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Loan Sweet Home w/Neci Smith H O M E B U Y E R G U I D E

Table of Contents INFORMATIONContact InformationWho is Neci SmithFirst Time Homebuyer IntroExisting Homebuyer IntroRenting VS BuyingFinancial EvaluationDownpayment and Closing CostDownpayment Assistance and PITIEscrow & EquityPre- Qualification VS PreapprovalCredit Score BreakdownHow to Improve your Credit Budgeting Mortgage Tip after your MortgageLoan DocumentsMortgage ProcessMortgage DONT’sType of LoansFixed RateAdjustable RateConventionalGovernment Backed LoansJumboMortgage Terms Whose InvolvedTestimonials Let me Help you! PAGE3456789101112131415161718-202122232425262728-3031-333435-36

Congratulations on embarking on your journey to find the perfect home! Asyour trusted mortgage expert, I'm thrilled to provide you with an educationalguide on home mortgage options to help you pick the best mortgage for yourunique needs.NeciSmithR E S I D E N T I A L M O R T G A G E L O A N O R I G N I T A O R N M L S # 1 6 5 3 6 0 4@msloansweethome8836 Valley River Dr Fort Worth, TX 76244 832-469-9069nsmith@canopymortgage.comhttps://canopymortgage.com/lo/kevineciasmith/M A I L I N G A D D R E S S P H O N E N U M B E RE M A I L A D D R E S SS O C I A L SM O R E I N F O A TContactM O R T G A G E C O N S U L T A T I O N682-474-2693Mortgage Consultation

Your Trusted Local LenderHello, My name is Neci Smith. I amTexas Licensed Residential MortgageLoan Originator with 5+ yearsexperience. Helping people achieve the goals ofhomeownership is not only my job, it’smy passion and purpose.Loans are not one size fit all and myteam and I work to tailor the processto your specific homeowner needs. More about me: I’m a Native Houstonian but currently live in Fort Worth where my MortgageBranch resides. However, I originate and assist homebuyers all over Texas withachieving their goals of homeownership. I’m a mother of four. Two teenagers, a preteen and a toddler. So needless to saywhen I am not busy working, I am still busy.I am a Graduate of University of Phoenix with a degree in HealthcareAdministration. My background is in Healthcare IT. Yeah I know, how did I go fromthat to the Mortgage business. It’s a funny story actually.My mother was a loan officer when I was growing up. It never crossed my mind thatthis would be something I’d like to do. I purchase a home and had a terribleexperience. I researched and taught myself so much going through the process. Atthat point I realized I was interested in helping others not go through what Iexperienced. I left my six figure salary Healthcare IT position and walked into theworld of Mortgages blindly. Many years later I am still here and I still love it. I believe in work life balance and make it my priority to be available for my familyand my clients. .My clients work with my team and I throughout the entire processand will have access to me from the initial mortgage consultation through closingand beyond. My goal is to make this journey and experience that you will not want to forget.

Welcome Homeowners! At Loan Sweet Home w/Neci Smith (CanopyMortgage), we believe in turning yourdreams of homeownership into reality. Asyou embark on this exciting journey, we’rehere to guide you every step of the way.Tailored Solutions: We offer a varietyof mortgage options to suit yourunique situation needs and financialsituation. Expert Guidance: Our team ofprofessionals is dedicated to helpingyou navigate the complex world ofhome financing. Competitive Rates: We providecompetitive interest rates to ensureaffordability. Why Choose Loan Sweet Home w/NeciSmith (Canopy Mortgage)?Mortgage Consultation: Let’s discussyour homeownership goals and createa plan.Pre-Approval: Get a head start by pre-qualifying for your mortgage.Application & Documentation: We’llassist you with your paperworkApproval & Closing: Our team willwork diligently to ensure a smoothclosing process. Your Path to Homeownership: QuickReview Join the Family: We’re not just a lender’ we’re your partners in achieving the dream of homeownership.

