Right we're back mark McDougal that Megan Clark filling in for a Craig Miller. And doubt we're opening crowd will be back with his next week I'm sure isn't a dragon -- -- -- here if he's not. That's right okay so real quickly. Our underwriter is here she's gonna tell was for you first time homebuyers have wanted is that she wants from you sow that shall prove your -- Europe Megan. All right so I've got five things that I -- -- the most important things to think about OK and what we as underwriters will look for so number one being -- down payment. Where's it gonna come from how much Steve need tank and do you have all of that we have to do -- Second thing is. Funds for closing costs of prepaid that's an additional amount in addition to -- down payment. To -- closing costs in order to get the loan -- in -- its -- are the deposit into an escrow account for your homeowner's insurance and taxes paid. And that's a requirements as as a first time home buyer you're gonna experience that and need to make those deposits and you have enough in your escrow account to cover those payments okay. Third thing would be payment shock and what that means is we look at how much is your payment going to change from what you're currently spending and rent. Is it going up going down is going up a lot that's something we look at. -- We also look at it as part of that payment. Because. You'll have added expenses not just the loan payment you have expenses for homeowners insurance and taxes that go to -- escrow frank he might also have homeownership dues. -- association dues you might have mortgage insurance so those are all part of that payment -- look at. Number four would be reserves. This is something a lot of people don't think about but -- army National Guard yes. Not the military reserves we mean acid reserves so do you have the money to fall back on if something happens when if you live in the house and the air conditioner breaks do you have the money to be able to fix that much -- generally how much you're looking foreign reserves I. Normally we like to see anywhere from three to six months kind of as a base at 36 months of or payments the payments organ in reserves. Anything more than that is a stronger. Benefit TU as a buyer so that's -- we look for Obama first time home -- use an FHA -- do I have to have those reserves. Not necessarily but it is something is that BJ underwriters we do look. I don't hear that first time -- I'm negotiating for your on your behalf right here on your car ran the holder to us. -- number five is credits credit management so we wanna see how he managed to credit before why. And I know what does it matter now I've brought us to pay on time in the future. He's ever -- says that we want to make sure that you really have shown a history of being able to managed. The debt load that you have and being able to add this new mortgage payment in. In new manager credit and have you paid your debts on time so for most what's that look like is credit score roughly I would say. Anywhere. Probably about 700 has a pretty good credit risk had. Can -- get a -- below 700 OK am -- can sometimes in those cases we're going to ask our. More from someone with a lower credit score maybe more reserves and assets -- larger down payments. FHA loan would have credit score to have to have a major general lack around 649. But they do require more reserves that's what the reserves in those kind of things -- mourned. Aren't good information and folks remember its mega and so if you need no underwriting favor she's the one the call. I think that also real quickly we're gonna tell you what you may forgot you pot yet you bought your first home second on third home whatever it is but to there are some tax breaks associated with that. That investment real estate one is if you have a alone though. -- mortgage interest is deductible that's the biggest tax break it's gonna be associated with. That financing component of it but also points that you -- did you pay points to get a better rate on any of your various home loans. They could offer you a tax break come -- like to deduct points in the year you paid them. If among other things alone is a purchase or build your main home payment of points is established business practioner area and points were. Within the usual range not to let stuff there you can get that information from a mortgage planner. Also taxes now the major deduction in connection with your home is property taxes and finally when you sell your home this is a great deal still available to you. If you're single and and -- single -- passing up toward the 2000 and gain. Is sheltered from any form of tax if you're married filing joint up to 500000. Dollars in gain. All right folks it's another installment of like you won't remember this is the first time homebuyers that segment one of three. Join us next weekend it will give you more -- Meg and I appreciate you hanging out with a apps thanks rabbit from our folks to stay classy.