsKeep up to date on industry updates, financial tips andupcoming educational opportunities. Create a "Side Hustle" in Real EstateWatch our YouTube series to learn how to effectivelybuild wealth by investing in real estate. TEAM RESOURCESBelow are some complimentary resources that youcan benefit from when working with our team

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LOAN PROGRAM OPTIONSFixed Rate LoansWith a fixed rate loan, the interest rate and monthly paymentstays constant throughout the duration of the loan. They are themost secure type of loan, but also typically come with higherrates compared to other types of loans. Loan terms on fixedrates typically range from 10 to 40 years, with the most commonbeing a 30 year fixed. These can be a good choice for those whoprioritize predictability over paying less interest. Adjustable Rate Mortgages (ARM)On an adjustable rate mortgage, the rate is only fixed for acertain number of years (typically 3, 5, 7 or 10 years) and then canadjust based on market rates after the fixed period ends. Theytypically have lower interest rates compared to a fixed rate loan,but have some risk associated with not knowing where rates willbe once the fixed period ends. There are typically rate caps thatrestrict how much they can change once the adjustable periodbegins. We generally recommend this product for clients whoare unlikely to keep the loan or property beyond the fixed rateperiod. Interest-Only LoansYou are only required to pay interest each month on an interest-only loan, but you have the option to pay principal at yourdiscretion. These loans are typically a variation of adjustablerate mortgages, but occasionally there can be a fixed rateinterest-only. You should be cautious when choosing this typeof loan as the monthly payment can change dramatically whenthe interest-only period ends and you have to pay principal on ashortened amortization schedule. These loans are best forfinancially savvy applicants who receive lump sums of income(bonus, commission, etc.) who want to keep their requiredmonthly payment to an absolute minimum. There are many different options you can choose from for yourmortgage. We will work closely with you to determine which type ofloan fits your needs best.

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pitfalls to avoidWe will need to contact your employer (or CPA if you're self-employed) within 7-10 days of your scheduled closing to verify youremployment is still active. If you feel a job change might occurduring the loan process, please notify us right away so we can planaccordingly.By applying for new credit accounts you can make it more difficultto qualify for a mortgage by raising your debt-to-income ratio andincurring a new inquiry on your credit history which can reduceyour credit score. Underwriters will obtain a credit update shortlybefore closing to determine if any new credit inquiries or debtsneed to be accounted for, so please consult us before applying fornew credit accounts.It is possible that paying off debts or delinquent accounts mayactually bring your credit score down in the short-term. Pleasecheck with us before paying off any debts to ensure it won't causeany problems. The source of all funds transferred into your accounts will need tobe documented as part of the underwriting process. It could addextra steps and take more time to close if you move funds aroundshortly before or during the approval process.Closing dates are nearly impossible to predict before your loan iscleared for closing and schedules are coordinated betweenattorneys. To avoid frustrations and cancellation fees, werecommend that you not schedule movers, contractors, or givenotice to vacate your current residence before having a confirmedclosing date. Changing Jobs During the Approval ProcessApplying for New CreditPaying Off Debts or Delinquent AccountsMoving Funds Between Accounts UnnecessarilyJumping the Gun with Movers, Contractors & Landlords

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Locking in your rateWhat does it mean to "lock in" an interest rate? When you lock in an interest rate, you make an agreement witha lender that keeps the rate on your loan application fromfluctuating up or down as long as you close within the specifiedrate lock period. When should I lock in a rate? It is a good idea to monitor rates and lock in on a day when theyhave hit a low point. We can help you identify a good time tolock in a rate, but ultimately it is your decision. In most cases,you can lock in at any point during the approval process, up toroughly a week before closing. How long should I lock my rate for? The most common rate lock periods range from 15 to 90calendar days. Typically, lenders offer better terms for shorterterm rate locks while longer lock periods may come with higherrates or fees. You should not lock in your rate until you areconﬁdent that you will close before the rate lock expirationdate. What if I don't close before my lock expiration date? If you don't close before your lock expiration date, you may becharged extension fees or risk losing the rate that you hadpreviously locked in. Since closing timelines are difficult topredict precisely upfront, it's advisable to leave a cushion oftime between the rate lock expiration date and the anticipatedclosing date.What if rates change after I lock? If rates go up, the rate you locked in will be honored as long asyou close before the rate lock expiration date or extensionperiod granted. If rates go down meaningfully, we can attemptto reduce the rate, but those requests are considered on a case-by-case basis and are not guaranteed.

