The Home Buyer Power Guide

Welcome & Get Started

Where Do You Start?

Buying a home is exciting, but the loan process can seem overwhelming. That's where we come in, to help ease your mind at every step. Watch the video and continue reading for an overview of what to expect along the way.

What Do You Need to Prepare?

To start, you should talk to a Churchill Home Loan Specialist and answer some basic questions.

• Where are you looking to buy a home?
• What is your monthly income?
• How much debt do you have, if any?

When you are ready to submit a home loan application, you will need to provide some additional documents for us to review. You can see a list of all required documents in the Interactive Document Checklist.

Who's Who in Home Buying

Home Loan Specialist

Walks you through your loan options and assists in gathering the documentation needed to get you pre-qualified

Mortgage Lender

Reviews your financial documents an underwrites the loan

Real Estate Agent

Helps you find the right home and is the liaison when you make an offer

Insurance Agent

Identifies a homeowner' s insurance plan that best suits you

Title & Escrow Officers

Checks the history of the property deed for accuracy, holds the deposit, and acts  as closing agent

Inspector

Evaluates the property for damage or potential issues and provides a report detailing their recommendations

Appraiser

Estimates the market value of the home

Your Next Steps - The Home Buying Process

Are you ready to start? Excellent!

Everyone thinking about buying a home should start in the same place: Getting Pre-Approved. A quick phone call to your local Home Loan Specialist is all it takes to get things moving.

* An appraisal normally takes up to two weeks from the time it is ordered until the report is received.
* *You are required to sign the closing disclosure by midnight of the same day it is issued.

Chapter One: Pre-Approval

Pre-Qualified vs Pre-Approved

Before you start looking at houses or booking tours, there’s one important step that can save you a lot of stress — knowing how much home you can really afford.

That’s where pre-qualification and pre-approval come in.

They might sound like the same thing, but they’re actually quite different - and understanding them can make your home search so much smoother.

Here's the difference:

• Pre-qualification is a quick first step. You share some basic info about your income and debts, and your lender gives you an estimate of how much you might be able to borrow.
• Pre-approval goes deeper. Your lender reviews your pay stubs, credit, and other documents to give you a more solid loan amount.

Having a pre-approval letter can really help when you’re ready to make an offer — it shows sellers you’re serious and ready to buy.

If you’re just starting to dream about buying, start with pre-qualification.

If you’re ready to find the one and make an offer, go for pre-approval.

Either way, you’re taking the first steps toward a place to call home — and that’s something worth smiling about.

How and Where to Get Pre-Approved

Pre-approval is a more formal process that requires you to fill out and complete a mortgage application, along with supporting documents, and your lender will pull your credit report. They’ll verify:

• Your income (through pay stubs or tax returns)
• Your assets (bank statements)
• Your debts
• Your credit history

Once everything is reviewed, your lender can issue a pre-approval letter, stating how much you’re approved to borrow. This letter shows sellers you’re a serious buyer and that your financing is already underway.

You can start your application online here, or over the phone at 888-562-6200.

Document Checklist

As you begin, you’ll need to gather important documents that are commonly requested throughout the home loan process. A document checklist is an easy way to keep track of these important items while you begin assembling information for your Home Loan Specialist, processor, and underwriter.

You will be asked to provide personal and financial documents for your loan approval. The following documents will be needed, so we recommend you begin assembling this information as soon as possible. You are not required to provide any documentation prior to receiving a Loan Estimate.

We are totally digital!
Upload all your documents directly to our digital mortgage platform, MyChurchill. There may be more documents that we need during the course of your loan. We will reach out based on your situation.

Do's and Dont's

The following lists are some common-sense guidelines to follow during the process to reduce friction and limit the opportunity for issues or delays.

IT'S SIMPLE: DO NOT GIVE YOUR SOCIAL SECURITY NUMBER OUT FOR THE NEXT 30 DAYS!

