YOUR GUIDE TO THE HOME MORTGAGE LOAN PROCESS

Subject to credit approval and program guidelines. The information provided in this guide is intended as general guidance and should not be considered legal advice or credit counseling. Although we do our best to provide only the names of established, reputable service providers, we can make no representations or guarantees regarding services provided. LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Residential Mortgage Origination (#MN-MO-12007). This is not an offer to enter into an agreement. An offer to enter into an agreement may only be made pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206.

Your guide to the mortgage loan process Thank you for the opportunity to assist you in acquiring a mortgage loan. Applying for a home mortgage is one of the biggest and most important financial steps you will take in your lifetime. The mortgage loan process can seem complex to many; LeaderOne℠ wants to ensure you feel fully educated as you move through this process. Let this packet serve as a personal resource that outlines the steps you will be taking with LeaderOne℠ Financial as you work towards your mortgage loan.

TABLE OF CONTENTS WHAT TO EXPECT DURING THE LOAN PROCESS

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OUT-OF-POCKET EXPENSES

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BORROWER EXPECTATIONS

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ASSISTANT & PROCESSOR CONTACT INFORMATION

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INFORMATION FOR INSURANCE AGENTS

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FINANCIAL DETAILS

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DAVID ROBNETT Vice President LeaderOne Financial 7150 Camelback Rd. Suiet444 Phoenix, AZ 85262

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NMLS #199773 314-640-3300 [email protected] www.davidrobnett.com

LeaderOne Financial Corporation is Licensed byThe theinformation Arizona Department of Financial Institutions. Mortgage Banker License 0117213, Licensed by the Subject to credit approval and program guidelines. provided in this guide is intended as general guidance and should not#be- considered legal advice Department of Business Oversight under California Lending Act.service License #813L482, Office of Financial or credit counseling. Although we do our bestthe to provide onlyResidential the names ofMortgage established, reputable providers, we canFlorida make no representations orRegulation, guarantees License #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; Overland Park, KS 66210, regarding services provided. LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Residential Mortgage Origination (#MN-MO-12007). This is not an offer to NMLS ID #12007. http://www.nmlsconsumeraccess.org. Toll Free (800) 270-3416. This advertisement does not constitute a loan approval or a loan enter into an agreement. An offer to enter intocommitment an agreementismay only be pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206. commitment. Loan approval and/or loan subject to made final underwriting review and approval.

Preparing for the loan process PRE-QUALIFICATION Please be sure to provide the following documents: • • • • •

W2s (from the last 2 years) 1040 Federal Tax Returns (from the last 2 years) 2 most recent pay stubs 2 most recent bank statements (all pages) Copy of driver’s license

INFORMATION SENT TO YOUR REALTOR I will send an email to your Realtor, explaining the program you are approved for, closing costs needed and any other details they may need to know.

SEARCH FOR YOUR NEW HOME Purchase Agreement (PA), is written (including all contingencies) • You may decide to have your agent write the offer contingent upon inspection. Typically, you as the buyer, have 5-7 days to remove any inspection contingencies. You will hire an inspector who works exclusively for you to inspect the overall condition of the property and give you a detailed report of the condition of the home. If you should decide that any inspected items needs to be replaced or repaired, you have the right to ask the seller to fix it, reduce the price or cancel the purchase agreement all together. • You also have the option to make the offer contingent upon financing. If for any reason, financing falls through, you are able to get your earnest money back. • If you decide the home is acceptable in it’s current condition, you may choose to remove the inspection contingency.

Purchase Agreement is accepted or rejected • If your purchase agreement is accepted, you proceed to the financing step. • If your purchase agreement is rejected, continue your search for finding a home.

SubjectFinancial to credit approval and program guidelines. information providedofinFinancial this guideInstitutions. is intended asMortgage general guidance should be considered legal by advice LeaderOne Corporation is Licensed by theThe Arizona Department Bankerand License #not - 0117213, Licensed the or credit of counseling. weunder do ourthe bestCalifornia to provideResidential only the names of established, reputable service#813L482, providers, we can make no representations or guarantees Department BusinessAlthough Oversight Mortgage Lending Act. License Florida Office of Financial Regulation, License #MLDB964, Virginia of Financial Institutions License #MC-3865. Corporate Headquarters: 11020Origination King Street, Suite 390; Overland Park, KS 66210, regarding servicesBureau provided. LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Residential Mortgage (#MN-MO-12007). This is not an offer to NMLSenter ID #12007. http://www.nmlsconsumeraccess.org. 270-3416. This advertisement not constitute loan approval into an agreement. An offer to enter into an agreementToll mayFree only(800) be made pursuant to subdivisions 3 and 4does of Minnesota StatutesaSection 47.206. or a loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.