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A "point" is a one-time upfront additional closing cost (one "point"is equal to 1% of the loan amount) that a loan applicant canchoose to pay in exchange for a lower rate over the life of theloan. Here are a few factors to consider when deciding if it's theright move for you:Break-Even AnalysisThe "break-even" point is the amount of time it takes for thecumulative monthly savings from the reduced rate to equal theextra closing costs associated with the point. If the client plans tostay in the loan for longer than the break-even point, then thepoint option may be worth considering. The longer a client plansto stay in the property, the more they will benefit from choosingthe point option. Here's a hypothetical example: Reduction in monthly payment for paying points: $250 Cost of points: $5,000 Break-even point: 20 months ($5,000 / $250) Points make sense if you hold the loan for 20+ monthsReading Rate TrendsRates are cyclical and therefore it may make more sense to paypoints when rates are expected to rise. A client is more inclined tohold onto that mortgage for the longer term if it's unlikely thatlower rates will materialize into a refinance anytime soon.Conversely, when rates are high relative to historical averages,then refinancing is more likely in the near term when rates fall. Inthis situation, paying points may not be the best choice. Tax DeductibilityPoints paid on purchase transactions are generally tax deductible,but they may not be immediately tax deductible on refinances.Therefore, the true "net cost" of the points may actually be loweron purchase transactions because of the tax benefits you may getfrom paying them—thus shortening the break-even pointdiscussed above. For this reason, points are more immediatelybeneficial on purchase transactions compared to refinancetransactions. However, this doesn't necessarily mean that payingpoints on a refinance isn't worthwhile. It's important to discuss allavailable options and strategies with our team before making anydecisions.paying points to lower a rate

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Credit tipsIt's OK to have more than one mortgage inquiryContrary to common belief, having more than one mortgage-related credit inquiry will not affect your credit score as long asthe inquiries are done within a 30-45 day window of each otherbecause the credit bureaus treat those as one inquiry. Don't apply for or open new credit accountsHaving additional non-mortgage related inquiries can drop yourscore and opening new accounts can drop it even further. If yourcredit score is sufficient to qualify for the best programs andrates, our suggestion is to not do anything with your credit beforeclosing on your new home purchase. Don't close unused credit accounts Your credit score is partially determined by the percentage ofyour available credit that is actually used ("credit utilization ratio").Another factor in your score is how long your current accountshave been opened, so closing them can actually hurt your score. Speak with us before paying off delinquent accounts In some cases, paying off delinquent accounts can negativelyimpact your score because it appears that you were at fault forthe delinquency. It can also make the activity on the delinquencymore recent on your credit report which can also lower yourscore. We can assist you with determining any steps that need tobe taken to ensure loan approval at the best possible terms. Credit scores are determined by a combination of complex factorsand consumers unknowingly take ill-advised actions that canactually hurt their score. Our team is here to help you avoid loweringyour score unnecessarily.

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Home search tipsA knowledgeable real estate agent can help you narrow yoursearch, determine if an asking price is consistent with marketvalue, analyze comparable sales in the area and help you negotiateeffectively with a seller. It's customary for sellers to pay the realestate agent's commission, so we highly recommend using one. Ask us for any referrals you need. Hire a qualified real estate agent early onSellers and their agents are generally savvy to current marketconditions. Making offers that are well below market value canbackfire and make a seller wonder if you're going to make alegitimate attempt to buy the property. Your agent can help youdetermine what offers have a realistic opportunity to be accepted. Submit realistic offersPurchasing a new home is a complex multi-step process withseveral parties involved. No matter how diligent or proactiveyou and your real estate team are, some things may not go yourway. You could get outbid at the last minute and inspections ornegotiations can suddenly go south. Unforeseen hurdles anddelays can occasionally occur during the loan process. Anticipating in advance that some challenges may arise duringthe process will help you keep perspective during thosetougher moments that can inevitably arise along the way. Expect some bumps along the wayPrecise closing dates are difficult to predict even well into thepurchase process, so always make sure you have ample time toclose your new transaction before agreeing to vacate your currentresidence. It's easier and less expensive to have a little overlap incovering expenses for both homes than it would be to be forced tofind temporary housing and storage for your belongings becauseyou cut your timeline too close to save a few bucks. We typicallyrecommend that you plan to overlap your old and new homes byat least 15-30 days whenever possible. Don't prepare to move too early