• DON'T make any major purchases (car, boat, furniture, jewelry, student loans)
• DON'T apply for new credit - PLEASE CALL ME IF YOU FEEL THE NEED TO OPEN NEW CREDIT
• DON'T open any new accounts-gym memberships, etc.
• DON'T transfer any balances without letting us know first
• DON'T pay off any collections or accounts past due without first consulting with us
• DON'T close any credit card accounts
• DON'T change banks or open new bank accounts
• DON'T max out or overcharge your credit accounts
• DON'T draw on an open line of credit for closing costs or down payment funds
• DON'T consolidate your debt onto other open credit accounts without consulting us first
• DON'T take out a new auto loan or lease
• DON'T open a new cell phone account

• DO continue to make your mortgage or rent payment on time
• DO stay current on all existing accounts (even if you are paying them off)
• DO continue to work for the same employer - try not to switch jobs
• DO continue to use the same insurance company
• DO continue to live at the same residence
• DO continue to use your credit cards as normal
• DO call us if you have ANY questions!

If you encounter a special situation, it's best to mention it to us right away so we can help you determine the best way to handle it in order to achieve your financial goals!

Home Loan Options

When getting a home loan, you have several options to choose from. Some things you will have more control over, like how much of a donwpayment you will make, or if you'll purchase any discoutn points. Others are determined by outside factors and conditions, like the interest rate. If you have questions about your home loan options, a Churchill Home Loan Specialist will be happy to provide you an answer.

• Loan Amount
• Loan Term
• Interest Rate
• Loan Program / Type
• Down Payment
• # of Discout Points

What Actually Determines Your Interest Rate??

Interest rates are based on the bond market (mortgage-backed securities) and are typically standard across the industry. So, going with a ‘low-rate lender’ is a bit of a misnomer since rates don’t really fluctuate that much across lenders. Mortgage interest rates do change based on several criteria about the loan and the borrowers financial status.

On any given day, there are a variety of factors that can impact your specific interest rate:

1. Loan Amount
2. Loan Type (CONY, USDA, VA, FHA)
3. Loan Term (30, 15, 7 / 1)
4. Amortization (FIXED, ARM)
5. Purpose (Purchase, Refinance)
6. Cash Out/ Amount
7. LTV
8. CLTV
9. Property/ State
10. Property County
11. Type (SFR, Condo)
12. Number of Units ( 1-4)
13. Occupancy {Owner/ Investment}
14. Credit Score
15. Credit History
16. Debt Tolerance Ratio
17. Asset Verification
18. Reserves
19. Relocation
20. Gift Funds
21. Concessions
22. Income Verification
23. Employment Status
24. Employment Documentation
25. Co-Borrower (Occ/Un-Occ)
26. Citizenship/Resident Alien Status
27. Lock Period (7, 15, 30, 60, 90)
28. Mortgage l,nsurance {MO, LPMil)
29. UW System (AUS, DO, DI, DE)
30. Escrow (Included, Yes or N.o)
31. Points/ Fees (to Buy Down Rote}
32. Market Fluctuations

Here are a few simple ways you can work toward getting a better interest rate:

• Pick a fixed-rate loan. Your rate stays the same the whole time, unlike adjustable-rate loans that can go up later.
• Look for special programs. Some loans offer lower rates, especially for first-time buyers.
• Save for a bigger down payment. The more you can put down, the better your rate may be.
• A strong credit history can help lower your rate — even if you’re debt-free and starting from zero.
• Explore your loan options. For example, 15-year loans usually have lower rates than 30-year loans.
• Pay down debt. The less debt you have, the stronger your position as a buyer.

To learn more about your personalized mortgage interest rate, reach out and schedule a call with a Churchill Home Loan Specialist.

What's in your mortgage payment?

A mortgage payment consists of four components, commonly referred to as PITI. PITI stands for Principal, Interest, Taxes, and Insurance. It’s a simple way to remember the four main parts of a monthly mortgage payment:

Principal

The money you borrowed to buy the home

Interest

The cost of borrowing that money from the lender

Taxes

Your property taxes, which are usually collected and paid through your mortgage.

Insurance

Homeowners insurance; you pay 1/12 the annual premium each month AND Private Mortgage Insurance. This is required if you put less than 20% down.

When lenders figure out what you can afford, they add up all four of these pieces to get your total monthly payment

Knowing your PITI helps you see the full picture — so you can choose a home that fits your life, not just your loan.

