Why Choose Academy Mortgage - The Rascon Team

WHY CHOOSE ACADEMY MORTGAGE THE RASCON TEAM AS YOUR HOME LENDER?

ABOUT THE RASCON TEAM At Academy Mortgage, Our team is easy to access, and we provide timely response, clear communication, and absolute follow-through. We do what we say we will do. Our behaviors and actions as a com- pany provide confidence and assurance to our customers that we can be counted on to consis- tently deliver loans on time, every time without compromising our core values or reputation. More homebuyers are likely to turn to Academy to purchase a home rather than other lenders across the United States for a reason: We have Kirkland's most effective and efficient Loan Officers and processes. We pride ourselves on speed, accuracy, and our fantastic local team Our local team handles each loan: from application to closing, you will always be in good hands. More than a Mortgage Company, We care about the communities around us and the world our children grow up in. Here are some ways our team serves Abroad & Locally Helping build schools in South Africa Building with Habitat for Humanity Fundraising for Holy Rosary School Blanket Drives for Mary’s Place & Our Lady of Guadalupe School WestSide & Eastside Baby Support Volunteering at Local Food Banks

MEET OUR TEAM PETER RASCON - NMLS 487519 Loan Officer Since Joining Academy, my mission is to be your 1st choice in achieving your dream of home ownership. I will work endlessly to get you into your dream home. My team and I will make your dream home happen for you. I’m the father to an amazing little boy and a husband to the most unbelievable wife. Family is incredibly important to me. I’ll care about your family like I care about my own. GENE KRAWCHUK - NMLS 450258 PNW Renovation Lending Sales Manager I’ve been a lender for 24 years and ½ of my career I’ve dedicated myself to the niche of Reno- vation Lending. It’s my passion and I’ve established a reputation in the market as an expert in this field. I take great pride in leading my clients through the more complicated process of this financing. But helping them realize their vision of a remodeled home is incredibly rewarding. KRISTA GUSTELIUS Processor I love working at Academy! The people are awesome! I work hard to get loans closed as quick- ly and efficiently as possible. In my spare time, I like watching all of Seattle sports teams, and working in my garden. I have a wonderful husband and three year old son, who keeps me very busy! AMY WILSON Processor I’ve been a mortgage processor for over 15 years, and my favorite feeling is when a customer closes on their home purchases, or helping people save money through refinances. I love the nice people and small bank feel and culture of Academy. In my free time, I enjoy a good road trip (especially to wineries), spending time with my Family, and volunteering yearly for the Special Olympics. GRETCHEN Mascot & Troublemaker I’m the Rascon Family Dog, and have been at Academy since 2017. I love all my friends here. Everyone is so nice and always takes time out of their day to play with me. I love to play with toys, and make new friends. I enjoy long walks, and getting my belly rubbed. It is our MISSION to become 1st CHOICE in delivering the dream of sustainable homeowner- ship by inspiring hope and building prosperity in the lives of our Employees, Builders, Realtors, and the communities we serve.



HERE ARE JUST A FEW EXAMPLES OF THE SERVICES WE PROVIDE OUR CLIENTS

14 DAY CLOSE TIMELINE* Loan Initial Initial Final Submission Processing Underwriting Processing 2 Days 1–3 Days 2 Days 3 Days* Application (1003) • Step 1: File opened • Underwriting checks Once all items on the R equest and sign and assigned to with guidelines and Conditional Appro initial documents processing issues conditional are received, the approval sent to underwriting submission • Appraisal ordered Closing disclosure can • Step 2: Processing • This initial approval be issued as long as and processing gives a “checklist” of closing is within review and any items items that need to be ten days APPLY ONLINE needed are requested cleared in order to • Step 3: Submit loan Final to Underwriting Amount of Days Underwriting Closing 2 Submission 1 Day 1 Opening 2 Days* 3 Processing 2 Initial UW • Conditions are • Final CD is worked and 3 Conditions sent to the borrower(s) 1 Final Approval approval is issued for receipt 2 Closing • File is “Clear to Close” • Time for closing is • Closing package is sent =14 Days* to the closing agent scheduled with From Application Date to Closing Date borrowers • After signing, title agent sends package to closer for funding approval Documents Needed for Loan File • Moysatrecurrent 2 years taxes–all schedules • Last 2 months asset statements–all pages • Most current 2 years W2s • Title report • • Copies of your SS cards (if FHA) • Signed Application/Disclosures • Copies of your driver’s license • Credit report t • Homeowner insurance DEC page • Fully executed Purchase and Sale Agreement • Appraisal (if applicable) Final Approval • 30 days of most current pay stubs • U/W Conditions (Final Approval) *Timeline is partially dependent on the speed of the borrower returning documents, providing items for conditions, or scheduling. All loans are subject to change and credit approval. Closing times are not guaranteed and may vary with individual circumstances.