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The Appraisal processWhat is the Purpose of an Appraisal Report? The underwriter needs to confirm the fair market value of theproperty to ensure that the maximum percentage of financingallowed on your loan is not being exceeded. An appraisal report isnot meant to replace a home inspection completed by an engineer.How Do Appraisers Determine Market Value? Appraisal reports include a detailed comparison of similar nearbyproperties that have sold and been listed recently with adjustmentsmade to account for differences in specific property attributes. How and When is an Appraisal Ordered? We typically order the appraisal through an independent appraisalmanagement company who randomly assigns the appraiser oncewe have received a signed purchase contract and loan disclosuresand once you've paid the appraisal fee. The appraiser will contactthe listing agent to schedule the inspection and will send the lenderthe report upon completion. What if My Appraisal Comes in Above/Below the Purchase Price? Underwriters use the lesser of the purchase price or the appraisedvalue to determine the final valuation. Therefore, if the appraisalcomes in higher than the purchase price, there is typically no impacton the transaction. If the appraisal comes in lower than the purchaseprice, then the underwriter needs to ensure that the loan does notexceed the maximum loan-to-value ratio allowed for the loan. Do Appraisal Accurately Reflect Market Values? For the most part, yes — but there are exceptions. An appraiser’svalue determination is based on what has sold in the past, not whata buyer would be willing to pay for the property today (which someconsider to be the “true” market value). In an appreciating real estatemarket, it’s possible that an appraisal is lower than the current value,because the only comparable sales are for properties that were soldin a previous lower-priced market. Conversely, the appraisal couldpotentially come in higher than the current market value in adepreciating market.

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what underwriters look forIncome & Employment HistoryUnderwriters calculate a "debt-to-income (DTI) ratio" - thepercentage of your income used for housing expenses and otherdebts/obligations. Qualifying income for salaried borrowers isdetermined by gross (before tax) income and a 2-year average ofbonus/commission/overtime income. For self-employed/freelanceborrowers and business owners, qualifying income is determinedby an average of the last 1-2 years of net income (after write-offs/expenses) on your tax returns. The maximum DTI ratio typicallyranges from 40% to 55% on most loan products. Underwriters also look for stability in employment. You can usesalaried income to qualify immediately, but most programs requireyou to be self-employed in the same line of work for 2 years beforethe income can be used to qualify. Credit Score & Active Credit AccountsUnderwriters look at the credit score as well as the number ofaccounts that have been open and active over the previous 12-24months. The score used for underwriting and the rate you qualifyfor is typically the middle of the three credit bureaus' scores. Serious delinquencies such as short sales, foreclosures,judgments and bankruptcies are scrutinized more heavily as theyare a sign of more significant financial difficulties. Assets & Post-Closing ReservesBank statements covering the prior 2-3 months will be reviewedby the underwriter to confirm that you have sufficient funds for adown payment, closing costs and the amount of post-closingreserves you need to have in order to get loan approval. Largedeposits must be documented to be from an acceptable source. Property & AppraisalUnderwriters will review a title report to ensure that there are nodeficiencies that would affect the loan being in first lien position. On condo purchases, underwriters will also review documentsrelated to the building to ensure that it meets standard lendingcriteria. The lender will also request an appraisal of the propertyto ensure that your loan amount doesn't exceed the maximumpercentage of financing based on the value of the property. Banks go off of the lower of the appraised value or contractualpurchase price.

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the purchase processPre-ApprovalWe will conduct an initial consultation call and reviewdocumentation to confirm how much financing you can getapproved for. A pre-approval letter will be provided so you canmake offers on properties. Loan Approval/Commitment LetterClear to CloseAccepted Offer/In EscrowInspectionsUnderwriting, Appraisal & Condo DocumentsThe buyer and seller both sign the purchase agreement (or counter-offer) and you enter escrow. You typically have 3 days to wire yourescrow deposit to the Escrow company before you'd be in default. Once you're in escrow, you'll have a certain number of days toconduct inspections such as a general inspection and otherinspections on the foundation, roof, sewer line, geology/soil, fireplaceand other important elements of the home. If any issues arise, youcan submit a request for credits or repairs to the seller. We will send the loan to underwriting for approval and also orderthe appraisal (and condo building documents, if applicable). Your loan processor will email you a copy of the commitment letteralong with a list of items ("conditions") that you need to provide inorder to complete the loan process. Please return those items ASAPto avoid delays with closing your transaction. Loan DisclosuresWe will issue loan disclosures outlining the estimated terms andclosing costs for the loan, which you will need to sign before the loanprocess and appraisal order can proceed. Your loan will be "cleared to close" after the underwriter hasapproved all loan conditions and the title report, Once that occurs,you can coordinate the signing, closing and recording with theEscrow and Title company. Escrow will relay the final amounts duefrom you so you can wire the funds to Title 1-2 business days prior toclosing.

