Buyer's Class
Published on Nov 20, 2015
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
who are we?
And what are we about?
Gold Coast Real Estate Community Outreach Program
Photo by Jupiterimages
tracy maldonado
- Licensed Real Estate Agent
- Multi-million dollar producer
- Market knowledge in Omaha and surrounding areas
- Retired Air Force
- Advance pre-algebra teacher in Ralston
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Leslie dollinger
- 1. Licensed Realtor
- 2. Assist buyers, sellers, and investor
- 3. 7 years property management experience
- 4. Manage projects, flips, and files for Gold Coast
- 5. Local, state, and federal fair housing expert
Photo by afagen
Our mission
Our mission is to educate the first time home buyers of Omaha with quality information to use on their quest of home ownership.
We aim to take the mystery and stress out of the first time home buying process.
We aim to take the mystery and stress out of the first time home buying process.
Photo by Jupiterimages
What do i need to know about owning a home?
- Take control of your payment
- Build equity
- Financially responsible for repairs, utilities, taxes, etc
- Tax deductions
- Sometimes house values can go down
1. No rental increases
2. Grow you assets
3. Get tax benefits - deduct mortgage interest/property taxes
4. Utilities, maintenance, repairs, mortgage payment, property taxes, homeowners insurance.
5.Real Estate value often increases over time, but not always. It can also go down.
2. Grow you assets
3. Get tax benefits - deduct mortgage interest/property taxes
4. Utilities, maintenance, repairs, mortgage payment, property taxes, homeowners insurance.
5.Real Estate value often increases over time, but not always. It can also go down.
Photo by Stuck in Customs
show me the money
Lenders and Pre-Approvals
Before you go searching for houses online and getting emotionally attached to your dream home....
Shop for a lender - Don't settle for one and done.
Set up your budget - How much can YOU afford?
Know the fees, down payments, and cost at closing.
Get the pre-approval in hand.
Hit the internet for homes in your price range.
Shop for a lender - Don't settle for one and done.
Set up your budget - How much can YOU afford?
Know the fees, down payments, and cost at closing.
Get the pre-approval in hand.
Hit the internet for homes in your price range.
Photo by Stockbyte
Agenda
- Let's talk credit
- How much can you afford?
- The offer
- Getting your mortgage
- After the purchase
Photo by Robert S. Donovan
Let's talk credit
Where does credit come from?
How do you establish good credit?
Need to regain good credit?
Ask for your credit report!
How do you establish good credit?
Need to regain good credit?
Ask for your credit report!
Photo by Digital Vision.
How much house can you afford?
Budgeting
Budgets don't have to hurt
Identify your expenses
Write it down
Make simple, logical changes
Identify your expenses
Write it down
Make simple, logical changes
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Types of loans
Conventional, FHA, VA, and USDA
Conv- 5% down 640 credit score
FHA- 3.5% down 620 credit score
VA- 0 down 600 credit score
USDA- 0 down limited income and 620 credit score
FHA- 3.5% down 620 credit score
VA- 0 down 600 credit score
USDA- 0 down limited income and 620 credit score
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Pre-qualification
Photo by Rupert King
Closing Costs
Taxes, Escrow, and Origination Fees
When we open an escrow account for your mortgage, we use it to make payments for real estate taxes and homeowners insurance. You do have an option!
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Knowledgeable, Personable, Competent
Finding a Realtor
Interview agents
Find an agent that knows the market
Feel comfortable with their personality
Trust is a two way street
Find an agent that knows the market
Feel comfortable with their personality
Trust is a two way street
Photo by Gulfu
Agency disclosures
Buyer's Agent, Seller's Agent, and Dual Agency
Buyer's Agent
* will help you find a house
* represents only the buyer.
* Interview agents
*FREE
Seller's Agent
*Represents "only the seller
*Seller pays commission
Dual Agent:
*Requires written permission from both the Buyer and Seller.
*Normally happens when buyer drives by and calls the agent listed on the sign.
* will help you find a house
* represents only the buyer.
* Interview agents
*FREE
Seller's Agent
*Represents "only the seller
*Seller pays commission
Dual Agent:
*Requires written permission from both the Buyer and Seller.
*Normally happens when buyer drives by and calls the agent listed on the sign.
Photo by Creatas
On the Hunt
Searching for a home that fits your needs
Realtor.com
Zillow
Trulia
Craigslist
Open Houses
Driving Around the Neighborhood
FIND A REAL ESTATE AGENT
Buying a home takes time. Plan on having to take time during the work week for finding a home, negotiations, paperwork, inspections, loan requirements, and closing.
Zillow
Trulia
Craigslist
Open Houses
Driving Around the Neighborhood
FIND A REAL ESTATE AGENT
Buying a home takes time. Plan on having to take time during the work week for finding a home, negotiations, paperwork, inspections, loan requirements, and closing.
Photo by Tom Brakefield
what are you looking for?
- Location - schools, neighborhood, commute
- Large, small, full of character, brand new?
- Is there room to grow into your future goals?
- What can you live with or without?
- Wants Vs. Needs
Photo by Grant MacDonald
Pre-forecosures
What exactly are they?
A pre-foreclosure is a home that has defaulted on loan payments and the bank is pursuing possession.
Could take months or years as the owner gets caught up 'just enough'
A lot of these homes NEVER come available.
Could take months or years as the owner gets caught up 'just enough'
A lot of these homes NEVER come available.
