Financial Plan Prepared for On THE BENCHMARK DIFFERENCE

Financial Plan Prepared for: On: THE BENCHMARK DIFFERENCE Our Primary Role is to help you select the perfect loan strategy for you and your family and to help you implement that strategy into your overall financial plan, allowing you to maximize your savings, cash flow and net worth. Simply stated, we are here to help you save money and to make this process both easy and enjoyable. We will take care of your loan so you can get back to your life.

THE TEN+ COMMITMENTS What are your biggest questions? What are your concerns? Please describe what the EXCELLENT customer service means to you: 1. Your interest rate AND closing costs will ALWAYS be equal to or LESS than our Loan Disclosure. 2. We will ALWAYS honor our approval letters/commitments and close your loan or we will___________________ 3. We will NEVER cause your closing to be delayed or we will________________________________ 4. We will ALWAYS ask the necessary questions to learn and understand YOUR financial goals and will explain EVERY piece of the loan process. 5. We will study and review ALL of the possible scenarios to ensure you___________________________ 6. We will communicate with your agent, CPA, Advisors, and/or attorneys to ensure your overall financial plans are integrated. 7. Just like a professional financial advisor will manage assets, we will manage your mortgage after closing, so you are ALWAYS in the best loan. 8. We will ALWAYS communicate pro-actively by giving you, your agent, and the seller’s agent a written weekly update via email. 9. We will ALWAYS ask you to explain your vision of excellent customer service so we can serve you better. 10. We will ALWAYS do everything that we can to deliver your vision PLUS.

How can you get me the lowest rate? 2009 - Present 1938 -2009 Conforming Rates were the same for everyone who qualified Sub-Prime “Non-conforming” Rates varied greatly, based on anything & everything 30 things that can affect rate… 1. Loan Amount (<$180 K >$417 K) 2. Loan Type (CONV, 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. Property Type (SFR, Condo) 12. # of Units (1 -4) 13. Occupancy (0 wner/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 27. Lock Period (7, 15, 30, 60, 90) 28. Mortgage Insurance (MO, LPMI) 29. UW System (AUS, DO, DI, DE) 30. Escrow (Included, Yes or No) Conventional Based on Loan Level Pricing Adjustments (LLPA) With 30 variables impacting rates, your rate could be as low as_____% or as high as _____% in current market conditions on any given day. Understanding this impact, if you were a Sales Manager at ABC bank, how would you teach your staff to answer the question. . . “What is your rate today? ”

Why and when do rates change? Has anyone ever explained this to you? A mortgage backed security (MBS) is a type of asset backed security that is secured by a mortgage. The mortgages are usually sold to a government agency (Fannie Mae or Freddie Mac), who “securitizes” or “packages” the loans into a security that can be sold to investors. THE PRICE OF MORTGAGE BACKED SECURITIES IS THE ONLY THING THAT MOVES MORTGAGE RATES! Higher Bond Prices = Lower Rates How long do you think it will likely be before you close? Graphs reflect direction of market but are not intended to be an exact representation Rates increased 1. 5% in 60 Days 5 4. 875 4. 5 3 5 4. 75 4. 125 4 3. 5 Rates improved 1% in 30 Days 4 3. 75 3. 375 May 1, 2013 June 1, 2013 July 1, 2013 Would you recommend locking the rate? 3 Sept. 15, 2014 Oct. 15, 2014 Would you recommend locking the rate? Rates moved. 5% in ONE DAY 4. 4 4. 2 4 3. 8 3. 6 3. 4 3. 2 3 4. 25 3. 75 9 a. m. 2 p. m. 5 p. m. October 15, 2014 Do you want the lowest rates today, or when you close?

