First_Time_Home_Buyer_PPT

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Slide 1:

Presented By: Gloria Walters Buying Your First Home

Our Real Estate Team:

Our Real Estate Team Who Are We? A Team of Real Estate Experts Over 16 Years of Combined Real Estate Experience We Specialize In: Mortgage Services Buyer & Seller Representation Home Purchase, Sale & Investments Corporate Relocation Property Management

Definition of Home:

My Own Adobe A Family Dwelling Place of Refuge A Structure Made of Walls, Windows, & Doors Different to Many Point Is You Want to Own One Definition of Home

Fears and Facts :

Fears and Facts I C an’t Afford to Buy a Home Right Now . You Can’t Afford Not to Buy A Home Now. FEAR FACT

Fears and Facts :

Fears and Facts I Should Wait Until the Real Estate Market Gets Better . Now is the Time to Buy. Low Home Prices, Low Interest Rates! FEAR FACT

Current Rates:

Current Rates 21% = 30 Years Ago 12% = 15 Years Ago

Fears and Facts :

Fears and Facts I Don’t Have Money for a Down P ayment . There are a Number of Down Payment Options. FEAR FACT

Fears and Facts :

Fears and Facts I Can’t Afford to Buy My Dream Home . You Will Get Closer to Buying Your Dream Home by Buying Your First Home . FEAR FACT

Steps to Home Ownership:

Steps to Home Ownership

Decide to Buy:

Decide to Buy Buying First Home is an Emotional Decision —“Home is Where the Heart is.” Represents Y our Personal Palate Provides Security & Stability Provides a Pride of Home Ownership & Achievement, Because it’s Y ours.

Decide to Buy:

Decide to Buy Buying First Home is a Rational Decision —“Home is Where Your Wealth is.” Grow Wealth Build Equity Reduce Debt Property Value Appreciation Tax-Deductible Benefits/Write-Offs Property & Mortgage Interest Energy Saving Home Improvements Creates Leverage Opportunities Use Equity for a Better/Second Home or Investment

Decide to Buy:

Decide to Buy Know Where You Stand Review Your Credit Score Equifax, Transunion , Experian, Annual Credit Score, Free Credit Report Understand Your Debt to Income Ratio Pay Down Debt Keep Your Credit Cards Low Start Saving Quicken, iBank

Decide to Buy:

Renting Vs. Owning If You Purchased Home for $150k with a 30-Year Fixed-Rate Mortgage & Made Monthly Mortgage Payments of $900 You Would Pay $324,000 in Mortgage & Interest Over the Life of the Loan. Additionally, After 30 years -- Own a Home with An Appreciated Value Potential of $364,000 (on the Low End at 3% Annual Appreciation) or $861,000 (on the Historical Norm of 6% Annual Appreciation). Decide to Buy

Decide to Buy:

Renting Vs. Owning If You Purchased Home for $150k with a 30-Year Fixed-Rate Mortgage & Made Monthly Mortgage Payments of $900 You Would Pay $324,000 in Mortgage & Interest Over the Life of the Loan. Additionally, After 30 years -- Own a Home with An Appreciated Value Potential of $364,000 (on the Low End at 3% Annual Appreciation) or $861,000 (on the Historical Norm of 6% Annual Appreciation). Decide to Buy Compared to Paying $800 Rent 30 Years If Your L andlord Never Raised R ent , You W ould Spend $288,000 & Own Nothing!

