The good news about buying a home

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The good news about buying a home
Lorain County Association of REALTORS April 10,
2008 Lorain County Community College

• National Association of Realtors

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DID YOU KNOW?

• You can own a home for a monthly payment
  equivalent to what you currently pay in rent!

Based on a national survey conducted by the
National Association of Realtors
3
DID YOU KNOW?

• Homeownership provides a tax benefit.

Based on a national survey conducted by the
National Association of Realtors
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DID YOU KNOW?

• 60 of a homeowners wealth is from their homes.

Based on a national survey conducted by the
National Association of Realtors
5
DID YOU KNOW?

• Home values have increased an average of 6 per
  year, nationally.

Based on a national survey conducted by the
National Association of Realtors
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DID YOU KNOW?

• Rents increase on average about 2 per year.

Based on a national survey conducted by the
National Association of Realtors
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DID YOU KNOW?

• On average the value of a home nearly doubles
  every ten years.

Based on a national survey conducted by the
National Association of Realtors
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Steps to Homeownership

• Step 1Find a local REALTOR
• REALTORS are responsible for protecting the best
  interest of their clients.
• REALTORS can guide you through every step of the
  homebuying process.

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Steps to Homeownership

• Where to find a local REALTOR
• www.LoCAR.org
• www.MyNewCommunity.net
• www.realtor.com

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WHAT A REALTOR PROVIDES

• Obedience
• Loyalty
• Disclosure
• Confidentiality
• Accountability
• Reasonable skill and care

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WHAT A REALTOR PROVIDES

• Negotiating Experience
• Market Knowledge
• Professional Competence
• Marketing Experience

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Steps to Homeownership

• Step 2
• Assess your Credit and Finances
• Determine what You can Afford
• You can obtain a free credit report from
  www.annualcreditreport.com
• Identify and resolve credit problems to receive
  the best loan terms possible.

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Steps to Homeownership

• Determine what you can afford, two rules of
  thumb
• 1.) Your maximum monthly mortgage payment should
  not exceed 28 percent of your gross (pre-tax)
  income.
• EXAMPLE Monthly Income 1,500
• Mortgage Payment 420

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Steps to Homeownership

• Determine what you can afford, two rules of
  thumb
• 2.) Your maximum debt load, including your
  mortgage payment, should not exceed 43 percent of
  your gross (pre-tax) income. EXAMPLE Monthly
  Income 1,500
• Maximum Debt Load 645

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Steps to Homeownership

• Step 3
• Decide on what you need
• location,
• number of bedrooms,
• bathrooms,
• square footage,
• style,
• age
• Prioritize them with what you can afford (price).

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Steps to Homeownership

• Step 4
• SHOP FOR A HOME
• Your REALTOR can help you consider things like
• Type of neighborhood that appeals to you.
• Quality of the school districts.
• Property tax rates.
• Affordability

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Steps to Homeownership

• Step 5
• MAKING AN OFFER NEGOTIATING
• THE PURCHASE TERMS
• A REALTOR will help you
• Develop a purchase offer and strategy.

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Steps to Homeownership

• Step 5
• MAKING AN OFFER NEGOTIATING
• THE PURCHASE TERMS
• A REALTOR will help you
• Negotiate the terms conditions with the
• sellers agent.

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Steps to Homeownership

• Step 5
• MAKING AN OFFER NEGOTIATING
• THE PURCHASE TERMS
• A REALTOR will help you
• Reach an agreement on the price, and
• how/when you buy it.

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Steps to Homeownership

• Step 6
• OBTAIN A MORTGAGE
• A REALTOR can help you
• Select your lender.

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Steps to Homeownership

• Step 6
• OBTAIN A MORTGAGE
• A REALTOR can help you
• What type of mortgage meets your financial
  situation.

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Steps to Homeownership

• Step 6
• OBTAIN A MORTGAGE
• A REALTOR can help you
• Understand the loan application process.

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Steps to Homeownership

• Step 7
• CHECKLIST FOR THE CLOSING
• Obtain insurance on the home.

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Steps to Homeownership

• Step 7
• CHECKLIST FOR THE CLOSING
• Have a professional inspect the home.

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Steps to Homeownership

• Step 7
• CHECKLIST FOR THE CLOSING
• Walk through before signing the closing
  statements.

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Steps to Homeownership

• Step 7
• CHECKLIST FOR THE CLOSING
• Read and understand all the closing documents.

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Steps to Homeownership

• Step 8
• CLOSE
• After all documentation has been signed and
  monies paid, possession is transferred at the
• county court house and you receive the keys
• to your new home!

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Steps to Homeownership

• Step 9
• THE MOVE
• Remember, the expenses associated with moving,
  from packing materials and utility hookups to the
  cost of movers or truck rental.

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Steps to Homeownership

• Step 10
• CELEBRATE!
• CONGRAGULATIONS You and your REALTOR have
  turned the American dream into your reality
• for personal and financial growth,
• self-reliance, security, pride of ownership, and
  prosperity for you and your family.