Schumacher makes the building of your custom home easy by listening to your needs. At �e Federal Savings Bank, we take the same approach to home lending. We are a veteran-owned, federally chartered bank with a focus on educating our customers about the mortgage process and providing opportunity for home ownership. With a large list of loan programs available to our bankers, we will �nd the loan that is right for you. �is guide provides a step by step mortgage process that will

make building your Schumacher home a worry-free experience.

Stuart Kanto�Vice President NMLS# 1014318

direct: (312) 667-1957fax: (312) 628-3819cell: (773) 919-8073skanto�@thefederalsavingsbank.comwww.thefederalsavingsbank.com/stuartkanto�

Copyright 2012© �e Federal Savings Bank | All rights reserved | www.thefederalsavingsbank.com

Construction and conversionloans are approved

Construction loan closes and Schumacherbegins to build your dream home

• Customized home loan solutions for Schumacher customers• Construction loan pre-approvals • 24- 48 hours after receiving your credit package• Construction loans that convert to VA financing• Construction loans that convert to conventional financing• Construction loans that convert to FHA financing• A single point of contact to manage the overall success of the mortgage process• Our bankers provide an unmatched level of professionalism and service• They are dedicated to give their clients a worry-free transaction• We control the entire mortgage process from originating to funding• We have a wide array of products available to our bankers

�e Federal Savings Bank Pre-Approval is the �rst key step in securing �nancing for your home. To obtain a Pre-Approval, �e Federal Savings Bank evaluates your credit history and calculates your housing and debt ratios. You should expect to verify your income, length of employment and source of down payment. Pre-Approval legitimizes you as a serious buyer. Once the Pre-Approval is in, you are able to continue the process of building your home with Schumacher Homes.

When seeking a Pre-Approval, it is important to not misrepresent the facts on your application. If a lender learns later that you’ve misrepresented or omitted information on your application, your Pre-Approval may be rescinded.

Borrower speaks with TSFB Bankerwithin 24 hours of inquiry

Borrower sends a full documentpackage to TFSB

Borrower is “pre-approved”,moves forward with Schumacher

Borrower completes application,appraisal and underwriting

The Loan Process

Return your signed loan application

Attend your Pre-construction

meeting

Finalize yourSchumacher contract

and budget

TFSB orders your appraisal

Appraisal received,TFSB underwritesyour construction

and conversion loan

�e following is a list of documents that we need you to put together for the credit package to ensure a quick approval and the most competitive financing. Submitting this complete list in a timely manner is extremely important! Our goal is to get a complete packet now, and ensure a stress free process. Please compile all of the documents and send them to me immediately via scan or email.

Required

Last 2 years W-2’s and 1040’s including all schedules

If self-employed: Last two years’ corporate tax returns and year-to-date pro�t & loss statement

Past 30 days computerized pay stubs, to include year-to-date earnings

Any documents that you have pertaining to the construction of your home and the purchase of the land

2 months current bank and asset account statements including all pages (no screen prints)

Copy of gift check and signed gift letter (if applicable)

Driver’s license or state ID card

For Veterans: DD214 and certi�cate of eligibility

If you own additional real estate, please provide the following documentation for each property (including the land on which you’re going to build):

Copy of current mortgage statements

Copy of tax bills

Copy of leases

Copy of homeowner’s insurance bills or Agent contact information

Appraisal received,TFSB underwritesyour construction

and conversion loan

Loan approved,construction loan

closes

Schumacher starts construction on

your home

Construction loanis disbursed in 4

“phased” payments

Home is complete,loan is converted to

your permanent �nancing

Don’t Change Jobs

Don’t Switch Banks

Avoid Paying Off Bills

Avoid Big Purchases

Avoid Credit Inquiries

Interest�e cost of borrowing money.

Changing jobs before or during the loan process can create a problem in qualifying you for a loan, particularly if that job is in a di�erent line of work or at a lower rate of pay than your current job. Many loan programs require borrowers to have a 2 year work history.

It is best to leave your money where it is until your loan has closed. Moving your money to a new bank or even into a new account can wreak havoc with the veri�cation process. Most new accounts opened or large deposits made in the last six months will have to be explained as to the source of the funds. If you are transferring money from investment or retirement accounts, make sure you keep the withdrawal/deposit receipts and make sure you clearly show where you deposited the money.

Your Mortgage Banker will advise you if it is necessary to pay o� bills to help you qualify for a loan. �ey will also show you the best way to pay o� bills to make sure you have the evidence needed to verify the bill has been paid in full.

Do Not Buy ANYTHING until you receive your permanent loan from The Federal Savings Bank. Do Not Apply for ANY new credit until you receive your permanent loan from �e Federal Savings Bank.

Your credit score will be a�ected if your credit is run many times in a short time period. Since interest rates and good credit scores are directly linked, it is in your best interest to minimize the number of times your credit is pulled.

Principal�e amount of money borrowed. Each month when a mortgage payment is made, a small portion of the principal is being paid back. Over the life of the loan, the portion towards principal will increase and the portion towards interest will decrease.

Property TaxesTaxes are paid to local governments. Lenders collect taxes through monthly payments that they then use to pay the property taxes whenthey are due.

Hazard InsuranceAll lenders require that borrowers have hazard insurance which protects the borrower against any financial losses that might result due to a fire, flood or other “hazard.” the hazard insurance policy must be paid in full for one year at the time of closing.

Mortgage InsuranceAn insurance policy that pays mortgage lenders for their �nancial losses if a borrower fails to repay a loan. Mortgage insurance is required on any loan that is greater than 80% of the home value.