Photo by Joe Martin Photography
Bank owned Properties
Foreclosures and Short Sales
Purchasing a bank owned property can mean geting a great deal, but there are a lot of things to keep in mind.
As-Is
Paperwork&more paperwork
Timeline
Plan A, B, and C
Flexibility
QUESTIONS?
As-Is
Paperwork&more paperwork
Timeline
Plan A, B, and C
Flexibility
QUESTIONS?
Photo by BasicGov
Stay calm
Evaluate Disclosures, Location, and Resale Potential
Buying a home is part emotional and part business. Before you jump on the home of your dreams, first put your emotions aside and evaluate:
* the condition - look over the property disclosure
* location
* resale potential
* how it fits in your budget.
* the condition - look over the property disclosure
* location
* resale potential
* how it fits in your budget.
Photo by Ryan McVay
Seller's Disclosures
Seller's Property Condition Disclosure -
The seller's disclosure contains information about the condition of the house, upgrades, age of mechanics (if known), and if there have been any major defects.
Lead Based Paint -
Houses built before 1978 must have lead based paint hazards disclosed.
The seller's disclosure contains information about the condition of the house, upgrades, age of mechanics (if known), and if there have been any major defects.
Lead Based Paint -
Houses built before 1978 must have lead based paint hazards disclosed.
Photo by Jeffrey Hamilton
Earnest Deposit
Your 'good faith' to the seller
Earnest deposits will be cashed within 1-3 days of the purchase offer acceptance. Be sure adequate funds are available.
*If the offer is not accepted you get your money back.
*Your money is put in a trust fund and comes back to you as a credit at closing.
*If you choose not to buy the home, you lose the earnest deposit.
*If the offer is not accepted you get your money back.
*Your money is put in a trust fund and comes back to you as a credit at closing.
*If you choose not to buy the home, you lose the earnest deposit.
Photo by Digital Vision.
Purchase Offer
How much do you offer?
Closing costs, concessions, and contingencies.
Closing date.
Multiple offers.
The seller can reject your offer.
Closing costs, concessions, and contingencies.
Closing date.
Multiple offers.
The seller can reject your offer.
Photo by jovike
Negotiations
Everything is negotiable in real estate
You've been anxiously awaiting the seller to accept your offer, when you hear back, they want full price and no concessions.
Always anticipate a counter offer.
Be ready to walk away.
The counter offer can be rejected completely.
Always anticipate a counter offer.
Be ready to walk away.
The counter offer can be rejected completely.
Photo by Stockbyte
Inspections
Why get one and what does it cost?
Typical inspection costs, including radon, are $350-$500 but can exceed $700 for additional inspection services such as mold, asbestos, etc.
Inspections require payment up front, prior to closing.
Make sure to block out 1-2 hours for the inspection walk through.
Be reasonable when requesting repairs from the seller.
Be ready to negotiate repair items if necessary.
Inspections require payment up front, prior to closing.
Make sure to block out 1-2 hours for the inspection walk through.
Be reasonable when requesting repairs from the seller.
Be ready to negotiate repair items if necessary.
Photo by Goodshoot
Home warranties
Covers appliances, some plumbing, AC, Furnace, Water heater, etc
* Costs approx $425
* Ask seller to pay
*Once in place - good for one year - cost $75 for company to come out and take a look.
* Costs approx $425
* Ask seller to pay
*Once in place - good for one year - cost $75 for company to come out and take a look.
Photo by Comstock Images
Appraisals
Once approved, your bank will order an appraisal to ensure the loan amount could be recovered in case of default.
If the appraisal comes in under the purchase price, you're back to the negotiations table.
The seller has the opportunity to walk away from the deal if they don't want to lower their price.
Appraisals for FHA loans stay with the property for 6 months.
If the appraisal comes in under the purchase price, you're back to the negotiations table.
The seller has the opportunity to walk away from the deal if they don't want to lower their price.
Appraisals for FHA loans stay with the property for 6 months.
Photo by Jupiterimages
Pre-Closing
HUD, Utilities, Final Walk Through, Plan B
QUESTIONS?
HUD - receive this the day prior to closing. Will reflect costs and how much you will need to bring. Must be a certified check.
Comply with lender requirements such as additional documents or information needed.
Make sure to switch all utilities effective the day of close. Take into consideration that you may have to be present for the utility or cable companies.
The final walk through will take place 24-48 hours prior to closing.
Always have a plan B and C. Closings can get delayed for a myriad of reasons, sometimes days, sometimes weeks. Be prepared.
HUD - receive this the day prior to closing. Will reflect costs and how much you will need to bring. Must be a certified check.
Comply with lender requirements such as additional documents or information needed.
Make sure to switch all utilities effective the day of close. Take into consideration that you may have to be present for the utility or cable companies.
The final walk through will take place 24-48 hours prior to closing.
Always have a plan B and C. Closings can get delayed for a myriad of reasons, sometimes days, sometimes weeks. Be prepared.
Photo by Robert S. Donovan
The Closing Table
What to expect on the day of closing
Closings can happen at the title company, your Realtor's office, or your bank.
Bring any closing funds as directed by your lender and listed on the HUD.
Bring your ID! All parties must be present at signing or you must make prior arrangements.
Keys will be dispersed and you will get keys to your new home!
Bring any closing funds as directed by your lender and listed on the HUD.
Bring your ID! All parties must be present at signing or you must make prior arrangements.
Keys will be dispersed and you will get keys to your new home!
Photo by Ciaran Griffin