Mortgage Insurance In A Nutshell

What Is Mortgage Insurance?

It's an insurance policy bought and paid for by the homeowner that covers the lender if the loan goes into default. Mortgage insurance is required for most home loans that don't have at least a 20 percent down payment.

The Upside and Downside of Mortgage Insurance

On the plus side, mortgage insurance allows a home buyer to purchase a home with less than 20 percent down. The downside is that it's money borrowers pay each month that isn't going toward paying off their principal loan amount.

How to Eliminate Mortgage Insurance

Refinance:

If your home has increased in value and you qualify to refinance, you may be able to get into a loan that doesn't require Mortgage Insurance.

Cancel Conventional Loan Mortgage Insurance (PMI):

Borrowers must have good payment history and provide written request to remove Mortgage Insurance. Individual investors establish the criteria for canceling Ml based on property's current value. Fannie Mae and Freddie Mac typically require:

• The loan be seasoned at least two years
• The borrowers have an acceptable payment history
• The loan-to-value {LTV) based on a current appraisal is 75 percent or lower, if less than five years have elapsed since the loan originally closed
• The {LTV) based on a current app

Cancel FHA Mortgage Insurance Premium (MIP):

Whether MIP can ever come off your FHA loan depends on a few factors, including when it was originated, the amount of your down payment, and the current LTV ratio.

Loan Programs to Consider

A home loan program is a financial service provided by lenders to help individuals purchase their homes. These programs offer borrowers additional options in regard to the details and requirements of their home loan. Home loan programs come with various terms, interest rates, and eligibility criteria, tailored to suit different financial situations and needs.

They are essential tools for making homeownership more accessible and affordable, enabling people to invest in real estate without having to pay the full purchase price upfront.

You can explore each loan program on our Loan Programs page, where we cover the requirements and benefits of each unique option.

• Conventional loan programs are one of the most common, and serve the majority of home buyer needs and requirements.
• FHA loan programs are designed to support lower- and moderate-income individuals by offering more lenient credit requirements and lower down payments, making homeownership more accessible.
• VA loan programs cater to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. These loans offer significant benefits, including no down payment, no private mortgage insurance (PMI), and competitive interest rates.
• Some home buyers require Specialty loan programs for unique and special circumstances, and these loan programs serve those specific needs.
• Construction and builder home loan programs offer specialized financing options tailored to individuals looking to build their dream home from the ground up
• An investor loan program provides specialized financing options for individuals or entities looking to purchase, renovate, or refinance real estate investment properties.
• Non-Conforming loans, often referred to as JUMBO loans, cater to borrowers who need larger loan amounts or who have special financial circumstances, such as self-employment income, recent credit issues, or the need to finance luxury properties.
• Non-QM loans are designed for borrowers who may not fit the traditional lending criteria but still have the financial capacity to repay a mortgage.

Your Home Buying Trifecta - The Home Buyer Edge Program

Here’s your triple threat against cash offers and other home buyer competition. Churchill's best-rated and reviewed loan program arms you with the ultimate home-buying trifecta:

• Certainty for sellers with the $10,000 Seller Guarantee
• Financial security for you with Rate Secured Program
• Make an offer that stands out in any market with the Certified Home Buyer Program

Chapter Two: Contracts & Underwriting

Finding and Working with A Real Estate Agent

Home Shopping 101: Offers and Contracts

Estimates & Appraisals

Loan Estimates

During the loan process you'll receive several loan estimates. We are required to notify you of particular fee increases during your loan process, as these are estimates and the figures can change.

For example:

When we first send your upfront disclosures, the escrow fees can be based off of a general pricing sheet. Once the escrow company provides us with accurate numbers, we would redisclose those figures to you via another Loan Estimate.

Appraisals

An appraisal will be conducted during the process. Appraisal costs do vary, and you will be sent an authorization for ACH payment after you return your signed disclosures. This cost is shown on your Loan Estimate and will be deducted from your closing costs at the close of escrow.

Third Party Vendors & Services

You will need to arrange for third-party service providers for required inspections and services. This can vary depending on property location and loan program. Consult with your Home Loan Specialist and real estate agent to find out which services you will need.

