Welcome to our WORKSHOP

Inside of your folders

• Benefits of Home Ownership
• Home ownership checklist
• Seminar evaluation form

WHAT ARE YOUR EXPECTATIONS?

• To learn how to navigate the home buying process
• To identify the steps necessary to achieve your goal of homeownership
• Find FREE money (for down payment assistance)

WHAT DO YOU THINK THE FIRST STEPS ARE TO BECOMING A HOME OWNER?

Basic Steps

• Have the desire to own a home
• Be committed to the entire process
• Do your research and due diligence
• Have required documents accessible
• Know what your credit looks like

CHECK YOUR CREDIT

IMPROVING YOUR FICO SCORE

• Maintain or improve payment habits
• Repay collections or other outstanding accounts
• Avoid taking new credit
• Keep revolving debt way under the credit limit
• Correct credit report errors
• Reduce total debt

SHOULD YOU APPLY FOR A LOAN BEFORE YOU START SEARCHING FOR A HOME?

WHERE TO GET A LOAN

• Mortgage company
• Commercial bank
• Credit union
• Mortgage broker
• Federal government loan programs
• Other financial institutions

Common Types of Loans

Should I obtain a pre-qualification or pre-approval?

OBTAIN A PRE-APPROVAL

PRE-QUALIFICATION VS. PRE-APPROVAL

• Pre-qualification: an estimate of how much of a loan you might qualify for. it is not a firm commitment
• Pre-approval: A firm commitment from a lender for a specific loan amount. the approval can be valid for as little as 30 days and as much as 120 days or more.

BENEFITS OF PRE-APPROVAL

• Removes the guesswork of whether you can purchase a home
• Able to obtain the price point in which you can afford
• Helps to portray you as a serious buyer
• Can typically obtain better negotiating terms when submitting an offer

COSTS ASSOCIATED WITH BUYING A HOME

• Loan fee
• Credit report fee
• Appraisal fee
• Downpayment
• Closing cost
• Earnest money

What is the difference between closing costs and down payment?

Closing Costs:

• Fees incurred for a service related to the purchase such as;
• Application fees
• Title search
• Appraisal
• Recording fees
• Loan origination
• Taxes, etc.

Downpayment Is:

• The assurance that you hold in the purchase
• Its what you pay upfront to reduce what you borrow
• The amount depends on your type of loan
• Earnest money is a credit toward your downpayment

What next?

HIRE A REALTOR

WHY DO YOU THINK IT WOULD BE IMPORTANT TO HIRE A REALTOR?

BENEFITS OF A REALTOR

• It's FREE service for the buyer
• Price guidance
• Professional networking
• Negotiation skills and confidentiality
• Develop relationships for future business
• Neighborhood knowledge
• Education & Experience

WILL YOU COMMIT

BENEFITS OF HOMEOWNERSHIP

• Security
• Equity buildup
• Tax incentives
• Appreciation
• Happiness
• Roots
• Education
• Privacy

RESPONSIBILITY OF HOMEOWNERSHIP

• On-time mortgage payments
• Taxes
• Insurance
• Repairs (Home Warranty)
• Maintenance / Upkeep

LET'S FIND A HOME

PROCESS OF FINDING A HOME

• Sort out your wants vs. needs
• Consider new or resale
• Location
• What amenities are important for you
• Making an offer

SIGNING A CONTRACT

Questions A Buyer Should Ask

• What concessions will you ask for in your offer
• Can I get my earnest money back if I decide not to buy
• What's are my upfront out of pocket expenses
• What do I do once I have a binding contract
• How soon can I close

Concessions

• Do you want to reduce sells price?
• Do you want seller to contribute towards your closing costs?
• Do you want a Home Warranty?
• It can be any "trade-off"

Earnest Money

• Is a deposit
• It shows your good faith in the transaction
• Held in an escrow account until closing
• Its your credit towards your downpayment at closing
• How much you have to pay varies; slow market $500-$1000, fast-moving market you may have to pay 2-3% of purchase price of the home

Inspections

• It is voluntary but highly recommended
• It provides the buyer with information to make an informed decision about the purchase
• You may negotiate with the seller to make the suggested repairs from the report
• Home inspections normally focus on the major defects
• It is an upfront cost to the buyer ranging from $300 + depending on sq footage of the home

Appraisal

• Needed to make sure the home is worth the market value
• Used for tax purpose to determine how much a property owner has to pay in taxes

ONCE YOU ARE IN A BINDING CONTRACT

• Provide your earnest money to your agent in the agreed time frame
• Be prepared to schedule a home inspection during due diligence
• Shop for home owners insurance
• Provide all necessary paperwork to your lender (W2's, Current Check Stubs, Bank Statements)
• Continue to work closely with you lender

WHAT TO DO PRIOR TO CLOSING

• Review your closing disclosure
• Know how much to bring to closing
• Do a final walk through of your home

TIME TO CLOSE

HOW TO PREPARE ON CLOSING DAY

• Obtain your cashier's check or wire your money
• Ensure you have your government ID
• Be prepared to sign your name a lot
• Be patient, you are likely going to be there for a couple of hours
• Get a copy of your documents and keys!

TIPS FOR THE NEW HOMEOWNER

• CALL ALL UTILITIES COMPANIES FOR A TRANSFER
• CHANGE YOUR LOCKS
• CHANGE YOUR MAILING ADDRESS
• CHANGE YOUR LICENSE
• PREPARE TO FILE FOR HOMESTEAD

CONGRATULATIONS

SOUTHLAKEREALTYATL.ORG