PRESENTED BY:JAKE PLANTON

ANDSCOTT WERNER

MARCH 26TH, 2011

Home Buying 101

LOAN OFFICER WITH ROSE CITY MORTGAGE

Jake Planton

Benefits of Home Ownership

Advantages A place of your own

Tax benefits

Long-term investment

Stable housing costs

Are You Ready?

What should you consider before buying a home? Steady income and stable employment Looked at your financials? Can you afford a monthly

mortgage payment? Money for down payment and closing costs? How long do you plan to live in your new home? Do you foresee a career change in the near future that

might require you to relocate? Do you have a good credit history or good record of

paying bills and other debt?

Different Types of Loans

Conventional- Most widely used, 5% minimum down payment, higher credit needed (680+), tighter guidelines.

FHA- Insured by government, 3.5% minimum down payment, credit scores down to 640, less strict guidelines. Example: Funds to close can be all from a gift.

VA- Guaranteed by the VA, 100% financing available, credit scores down to 640, more paperwork, less strict guidelines.

USDA- Rural properties, 100% financing available, credit down to 640.

What You Will Need

~For Pre-Approval~• Pay stubs for the last month.• Consecutive W-2 forms for last 2 years.• Signed personal tax returns with all schedules

for last 2 years.• Bank or investment statements for past 2

months.• Information about your assets and long-term

debts.• Credit account information.• Personal identification information.

PITI

Your monthly mortgage payment will generally reflect the following costs:

• P = Principal• I = Interest• T = Taxes• I = Insurance• M.I. = Mortgage Insurance

Now That You Have Started

Rules of the Lending Road

Do not change jobs while getting the loan.

Do nothing with your credit, including getting new credit, until loan is closed.

No large deposits you can not paper trail.

REALTOR WITH BRIDGETOWN REALTY

Scott Werner

You are Building a Team

Loan OfficerRealtorTitle and EscrowInspectorInsurance AgentRepair and Trades PeopleAppraiserLender

LICENSED REALTOR LEGAL RESPONSIBILITIES

COORDINATION POINT PERSONRESOURCES EXPERIENCEMARKET KNOWLEDGEPROPERTY ACCESS

Select a Broker to Represent You

Find a Broker Who…

You are comfortable withIs a good communicatorIs availableIs diligent and thoroughHas references ( who have had a professional

working contacts)Loan Officer, Friends, Relatives

Finding A Home

NeedsWantsVetoesBudgetMatching your lists to the market

Searching for a Home

Computer Search Engines RMLS.com

SignsWord of mouthRealtorHomequest

Making an Offer

PriceSeller ConcessionsContingencies appraisal, loan, inspection, other

(eg.selling)Earnest MoneyProvisionsClosing DateType of Financing

Counter Offer

To Mutual Agreement In Contract In Escrow

“Open Escrow”

Title and Escrow: One Company with Two Functions

Title

Opening Escrow will begin the research phase of Property’s Title’s past

The research guarantees the Title you will receive at closing is correct and Indisputable ownership.

Escrow

Neutral Third PartyHolds Buyer's earnest moneyAssures specifics of contract and law are being

performed and are completed prior to ClosingAssist buyers and sellers with all of the deed

transfer paperworkAssist buyers with the Loan documentsDistribute the funds Records the new owner in the County

Recorders Office

Disclosures

Inspections

House Plumbing Electrical Roof Furnace Leaks

Oil TanksSewer systemRadon?

Repair Addendum

‘Buyer has completed Inspections and wishes to proceed with the transaction, with the following provisions’:

1.2.3.

• Negotiating repairs~ Seller may accept, reject, or counter.

• Lender/Appraiser may require repair on property before funding the loan.

Repairs

Prior to closing

Seller’s Control

Buyers Input BIDS

Red Flags and Pitfalls

Cost of Realtor Services to Buyer

Thank You!

Any Questions?