Refinancing Solutions: Explore options to lower your mortgage rate or access homeequity.Home Improvement Loans: Finance those renovation projects you've been dreamingof.Home Equity Lines of Credit (HELOC): Tap into your home's equity for majorexpenses.Home Equity Loan (HELOAN): Similar to a cash out refinance, a home equity loanwill provide you with a lump sum of cash; as much as 90% of your home's equity. Itacts as a 2nd mortgage, where a cash out refinance transforms your first mortgageinto a completely new mortgage.Insurance Solutions: Protect your investment with comprehensive home insurance.Expert Advice: Our team is ready to answer questions and provide guidance. Welcome Existing Homeowners! To all the proud homeowners out there, welcome! Whether you've recently moved in orhave cherished your home for years, we're here to support you on your homeownershipjourney. Unlocking Homeownership Success: At Loan Sweet Home w/Neci Smith (CanopyMortgage), we understand that owning a home comes with its own set of joys andchallenges. We're here to provide valuable resources and services to make yourhomeownership experience even better. How We Can Assist:

Interest rates may not be where they were two years ago but neither are rental prices.

Before exploring mortgage options, take a close look at your financialsituation. Assess your monthly budget, savings, and long-term financialgoals. Understanding your financial capacity will guide you in choosingthe most suitable mortgage.Evaluate Your FinancialSituation

Consider your down payment options and the associated closingcosts. While a larger down payment can lead to lower monthlypayments, various loan programs offer flexibility in downpayment requirements.Downpaymentand Closing CostsDown Payment- The percentage of the purchase price that you will put down on the home. I.E.3.5% $300K =$10,500Closing Cost- Fee’s associated with closing the loan. I.E. Lender fee’s, discount points,appraisal, title fee’s, escrow, etc.

Down Payment Assistance Down payment assistance (DPA) refers to financial assistance provided to homebuyersto help them cover a portion of the down payment required when purchasing a home.The down payment is typically a percentage of the home's purchase price that the buyerneeds to pay upfront, and it is separate from the mortgage loan amount. DPA programscan come from various sources, including government agencies, nonprofitorganizations, or even private lenders.The main purpose of down payment assistance is to make homeownership moreaccessible, especially for first-time homebuyers or those with limited financialresources. DPA can take various forms, such as grants, low-interest loans, or forgivableloans, and the eligibility criteria and terms can vary widely depending on the programand location. It's essential for potential homebuyers to research and understand thespecific DPA programs available in their area to determine if they qualify and how theycan benefit from this financial support.What makes up a Mortgage Payment Principal (P): This is the portion of your mortgage payment that goes toward payingdown the actual loan amount you borrowed to purchase your home.Interest (I): This is the cost of borrowing money from the lender, expressed as aninterest rate. It's the amount you pay the lender for the privilege of using their funds.Taxes (T): Property taxes are assessed by local governments and are usually includedin your mortgage payment. The lender collects these taxes on your behalf and paysthem to the appropriate authorities.Insurance (I): Homeowners insurance is typically required by your lender to protectagainst damage or loss to your property. This cost is also included in your mortgagepayment.Together, these four components make up your monthly mortgage payment (PITI). Insome cases, mortgage lenders may also require you to pay for private mortgageinsurance (PMI) if your down payment is less than 20% of the home's purchase price.PMI is an additional cost that would be included in your monthly payment as well.

Escrow:Escrow is a financial arrangement often used in real estate transactionsand other situations involving significant sums of money. It involves aneutral third party, known as an escrow agent, holding assets (such asmoney or documents) on behalf of two parties involved in a transaction.The funds or assets are held in escrow until certain conditions orobligations outlined in a contract or agreement are met. Once thoseconditions are satisfied, the assets are released to the appropriate party.Escrow helps ensure trust and security in various transactions, such ashome purchases, by ensuring that both parties fulfill their obligationsbefore the deal is finalized.(Your insurance and taxes are held in an escrow and paid out when due,From your PITI mentioned earlier, those amounts are set aside in theEscrow to be paid out.)Equity:In the context of real estate, home equity refers to the portion of ahome's value that a homeowner truly owns outright, considering theirmortgage balance. It can increase as the homeowner pays down themortgage or as the property's value appreciates.

Pre-qualificationvs.Pre-approvalThe difference between the two are easy. The Underwriterissues a Pre Approval. I as the lender issue the Pre-Qualification. Pre Approvals are more desired in the marketbecause they provider assurance that your file has beenreviewed by an Underwriter.

