Welcome to your First Home!

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Welcome to your First Home!
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• What will coming home to your own
• home look like? What is important to you?
• Lets take a moment to dream a little
• Will it be a single family, townhome or condo?
• What color would you paint it? Will it have a
  large kitchen?
• What about a yard? Is there room for an office
  or for guests?
• Would you have a pet?
• Think of a few words to describe what having a
  home of your own means to you.
• Lets take a few moments to share our thoughts
  aloud.

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• Today well talk about some common fears and
  helpful facts about buying a home.
• Well discuss simple steps
• to buying your first home
• Well show you how a Buyers agent, working for
  YOU, can help make the process of finding,
  financing, negotiating and ultimately owning your
  very own home, one that is simple, easy to
  understand and accomplish.

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• Fear I cant afford to buy a home right now.
• Fact Actually, you cant afford not to buy a
  home right now.

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• Fear I dont have the money for the down
  payment.
• Fact There are a variety of down payment options
  available to you and there are many available
  sources of grants, both local and national, to
  help right NOW!

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The Federal government is giving up to 8,000.00
to new home buyers.
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New 8000 Tax Credit

• According to the new legislation, a first time
  home buyer is defined as someone who has not
  owned a principle residence in the past three
  years.  Those three years are counted up to the
  date you take possession of the house you buy in
  2009. This means that even if youve owned a home
  in the past, you can still take advantage of the
  tax credit as long as you havent purchased a
  primary residence since 2006.
• The same goes for married tax payers - they must
  both be first time home buyers.  For non-married
  joint buyers, only one of them needs to be a
  first time home buyer, or someone who  hasnt
  owned a primary residence in the past three
  years.The main restriction is that the credit
  is only for those who buy a home as their primary
  residence.  

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• The tax credit is equal to 10 of the purchase
  price of the home, up to 8,000.   The amount of
  the credit you can qualify for is related to how
  much money you earn.  Heres how the credit is
  scaled
• Single home buyers earning 95K or less qualify.
• If you make 75K or less, you qualify for 100 of
  the 8000.
• If you make halfway, 85K, you qualify for 50 or
  4000.
• The credit phases out gradually between 75K and
  95K of income. For example, if you make halfway
  between the income limits, 85K, you qualify for
  up to half of the credit.
• The same rate applies for married couples and
  joint buyers whose incomes limits are doubled to
  150,000 to 170,000.

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• This credit DOES NOT have to be paid back,
• andIts refundable, so if you have already paid
  all your taxes in advance, you will get the money
  back from the IRS, once you file.

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• Housing affordability now stands at its best
  level since 1971.
• and
• Mortgage rates are among the lowest in 50 years!

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Easy Steps to Home Ownership

• Find YOUR Realtor
• Get Pre-Approved for your loan
• Search for homes (with the help of your agent)
• Make an offer
• Execute the contract
• Perform any inspections
• Close on the sale and move in!

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Decide to Buy

• Financial net worth comparison, according to the
  U.S. Federal Reserve Board of Consumer Finance
• Average net worth of renters 4,000
• Average net worth of home owners 184,400

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• A home is the largest financial asset most people
  have due to equity and appreciation over time.
• Average annual appreciation rate nationally is 5
  to 6 percent since 1977. (Note Local
  appreciation rates vary greatly.)
• At 3 annual appreciation, a home purchased for
  150,000 would grow to 364,000 in 30 years.
• Even at 1.5 annual appreciation, this same home
  would still grow to 234,462 in 30 years.

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• Deciding to buy is also a rational decision
• Home is where your wealth is.
• Grow wealth via equity buildup, debt pay down,
  and value appreciation.
• You can take advantage of tax-deductible benefits
  such as property and mortgage interest
  write-offs.

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• A home is an investment that creates
  opportunities.
• In a few years, you can use your equity to trade
  up to a better home.