Here’s a list of some of the third-party services you or your agent may need to arrange:

• HOME INSPECTIONS: A home inspection will determine if there are any problems or issues with the property. These are not always required, but highly recommended and should be conducted by a licensed real estate inspector.
• HOMEOWNER’S INSURANCE: This is also referred to as hazard insurance and is required. It is best to have this done at least 2-3 weeks prior to your closing to give the insurance company plenty of time to put a quote together.
• APPRAISAL: The appraisal is a required assessment of every mortgage that provides you and your lender with a fair value of the property. Appraisals are  conducted by a licensed third-party professional.
• TERMITE & PEST INSPECTIONS: Have a licensed pest inspector check the home for termites and other pests and provide written reports upon inspection completion.

83 Ways You May Hit Turbulence in The Process

Buying a home is an exciting journey — but like any big adventure, it can come with a few bumps along the way. From surprise paperwork snags to unexpected delays, there are plenty of little hiccups that can pop up during the process.

But don’t worry. We’ve been helping families become homeowners for over 30 years, and we’ve seen (and solved) every one of these challenges — and plenty more that didn’t make the list.

Here are 83 common roadblocks you might run into — and that we know how to guide you through, every step of the way.

The Buyer/Borrower

• Not telling the truth on loan app.
• Incorrect info submitted to lender
• Late payments on credit report
• Unknown additional debt after opp.
• Borrower/ co-borrower loses job
• OR switches to job w/probation period
• OR switches from salary to 100% commission income
• Income verification lower than on opp.
• Overtime income not allowed by underwriting
• Large purchase on credit prior to closing
• Illness, injury, divorce, etc. during escrow
• Lack of motivation
• Gift donor backs out
• Cannot locate divorce decree, tax returns, bank statements, or other required documents
• Cannot locate petition/ discharge of bankruptcy
• Difficulty obtaining rent verification
• Interest rate increases & borrower no longer qualifies
• Loan program changes with higher rates, points, & fees
• Child support not disclosed on opp
• Borrower is a foreign national
• Bankruptcy within last two years
• Mortgage payment is double previous housing payment
• Not having steady two-year employment history
• Handwritten pay stubs
• Borrower/co-borrower/seller dies
• Family /friends do not like the home the buyer chooses
• Buyer is too picky about property in price range
• Buyer feels the house is misrepresented
• Veterans DD214 form not available
• Short on closing cash
• Improper "paper trail" for gifts, loans, etc.
• Buyer doesn't bring/wire closing funds in time

The Seller

• Loses motivation to sell
• Cannot find suitable replacement property
• Delays or refuses access to property for appraisals or inspections or repairs
• Removes property the buyer believed was included
• Unable to clear liens - short on cash to close
• Did not own 100% of property as previously disclosed
• Unable to get partner's signatures timely enough
• Leaves town without getting Power of Attorney
• Delays projected move-out date
• Not completing repairs agreed in contract
• Seller's home goes into foreclosure during escrow
• Misrepresents info about home & neighborhood
• Does not disclose hidden or known defects & those defects are discovered
• Builder miscalculates completion of new home
• Builder has too many cost overruns
• Final inspection does not pass
• Seller doesn't appear for closing & won't sign papers
• Have no client control over buyers or sellers
• Unfamiliar with client's financial position - do they have enough equity to sell, etc.
• Delays paperwork to lender
• Inexperienced in this type of property transaction
• Takes unexpected time off during transaction & cannot be reached
• Misleads other parties to the transaction
• Fails sufficient homework on clients or property

The Property

• County does not approve septic system or well
• Substantial termite damage that seller will not repair
• Home size and/or condition misrepresented
• Home is destroyed prior to closing
• Home is not structurally sound
• Home unsuitable for insurance
• Property incorrectly zoned
• Existing oil tank leaks cannot be decommissioned
• Comparable homes for appraisal difficult to find