Payment History35%Amounts Owed30%Length of Credit History15%New Credit10%Credit Mix10%Credit Score BreakdownCharacter: Character refers to a borrower's reputation and reliability when it comes tomanaging debt and financial responsibilitiesCapital: Capital refers to the borrower's financial assets and resources that can be used ascollateral or to cover loan payments in case of financial difficulties.Capacity: Capacity evaluates a borrower's ability to repay a loan. Lenders want to ensure thatborrowers have sufficient income and financial resources to meet their debt obligations.Collateral: Collateral represents assets that a borrower pledges as security for a loan. If theborrower defaults, the lender can take possession of these assets.THE 4 CS OF CREDIT

Set a Clear Goal: Determine the amount you need for a down payment and closing costs. This will be your target savingsgoal.Create a Budget: Make a detailed monthly budget that includes all your expenses, from housing and utilities to groceriesand entertainment. Track your spending to identify areas where you can cut back.Prioritize Saving: Treat your savings like a non-negotiable bill. Set up automatic transfers to a separate savings accountas soon as you receive your paycheck.Reduce Unnecessary Expenses: Cut back on non-essential spending. This might include dining out less, cancelingunused subscriptions, or buying generic brands.Emergency Fund: Maintain an emergency fund to cover unexpected expenses, so you don't dip into your mortgagesavings.Increase Income: Look for opportunities to boost your income, such as a part-time job, freelancing, or selling items youno longer need.Credit Score: Improve your credit score, as a higher score can lead to better mortgage terms and lower interest rates.Comparison Shop: When you're ready to buy, compare mortgage rates and terms from multiple lenders to find the bestdeal.Down Payment Assistance: Research if there are any down payment assistance programs available in your area that youmight qualify for.Consult a Financial Advisor: Consider seeking advice from a financial advisor who can help you create a personalizedsavings plan.Remember, saving for a mortgage takes time and discipline, but with a well-planned budget and determination, you canachieve your homeownership goals.Saving for a Mortgage

5 TIPS FOR SAVINGMONEY/ your mortgageShop Around for the BestRate:Consider Refinancing:When you're in the market fora mortgage, don't settle for thefirst offer you receive. Shoparound and compare interestrates and loan terms frommultiple lenders.Even a slightly lower interestrate can lead to substantialsavings over the life of yourloan.Keep an eye on interest ratetrends. If market rates dropsignificantly below your currentmortgage rate, considerrefinancing.Refinancing can potentiallylower your monthly payments,reduce the total interest youpay, or even shorten your loanterm.Make Extra Payments:If your mortgage allows for it,make extra payments towardthe principal balance wheneverpossible. Even small additionalpayments can add up over timeand shorten the loan term.

LOAN DOCUMENTGovernment issued Photo IDSocial Security Number30 days of paystubsW2's (Most recent two years)Tax Returns (Most Recent two years if requested)Tax Returns (Most Recent two years if requested)1099s (Most recent two years)Corporate/Partnership Tax Returns (25% or moreownershipTwo months of Bank Statements (checking/savings,401K IRA and/or investments accounts. Please includeall pages, even if left blankSocial Security StatementsChild Support- 1 year of payments (also providedivorce decree or child support order)Gift Letter and Donor Contact Information (if getting agift)Most recent mortgage statement Homeowners insurance policyProperty tax billsHOA Statement Landlord or Property Management company contactinformationIdentification:Income: (Hourly/Salary)Income: (Self Employed)AssetsCurrent HousingRentingAdditional documents can be requested based on the loantype and situation.

Loan Sweet Home w/Neci Smith (Canopy Mortgage)Loan ProcessThinking about Buying a Home Start HereMortgage Consultation- Let’s discuss your homeownership goals and create a plan.Application- Complete loan applicationReviewing Loan Options - Loans are not one size fit all, we will tailor your loan based onyour goals and financial needs Prequalification- Application reviewed and prequalified. At this time you can beginsearching for a home. While searching I am submitting your loan for PreapprovalSubmit Loan For Preapproval- Prepare your loan file with all of the documents and submitto the UW to review my findings and issue a preapproval Underwriter Review- UW reviews the application and documents and provides ConditionalApproval, Denial or SuspenseConditional Approval- UW agrees with my findings and provides a list of conditionsyou will need to get the final approval Suspense- Additional information is need in order to provide a Conditional ApprovalDenial- Something in the loan file is not able to be approved, we may look atrestructuring the loan fileSearch for a Home- Work with your Realtor to find a home. I can refer you to one of myPreferred Realtors if you don’t have one alreadyNegotiate Contract- You will work with your Realtor to negotiate an offer to send over forthe home of your dreams Under Contract-Yay! You’re under contract. Let’s get this party started.

