PalmAgent Software Owners Program Manual Know the Numbers Since 1982 1
Table of Contents Buyers Programs... Quick Estimate... Conventional... 3 FHA... 9 VA... 11 Conventional /2nd... 12 Interest Only... 13 Interest Only 2nd... 14 All Cash... 15 PITI Ratio... 16 Rent vs. Buy... 17 Qualify... 18 Sellers Programs... Net Sheet... Conventional... 19 FHA... 20 VA... 21 Conventional 2 nd... 22 Sell2Net... Conventional... 23 Short Sale... Conventional... 24 Lender Programs... APR... 26 Fast Loan... 27 Handicalc... 28 Interim %... 29 Loan Bal... 30 REFI... 31 Register... 32 Setup... 34 Customize Printout... 35 Contacting Technical Support... 37 2
Quick Estimate Buyers Conventional Need to do a Buyers GFE? Select BUY at the top of the screen. The Buy Button will appear larger and be centered. This shows you that you are now using the Buyers Programs. The Buyer Program Features The Buyers Program includes: Quick Estimate, PITI Ratio, Rent vs. Buy, and Qualify Quick Estimate After selecting the Quick estimate button you will be able to select the following: Buyers Conventional Buyers FHA Buyers VA Buyers Conv2nd Buyers Interest Only Buyers Interest Only 2 nd Buyers All Cash Buyers Conventional Price: The price of the home being purchased Down: The amount the buyer is willing to put down. This can be a percentage OR a dollar amount the program can tell the difference! Interest: Hopefully your buyer has been pre-qualified and you can use their rate, if not you can use the rate of the day. Years: The length of time on the loan.. 3
4 Miscellaneous: By selecting the? In the misc field you can add in additional closing costs. This is on a one time basis, if you need to change it for all Quick Estimate use Setup. These costs can be positive or negative based upon how it affects the Buyer. E.g. Pool needs repair +$1500 or a Buyer incentive or allowance for repair -$3000. (If the item is a positive just put it on the line; if negative press the minus key AFTER you input the amount.)
Taxes: Select the? next to taxes and this will allow you to select the tax rates for your area. The title company may have supplied us with figures for some areas. IF you know the percentages for your area, these can be easily entered in the Setup Tax Rates area and you can choose which area you want by touching the? button. If you know the specific tax amount in dollars, simply enter it on the line provided and it will we added into the calculation 5
ADDITIONAL OPTIONS- Disc PTS: Used when interest rates are high and someone chooses to buy down their rate. H.O.A.: Home Owners Association dues can be added also. Simply enter the amount and declare whether it is Annual or Monthly. Finance PMI.: Select Y if you want this to be calculated in the results. Select N if you do not want this calculated in the results. 6
Once you have entered all of the necessary variables tap the Compute button and this will take you to the results screen. Descriptors for clarification purposes If you find you are not certain about a field in the program just click on the name of that field. A pop out box with a brief description of this field will appear. In this example I clicked on the word Down. The program instantly gives me a pop up with a description of that field. The Results screen This screen gives you important information P.I.- Principle and Interest Monthly Insurance Monthly Taxes PMI and the total P.I.T.I. amount. From here you can select to save or print a net sheet. 7
If you select to print a net sheet. The program will ask you for a property description. Then click print. Prior to printing the program will allow you to preview your net sheet and make any adjustments before you print. 8
Quick Estimate Buyers FHA The FHA Calculation This is the specific FHA 203B loan package. You will have the option for the seller to pay a certain amount of the buyers costs. Remember, the buyer must invest at least 3.5% into the house. You can use that 3.5% entirely for down payment with the seller paying for the buyers closing costs or your client can pay a smaller down payment, and the remainder of the 3.5% investment minimum can be the normal closing costs The FHA Calculation uses similar fields to those of the Conventional with the addition of a 3% Down box. This box, when checked, assumes the buyer will pay 3% towards the down payment of the house. The seller will agree to pay the buyers closing costs. If you do not check this box then the normal FHA 203B method will be used. Currently 2.25 percent down (unless the house is below 50000, in that case the down will be 1.75%). 9
