Home Buyer’s Cheat Sheet

People ask “what’s your rate” because they don’t know what else to ask.

USP

About Us:

• Best Professionals: 10+ years
• HBFS is #15 in the country

On-time Guarantee

Competitive with Great Service

Us verses Rocket Mortgage

We help you win the house

• Introduce us to your Realtor
• We’ll call the Listing Agent
• Great Reputation
• Long-time Lender (we know people)

Service our loans

Rates

Today’s Rates

• Realtor.com predicts 7.5% in 2023

Extended Locks: how to long in a rate for 12 months

Shop Lenders: how to shop and compare mortgages

APR vs. Rate

Points: when to pay them

2/1 Buy Downs

ARMs: not in 2023

Payments

Payment Calculator

Mortgage Insurance

• What is it?
• How to remove MI?

Closing Costs

Our Closing Costs (i.e. origination charges and “section A” fees)

Seller Concessions: how to “roll in” closing costs

$0 for Non-Realty Items: want to include furniture with the purchase? A boat? Here’s how.

Down Payment Strategy (5%, 10%, 15%, 20%)

Credit

Hard Inquiry

Doesn’t Hurt You

Mortgage credit scores are lower than consumer credit scores

Spam Calls: how to opt out

Credit Simulator: how to predict your future credit score

Income

DTI: What is it?

Assets

Sourcing of Funds

Large Deposits (cash from home, inheritance, tax refund, etc.)

Gift Funds

Selling a Home

Seller’s Net Sheet (and closing costs)

Write a Lender-Friendly Contract

Pre-Qualification vs. Pre-Approval

• What’s the difference?
• How long is a PQ (or Pre-Approval) good for?
• When to do a Pre-Approval?
• Benefits of a Pre-Approval
• Should I wait? No, here’s why.

First Time Buyers

Rent vs. Own

• $2,800 rent * 12 months = $33k per year
• 5% of appreciation of $350k = $17k positive
• That’s a $50k swing

Investors

Other Helpful Info

Power of Attorney (POA): what to know when someone can’t attend closing