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Preparing for the loan process

STEP 1

STEP 2

STEP 3

Set up meeting: Sign forms associated with the property you are about to purchase and the loan you are applying for.

Contact your insurance agent to obtain your homeowners insurance.

Lender orders appraisal and title work (Typically takes 5-7 days to receive the reports)

STEP 4

STEP 5

STEP 6

Provide your most updated documentation (pay stubs, bank statements, etc)

I willl send your file in to be processed.

I’ll follow up with you to see if any additional items are needed.

STEP 7

STEP 8

STEP 9

Verifications of employment, rent, assets, tax returns and social security are ordered by the Loan Processor.

Files are submitted to Underwriting (takes about two days to be conditionally approved).

Collect and submit conditions.

STEP 10

STEP 11

STEP 12

Final approval is given.

Loan documents prepared and sent to the title company. You’ll receive a copy of the HUD1 settlement statement.

Attend your closing. Bring a cashier’s check or wire the money, and bring your driver’s license and list of residences for the last 10 years (only need city and state).

STEP 13 Last and final step: Get the keys to your new home!

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Subject to credit approval and program guidelines. provided in this guide is intended as general guidance and should consideredLicensed legal advice LeaderOne Financial Corporation is Licensed by The the information Arizona Department of Financial Institutions. Mortgage Banker Licensenot # be - 0117213, by the or credit counseling. Although we do under our best to California provide onlyResidential the names of established, reputable providers, we can make Office no representations guarantees License Department of Business Oversight the Mortgage Lending Act.service License #813L482, Florida of Financialor Regulation, #MLDB964, Virginia Bureau LeaderOne℠ of FinancialFinancial Institutions License(NMLS #MC-3865. CorporateResidential Headquarters: 11020 King Street, Suite 390;This Overland Park, regarding services provided. Corporation #12007), Minnesota Mortgage Origination (#MN-MO-12007). is not an offerKS to 66210, NMLS http://www.nmlsconsumeraccess.org. Toll Free 270-3416. This advertisement does not constitute a loan approval or a loan enterID into#12007. an agreement. An offer to enter into an agreement may only be (800) made pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206. commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.

Preparing for the loan process WHY CHOOSE LEADERONE℠? People choose to work with LeaderOne℠ because we provide expert advice, responsive communication and world class service. We enjoy helping home buyers and are committed to educating them throughout the mortgage process. Our team was built with highly qualified mortgage professionals from across the country. In order to create an amazing mortgage experience, that includes finding the best loan for your unique needs and goals. Whether you are a first-time home buyer or a seasoned real estate investor, our staff knows what it is like to be in your shoes and we strive hard to never forget that feeling. Let LeaderOne℠ guide you through the trustworthy, exceptional mortgage experience that you deserve.

Subject to creditCorporation approval and is program guidelines. The information provided this guide is intended as general guidance and should be considered legalby advice LeaderOne Financial Licensed by the Arizona Department of in Financial Institutions. Mortgage Banker License # -not 0117213, Licensed the or credit Although we do our best to provide only the names of established, service providers, we can make or guarantees Department ofcounseling. Business Oversight under the California Residential Mortgage Lending reputable Act. License #813L482, Florida Officenoofrepresentations Financial Regulation, License #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; Overland 66210, regarding services provided. LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Residential Mortgage Origination (#MN-MO-12007). This is Park, not an KS offer to NMLS ID #12007. http://www.nmlsconsumeraccess.org. Tollmay Free (800) 270-3416. advertisement not constitute a Section loan approval enter into an agreement. An offer to enter into an agreement only be made pursuantThis to subdivisions 3 and does 4 of Minnesota Statutes 47.206. or a loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.

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Out-of-pocket expenses ESTIMATED EXPENSES Out-of-pocket expenses are amounts that are required to be paid for upfront, typically right after you submit the purchase agreement. Individual expenses vary depending on the type of loan and the amount borrowed. See some examples for out-of-pocket expenses below. • Earnest money (About 1% of purchase price–consult with buyer’s agent for exact amount) • Property inspection (Typically $300-$400) • Appraisal payment (Typically $450)