In this first Results screen we chose to use the normal FHA method. The Nego (Negotiable) figure you see is the maximum seller participation amount. It is the amount above the 3 % required by FHA that you could negotiate for the seller to pay. If you tap on the little square icon in the upper right-hand corner you will be able to go to the itemized costs. In the second Results screen we used the 3 % down with the seller paying for the buyers closing costs. Notice the down payment is higher and the PITI is slightly lower. The S- Cost figure you see are the Sellers additional closing costs. Notice the F-Cost (fixed costs) figure is zero. As always, you can tap on the title for any line item and the software will pop up a program message that will give you a description of the item. 10
Quick Estimate Buyers VA Buyer s VA The Buyer s VA is a very impressive program that automatically calculates the correct funding fee given the type of Veteran you are working with. For Example, If this vet decides to pay a down payment of at least 5% his Funding Fee is reduced from 2.00% to 1.5%. If the vet pays 10% down his funding fee is 1.25%. If he is using his VA loan for the second time his funding fee is 3.0%. If he is a reservist his funding fee is 2.75%. If the reservist pays 5% down his funding fee is 2.25%. If the reservist pays 10% down his funding fee is 2.0%. Or, in the case of a disabled vet he may exempt from the funding fee. Our VA program is capable of calculating the correct funding fee for you. All you need to do is answer the questions and fill in the fields. It s just that simple 11
Quick Estimate Buyers Conventional 2 nd Conventional/2 nd Sometimes Mortgage companies allow buyers to pay 5 or 10% down then finance another 10 or 15% of the house price in a second mortgage note. This brings the total down to 20%, thus eliminating the PMI requirement. This program quickly allows you to calculate the buyers costs and payments on an 80-10-10 or 80-15-5 loan package. The Conventional with 2 nd screen features the 2 nd Lien information at the bottom. Generally the interest rate will be a little higher and usually the 2 nd loan is financed for 5 to 15 years. The Cost figure underneath the 2 nd lien is used for additional closing costs that are affiliated with the 2 nd lien. This results screen features the additional payment for the 2 nd lien. And then adds the PITI of the original loan to the Total PMT figure. This is the buyers total payment including the 2 nd lien note. The Fixed-closing figure will include any additional closing costs associated with the 2 nd lien. (If applicable) 12
Quick Estimate Buyers Interest Only Interest Only Interest Only loans are becoming very popular. This program gives you the power to intelligently discuss the Interest Only option with your buyer to give them just one more alternative when they are purchasing. Just input the normal pricing and terms and then add in the Special % rate for the interest only portion. You can even compare the different durations for the Interest Only portion of the loans. This program is especially helpful for mortgage loan officers and Realtors who assist with creative financing options for their clients. 13
Quick Estimate Buyers Interest Only 2 nd Interest Only Conventional w/2 nd This program is unique because it will tell you what you will pay if you make the down payment and then pay only interest on the remainder of the house price. Down: This amount can range between 1 and 20 percent. The program assumes an 80% first with a 2 nd based on what is left after the down payment. The other variables between Down and Taxes are the same as Conventional. The items under the 2 nd Lien are Interest for the second (usually a few points higher than the 1 st ) and Cost is any additional cost associated with title running the paperwork on the 2 nd. The results page lists the composite payment and the breakdown of costs. The i-box at the top of the closing cost column, when tapped, will take you to the itemized list of closing costs. 14
Quick Estimate Buyers All Cash All Cash Okay so we know that doing an all cash deal is pretty easy. We don t really HAVE to buy a lot of things that are mandated by a mortgage company. However, there are some things that, no matter how you pay for your home, it is still necessary to pay for these items. The All cash takes into account the various closing items needed in an all cash purchase. In this scenario, if you choose the i information button, you can actually adjust the closing costs and the pricing to fit your area. Simply touch on Adjust and make the necessary customizations and then Save. 15
PITI Ratio Once the buyer is qualified for a monthly payment, simply plug the monthly payment into the Loan Ratio Calculator. It will give you the dollar range for which the buyer can reasonably qualify given the Down Payment they are willing to supply 16
