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First Time Home Buyer’s Webinar…

First Time Home Buyer’s Webinar…. PICTURE HERE. PICTURE HERE. Realtor Company, Title Etc. Lender Company, Title, Etc. Outline. Getting Pre-Approved For A Mortgage Credit Employment Paperwork Needed Debt To Income Ratios Down Payment Special Programs Searching For A Home

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First Time Home Buyer’s Webinar…

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  1. First Time Home Buyer’s Webinar… PICTURE HERE PICTURE HERE Realtor Company, Title Etc Lender Company, Title, Etc

  2. Outline • Getting Pre-Approved For A Mortgage • Credit • Employment • Paperwork Needed • Debt To Income Ratios • Down Payment • Special Programs • Searching For A Home • Sites & Search Tips • Picking an Agent • Negotiating • Contingencies • Home Inspection • Title Insurance • Mortgage • Closing

  3. Before we get started… is now really the right time for you to buy? Owning a home is part of the American Dream, but it has its pitfalls, things that most people don’t talk about... [Maintenance, Lack of Liquidity, Short Term financial Stresses...]

  4. The Process…

  5. Getting Pre-Approved For A Mortgage Why Get “Pre-Approved” BEFORE You Find a House?

  6. Getting Pre-Approved For A Mortgage Employment Length - Depends on Situation , Usually 6 Months W2 Vs. 1099/Self W2 Seen As More Stable 1099 Requires More Tax Return History, etc… Income Numbers are based on Net… Example = 72,000 Gross or $6,000 / Month Housing Payment + Other Liabilities can = 43%

  7. Getting Pre-Approved For A Mortgage Credit The Better The Credit, The Better The Rate 580 Is Possible but… Most Advertised Rates are based on a 740… Short Term Credit Analysis Shows Some Opportunities for Improvement… What NOT To Do When You’re About To Buy!

  8. Getting Pre-Approved For A Mortgage

  9. Getting Pre-Approved For A Mortgage Paperwork Needed… W2 (2 years) Tax Returns? (2 years) Bank Statements? (2 months) Be Prepared for Last Minute Requests From Underwriters… this is Normal [A Good Advisor will Minimize Last Minute Stress]

  10. Getting Pre-Approved For A Mortgage Down Payment How Much Needed? As Little As 3% Down… Negotiate Closing Costs Back From Seller FHA may allow 3.5% with 6% for closing costs Gifts? Special Programs - “Smart Start In NJ” (borrow 96.5% + borrow 4% of closing costs.. forgivable?)

  11. Getting Pre-Approved For A Mortgage Closing Costs Title Insurance (regulated pricing, 1 time fee) Mortgage Fees (origination charges vary) Points? (percentage of purchase price used to buy down rate) Homeowners Insurance Taxes/Prorations Transfer Taxes Your Advisor will estimate all these fees for you.

  12. Shopping Around For A Mortgage? Might Make Sense…

  13. Searching For A Home Sites Zillow (not every listing) Craigslist (not every listing) Realtor.Com (listed by agents) HudHomeStore.Com (hud) Your Agent’s Site…

  14. Searching For A Home Search Tips FSBO’s Can = Good Deals (but utilize your agent) Key in on “Price Reductions” and “Motivated” Keywords. Consider 2-4 Units as a Long Term Strategy (use income from extra unit 75% toward income) Foreclosures Don’t Always = A Good Deal (but they can) Fixer Uppers Might = “Sweat Equity” (if you’re brave) (“Homestyle Renovation & 203k Programs allow you to finance the cost of repairs…)

  15. Searching For A Home Picking An Agent • Your cousin or friend might not be the best choice...if they’re new ask them to work with a partner… • If he/she is willing to just jump in the car and show you stuff they might not be the best choice. • Buyer Agency agreements are OK • Fees?

  16. Searching For A Home Negotiating? • If you picked the right agent, LISTEN To Them! • Sometimes “coming in low” makes no sense…. • Focus on terms not so much on price.

  17. Contingencies Home Inspection • There’s Always Something Wrong, Don’t Get Freaked Out (Welcome to Homeownership) • Renegotiate based on bigger stuff, especially things that affect ability to get mortgage on property. (try not to sweat the small stuff)

  18. Contingencies Title & Homeowner’s Insurance? • Title … “Clean Deed” • Homeowner’s Insurance (Fire, Flood, etc… usually required to get mortgage)

  19. Contingencies & Closing Mortgage • Commitment is usually subject to a few conditions • The underwriter might drive you nuts, hang in there! • You can close 3 days after closing disclosure is given to you. This tells you all the fees related to the loan very accurately

  20. Next Steps Get Pre-Approved, Schedule a Consult… Search For Properties Interview Agents

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