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Subject to credit approval and program guidelines. provided in this guide is intended as general guidance and should consideredLicensed legal advice LeaderOne Financial Corporation is Licensed by The the information Arizona Department of Financial Institutions. Mortgage Banker Licensenot # be - 0117213, by the Department of Business Oversight the Mortgage Lending Act.service License #813L482, Florida of Financialor Regulation, or credit counseling. Although we do under our best to California provide onlyResidential the names of established, reputable providers, we can make Office no representations guarantees License #MLDB964, Virginia Bureau LeaderOne℠ of FinancialFinancial Institutions License(NMLS #MC-3865. CorporateResidential Headquarters: 11020 King Street, Suite 390;This Overland Park, regarding services provided. Corporation #12007), Minnesota Mortgage Origination (#MN-MO-12007). is not an offerKS to 66210, NMLS ID #12007. http://www.nmlsconsumeraccess.org. Toll Free (800) 270-3416. This advertisement does not constitute a loan approval or a loan enter into an agreement. An offer to enter into an agreement may only be made pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206. commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.

Borrower expectations RECOMMENDATIONS FOR A SEAMLESS PROCESS Do not suddenly or drastically alter your the way you manage your credit while going through the mortgage loan process because it could affect financing. • • • • • • •

Do not increase current credit card balances. Do not open new credit cards. Do not close existing credit. Have questions? Consult your lender before making any financial decisions/changes. Avoid depositing money into accounts that are not payroll related. Try your best to return all requested documentation within 24 hours. Hire an insurance agent and complete insurance application within 5 days of receiving your signed purchase agreement.

LeaderOne Financial Licensed by the Arizona Department of in Financial Institutions. Mortgage Banker License # -not 0117213, Licensed the Subject to creditCorporation approval and is program guidelines. The information provided this guide is intended as general guidance and should be considered legalby advice Department ofcounseling. Business Oversight under the California Residential Mortgage Lending reputable Act. License #813L482, Florida Officenoofrepresentations Financial Regulation, License or credit Although we do our best to provide only the names of established, service providers, we can make or guarantees #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; Overland Park, KS 66210, regarding services provided. LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Residential Mortgage Origination (#MN-MO-12007). This is not an offer to NMLS ID #12007. http://www.nmlsconsumeraccess.org. Toll Free (800) 270-3416. This advertisement does not constitute a loan approval or a loan enter intoLoan an agreement. An offer loan to enter into an agreement mayto only be underwriting made pursuantreview to subdivisions 3 and 4 of Minnesota Statutes Section 47.206. commitment. approval and/or commitment is subject final and approval.

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Information for insurance agents MORTGAGEE CLAUSE Please follow the standard below as a reference to how our name should appear on any insurance documents: LeaderOne℠ Financial Corp ISAOA 11020 King St, Suite 390 Overland Park, KS 66210

OBTAINING HOME OWNER’S INSURANCE • Your insurance agent will need to know if you are going to establish an escrow account for your annual premium. • You will need to complete and sign an application with your insurance agent and we will need a binder to finish the loan. • A binder offers temporary insurance coverage for a stated period of time to complete underwriting and issue the policy. • The first day of coverage will be the day of closing. • A binder is like a receipt; it details how much coverage you’ve obtained and what your yearly premium will be.

INSURANCE AGENTS WE TRUST BRANDON STRAZA American Option Insurance 888-895-4032 [email protected] www.americanoptioninsurance.com

LeaderOne Financial Corporation is Licensed by the Arizona Department of Financial Institutions. Mortgage Banker License # - 0117213, Licensed by Subject to credit of approval and Oversight program guidelines. The information provided inMortgage this guideLending is intended as general and Florida should not be considered legal advice the Department Business under the California Residential Act. Licenseguidance #813L482, Office of Financial Regulation, License #MLDB964, Virginia Bureau of Financial Institutions License reputable #MC-3865. Corporate King Street, Suite 390; or credit counseling. Although we do our best to provide only the names of established, service providers,Headquarters: we can make no11020 representations or guarantees Overland KS provided. 66210, NMLS ID #12007. http://www.nmlsconsumeraccess.org. Toll FreeMortgage (800) 270-3416. advertisement regardingPark, services LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Residential Origination This (#MN-MO-12007). Thisdoes is notnot an constitute offer to a loan approval or a loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval. enter into an agreement. An offer to enter into an agreement may only be made pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206.

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Financial information BANK STATEMENTS Full account number, banking institution name and account holder(s) name(s) must be printed on the statement. Bank statements must cover 2 months and transaction history must be shown. Provide ALL pages of the bank statements (even if some pages are blank). If you do not use online banking, your local branch can provide you with statements and transaction history. Make sure to have the banker sign and datestamp all documentation provided to you in person. If you hold a joint account and the other account holder is not on the loan, provide a letter from the other account holder “granting 100% access to the account”. Be sure to reference the full account number on the letter and make sure to have it signed by the other account holder.