The Escrow /Title Company

• Fails to notify lender/ agents of unsigned or unreturned docs
• Fails to obtain info from beneficiaries, lien
  holders, insurance companies, or lenders in a
  timely manner
• Lets principles leave town without getting needed signatures
• Loses or incorrectly preps paperwork
• Does not disclose valuable info quickly enough
• Does not coordinate well so that many items can be done at once
• Does not bend rules on small issues
• Finds liens or other title problems last minute

The Appraiser

• Is not local/ misunderstands market
• Too busy to complete on time
• No comparable sales available
• Not on lender's approved list
• Makes mistakes leading to low value
• Lender requires a 2nd or review appraisal Inspectors
• Pest Inspector not available when needed
• Pest inspector too picky about property  condition
• Home inspector not available when needed
• Inspection reports alarm buyer & sale canceled

Chapter Three: Closing Day

Your Final Loan Approval.

You're in the home stretch.

A customized closing packet will be made and sent to your Settlement Agent for you. Inside, you'll find the final closing terms and amounts that are due.

Check with your Settlement Agent on the form and method of payment, and when to get it to them.

Closing Day.

Let us ease your mind and get excited about the fun stuff.

Your closing appointment should take approximately an hour. Here, you'll review and sign your closing documents. Bring your favorite pen if you'd like. Your Settlement Agent can answer all of your questions and concerns.

For purchases, you may or may not meet the seller at the closing appointment. They can sign on the same day as you, or in advance.

If refinancing your current home, the law allows you three days after signing to decide if you want your new mortgage. This is called your "right of rescission." For this reason, your funds will not be released until three days have passed.

Closing Is Complete and the Dust Is Settling.

Time for you to settle in, too.

You've signed your docs and received your keys. Congrats. Time to start moving in!

About a month after your closing, loan servicing will send you a welcome email and phone call. They are available to help answer any questions you might have about your loan.

You will receive your initial loan activity statement the week following your closing. This shows the amount and due date of your mortgage payments.

Finally, you'll receive a survey about your experience during the process. This is the best way for us to know how we did and how we can get even better.

What to Expect at the Closing Table

**Please communicate any changes to purchase contracts immediately to your Home loan Assistant or processor• sales price changes, dosing date change, credits being added from realtor/ seller, etc.

After your Home Loan Specialist has completed your application and locked your rate lf applicable), your Home Loan Assistant will reach out to you and collect basic upfront documentation and submit your loan to a processor for review. All up-front documents will be reviewed and if nothing further is needed your file will go to underwriting. Turn times for the initial underwriting of your file vary by volume - please ask your processor for current turn times FROM THIS POINT FORWARD, THE PROCESSOR IS YOUR MAIN POINT OF CONTACT.

If applicable, the appraisal will be emailed directly to you once received. Any questions about the appraisal, please contact your Home Loan Specialist or Maggie Graham. (Disregard this section if you hove a property inspection waiver.)

When the loan is out of underwriting, your processor will email you with o list of the items the underwriter has requested. The title to this email is "UNDERWRITER REVIEW OF YOUR LOAN" - be on the lookout for this one! Once oil items you have sent in have been reviewed, your processor will let you know if anything further is needed from you. Please keep in mind that the underwriter makes the final decision on what is and is not acceptable but your processor will provide as much guidance as possible.

Once all items requested by the underwriter are collected (sometimes third-party items may be needed such as appraisal, title, insurance, etc. - these ore items we order on your behalf) your file goes bock to the underwriter for final review. Please ask your processor for current turn times on this review.

If further documentation or identification is needed, your file may be "re-conditioned" by the underwriter, your processor will reach out to you for any further items needed. This is rare but it does happen.

Due to lows effective 10/3/ 15 (referred to as "TRID"l you will receive on initial closing disclosure statement from your processor approximately seven days before your closing. Due to federal low you cannot sign loon documents until three business days AFTER you hove signed the initial closing disclosure statement. Any questions on your dosing disclosure should be directed to your Home loon Specialist or Home loon Assistant

We will reach out to you to schedule your closing once all necessary items have been received and the underwriter has issued the "clear to close" on your file.

Our closing department works with the title agent to prepare the final Closing Disclosure. Once this hos been finalized and approved by all parties you will receive o copy for review prior to dosing. This will show the final breakdown of all funds, costs, etc.

