Bank Of America Corporation · NYSE:BAC
Bank Of America — Investor Presentation (June 2025)
29 slides from Bank Of America's investor presentation, June 2025
Slide 1: Preparing for homeownership
Preparing for homeownership
Slide 2: Getting ready for homeownership
Getting ready for homeownership 2
Slide 3: Advantages and considerations of homeownership
Advantages and considerations of homeownership Below you’ll find some of the advantages and considerations of owning a home. It’s important to weigh both the pros and the cons before you decide to buy. Advantages Considerations • Potential tax benefits1 • Current mortgage rates and housing market •
Slide 4: Know your debt-to-income ratio
Know your debt-to-income ratio Your debt-to-income ratio (DTI) is the percentage of your monthly pre-tax income you must spend on your monthly debt payments plus the payment on the new home loan. It helps lenders decide whether to approve your mortgage application. Most lenders want your debt-to-inc
Slide 5: Know your debt-to-income ratio (continued)
Know your debt-to-income ratio (continued) Lender steps for calculating debt-to-income ratio Typical monthly expenses 1. Add up the amount you pay each month for debt and $ 200 Credit cards recurring financial obligations (such as credit cards, car loans and leases, and student loans). Don’t include
Slide 6: Understanding credit and why it’s important
Understanding credit and why it’s important What is credit? • Credit is borrowing money with the promise to pay it back in the future • How you handle credit is reflected on your credit report and credit score What is good credit? • A history of paying what you owe on time • Using credit responsibly
Slide 7: Accessing and reviewing your credit
Accessing and reviewing 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 actual credit score. Three ways to order your free credit report: • Online: Visit annualcreditreport.com • By phone: C
Slide 8: Credit scores
Credit scores A common type of credit score is a FICO® score, which ranges from 300 to 850. Good scores are generally 700 and up. The chart below shows the different factors that can affect your score. Learn more about how you can improve your credit score. 35% 30% 15% 10% 10% Payment Total Length o
Slide 9: What you need to buy a home
Better Money Habits*® What you need to buy a home
Slide 10: Set a budget for homeownership
Set a budget for homeownership A budget can help you: 50/20/30 spending plan • Prepare for the costs of homeownership Aim for a 50/20/30 spending plan. • Save for upfront costs and unexpected expenses Of your net income allocate: • Pay down debt 50% to basic living expenses Tip: Create a savings and
Slide 11: Get prequalified
Get prequalified Meet with your lending specialist or get prequalified online. It’s a great indicator of what you might be able to borrow, based on information you provide about your finances, as well as a credit check. • Prequalification1 is based on basic information about your income, assets and
Slide 12: Get preapproved and know what you can borrow up front
Get preapproved and know what you can borrow up front Getting preapproved involves a more in-depth process than getting prequalified and is as close as you can get to confirming your You will typically need to provide: creditworthiness without having a purchase contract in place. Copies of pay stubs
Slide 13: Employment and verifiable income
Employment and verifiable income You must be able to prove that you have the resources to repay the loan. A lender will verify your: • Current income and assets • Employment status • Credit history • Monthly mortgage payment and any other mortgage-related obligations and loans associated with the pr
Slide 14: Understanding down payment and cost savings programs
Understanding down payment and cost savings programs There are many programs1 that can help make homeownership more affordable. These down payment, closing cost and cost savings programs are created and offered by state and local housing agencies, nonprofit organizations, and employers and may be co
Slide 15: Money for upfront costs
Money for upfront costs Down payment • The required amount depends on the mortgage loan product Quick tip • It can range from 3%1 to 30% of the purchase price Visit BetterMoneyHabits.com and • If your down payment is less than 20%, you may be required to purchase view What are closing costs? private
Slide 16: Mortgage basics
Better Money Habits*® Mortgage basics
Slide 17: What makes up a mortgage payment
What makes up a mortgage payment A monthly home loan payment includes four costs known as PITI: Quick tip Visit BetterMoneyHabits.com and Principal view Buying a home within your P Amount applied to the outstanding balance of the loan comfort zone. + Interest I Cost of borrowing the money + Taxes T
Slide 18: Easily estimate a monthly payment
Easily estimate a monthly payment Here’s how to quickly estimate a monthly payment (including principal, interest, taxes and insurance) that fits your budget. Generally 28% of your gross monthly income is a good number to start with. For example: $4,166* $1,166 Gross monthly income × 28% = Estimated
Slide 19: Mortgage loan types
Mortgage loan types Fixed-rate mortgages • Carry a constant principal and interest rate from beginning to end for Quick tip the life of the loan Visit BetterMoneyHabits.com and • Once locked in, the interest rate doesn’t fluctuate with market conditions view Fixed vs. adjustable rate mortgages. Adju
Slide 20: Mortgage loan products
Mortgage loan products Conventional loans1 • Conventional loans are the most common type of mortgage loans • They are not backed by a government agency, but instead by a private mortgage lender (bank, credit union) • There are various types of conventional loans including conforming and nonconformin
Slide 21: The home loan process
The home loan process Working with an experienced real estate professional can make it easier to find the right home at the right price. Before you start your search, your lending specialist can help you get prequalified for your home loan, which can help you and your real estate professional determ
Slide 22: Closing your loan: What to expect
Closing your loan: What to expect When it’s time to close your loan, your lender will provide a Closing Disclosure (CD) at least three business days before closing for you to sign. Your responsibilities: Your lender’s responsibilities: • Review and sign closing documents. Be sure you • Review the fi
Slide 23: Strategies for paying down debt
Strategies for paying down debt If you’re struggling to meet the qualifications to purchase a home, here are some tips to help you get to where you need to be: • Pay off your debts using the “Snowball Method.” This is when you pay off your debts by lowest balances first. • Pay off debt using the “Hi
Slide 24: Finding your new home
Better Money Habits*® Finding your new home
Slide 25: Role of a real estate agent
Role of a real estate agent Real estate agents work as representatives of either the property buyer, seller or both entities. They help buyers define their desired property requirements as well as their price point. Once you know the amount of the mortgage you’ll qualify for, you can preview propert
Slide 26: Selecting and inspecting your new home
Selecting and inspecting your new home Select Inspect Searching for a home Professional home inspection • Evaluate the homes you find • Once your offer has been submitted and • Tour each home accepted, a professional home inspector should • Compare the houses you find to the criteria on evaluate the
Slide 27: Homebuyer mistakes to avoid
Homebuyer mistakes to avoid Buying a home can be daunting—especially for first-time homebuyers—but a little knowledge and preparation can set you up for success. Here are some common mistakes to avoid. • Stick to your budget and don’t fall in love with homes you can’t afford. Make estimates based on
Slide 28: Conclusion
Conclusion BetterMoneyHabits.com 28
Slide 29: Thank you
Thank you The material provided on this presentation is for informational use only and is not intended for financial or investment advice. Bank of America Corporation and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also