Realizing the American Dream

1. Realizing the American Dream Shopping for a Home

2. Presented By • Colin Rosenthal • DFW Metro Housing • Tel 214-704-4005 • E-mail:colin@dfwmetrohousing.com • Fax 817-704-4293 • http://www.dfwmetrohousing.com

3. Are You Ready? • Steady Income • Credit History • Savings • Low Debt • Pre-Qualified Be Qualified

4. What Are Some Pros & Cons of Home Ownership?

5. Tax deductions Interest Property Tax Equity Control over environment Your own home Privacy Pride of Ownership Stability Advantages of Home Ownership

6. Usually more expensive Repairs & maintenance These are the main expenses not involved when you rent. More difficult to move Fewer Amenities Long – Term Commitment especially when using grant money such as NSP or HAP Disadvantages of Home Ownership

7. What Are the Steps for Buying a Home? • Determine if you should rent or buy • Attend homebuyer education classes • Determine how much you can afford to spend • Get your loan approved • Decide what kind of home you want and need and What you can comfortably afford to pay every month

8. Upfront Costs Down payment On an FHA Loan 3.5 % Closing costs Normally average 6% Most Government programs require $1000 total investment Move in costs Reserves needed if your credit score is below a 620 Ongoing Costs Utilities Maintenance and repairs Always make sure you are getting an Extended Home Warranty and pay for it monthly once the first year is up normally about 435 to $40 a month but worth its weight in gold Insist on it What Are Some Other Costs of Home Ownership?

9. The Role of the Realtor • Show homes that meet your requirements • Provide information about the community • Present your offer to the seller and negotiate the offer • Advise about lenders, inspectors, and title companies and government assistance programs. Your Realtor must Know and understand these programs. • Co-ordinate everything to make sure you get your home

10. Show homes that meet your requirements • Have your “Realtor” set you up with Automated Home listings that meet your exact home requirements. • Have you realtor teach you how to read an MLS listings. (Next set of Slides) • Go directly to Free On-line MLS listing Service at http://www.dfwmetrohousing.com • MLS Listings,,South Arlington.pdf • Double click the Photo to view all pictures • Double click the address to see a map

11. Double click picture

12. View all online information and pictures

13. More pictures

14. Double click the address

15. The bottom half of the listing

16. Provide information about the community • Your Realtor can provide you with all the County demographic information available. • Example: • County Tax Information • Schools • Neighbors etc

17. County information

18. County tax Information

19. County house information

20. Present your offer to the seller and negotiate the offer • Your realtor will write up the contract and have you initial pages one through six and sign page 7 of the contract. Watch the price on page one, who is paying title policy also on page one.Who is paying survey on page two, check the closing date, what seller concessions are being asked for, make sure you always ask for a home warranty etc.

21. Page one Top

22. Page One Middle

23. Page One bottom

24. Page two Survey…Note on a foreclosure the seller never pays survey

25. Page two HOA

26. Page three property condition report

27. Page 4 Home Warranty Contract, Closing and Possession

28. Special provisions

29. Concessions

30. Page 6 buyer and seller info

31. Page 7 Signatures and execution of Contract

32. Advise about lenders, inspectors, and title companies and government assistance programs. • A good Realtor will stay on top of everything and do his/her utmost to make sure the deals closes. This is where your partnership begins and it is imperative you send your Realtor everything he request as soon as possible. Communication is essential to make your dream come true.

33. Your realtor should be able to help you with everything • As I do with all my clients, your Realtor should be able to assist you from the very beginning in applying for a home loan all the way through the process to the closing and beyond. I still have client from 4 years ago calling me and asking me questions about their home. Your Realtor should remain your Realtor for life.

34. Real Estate Agents • Listing Agent • Has a contract with a seller to advertise property and represent seller when offer is made • Buyer’s Agent • enters contract with the buyer and usually gets paid through split commission

35. The Agent’s Job • Researches homes available in your price range • Gives you copies of listing sheets • Helps determine how much homes are worth • Refers you to other professionals • Helps write purchase offer (Contract and Amendments Etc) • Negotiates with seller to get a good price for you • Explains all legal paperwork

36. Finding an Agent: • Please make sure you find an agent who has already dealt with the Down payment assistance or NSP Program. I have been contacted by many a frustrated Buyer who was working with an agent who had no idea of what needs to be done to close an assisted deal.

37. Shopping for a Home You are now 100% qualified (Not just pre-qualified) with your lender and you are ready to start your home search. You are already receiving automated MLS listings in your selected criteria and know what you want

38. The home search The Biggest Mistakes Wanting a large home when all you can afford is a smaller home? Remember that the bigger and cheaper the home the more work it will be needing. Remember the bigger the home the more expensive it will be to cool and heat? Once again remember not to over extend your self financially

39. Don’t over extend yourself Only buy a home priced at what you can comfortably spend every month. Don’t let your home own you. If your present rent is $600 a month don’t go and buy a home costing you $1000 a month. Remember you will be paying for the repair and Maintenance. Remember the 1% law $100000 home will cost you about $1000 a month including taxes and insurance only if the house has a tax appraisal of $100000

40. Remember the property Tax • Many Foreclosed homes are selling for up to $20000 to $30000 les than their appraised tax value. Should you secure a Foreclosed home please have your REALTOR check the annual tax because it could add as much as another $150 a month to your payment

41. High Tax value for a home priced at $124900

42. Example of Expensive Taxes the property taxes on this home are $400 a month

43. Shopping for a home Deciding what you want: • Location, new or pre-existing, special features. Target area’s , local area’s or NSP? This is where your Realtor can advise you what fits your budget and what Government program is available and where.

44. House-Hunting Strategies • Work with a real estate agent (The first step) • Drive through the selected neighborhood • Checkout the MLS system (To use my Free MLS listing service go to) • MLS Listings,,South Arlington.pdf • http://ntreis.immobel.com/personal/1/searchLocation.do?loc=0&la=EN&per=dfwmetrohousing • Ask friends and relatives to refer you.

45. Deciding on a House • House-hunting with your REALTOR • Pick one or more homes you like • Get a Market value Your realtor will do this for you? • Present a contract to seller • Home inspection (Very important step) once under contract • Price strategy. Your realtor should know everything from your lender to be able to advise you on a pricing strategy.

46. Third Party Financing Addendum • Third party Finance Addendum • Here you are asking the seller for time (30Days) to secure a Mortgage or get your earnest money back. Also you are telling the seller what type of loan you are requesting

47. Page 1 Loan Time Frame

48. Page one type of loan

49. Page two sign TPFA

50. Thank you very much • Please fell free to call me 7 days a week at 214-704-4005 Cell and 972-625-2612 Office • Fax me at 214-666-3227 or 817-704-4293 • E-mail me at Colin@dfwmetrohousing.com • Mortgage Application.doc