After the loan has closed and funded, your loan will go through a quality control audit. This is required by law. You may receive arequest for further information from our post-closing department or from your processor after your loan has closed. Please comply with these requests in a timely manner as your loan cannot be sent to the final servicer until these ore received.

Acceptable Source of Funds to Close

Earnest money deposit

Earnest money is a deposit made to a seller showing the buyer's good faith in a transaction. With earnest money, we need a copy of the check and proof that it cleared your account. Earnest money must be taken from an account that we have verified via bank statements. We'll need 60 days or all pages of bank statements for two full months.

Checking/ savings/ money market/ investment accounts

We'll ask you for a bank statement with all pages covering a 30-60 day time period. If there's a joint person on the account, we'll need a letter that our borrower has access to all of the money in the account. If there are deposits on the statement that are anything but payroll deposits, we may need to "source" these deposits, which means we'll need to know where the money came from. We'll likely need copies of any non-payroll check(s).

Co-mingling of business and personal accounts

Please talk to us about this. Business accounts are not always your money to spend.

Stock liquidation, 401 (k) loans, proceeds from a secured line of credit

We'll ask you for a statement showing the amount available before the transfer, proof of sale of stock, amount of loan, and then a copy of the front of the check and/ or transfer into your checking/ savings accounts. We need to see payment terms on a line of credit to calculate the payment on that loan.

Proceeds from the sale of other real estate

We'll ask you for a copy of the final HUD Settlement Statement from that sale and the deposit of those funds into your account.

Gift from close relatives

We'll ask you to have them sign our Gift Letter form. We'll also ask for a copy of the cashier's check or a copy of the wire from their account (with their name referenced) and in the exact amount matching the Gift Letter form. We need proof of the deposit into the account or the wire to escrow at closing. Not all relatives qualify for gift giving in real estate transactions. Ask us for details.

Un-Acceptable Source of Funds to Close

• Cash On Hand
• Cash Proceeds from an unsecured loan
• Non-vested Stock Options
• Custodial Funds
• Trade Equity Funds
• Loans from Family Members

What to Expect AFTER Closing Day:

Loan Documents

These documents show which investor or agency has purchased your loan. Churchill Mortgage will service your loan on their behalf.

Deed of Trust and Note

Copies are mailed after the documents are recorded with the county.

Customer Satisfaction Survey

We'll email you a survey shortly after closing your loan, to find out how we did, and what we can do better.

Escrow Analysis Statement

This analysis ensures enough funds are collected in your escrow account to pay upcoming installments of your insurance premium{s) and/ or property taxes.

Loan Starter Statement

This initial statement indicates its payment amount and due date. It's mailed within the week after loan closing.

Welcome Email or Call

Look for a welcome email from our Loan Servicing department about a week after you receive your first Loan

Activity Statement.

In it, you'll find important information on how to establish your online account, and the best ways to communicate with us. We'll also give you a welcome call about a month after loan closing, to answer any questions you might have.

Servicing Your Loan

We do service some of our loans at Churchill Mortgage, but it is not  unusual for lenders to "sell" or transfer the rights to service your mortgage to another company. If this happens, you will receive a letter in the mail with information about your new servicer and how to make your first payment once the loan has been transferred.

If you have questions about the transfer process, please visit info.churchillmortgage.com/loan-servicing/how-it-works for more information. If you find that you need additional assistance, please reach out to our servicing team at 855.439.6526.

A word about your Supplemental Tax Bill

A Supplemental Tax Bill is issued for the difference between the taxes due on the old assessed value and the new assessed value of the property. If your property is subject to a supplemental tax bill, it will be sent directly to you from the tax authority.

If you choose to send the bill to Churchill for payment, we must
receive the tax bill 1 0 business days prior to your delinquent date. If we
are not given sufficient time to pay your corrected or adjusted tax bill,
any penalty will be charged to your escrow account.

NOTE: Due to the uncertainty of the Supplemental Tax Bill, a shortage
may occur if paid from your escrow account. That shortage will be addressed in the next analysis cycle and may cause an increase in your
monthly escrow payment