EARNEST MONEY DOCUMENTATION In order to receive credit for your earnest money, you will need to provide us with documentation that supports the withdrawal from your account as well as a copy of the earnest money check. • If the withdrawal doesn’t appear on your most recent statement, provide additional transaction history from the end-date of your most recent bank statement through the current history.

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LeaderOne Financial Licensed The by the Arizonaprovided Department Financial Institutions. Mortgage License # considered - 0117213, Licensed Subject to credit approvalCorporation and programisguidelines. information in thisof guide is intended as general guidanceBanker and should not be legal advice by the Department of Business Oversight under the California Residential Mortgage Lending Act. License #813L482, Florida Office of Financial Regulation, or credit counseling. Although we do our best to provide only the names of established, reputable service providers, we can make no representations or guarantees License #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; Overland regarding Financial Corporation (NMLS #12007), Minnesota Residential Origination (#MN-MO-12007). not an offera to Park, KSservices 66210,provided. NMLS IDLeaderOne℠ #12007. http://www.nmlsconsumeraccess.org. Toll Free (800) Mortgage 270-3416. This advertisement doesThis notisconstitute loan enter into anoragreement. An offer to enter an agreement only be made pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206. approval a loan commitment. Loaninto approval and/ormay loan commitment is subject to final underwriting review and approval.

Financial information DOCUMENTING LARGE DEPOSITS Even if the deposited funds will not be used to close your loan, we still need to verify all accounts opened within 90 days of your loan applications and account balances that are considerably greater than the average balance reflected on your account statement. All deposits over 15-25% of gross monthly income must be verified • If the deposit was a check, please provide a copy of the cancelled check. • If the deposit was cash, provide a copy of the deposit slip. • If the deposit was a combination of cash/check or you deposited a check and received cash back, provide both the cancelled check and deposit slip copies.

GIFT FUNDS Gift funds (from an acceptable donor) can be used for down payment and closing costs. If you are to use a gift, we are required to document the gift with a gift letter. We will provide the gift letter, which will be signed by the donor and borrower stating the donor/borrower relationship and that no repayment is required. If you have already deposited a gift fund into your account: • The donor must complete and sign the provided gift letter as well as provide a bank statement that documents the gift of funds. • Recipient of the gift must provide a bank statement or transaction history showing the deposit. • No gaps are allowed in transaction history. If you are providing a printed statement, it must continue from the most recent date of transaction history provided. • Remember that you must sign the gift letter as the receiver of the gift fund.

If your funds have not been deposited yet: • Instruct the donor to wire the funds to the title company and obtain a statement showing the wire is completed. • We will obtain proof that the wire has arrived at the title company. The account number must match the account number on the gift letter.

LeaderOne Financial Corporation is Licensed by The the information Arizona Department of Financial Institutions. Mortgage Banker Licensenot # be - 0117213, by Subject to credit approval and program guidelines. provided in this guide is intended as general guidance and should consideredLicensed legal advice the Department of Business Oversight under the California Residential Mortgage Lending Act. License #813L482, Florida Office of Financial or credit counseling. Although we do our best to provide only the names of established, reputable service providers, we can make no representations or guarantees Regulation, License #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; regardingPark, services LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Residential OriginationThis (#MN-MO-12007). This is not an offer to Overland KS provided. 66210, NMLS ID #12007. http://www.nmlsconsumeraccess.org. Toll FreeMortgage (800) 270-3416. advertisement does not constitute approval a loan commitment. Loan approval and/or commitment is subject final underwriting approval. enter into aanloan agreement. Anor offer to enter into an agreement may only be madeloan pursuant to subdivisions 3 and to 4 of Minnesota Statutesreview Sectionand 47.206.

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Financial information INCOME Do not change or quit your job during the loan process; the processor will verify your employment at the company listed on your application before closing. Do not change the way your income is received. For example, if you were paid as a W-2 employee and you switch to being paid as a 1099 employee, different forms of income will be calculated differently. Altering the way you are paid could reduce the amount of income we document.

W2 INCOME Pay stubs must reference: • • • •

Full name Employer’s name Pay period Year-to-date earnings

SELF-EMPLOYMENT You are required to provide your 2 years’ most recent business tax returns (all pages and schedules) and the following if applicable: • 2 years’ most recent personal returns if filed separately • All K-1s • Year-to-date profit and loss statement

We may request a signed acknowledgment letter from your CPA confirming that you have filed as self-employed for the past “X” amount of years on your tax return.

SOCIAL SECURITY Provide your most recent awards letter detailing monthly income. If you don’t have this on file, call the Social Security Administration to request a copy via mail.