Inspections- Although not required we highly recommend getting an inspection. Thehouse may look pretty but just like people we age and we need to get the boneschecked out. Lock in Interest Rate- We will review rates and work together to decide on the best rateand time to lock itAppraisal- An appraisal will be ordered to make sure the home is worth the amountit’s being sold for. Appraisers also inspect other items of the home as well.Request third party documents- The loan officer and agent do not do it all despitepopular belief. There are multiple third parties involved outside of the appraiser. Title company- requesting documents from title who also have to work with otherSurvey companies HOA ,etc. Survey companyInspections that are required depending on the property i.e. pest, septic, etc.Prepare the file for initial review- I take all the documents we’ve collected so far,including those from the preapproval and submit back to the UW to clear. UW Reviews and Conditions- The UW will review these documents, clear, ask forclarification or request additional itemsProcessor Review- The processor will review the the conditions and let me know whatis needed from you. I am then able to see if I already have it or come back and requestthe items from you. During this time the processor will also work with the titlecompany to balance your closing disclosure. Resubmit for Final Underwriter Review- Once we’ve collected all the items we resubmitthe file to the UW for the clear to close. Clear to Close- The UW has did the final approvalDocs- We send the file over to our closing team who works with the third party lawyersto prepare documents that will need to be signed at closing. Your final Closing Disclosure will be sent with the amount you need to bring tothe closing table. Closed and Funded (Congratulations)

TYPESOF LOANS“All loans subject to credit and property approval”

A Fixed-Rate Mortgage offers stability with a consistent interestrate throughout the loan term. This option is ideal if you preferpredictable monthly payments and plan to stay in your home foran extended period. Fixed RateMortgage

AdjustableRate MortgageWith an Adjustable-Rate Mortgage,your initial interest rate is fixed fora certain period, then adjustsperiodically based on marketconditions. ARMs may be a good fitif you anticipate moving orrefinancing before the rateadjustment

Conventional LoansConventional loans are notgovernment-insured. They providevarious term options and downpayment choices to suit differentneeds.

GovernmentBacked LoansFHA Loans: Insured by the Federal HousingAdministration, FHA loans are suitable forfirst-time homebuyers and those with lowercredit scores. They often require a lowerdown payment.VA Loans: Exclusively available to eligibleveterans and active-duty military members,VA loans offer competitive terms, includingno down payment requirements.USDA Loans: Backed by the United StatesDepartment of Agriculture, USDA loans aredesigned for homebuyers in rural areas andoffer low or no down payment options.Explore government-backed loans, which offerattractive terms and benefits to specifichomebuyers:

For high-value properties that exceed conventional loanlimits, consider jumbo loans. These loans typically havehigher credit score requirements and may require a largerdown payment.JumboLoans

Mortgage Terms

Mortgage: A mortgage is a loan that you take out to purchase a home. It is typicallyrepaid over a specified number of years with interest.Principal: This is the initial amount of money you borrow to buy your home. Yourmonthly mortgage payments go towards repaying this amount.Interest Rate: The interest rate is the percentage of the loan amount that the lendercharges for borrowing the money. It significantly affects your monthly payments and theoverall cost of the loan.Amortization: Amortization refers to the process of paying off your mortgage over timethrough regular monthly payments. These payments are structured so that yougradually pay down the principal and interest.Term: The term of the mortgage is the length of time over which you agree to repay theloan. Common terms are 15, 20, or 30 years, but other options may be available.Fixed-Rate Mortgage: In a fixed-rate mortgage, the interest rate remains constantthroughout the term of the loan. This provides predictability as your monthly paymentsstay the same.Adjustable-Rate Mortgage (ARM): With an ARM, the interest rate can changeperiodically, typically after an initial fixed-rate period. This can lead to lower initialpayments but more uncertainty.Down Payment: The down payment is the initial payment you make when purchasing ahome. It is typically a percentage of the home's purchase price.Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home'svalue, you may be required to pay PMI, which protects the lender in case you default onthe loan.Closing Costs: These are the fees and expenses associated with finalizing the homepurchase, including appraisal fees, title insurance, and legal fees.Mortgage Terms

Escrow: An escrow account is set up to hold funds for property taxes and homeownersinsurance. Part of your monthly mortgage payment may go into this account to coverthese expenses.Pre-Approval: Before house hunting, it's a good idea to get pre-approved for a mortgage.This involves a lender assessing your financial situation and providing a conditionalcommitment for a loan amount.Amortization Schedule: This is a table that shows how your mortgage payments areapplied to principal and interest over the life of the loan.Closing Disclosure: A document provided by the lender that outlines the final terms andcosts of the mortgage before you close on the home.Understanding these mortgage terms is crucial for making informed decisions when buyinga home and selecting the right mortgage for your financial situation.

