On the path towards home ownership, you’ll find these important landmarks:

1. Personal consultation and Security Plus Approval with Evergreen Home Loans.
2. A Real Estate agent will help you find a home and have the offer accepted.
3. The home will inspected by the person you choose.
4. The lender will order a home appraisal and title.
5. An underwriter will review the final loan documents and give approval.
6. You and the seller sign closing documents with an escrow company.
7. The loan funds and title is recorded at the courthouse
8. Move in!

Before you begin, make sure you have the following items:

1. Your Security Plus Approval – this will enable you to find the right home for your budget, and have your offer accepted.
   
   Do you have 5-minutes? Apply Now!
   
   What to bring for your consultation


2. If you are a first time home buyer with lower to moderate income there are many places that will offer help in the home buying process.  To get started and learn where to turn for help click here.
   
   
3. A list of areas where you would like to live.
   
   
4. A real estate agent - The right agent will help you identify your goals and find the home that meets your needs. If you aren’t already working with someone, ask your friends, family, co-workers, or loan consultant for a recommendation.

The Rules of the Road – Common Terms

• Amortization - Payment of a debt in equal installments of principal and interest.
• Appreciation - The increase in value or price of a property over time.
• Credit score - A number between 350 – 850 that is based on your debts and likelihood of repaying them on time. It is used by the mortgage company in determining your interest rate.
• Debt-to-income ratio - The ratio of a borrower’s monthly debt payments to his or her monthly gross income. It is used by the lender to determine how much of a loan that a borrower qualifies for.
• Discount points - The fee associated with the note rate for your loan. One point equals 1% of the loan amount.
• Down payment - The portion of the purchase price that a buyer pays in cash at the beginning of the loan.
• Earnest money - A deposit given by the buyer to the seller with an offer to purchase.
• Loan to Value ratio - The ratio of the mortgage loan’s principal to the property’s appraised value or sales price, whichever is lower.
• Mortgage Insurance - Insurance written by a private mortgage insurance company protecting the mortgage lender against loss due to default or foreclosure.
• Origination fee - The fee that the lender charges to originate the loan. This is typically 1 discount point.
• PITI - Your monthly home payment, which is comprised of Principal, Interest, Taxes, and Insurance.
• Principal - The sum of money outstanding upon which interest is payable.
• Second Mortgage - A mortgage which ranks after a first mortgage in priority.
• Underwriting - The analysis of risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. It involves evaluating the property and the borrower’s ability to repay the loan.