Upload
priscilla-pride
View
125
Download
0
Embed Size (px)
DESCRIPTION
Home buyers create a wish list, get learn about the different types of loans, how to get pre-approved for a loan and work with a real estate agent to find their dream home.
Citation preview
HOMEBUYER WORKSHOP
Live Well, Everywhere
Why Buy a Home
LocationGrowing family
More SpaceSchool District
LifestyleLegacy Investment
2 Years of federal income tax returns with W-2s
Two to three months of paycheck stubsCredit Report
Bank Statements two to three months Assets documentation – mutual funds,
other real estate, stocks, pension funds,
child support, other assets
Get Preapproved
Gather the following documents for your loan review
As important as your credit score DIR is the amount of debt you owe compared to your overall income is just as important
Lenders like to see the ratio at or below 36%
Calculate your DIR
Debt to Income Ratio (DIR)
What you should know about FICO
Get your annual free credit report Free Credit Report
Credit Score
Minimum acceptable credit score for most lenders is 620 or better.
Types of Mortgages
Fixed rate – monthly payment remains the same in terms of 10, 15 years or 30 years.
Adjustable rate loans – interest rate changes at specified periods agreed upon at the beginning of the loan.
Balloon Mortgage – monthly payments are initially low, but a huge payment is due at a specified time at the end of the loan.
Types of Loan Programs
Conventional – down payment is 5% to 20%. Requires excellent credit.
FHA Mortgage – Federal Housing Administration aids in the issuance of mortgages and is the world’s largest insurer or mortgages enabling millions of Americans to realize their dream of home ownership. FHA underwrites multifamily, single family, or manufactured homes. Down payment is 3.5%.
VA –Veterans Administration loans limited to US military personnel only. No down payment required. Contact a VA specialist in your command to find out.
Mortgage Application
Compile all your financial data – bank account numbers, credit card , and other financial data. This will help you complete your loan application. With some companies you can do this online.
See sample mortgage application
•
Closing Costs
RESPA - Real Estate Settlement Procedures Act – designed to help consumers become better shoppers for settlement/closing services.
Good Faith Estimate – An itemized list of fees and costs associated with a loan.
Sample Settlement Statement – summarizes all the fees and charges for both buyer and seller during closing on a property transaction.
Be sure to take a look at these documents
Your Real Estate Agent
Helps you find the right lender
Helps you select a loan product
Helps you get a pre-approval letter which states lender will provide financing for the mortgage, at a certain amount, at a certain interest rate for a specified number of years; also states how long the letter is valid.
Finding a Property Know how much you can afford work with agent and lender
Know where you want to live and why- location – school, work, family, lifestyle
Know what type/style of home you prefer http://architecture.about.com/od/periodsstyles/ig/House-Styles/
Making a Wishlist Selecting a home
Square footage (size) Number of bedrooms
Number of bathsKitchen – open/eat in Living Room/Family Room Bonus Room, GarageFinishes Other features
Realtor Assistance
Help determine location (radius to work, schools, family, friends, neighborhood amenities).
Search for homes with desired features in your price range -agent has access to Multi-Listing services, and special key access to all properties.
Work with lender, appraiser, inspector, insurance companies and others entities as required.
Negotiating the Purchase Contract
See sample purchase contract
Your agent will help you to present offers to the seller.
.
http://www.purchasing.cmich.edu/ptyacquisition/pdfs/sample-agreementtopurchaserealestate.pdf
Earnest Money- expect to pay earnest money when you submit your purchase contract.
Costs
Appraisal – a licensed professional conducts an indepth assessment of a property to determine it value.
Inspection
Licensed inspector determines the viability of the house
http://www.biggerpockets.com/renewsblog/2010/04/25/fha-property-inspection-checklist/
Termite Letter
http://lytletitle.com/pdf/sample-termite-letter.pdfhttp://www.youtube.com/watch?v=GNiZuHHBulU
Homeowner’s Insurance
Insures home from damage by fire, flood, storms, and other agreed upon protection dictated by the lender.
Title Insurance insures against a defect in the title (ownership).
Home Warranty protects agains defects in mechanicals and appliances for one year or more after purchase.
Closing
Your agent www.propertyagentwww.com will help with appraisals, termite letter, inspection, any paperwork and address any issues to make the closing go as quickly and as smoothly as possible
Warranty Deed- you have found a home and now you will receive closing documents and after filing at the courthouse a Deed to your property.
Sample Warranty Deed
Http://www.propertyagentwww.com
Live Well, Everywhere
Virginia Central Realty2420 Maplewood AveRichmond, Va 23220
1-804-355-4910 ext. 455