Who’s Involved? It takes a team!

Homebuyer: This is you, the individual or individuals looking to purchase a home andin need of a mortgage loan to do so.Lender: The lender is the financial institution or company that provides you withthe mortgage loan. This can be a bank, credit union, mortgage company, or onlinelender.Loan Officer: A loan officer works for the lender and assists you throughout themortgage application process. They help you understand your options, completethe application, and gather necessary documents.Underwriter: The underwriter is responsible for reviewing your loan applicationand supporting documents to determine whether you qualify for the mortgage.They assess your creditworthiness and ensure the loan meets the lender's criteria.Appraiser: An appraiser assesses the value of the property you intend to purchase.This valuation helps the lender ensure that the property's value aligns with theloan amount.Home Inspector: A home inspector is hired by the homebuyer to assess thecondition of the property. This inspection helps you identify any potential issueswith the home before finalizing the purchase.Real Estate Agent: A real estate agent can help you find and negotiate thepurchase of a home. They can also assist with paperwork and negotiations duringthe homebuying process.Title Company: The title company is responsible for conducting a title search onthe property to ensure there are no outstanding liens or legal issues that couldaffect the sale. They also handle the transfer of the property's title.Escrow Agent: An escrow agent or company manages the escrow account, whichholds funds for property taxes, homeowners insurance, and other expenses. Theydistribute these funds as needed and facilitate the closing process.People Involved in the Process

Closing Agent: The closing agent, often an attorney or representative from thetitle company, oversees the closing process. They ensure that all documents aresigned, funds are transferred, and the property changes ownership.Insurance Agent: You'll need a homeowners insurance policy to protect yourinvestment. An insurance agent can help you find the right coverage andprovide the necessary documentation to the lender.Government Agencies: In some cases, government agencies such as the FederalHousing Administration (FHA) or the Department of Veterans Affairs (VA) maybe involved, especially if you're applying for government-backed loans like FHAor VA loans.Credit Reporting Agencies: Lenders use credit reports from agencies likeEquifax, Experian, and TransUnion to assess your credit history and creditscore during the application process.

Neci was amazing! She’s patient. She’s always in communication so you know what’s going on. She madesure we stayed in our price range by letting us know what would affect our numbers. And she was happy torepeat or explain herself - which I needed and I appreciated her doing that!#closewithneci #closewithcanopymortgageNeci was so extremely helpful, patient, and knowledgeable. We were working with another lender first (abig company who is known to supposedly close things quickly) but after several weeks of back and forthand appraisal issues, we transitioned to work with Neci. Neci turned things around and helped us to closeon our home faster than I could have imagined, less than 30 days! She was so kind and helpful throughouteverything, too. We would 100% recommend working with her! We are foever grateful!She is knowledgeable,informative and very thorough with her work. Everyday was a learning experience forthe better . Ms. Smith made me feel very confident and comfortable with the process.During my journey of getting my dream house I had to work with different lenders but Ms.Smith helpedme the most and she was always on point with everything. I'm really grateful that I found her as my lender.Neci is a great communicator. She is prompt in answering any questions that you may have. Neci is greatat what she does and will go above and beyond to see you through the process. I will definitely refer myfriends and family to Neci.Awesome experience working with Neci. Always available to answer any of your questions. Veryprofessional and really helped us as first time homeowners. Definitely recommend!She was amazing !She was available any time of the day and week for all the questions I had. She was patient andknowledgeable, she made it happen. Thank you again"Where to start!! My husband and I were about to give up until we were introduced to Neci. She everybit of amazing. The care and communication was on point. She was encouraging making sure we didn’tgive up on her. Professional at all times! We loved her spirit. She was a true blessing in disguise!!!"

Let me help youmake your mortgagedreams a reality Let's Turn Mortgage Dreams Into Reality! Your dreamhome is more than just four walls—it's where your future unfolds. As your trusted mortgage lender, I'm here to make thosedreams a reality. Whether it's your first home, an investmentproperty, or a refinance, I've got the expertise to guide you everystep of the way. Let's make it happen!

Corporate NMLS#1359687www.nmlsconsumeraccess.org“All loans subject to credit and property approval”