Rent vs. Buy Should I rent or should I buy? In this program we simply input the data we need to compare Renting a house or apartment with purchasing one. It factors in the tax advantages of buying a home and translates the advantages into a comparable monthly payment. If you don t know the tax bracket for your clients, just tap on the help button and choose the tax percent. The software does the rest! 17
Qualify This program assists you in qualifying a buyer given some generic front end and back end ratios. You also have the option of raising the ratios by 3% if that option is applicable in your area. 18
Net Sheet Sellers Conventional The Seller s Programs are designed to give you quick and easy closing costs and net information. Additionally, they have also been designed to use in What If scenarios. The sellers Conventional, FHA, and VA Screens are all similar; they just use different closing costs. Simply enter the correct information and you will quickly see your sellers closing cost and net. If you don t have the current loan balance, each of these programs contains a section where you can quickly calculate this item. Tap the? next to Loan Bal and fill in the fields; the program will plug the value that is computed. 19
Net Sheet Sellers FHA To view the itemized closing costs, just touch the info button on the right of the Results screen and everything is listed with the individual costs, even the commissions! The Owners Title Policy is already in the program and is calculated automatically. 20
Net Sheet Sellers VA Use the Days to Close function to open a virtual calendar to pick a closing date. Prorated taxes and interest will be included as part of the calculation 21
Net Sheet Sellers Conv/2nd Seller s Conventional w/2 nd At first glance, this application looks just like the Conventional program. However, in addition to giving you a traditional Seller s Net Sheet in about 10 seconds, it also calculates the net based on paying off both the first and the second mortgage! Just click on the button next to Loan Bal and advance to the next screen This input screen allows you to enter both the First Mortgage along with its interest rate And the Second Mortgage along with its interest rate too. When you have entered the proper information, simply click the Back button and select a closing date then hit calculate! Note that the RESULTS screen includes the 1 st and the 2 nd as well as the net at close. The Tax Back or Estimated Escrow Refund gives the amount that will be refunded from escrow, if it has been paid properly (NOTE: Some states do not have this item). The interest on both the first and the second will be included in the closing costs as well as all the other pertinent items 22
Sell 2 Net Conventional Sell2Net How many times do you hear someone say, I want to sell my house, but I m not going to, unless I can make X amount of dollars? Sell2Net answers the question of selling price. What price must I ask in order to satisfy this seller s needs? Once you determine the net goal, just enter it and the other variables and hit compute. The result will tell you and your potential seller if his expectations are reasonable or not. 23
Short Sale Conventional Need to do a short sale? HUD 1 to complicated? Here we have added a program which makes a short sale and filling out a HUD 1 easy. You simply add in all the information in this screen. Select the days till closing. Click compute. After clicking compute, you will be shown the results of the short sale. Here you can save the results or you can select print. By selecting Print you will be taken to the HUD1 information screen. Simply fill in the required information for the HUD1 and click next. 24
Now you will enter the rest of the HUD 1 information as required and click next. As you will now see the program has automatically entered all of the data into the HUD 1 in the correct fields. From here you can save or print out the HUD 1 form. It s that easy. 25
Lender APR Annual Percentage Rate. When you take out a loan, the true cost of the loan is not just the annual interest rate. To truly find out the cost of the loan, you must take into account any money you pay to get the loan. For example, if you pay a 1% origination fee, then the true interest rate is not the 6 that you say it is. If you borrow $100,000 at 6% interest, then the first year the loan will cost you $6,094. Right? Maybe wrong. What about the 1 discount point you paid at closing. The true interest rate, or the APR for that money at 6% for 30 years will be 6.094%. The purpose of this is to help you decide what loan really is the best loan. Most real estate professionals have to get someone to help them figure this out, but as a user of ChicagoAgent, you will be able to solve this problem in a matter of seconds. 26