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getting pre-approvedOur pre-approval consists of three simple steps that helpensure that we have all of the pertinent information tomake a well-rounded recommendation on the bestapproach for your financing. Complete Our Pre-Approval Questionnairehttps://mmaimon.njlenders.com/page/preapprovalOur questionnaire consists of questions about your idealpurchase, monthly budget and top-level financialinformation so we can come into our initial call moreprepared. Initial Consultation via Phone or ZoomDuring our complimentary initial consultation, we'lldiscuss how your financial profile lines up with your idealpurchase and monthly budget and you'll leave the callwith a precise plan on next steps and how to make themost of your purchase. We can also answer any questionsyou have about the loan process, interest rates, closingcosts or anything else on your mind. Provide Required DocumentationWe will email you a list of documents that we need toreview in order to get you pre-approved. Our reviewtypically takes 1-2 business days to complete and then wewill send you a pre-approval letter that you and your agentwill need in order to make offers moving forward.

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PRE-APPROVAL Documents NEEDEDChoose the list below that applies to your profile and skipany items that don't apply. It's possible we may discoverthat additional items are needed during our consultationcall, but the list below is a good starting point. Company/Salaried Employees- Online loan application (https://mmaimon.njlenders.com)- 2 most recent pay stubs - 2 most recent W-2s and federal tax returns (all pages)- Proof of your last 2 years of bonus/commission income - Proof of your last 2 years of RSU income & vesting schedule- 2 months of bank/investment/retirement account statements - Mortgage/Tax/Insurance/HOA statements for all properties ownedSole Proprietors/Freelancers/Single-Member LLCs- Online loan application (https://mmaimon.njlenders.com)- 2 most recent years of personal federal tax returns (all pages)- Profit and loss statement for the period since your last tax filing- 2 months of bank/investment/retirement account statements - Mortgage/Tax/Insurance/HOA statements for all properties ownedBusiness Owners/Partnerships- Online loan application (https://mmaimon.njlenders.com)- 2 most recent W-2s and K-1s (as applicable)- 2 most recent years of personal federal tax returns (all pages)- 2 most recent years of corporation federal tax returns (all pages)- Profit and loss statement for the period since your last tax filing- 2 months of bank/investment/retirement account statements - Mortgage/Tax/Insurance/HOA statements for all properties owned

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Finalize and bind homeowner's insuranceReceive "clear to close" notice for your loanTransfer funds into checking account for closingSchedule your signing/closing date with EscrowConfirm that title is clearAcknowledge receipt of your Closing DisclosureGet wire instructions and final costs from EscrowTO DO LIST Preparing for ClosingGet referrals for your Financial Advisory TeamComplete final walk-through with your agentGet referrals for your Maintenance/Repair TeamStart packingGet quotes for moving companiesHire a contractor/handyman for initial projects

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engaging your advisory teamOnce you close on a new home purchase, the stakes arehigher than ever to ensure it's protected and that yourfinances are in order. Below is a list of the professionalsyou should consider engaging with. Contact us for any recommendations you need! Financial Advisor They are the quarterback of your financial world helpingyou with well-rounded strategies to build and protectwealth, saving/investing, budgeting, and planning formajor life events and retirement. Accountant/CPA Trust & Estates AttorneyLife Insurance AgentProperty Manager (Investment Properties)They will help you prepare and file tax returns as well ascreate strategies to ensure you take full advantage of thetax code to keep your tax payments to a minimum. They help you build an estate plan to ensure that yournet worth is protected and sheltered from unnecessarytaxation upon your death. They help you determine the best insurance products toensure that your family can to continue to live it'scurrent lifestyle in the event of your passing. Helps you manage investment properties includinghandling tenant issues, maintenance requests,collection of rent and upkeep of the property.

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Set up new utilities & turn off old onesForward mail with US Postal ServiceChange address with employer/bank/creditorsCreate folder with critical purchase documentsCancel prior renter's/homeowner's insurance Change locks and get extra keys madeUpdate driver's license with new addressSubmit online review for your lender and agentFollow us on social media for future updatesTO DO LIST Post-ClosingRegister for our Financial Wellness ForumEngage with your Advisory Team

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Financial wellness forum Topics I am Most Interested In:Scan the QR code below to register for our Financial WellnessForum where Mark will be joined by industry-leading guests foran ongoing series of webinars on various topics related topersonal finance, real estate and everything in between. Soundfinancial advice is something we’ve found most people arelacking so we’re doing something about it! Register for the seriesand you’ll be able to attend live sessions, watch previouslyrecorded sessions and also join our various social groups tocollaborate with other like-minded people and financial industrypros. Use the pages in this section to take good notes!

California Buyer's Guide

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