Decide to Buy:

Decide to Buy Renting Vs. Buying http ://michaelbluejay.com/house/rentvsbuy.html

Hire Your Agent:

Real Estate Agents Perform Seven Main Roles: Provide Real Estate Market Education Analyze Needs Vs. Wants Secure Home that Meets Criteria Coordinate With Other Needed Professionals Property Negotiation Review Paperwork & Deadlines Identify & Solve Any Problems That May Arise Hire Your Agent

Secure Financing:

Secure Financing

Secure Financing:

Secure Financing Know Your Mortgage Options Three basic factors: Down payment Interest rate Term Types of Loans First Time Home Buyer Veterans Affair (VA) Conventional Federal Housing Administration (FHA) Fixed Rate or Adjustable Rate – ARM

Secure Financing:

Secure Financing Understanding Your Monthly Payment – Four Elements Commonly Referred to as PITI . Principal Interest Taxes Insurance Combined They Offer You Your Monthly Mortgage Payment

Secure Financing:

Secure Financing Pre-Qualification Vs. Pre-Approval Pre-Qualification – Rough E stimate of How M uch Y ou C an Borrow Pre-Approval – Formal A pplication P rocess Provides Written Commitment from Lender Stating Maximum Loan Amount & Interest Rate

Secure Financing:

Secure Financing Determine Best Mortgage Option Areas to Consider Low Monthly Payment May Need Larger Down Payment or More Affordable Home Low Down Payment Secure a Second M ortgage or “80-15-5” Piggyback. Build Equity Quickly Pay More Over Time Low Risk A 30-Year Fixed-Rate Program W ith 20% Down

Secure Financing:

Secure Financing Pre-Approval Letter Lender Decides W hat Y ou Can Borrow But You Decide What You Can Afford In Your Pre-Approval Letter, Ensure the Monthly Payment is an Amount You Are Comfortable Paying Each Month. It’s Recommended to Spend No More Than a Third of Your Gross Monthly Income on Your Home Payment. $2,100 x 0.33 = $699.30

Find Your Home:

Find Your Home Define Your H ome Criteria Analyze Your Home Values i.e. Needs & Wants. Consult With Y our A gent To Understand the Rules of Your Market E.g. Home Owners Association (HOA) Fees Owner Pays Fees to Fund Property Maintenance, Master Insurance, Landscaping, Water, Sewer & Garbage Costs. Community Development District (CDD) Fees Tax Free Bonds Covers Cost of Capital Improvements & Future Maintenance of the Facilities/Infrastructure Including Roads, Utilities & Community Amenities Short Sales (When Owner Sells for Less Than They Owe)

Make An Offer:

Make An Offer Three Components of an Offer Price -- Offer Must R eflect Fair Market Value (Comparables or Comps) Terms -- Timing & Financial Parameters Contingencies – “As is Conditions” Which Allows You to Opt Out If Unacceptable Issue is Found

Perform Due Diligence:

Perform Due Diligence Conduct Property Inspection Reviles Any Structural/Hidden Problems Home Owner’s I nsurance Policy Protects A gainst Property Loss or Damage Varies on Type of Home Purchased Ensure All Set Time-Lines Are Met i.e. Home Inspection & Appraisals are Completed Within Set Time-Line

Perform Due Diligence:

Perform Due Diligence Important Property Inspection Findings Cracks or Crumbling in Foundation Cracks Inside House Over Windows Water Stains in Ceilings, Floors or Walls Faded or Worn Shingles Mold Issues

Close:

Close Pre-Closing Agenda Items Appraisal, Survey, Title Search & Title Insurance Maintain Mortgage Worthiness Conduct a Final Walk-Through Settlement Statement a.k.a. HUD Obtain Certified Funds Provide Evidence of Insurance Review Transfer of C lear Title

Protect Your Investment:

Protect Your Investment Perform R outine Maintenance on Your Home’s Appliances Watch Leaks, Damage & Wear Fixing Small Problems Now Saves More Later Get a Home Warranty. Helps Ease Burden of Replacement Costs

Steps to Home Ownership:

Steps to Home Ownership

Why Choose Gloria Walters? :

Why Choose Gloria Walters? Realtor for Almost a Decade Solid Relationship With Many Industry Professionals Ability to Handle All Your Real Estate Needs Extensive Local Knowledge Outstanding Expertise in Working with Investors Excellent Buyer & Seller Representation

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