Lender Fast Loan FastLoan is a fantastic program for getting referrals and for making you the buyer s best friend. After they close on their new home stop by in a month with a small housewarming gift and show them the FastLoan program. Simply enter the loan amount, the interest rate, the duration of the loan, and the amount to include extra each month with their mortgage payment and watch the magic! When you demonstrate for a client how to shave seven or eight years off their mortgage and save them 50K 75K, many of them decide that you must really care about your clients and will be willing to refer you to their friends. Amazing 27
Lender Handicalc HandiCalc drives car salesmen crazy! It is a very easy to use program that allows you to solve all compound interest calculations. All you have to do is leave one field blank and plug the numbers into the known fields. HandiCalc will solve for the open field. 28
Lender Interim % Occasionally, people need a bridge loan; you know, one of those loans that let us go ahead and close now until our house sells. How much will it cost us to get that $45,000 loan for the 37 days that we will need the money? This program, "Interim Interest Rate" will tell you the cost of that $45,000. This program asks how much you want to borrow, at what interest rate and for how many days. When you enter those values, the program will tell you the cost of the money for that period of time. What a great tool for those that work with builders 29
Lender Loan Balance Loan Balance: a powerful program with a unique interface. The Loan Balance program will tell you how much someone owes on his or her loan at any given point during the loan. No longer do you have to look up lengthy amortization schedules. A simple program to use, just input the amount borrowed (Loan Amt) the Interest Rate, the amount of years the loan was financed, the initial mortgage year (Mtg YR:), the initial mortgage month (Mtg Mo:). Then enter the Year and month you wish to calculate the new balance. Always remember to use 2 digits when entering Year and Month. The program will then tell you the new balance on the loan plus the amount of principle and interest paid up to that payment 30
Lender REFI ReFi is a great program for mortgage lenders and homeowners alike. It allows you to input your current mortgage information and compares keeping that loan with the cost of refinancing and paying a lower interest rate. You can include origination, points and other costs to help you see the total savings associated with updating your loan package. If you need to adjust the closing cost or fees associated with the new loan, use the Setup option at the bottom of the screen and input the necessary items. 31
Register To Register or renew your software On the right side of the screen you will see a button for Register. Simply click on the Register Now button. Next you will be directed to a screen which has a Website Code. You will need to give this code to your Representative so they can register or renew your software. Once the representative has registered the software they will give you the Registration code, which you will enter in the field marked Registration Code. Then click on Set Code. 32
Close the pop up box and then proceed to entering your personal information into the program.. Next, enter you contact info. This is for the printouts and email you send out using the software. Note: Please select SAVE after you enter all your contact info. 33
Set Up Set-up is the default numbers the program comes pre-loaded with. Most people never have to change these. If you would like to change any of our preset numbers, find the area you would like to change. Enter the new name or fee amount. Remember to click on the word save any time you change any field in SET UP. 34
Customize Printout Customizing Printout Pages Customizing allows you to add in your company logo, or even your own portrait onto a printed net sheet on PC or Mac computers To add your image simply click browse. Find your image on your computer (wherever it is stored) and select save. Next you will need to select the image mode. Here you are given three choices. Landscape, Portrait, or Square. You may also have a personal message you want beside your image. You may enter this where it says Enter Text. After making your selections and/ or entering text. Click Save and your image(s) will appear in the image box. Next if you would like to see how your image will appear on a printout select preview. 35
This is how the above image and text now appear on the printout. If your image appears distorted in anyway try going back and select a different mode. Be sure to click save again before previewing. 36
Contact Technical Support PalmAgent Inc. 639 N Coalter Street Staunton, VA 24401 Corporate: 757-271-1287 Toll free: 1-866-629-5091 Or email us at support@palmagent.com 37