HOW CAN WE SAVE YOU MONEY? Real-time text alerts to your advisor We will send you a weekly update every Thursday re rates Weekly forecasts and economic calendar monitoring

How familiar are you with the term “POINTS”? 1 point is the same as 100 bps on a bond price =. 25% of rate If you lowered your rate by. 25% how much do you think it would lower your payment? $____mo. Your projected Loan Amount $ 1% = $ Pmt @ ___% $________ Rate Points 4. 5% No Cost 4. 25% No Points 4% 1 Point 3. 75% 2 Points Would you pay $2, 000 today to save $28. 00 a month? How long do you plan on living in this home? How many homes have you owned? How long did you live in your last home? Have you ever refinanced? If so, how many times? When did you buy your first home? The average loan is in only place ______, it would take to make your money back. Do you see why many/most Banks advertise based on RATE?

Down Payment Analysis Document Review & Emergency Funds Life Happens, Stuff Breaks 3 -6 Months of Living Expenses Non-Preferred Debt Pay off all high cost debt! Significant Liquidity Weddings, College, etc Retirement/Debt • Checking ________________________ • Savings _________________________ • Money Market ______________________ • Credit Cards _______________________ • Consumers ________________________ • Others __________________________ • 401 k, IRA ___________________________ • Stocks _____________________________ • Life Insurance __________________________ • Other _____________________________ • Retirement Age ______________________ • Location _________________________ • Lifestyle _________________________ What are you contributing to retirement? _____________________________ In your opinion, are you behind or ahead of schedule in saving for it? __________________ How do you have your W 4 set up currently? ____________________________ NAME RATING Realtor: __________ Insurance: Prop & Casualty __________ Life Insurance: ____________________ Tax/CPA: ____________________ Financial Advisor: ____________________ Attorney: ____________________

Strategic Mortgage Plan I. Market Analysis Weekly Updates Short Term: Lock or Float? Long Term : Annual Reviews II. Down Payment Analysis I recommend ____% down payment because: III. Product Selection Years in house? _____ Years with loan? _____ IV. Debt Retirement Plan V. Financial Plan Expected Closing Date : Approximately ____ Days With interest rates expected to climb, the current bias is always toward locking, but… We believe the biggest mistake buyers make is putting too much down on their home. Whether it be paying down a higher cost debt or increasing liquidity, most money is better utilized in other ways. With rates at all time lows, fixed rate mortgages became more popular than ever. With rates increasing it became more important to work with a professional who can explain the details of all of your options The first priority for a stable financial future is to secure your emergency funds and to pay off all high cost debt. From there it becomes to invest and balance wisely. Once you have a solid emergency fund and have paid off all high cost debt, your focus turns to investing and paying off lower cost auto loans and have mortgages. If you are going to error, then do so on the side that gives you control…

Financial Plan Estimated Value Loan Type $ $ $ Payment $ $ $ Taxes $ $ $ Insurance $ $ $ MI $ $ $ PITI $ $ $ Payment $ $ $ TOTAL PAYMENT $ $ $ Amount Rate/ Term 2 nd Loan Amount Rate/Term

Down Payment $ Cash to Close Closing Costs: Appraisal Fee $365 Attorney Fees $495 Title Insurance $ Recording Fees $88 Other Fees $ GSE Fees $1460 TOTAL A= $350 $ Pro-rated taxes $ Tax held in Escrow $ Annual Insurance $ Ins held in Escrow $ TOTAL $ Total Funds to Close $ B= $595 C= $885

How do you feel? 1. 2. 3. 4. 5. 6. Have we answered all of your initial questions and concerns professionally? _______ Have we met your expectations thus far? _______ If not, what do we need to do? _______ Do you feel less stressed than before? _______ Did we show you how we can save you money? _______ Do you feel like we delivered on our commitments thus far? _______ If so, I have 2 favors to ask of you. 1. Call _____ at ( )___-______ and let him know the meeting and presentation were beneficial and that you are ready. 2. Please let your friends know that we are different than other lenders. Social Media?

What’s the next step? We will send your approval letter to _______@_____. com Do you prefer that we also send it to your agent? ______ GO FIND YOUR NEW HOME! This is your link to view any updates in YOUR mortgage plan________. We will stay in touch with you but call us anytime! Once your offer is accepted, let us know ASAP so we can protect your rate and set a pre-closing review appointment. Your Notes ________________________________________________________________________ ________________________________________________________________________