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• Why pay rent when you can own?
• If you took out a 30-year fixed-rate mortgage for
  150,000 and made monthly mortgage payments of
  900
• Youd pay 324,000 in mortgage and interest
  payments over the life of the loan.
• And after 30 years youd own a home with an
  appreciated value potential of 364,000 (at 3
  annual appreciation).
• Keep in mind Appreciation rates vary greatly
  based on local conditions.

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• Compare that to paying 800 per month in rent
  over 30 years
• Even if your landlord improbably never raised
  rent, you would still spend 288,000 and own
  nothing!

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Work with your Realtor

• Real estate agents perform 7 main roles
• 1. Educate you about the market
• 2. Analyze your wants and needs
• 3. Find homes that fit your criteria
• 4. Coordinate the work of other needed
  professionals
• 5. Negotiate on your behalf
• 6. Review paperwork and deadlines
• 7. Solve any problems that may arise

In buying a home the use of a REALTORs
knowledge can guide you through the complexities
and can help you avoid delays or costly mistakes.
Keep in mind that most people buy and sell only a
few homes in their lifetime REALTORS do it
everyday.
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• Advantages of a buyers representation agreement
• Sets mutual expectations in writing between you
  and your agent.
• Commits your agent to getting you into the home
  you want, while you commit to working exclusively
  with your agent.
• Dont you want someone working exclusively on
  your behalf?
• AND..Most agents work 4 FREE, for you, the BUYER

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How DOES my Real Estate Agent Get Paid? Real
Estate agents are typically paid by the seller at
closing. Even though the seller is paying our
commission, (commission for the listing
agent/employee and the selling agent) buyers
agents DO NOT work FOR the seller. By signing a
Buyer Representation agreement, you know that
your agent is working on YOUR behalf. Did you
know that agents do not get paid AT ALL until
they sell a property? Agents dont get paid for
the hours of research, answering the phone,
meeting clients, showing property, writing
offers, or even all of the work that goes into
making sure a contract gets to the closing table.
If it doesnt close they dont get paid at
all.
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In a typical scenario The listing agent
negotiates a total commission with the seller. A
portion of that full commission amount is set
aside for the agent who brings the buyer, and is
written into the listing agreement as
such. Listing agents depend on buyers agents to
bring clients to them, for all of their listings
just as in the case of new home builders, the
sales price has been set with the full commission
built in (commission for the listing
agent/employee and the selling agent). Since
listing agents and builders depend on buyers
agents bringing their clients to them they want
to continue that valuable relationship and wont
cut the price if you are not represented. Can
you imagine putting in hour after hour, week
after week and month after month without ever
receiving a paycheck? NO one gets paid until a
home is SOLD and title is transferred. Realtors
value the relationship they build with YOU and
appreciate your cooperation and support.
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What you can expect from YOUR buyers agent

• Before the home search begins, your real estate
  agent will want to know as much as possible about
  the features and amenities you desire.
• Assist in determining how much you can afford and
  help you get prequalified or preapproved for a
  loan.
• Simplify your search by helping you define whats
  really important in your home and neighborhood
• Keep you abreast of local market conditions, so
  you can make informed decisions.
• Gather in-depth detail on each home and schedule
  appointments for you to see homes
• Show you only the homes that meet your criteria!

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• Work with you in drafting an appropriate offer
  and serve as your representative when presenting
  it to the seller.
• Negotiate a contract that considers your goals
  and leads to a successful closing.
• Personally refer you to proven service providers,
  such as inspectors, appraisers, title companies,
  warranty providers, insurance agencies,
  attorneys, carpenters, movers and more.
• Assist you with the scheduling of inspections,
  closing, and document review!
• Respond to and resolve all issues quickly and
  timely!
• Provide you with post-closing information,
  consulting services and assist you with all
  future real estate needs!

