Bank Of America Corporation · NYSE:BAC
Bank Of America — Investor Presentation
29 slides from Bank Of America's investor presentation
Slide 1: Better Money Habits: Preparing for homeownership
Better Money Habits: Preparing for homeownership Welcome and thank you for joining me today. My name is (Insert Name). I’m a (Insert Role). <Presenter: Introduce yourself and provide background on what makes you qualified to present the information.> You're likely here because you're thinking about
Slide 2: Let's start with the basics — how to get ready for homeownership
Let’s start with the basics — how to get ready for homeownership. Better Money Habits: Preparing for homeownership 2
Slide 3: Weighing pros and cons of buying a home
As you consider buying a home, it's important to weigh the pros and cons and to factor in some of the extras that may add up. Some of the advantages are: Read and discuss advantages You'll also want to consider all the additional expenses that come into play on top of your mortgage — perhaps expense
Slide 4: Debt-to-income ratio
Even if you pay your bills on time and have a long history with your bank, your debt-to-income ratio can affect your credit score and how lenders perceive the risk. Most lenders want your debt-to-income ratio to be no more than 43 percent. Here’s how to calculate yours. Review formula Better Money H
Slide 5: Calculating your debt-to-income ratio
Here's a closer look at calculating your debt-to-income ratio. Review equation When you review this presentation on your own, there are links on this slide to two articles that will help you further understand debt-to-income ratio. “4 strategies to pay off credit card debt faster”: https://bettermon
Slide 6: Why credit matters in homebuying
Once you’ve weighed the pros and cons and you’re ready to take the next step, you'll want to focus on your credit and why it's so important to the homebuying process. What is credit? Credit is money you borrow with the promise to pay it back in the future. How you handle credit is reflected on your
Slide 7: How to access and review your credit
How do you access and review your credit? You can request a free credit report once a year from each of the three major credit reporting agencies. Additional charges apply when requesting your actual score. However, if you do a lot of online and mobile banking, you’ve probably noticed that most bank
Slide 8: Understanding credit scores
Let’s talk more about credit scores. The very common FICO® score ranges from 300 to 850. Good scores are generally 700 or up. If you look at this graph, you’ll see the different factors that can affect your score. Review factors You may be wondering how to improve your credit score. When you downloa
Slide 9: Better Money Habits: Preparing for homeownership
Better Money Habits: Preparing for homeownership 9
Slide 10: Budgeting for the costs of homeownership
The bottom line. You’re going to want to budget to prepare for the costs of homeownership, from upfront costs to down payment and maintenance or home improvement projects. We recommend creating a savings and spending plan based on your lifestyle and financial goals. Whether you're buying your starte
Slide 11: How do you get prequalified?
How do you get prequalified? You can either meet with a lending specialist or get prequalified online. It's really one of the best indicators of what you might be able to borrow based on the information you provide about your finances and credit check. Review information in bullets Better Money Habi
Slide 12: Getting preapproved
Getting preapproved involves a more in-depth process than getting prequalified. It's as close as you can get to confirming your creditworthiness without having a purchase contract in place. Set a price range that's not out of your realistic range. You should ask how much should I borrow, instead of,
Slide 13: What lenders verify: employment and income
Your lender is going to want to see your employment and verifiable income to prove you have the resources to repay the loan. A lender will verify your: Review list Better Money Habits: Preparing for homeownership 13
Slide 14: Down payment and closing cost assistance programs
If you need help with your down payment or closing costs, there are programs out there that can help. These programs are offered by state and local housing agencies, nonprofit organizations, and employers. They may be compatible with FHA, VA and conventional loans, including a 3% down payment mortga
Slide 15: What you need up front
So, what are you going to need up front? For starters, you'll need money for your down payment. Depending on the loan product, down payments can range from 3% to 30% of the purchase price. Sometimes you can even find a no-money-down offer, with just closing costs to save for. If your down payment is
Slide 16: What goes into a mortgage
Let's talk about what goes into a mortgage. Better Money Habits: Preparing for homeownership 16
Slide 17: PITI: the four costs of a mortgage payment
You can remember the four costs that go into a mortgage payment by the acronym PITI: Principal Interest Taxes and Insurance Review each Note to presenter: Comment that applying extra payments to the principal, or paying your mortgage bi- weekly will help you pay off your mortgage faster. Take a mome
Slide 18: Estimating your monthly payment
Here's how to quickly estimate a monthly payment, including PITI — principal, interest, taxes and insurance — to fit your budget. Generally, 28% of your gross monthly income is a good number to start with. As a reminder, your gross monthly income is your annual income divided by 12. It's the amount
Slide 19: Fixed vs. adjustable-rate mortgages
There are quite a few mortgage loan types out there to make it easier for homebuyers to find one that fits their immediate or long-term needs. Fixed-rate mortgages allow you to carry a constant principal and interest rate from beginning to end for the life of the loan and once locked in, the interes
Slide 20: Conventional, FHA and VA loans
Conventional loans are the most common type of loan and are backed by a private mortgage lender, not a government agency. There are various types of conventional loans, including conforming and nonconforming. With Federal Housing Administration or FHA loans, down payments are as low as 3.5% and gift
Slide 21: Steps of the home loan process
Let's talk about the steps and stages of the home loan process. Working with an experienced real estate professional will make it easier to identify the right homes for all of your “must haves” and “nice to haves” at the right price. Your lending specialist will help guide you through the steps of b
Slide 22: Getting ready to close
You're in the home stretch and getting ready to close on your loan! At this time, your lender will provide a Closing Disclosure at least three business days before you sign. Review the homebuyer’s responsibilities and the lender's responsibilities The link on this page goes to a good article on what
Slide 23: Strategies for paying down debt
If you’re struggling to meet the qualifications to purchase a home, you can pay down your debt quicker with a few strategies. Review list Check out these two articles for more details on these strategies: Strategies for paying down debts: https://bettermoneyhabits.bankofamerica.com/en/debt/strategie
Slide 24: Buying a house you can call home
Buying a house that you'll be able to call home is both exciting and stressful. But having a solid strategy can make the process much easier and rewarding. Better Money Habits: Preparing for homeownership 24
Slide 25: Working with a real estate agent
If you’re in the market for a new home, odds are you’ve been scanning websites to see what’s available in your desired location. But working with a real estate agent can help you narrow down your options and keep you on point with listings that align to your needs and budget. Your agent will: Review
Slide 26: Searching, making an offer and home inspection
You’ll want to keep the following in mind when you’re searching and making an offer on a new home: Review lists When the time comes, find a professional home inspector: Review list Also important to remember: A home inspection is not the same thing as an appraisal. An appraisal reviews the value of
Slide 27: Common pitfalls to avoid
Let’s talk about common pitfalls to avoid when buying a home. To make homebuying run smoothly, here are some common mistakes to avoid. Review list Better Money Habits: Preparing for homeownership 27
Slide 28: Closing remarks and further resources
We’ve covered a lot today. I hope you’ll use some of the things we’ve talked about to start down your own path to getting — and keeping — your finances in order. Keep learning; there’s a lot of information out there if you want to do some exploring on your own. A good source is BetterMoneyHabits.com
Slide 29: Thanks!
Thanks! Better Money Habits: Preparing for homeownership 29