TIPS FOR A SIMPLE LOAN APPROVAL Here is a list of useful tips to ensure an effortless loan process. These DO’s and DON’Ts will help you avoid any delays and costly challenges with your loan approval. DOs DO call us if you have any questions. DO provide requested documentation promptly and in its entirety. DO continue living at your current residence. DO continue making your mortgage or rent payments. DO continue to use your credit as normal. DO keep working at your current employer. DO keep your same insurance company. DO stay current on all existing accounts. DO expect requests for additional documentation throughout the loan process. DO let us know if you will be receiving gift money before it is deposited into your account. DON’Ts DON’T change your employment status. DON’T make any major purchases (car, furniture, jewelry, etc.). DON’T change bank accounts. DON’T make any large cash deposits into your bank accounts. DON’T transfer any balances from one account to another. DON’T close any credit card accounts. DON’T consolidate your debt onto one or two credit cards. DON’T apply for new credit or open a new credit card. DON’T max out or overcharge on your credit card accounts. DON’T take out a new loan or co-sign on a loan. DON’T pay off any loans or credit cards, charge offs, or collections without discussing it with us first. DON’T finance any elective medical procedure. DON’T join a new fitness club. DON’T open a new cellular phone account. DON’T have your credit pulled or dispute any information on your credit report. DON’T pack away or store any important documents, even if they aren’t initially requested. If you encounter a special situation, it is best to mention it to us right away so we can help you determine the best way to achieve your goals. LET US SHOW YOU HOW SIMPLE SECURING A HOME LOAN CAN BE.

MY MORTGAGE APP The My Mortgage App allows homebuyers access to their mortgage process, at anytime. With powerful, yet simple, payment calculators and up-to-date loan process notifications and requests, this app is a great tool for any borrower. CAPABILITIES INCLUDE: Scan and securely send documents to your Loan Officer, right from the app. Track your loan application from submission to approval. Try out easy-to-use calculators to estimate monthly payments or determine how much home you can afford. Learn virtually anything you need to know about financing your home. Easily contact your Loan Officer and/or Real Estate Agent. Receive important update notifications on your phone regarding your loan. Search for homes within the app (not available from all Loan Officers). Take control of your mortgage. Visit your loan officer’s website today and click the My Mortgage app button to download the app for your iOS and Android device. Share the app with your family and friends. Contact your loan officer if you have any questions.

CUSTOMIZED LOAN SOLUTIONS TO MEET YOUR NEEDS Your Academy Loan Officer will review your financial situation in detail, provide honest and accurate information, and make every effort to find the loan progam that’s right for you. There are six types of residential mortgages: 1. CONVENTIONAL MORTGAGES are popular with homebuyers who have excellent credit and money to put down. Academy’s Conventional Mortgages have a large range of down payment options available, which result in immediate equity in a new home. Conventional Mortgages can have a fixed interest rate, where the interest rate does not change during the entire term of the loan, or an adjustable interest rate, where the interest rate stays constant for a term and then fluctuates based on market conditions. Academy offers several term options for each Conventional Mortgage type. 2. FHA HOME LOANS are designed to benefit first-time homebuyers and buyers who don’t have perfect credit or a lot of money to put down. While funded by Academy, the Federal Housing Administration (FHA) insures these mortgages so Academy can offer you a better deal. 3. USDA HOME LOANS provide affordable, government-backed financing for qualified homebuyers in defined rural development areas. With USDA Home Loans, Academy can provide 100% financing and no down payment is required. 4. VA HOME LOANS help veterans and active-duty military personnel finance the purchase of homes with favorable loan terms and at an interest rate typically lower than rates charged on other types of mortgages. No down payment or monthly mortgage insurance is usually required. 5. RENOVATION LOANS can be a great alternative for people who want to buy or refinance a fixer-upper. Academy’s FHA 203(k) and HomeStyle Renovation Loans also include the costs to repair and remodel the property, all in a single loan. 6. STATE HOUSING AGENCY LOANS. Academy’s State Housing Agency Loans benefit low- and moderate-income households.