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LeaderOne Financial Licensed The by the Arizonaprovided Department Financial Institutions. Mortgage License # considered - 0117213, Licensed Subject to credit approvalCorporation and programisguidelines. information in thisof guide is intended as general guidanceBanker and should not be legal advice by the Department of Business Oversight under the California Residential Mortgage Lending Act. License #813L482, Florida Office of Financial Regulation, or credit counseling. Although we do our best to provide only the names of established, reputable service providers, we can make no representations or guarantees License #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; Overland regarding Financial Corporation (NMLS #12007), Minnesota Residential Origination (#MN-MO-12007). not an offera to Park, KSservices 66210,provided. NMLS IDLeaderOne℠ #12007. http://www.nmlsconsumeraccess.org. Toll Free (800) Mortgage 270-3416. This advertisement doesThis notisconstitute loan enter into anoragreement. An offer to enter an agreement only be made pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206. approval a loan commitment. Loaninto approval and/ormay loan commitment is subject to final underwriting review and approval.

Financial information DISABILITY Provide most recent awards letter, detailing monthly income. The letter must state that you will receive disability income for the next 3 years minimum.

CREDIT Do not take out any new debt or apply for any new credit during the process • The underwriter will check your credit before granting final approval on your loan; You will need to explain any new changes to your credit. This could jeopardize your closing date, as underwriting will want the loan to be re-submitted with an explanation letter (1-2 day process). • Opening any new credit is discouraged, as it could affect your credit score in negative ways and could cause your loan to be denied. • It is ok if your home owner’s insurance agent needs to pull your credit.

A letter of explanation is required for any derogatory credit: late payments, collections, bankruptcy, foreclosure, credit inquires, etc. Student loans cannot be in forbearance status. Accounts cannot be in a disputed status.

LeaderOne Financial Corporation is Licensed byThe the information Arizona Department of Financial Institutions. Mortgage Banker License - 0117213, by Subject to credit approval and program guidelines. provided in this guide is intended as general guidance and should not#be consideredLicensed legal advice the Department of Business Oversight under the California Residential Mortgage Lending Act. License #813L482, Florida Office of Financial Regulation, or credit counseling. Although we do our best to provide only the names of established, reputable service providers, we can make no representations or guarantees License #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; Overland regarding services provided. LeaderOne℠ Financial Corporation (NMLS #12007), Minnesota Mortgage Origination (#MN-MO-12007). This is not an offer to Park, KS 66210, NMLS ID #12007. http://www.nmlsconsumeraccess.org. Toll FreeResidential (800) 270-3416. This advertisement does not constitute a loan enter intoorana agreement. An offer toLoan enterapproval into an agreement maycommitment only be made pursuant to to subdivisions 3 and 4 of review Minnesota Section 47.206. approval loan commitment. and/or loan is subject final underwriting andStatutes approval.

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Your guide to the mortgage loan process THANK YOU! Thank you for reviewing our guide to the mortgage loan process. I hope this packet served as a valuable resource to you and that it assisted in answering many of your questions about the mortgage process. We want you to feel fully educated and to experience a smooth loan process. Please contact me with any additional questions, as I expect you may have more! Thank you for chosing LeaderOne℠ for your home financing needs. Please don’t hesitate to contact me if you need any further assistance.

DAVID ROBNETT Vice President LeaderOne Financial 7150 Camelback Rd. Suite 444 Phoenix, AZ 85262

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NMLS #199773 314-640-3300 [email protected] www.davidrobnett.com

LeaderOne Financial Corporation isguidelines. Licensed by Arizona provided Department Financial Institutions. Mortgage License # considered - 0117213,legal Licensed Subject to credit approval and program Thethe information in thisofguide is intended as general guidanceBanker and should not be adviceby the Department of Business Oversight under the California Residential Mortgage Lending Act. License #813L482, Florida Office of Financial Regulation, or credit counseling. Although we do our best to provide only the names of established, reputable service providers, we can make no representations or guarantees License #MLDB964, Virginia Bureau of Financial Institutions License #MC-3865. Corporate Headquarters: 11020 King Street, Suite 390; Overland regarding Financial Corporation (NMLS #12007), Minnesota Residential Mortgage Origination (#MN-MO-12007). not an offer to Park, KS services 66210, provided. NMLS IDLeaderOne℠ #12007. http://www.nmlsconsumeraccess.org. Toll Free (800) 270-3416. This advertisement does This not is constitute a loan approval oragreement. a loan commitment. Loaninto approval and/ormay loanonly commitment is subject to final underwriting review and approval. enter into an An offer to enter an agreement be made pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206.