Home Buyer Ideas By Kim Suzanne Solveson


Presentation Description

Home Buyer ideas by Kim Suzanne Solveson. Kim suggest the ideas to buy the house without the help of agents. By using this you you can easily find your dream home.


Presentation Transcript

Welcome to...:

Welcome to... Partner PowerPoint Demonstration for the Release to Real estate textbook

Homeownership :


Quick Facts:

Quick Facts Home ownership has both benefits & drawbacks. It is not always the best option at a time. Buying your first house needs preparing & preserving. Prepare a guidelines to help you store for a house. Prequalify for home financing to see how much house you are able. There are several govt applications for first-time & low- to moderate-income real estate customers.

Home ownership: The United states Dream:

Home ownership: The United states Dream Purchasing a home is one of the most important choices children Can make. It has serious economical & psychological effects and is a main issue with the United states desire.


Advantages Pressured benefits plan because your home loan major expenses are maintained as value in the home Usually a good long-term investment– value will most likely improve eventually Deduct residence taxation & interest rates from earnings tax Over time home become less expensive in "real" dollars


As value develops, you can step up to a bigger house or lend against your house (home value loan) to fund large purchases Home ownership can improve a family's sense of control over their lifestyles & atmosphere, as well as improve more powerful group connections You can personalize the home to match special needs & tastes

Disadvantages :

Disadvantages Per month installments (principal, interest, taxation & insurance) may be higher than lease payments You must pay for normal servicing & frequent repairs Owning is less versatile than renting; most first-time real estate customers live in a house for 7 years Like any financial commitment, there is no assurance that value boosts

What Do We Want? (Professional Builder magazine, 2006):

What Do We Want? ( Professional Builder magazine, 2006) Boomers (age 41-60) No stairs—ranch design houses recommended, but first-floor expert packages and/or personal lifts acceptable Fireplaces Low-maintenance areas such as marble & quartz Pedestrian-friendly areas with paths & facilities for fitness and health & public interaction Emphasis on quality & outlining instead of rectangle footage


Gen XERS (26-40) & Echo Boomers (18-25) Smart-home technology—every room wired for mobile phones, locations & DSL Home enjoyment facilities in the family room—the middle of activity Built-in cabling & conduits for flat-screen TVs, with cables & cables out of site Breakfast bar or place as additional eating space Green/environmentally delicate features


Features Important to All 3 Groups Large, start cooking areas to make meals & amuse guests; they are the “new living room” Kitchen isles no broader than 40” Quality units High great quality, high-performance appliances Separate tub & shower

Prepare for Homeownership :

Prepare for Homeownership Buying your first home includes planning & saving—attend a real estate customer education class to help you get prepared for homeownership Possible obstacles: High Cost Explore solutions to the traditional single-family separated house: apartment, produced home, or older home (generally can afford a home 2.5 times total yearly income)


Credit Pay off your debt & delay major purchases until after you purchase a home Get a copy of your credit rating score to see if any problems exist If your credit rating is not great, check out subprime loans


Down payment Most traditional mortgages--20% of the amount However, there are methods to lessen down payments to the 0 to 5% range: --government-insured loans --local real estate organizations & creditors may have applications for first-time home buyers --curtail your investing & ask relatives


Closing Costs Right of possession leaves supplier to customer at the closing Can achieve several a large number of dollars Some of the applications that help with down payments can also help with settlement costs


Long-term Affordability Per month major, attention, residence taxation & insurance (PITI) expenses No more than 28% of your total monthly earnings should go to PITI (front-end ratio) Monthly PITI expenses plus any other long-term debts expenses should not surpass 36% of your total monthly earnings (back-end ratio) Also need a support to protect servicing & repairs


Project You have been offered two projects, one in Knutson, MS, and the other in LA. Go to appropriate residence Sites & select two identical homes. Describe each house such as its cost & features, and fix an picture. Given that 28% of your income can go towards actual estate, how much would you have to produce to handle each home? Which would you choose?