CLOSING ON YOUR LOAN: THE BREAKDOWN WHAT YOU WILL NEED TO BRING TO CLOSING: One valid form of identification (a driver’s license, current passport, etc.) and one additional form of identification (membership card, school ID, etc.) so your identity can be verified by the notary public. A cashier’s check or wire to the settlement agent for the funds required to close the loan. Any additional documentation needed by Academy. AN EXPLANATION OF COMMON CLOSING COSTS: Here is an explanation of some of the fees you can expect at closing. When you apply for your loan, you will receive a Loan Estimate (LE) outlining your closing costs (settlement charges) and a nooklet explaining these costs in detail. LOAN ORIGINATION FEE This fee covers the lender’s administrative costs in establishing the new loan. It is generally expressed as a percentage of the loan amount. LOAN DISCOUNT Often called ‘points’, a loan discount is a charge used to allow a lower interest rate than the current market rate. One point is equal to 1% of the loan. TITLE INSURANCE FEES These fees cover both the buyer’s title policy and the lender’s title policy. MISCELLANEOUS TITLE CHARGES The title company may charge fees for a title search, settlement closing, recording, notary, document preparation, and title examination. LOAN PROCESSING FEE A charge to cover the costs for obtaining documentation and any other information necessary for underwriting. UNDERWRITING FEE This fee offsets the cost of evaluating your entire loan application package, including your credit report, employment history, financial documents, and appraisal, to determine whether Academy can approve your loan request. PREPAID INTEREST Depending on the day of the month you loan closes, this charge may vary from a full month’s interest to just a few days’ interest. If your loan closes at the beginning of the month, you could pay the maximum amount. If your loan closes near the end of hte month, you may only have to pay a few days’ interest. PRIVATE MORTGAGE INSURANCE (PMI) Depending on the amoun tof your down payment, you may be required to pay a monthly fee for PMI. You may also be required to put a certain amount for PMI into a special reserve amount called an escrow or impound account. PROPERTY TAXES AND HOMEOWNER’S INSURANCE Depending on the month you close, property taxes will be prorated between you and the seller. You will need to pay an entire year’s homeowner’s insurance (hazard insurance) premium upfront at loan closing. In addition, you may be required to put a certain amount for taxes and insurance into an escrow account.

COMPONENTS OF A MONTHLY MORTGAGE PAYMENT Your monthly mortgage payment is made up of a number of components commonly referred to as “PITI” (Principal, Interest, Taxes, and Insurance). PRINCIPAL. The beginning loan amount as stated on the loan note and the subsequent balance after each loan payment is made. INTEREST. The charge for the use (loan) of the money. TAXES. The county assessor determines the property tax based on the value of your home. Taxes may be impounded, depending on the amount of your down payment (anything less than 20% usually requires an escrow account). HOMEOWNER’S (HAZARD) INSURANCE. An insurance that covers the loss of the home from specific hazards, such as a fire. An insurance agent provides this type of insurance. The standard policy pays replacement costs minus depreciation based on actual cash value. See an insurance agent with any questions about homeowner’s insurance. This type of insurance may also be impounded in an escrow account with property taxes. PMI, FHA MIP, FHA UFMIP, VA FUNDING FEE, USDA GUARANTEED FEE. Charges for PMI, an FHA MIP, a VA Funding Fee, or a USDA Guaranteed Fee may be included in your monthly mortgage payment depending on your loan type, the amount of your down payment, and the unpaid balance of your loan. They also may require monthly mortgage insurance. HOMEOWNER’S ASSOCIATION DUES. If you belong to a homeowner’s association, your monthly dues may make up a portion of your monthly payment. WHAT IS AN ESCROW OR IMPOUND ACCOUNT? An escrow or impound account is an account that a lender may set up to pay certain recurring property-related expenses, such as property taxes and homeowner’s insurance. These expenses are usually semi-annual or annual and may involve potentially large payments. Lenders often require escrow accounts to ensure you have enough money to pay those bills when they come due. A lender breaks these expenses down into monthly installments and adds them to your mortgage payment each month. Your mortgage servicer manages this account and pays the property-related expenses covered by the account on your behalf.

DON’T TAKE OUR WORD FOR IT see what our customers have to say* “We weren’t happy about [a change when “ “ working with another company] so my son- My husband completely trusts We had a great experience! in-law encouraged me to call Peter, who Peter - we love working with Friendly people who handled his loan on his house and other Peter as he is very dedicated, genuinely care about their family members loans. Peter, Amy and knowledgeable and self customers make a huge Krista were on it full throttle to get it closed motivated. Peter did an difference when it comes to on time. Everyone was impressed - our excellent job to close our loan buying a home. agent the sellers agent and our inspector. on time. We appreciate all the people at Academy Breanne L. for taking care of us and we’re pretty Anindita K. excited about getting our new home. Dennis J. *Testimonials are from Academy’s Post-Close Satisfaction Survey and Used with Permission 1102 8th Street, Kirkland, WA 98033 Phone: (425) 947-7800 | www.academymortgage.com/peterrascon Peter Rascon NMLS# 487519 | LO State Lic: OR 487519, WA MLO-487519, CA: CA-DBO487519 Gene Krawchuk NMLS# 450258 | LO State Lic: OR 450258, WA MLO-450258, HI 450258 Corp NMLS #3113 | Corp State Lic: OR #ML-2421, WA #CL-3113, CA 4170013, HI-3113 | Equal Housing Lender | MAC119-1461430 Licensed by the Department of Business Oversight Under the California Residential Mortgage Lending Act