Initial Selection of Homes :

Initial Selection of Homes Once you are economically prepared to purchase a home, identify one that fits your principles, needs, wants & price range Where to look? --Real property part of a nearby newspaper --Real property consumer books --Real property Web websites --Driving, bike riding & strolling through neighborhoods --Stop at model/open homes

Select a Real Estate Agent:

Select a Real Estate Agent Select a representative to help filter your choices Agents are a valuable source of information because they are familiar with property in a specific area


Requirements for choosing an agent: --trust --rapport --track record --level of persistence for first-time house buyers


As you consider different homes, evaluate each focused on concepts, needs, wants & cost-effective issues Be flexible, authentic & responsible— Your first home will most likely not be your wish home Develop a checklist: Can you & your close relatives be very grateful living in this home?

House Hunting Checklist:

House Hunting Checklist (Ideas of what to consist of, but your record must be customized centered on your needs) Is the area safe? Are the houses in the area maintained? Does the home have enough rooms & bathrooms? Is there sufficient storage area space? Are there top quality educational institutions in the area?


Is the place of the home and group convenient? Is there a property owners association? Is the area quiet? Does the floor-plan match your lifestyle? Is the home power efficient? Is the garden easy to worry for? What group solutions are available?


Are the equipment & accessories adequate? What are the common servicing expenses for the house? How great are regional residence taxes?

Obtain Financing :

Obtain Financing While you shop for a home, also shop for a mortgage Get pre-qualified so you have a better idea of affordability (price range of homes that you can afford) Mortgage lenders include: commercial banks, savings & loan institutions, mortgage brokers & credit unions


Two opportunities for low- and moderate-income real estate customers are: Fannie Mae's Group House Buyers System Freddie Mac's Cost-effective Silver Program Government agencies— FHA VA RHS State real estate & fund authority


Besides deposit, properly evaluate home loan choices based on these criteria: Amount (APR) Total yearly cost of a home financial loan as a amount of the financial loan amount Includes the contract interest rate, home financial loan insurance & points (each point equals 1% of the financial loan amount)


Interest rate lock-ins Lock in a low rate as soon as possible


Application & source fees Minimize charges to cover processing, credit assessment, evaluation, points & other expenses


Term For most first-time home buyers a 30-year phrase to pay off the home loan is appropriate Determine if you want a set or arm A set attention amount home loan Loans are fully amortized with a set amount for the entire phrase -- both the principal & attention are paid off at the end of the loan


An adjustable rate mortgage (ARM) Interest quantity customized consistently, usually every 1, 3, or 5 years based on a collection published into the loan contract Might originally get a reduced interest quantity, but upcoming enhances may mean greater per month payments

Negotiate and Enter Into Contract:

Negotiate and Enter Into Contract An arm (ARM) Make a buy offer Offer is generally given to the exact residence agent who provides it to the provider (earnest money) Get a home evaluation report--a qualified examiner provides an objective perspective about home’s scenario Purchase contract

Loan Approval:

Loan Approval Obtain actual funding for home Lender will ask about your income, costs, history of credit score rating, career, & the terms of purchase offer You complete form & pay a software fee, pay for a credit score rating computer file & evaluation, get a quotation of high closing costs & truth-in-lending statement Loan handling occurs


Closing Final step is the ending, a session between you, your loan provider, owner & other fascinated parties Evaluation & indication financial loan documents Exchange of records between customer, supplier & lender Disbursement of funds You take advantage of the action to the property & be a part of the positions of homeowners!

Potential Difficulties:

Potential Difficulties Discrimination Against the law—Fair Property Act Fair housing—several customer guidelines or features with the exception of discrimination Subprime & competitive lending Credit impacted borrowers can benefit with a subprime mortgage Predatory loaning consists of unfair or aggressive loans, along with a number of competitive methods

Post purchase Concerns:

Post purchase Concerns Keeping up with maintenance & repairs (avoid an expensive crisis) Create a maintenance fund Remodeling & improvements—make informed decisions in selecting the project, contractor, or deciding to do it yourself Refinancing—may be a good idea when interest rates go down Foreclosure prevention Loss mitigation tools such as a loan modification

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