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What your agent needs from YOU

• Keep all appointments or call to cancel in a
  timely manner!
• Meet with loan consultant in a timely manner
  after initial meeting! (If applicable)
• Respond to calls from mortgage, title,
  inspection, and other companies involved in the
  process!
• Loyalty Disclose to all New Home builders and
  other real estate agents that you are happily
  represented!
• Not to make large purchases or incur debt without
  first consulting with loan consultant!
• Have fun and enjoy the process

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Mortgage Information
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Secure Financing

• Seven steps to financing a home
• 1. Choose a Mortgage Company that will office
  you the best overall mortgage terms for you. You
  will want a loan officer or mortgage broker who
  is diligent and on top of things. He is just as
  important in getting you to close.
• 2. Make a loan application and get preapproved.
• 3. Determine what you want to pay and select a
  loan option.
• 4. Go Shopping with your agent and find YOUR
  next home
• 5. Submit to the lender an accepted purchase
  offer contract.
• 6. Get an appraisal and title commitment.
• 7. Go to the closing table with downpayment
  and other expenses. Mortgage company will
  provide funding for the balance of the amount.

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Secure Financing

• Know your mortgage options.
• Three basic factors
• 1. Down payment
• 2. Interest rate
• 3. Term

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Secure Financing

• Understanding your monthly payment
• Principal
• Interest
• Taxes
• Insurance
• Together, these four elements are commonly
  referred to as PITI.

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Secure Financing

• Prequalification vs. preapproval
• Prequalification is simply a rough estimate of
  how much you can borrow.
• Preapproval involves a formal application process
  and provides you with a formal commitment from a
  lender stating how much you can borrow and at
  what rate.

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Secure Financing

• Deciding among your mortgage options
• If you want
• A low monthly payment put more money down or
  purchase a more affordable home.
• A low down payment secure a second mortgage or
  an 80-15-5 piggyback.
• To build equity quickly make voluntary
  prepayments.
• To minimize risk take a 30-year fixed-rate
  program with 20 percent down.

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Financing

• The suitcase principle
• Your lender decides what you can borrow, but you
  decide what you can afford.
• In your preapproval letter, make sure the monthly
  payment includes taxes, home owners insurance and
  association dues (if applicable) and is an amount
  youre comfortable paying each month.
• Its best to spend no more than a third of your
• gross monthly income on your home payment.

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Finding Your Home

• Define your home criteriaanalyze your values,
  needs, and wants..dont worry..your agent will
  help!

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Make an Offer

• Three components of an offer
• Priceoffer must reflect current market value of
  the home.
• Termsbasic categories address timing and
  financial considerations.
• Contingenciesoften referred to as conditions
  that allow you to opt out of a deal if the home
  has a problem.

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Your agent will work with you to determine a
fair price for your next home based on current
and local market conditions. Pinellas County
statistics
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Whats next?
GREAT, you have been pre approved for financing,
found YOUR new home and with the help of YOUR
agent, negotiated a successful contract, and you
are on your way to home ownership! BUT, the job
isnt done YET! Rest assured, you will not be
alone or abandoned, you will have the benefit of
your agents expertise ALL the way!
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• Property inspectionexposes any structural or
  hidden issues.
• Home owners insurance policyprotects against
  loss or damage.

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Close

• Preclosing responsibilities include
• Appraisal, survey, title search, and title
  insurance.
• Keeping yourself mortgage worthy!
• Doing a final walk-through of home.
• Getting your settlement statement, certified
  funds, evidence of insurance, and transfer of
  clear title.
• .and of course, the KEYS to YOUR new home!

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Now that you are a home owner, Protect Your
Investment
Make sure to keep all the major systems in your
home clean and in good repair. A home warranty
purchased at closing can really save and
provide peace of mind for homeowners.
Dont forget the outside.. Fresh paint will not
only add to your homes curb appeal, but will add
years to the life of your home, while keeping
moisture and bugs out.
Depend on your Realtor to help you determine the
BEST projects to do around your home for resale
value
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A sampling of Our local market offerings

• Lets take a look at some of our local market
  listings right here.
•     
•  SqFt Heated 1,308 , 4beds, 1 bath 79,000
• Completely Remodeled 4 bedroom block home. 

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49th Street, St. Petersburg -119,900
Beds 2 Baths 1/0 SqFt Heated 973 CHARM, CHARM,
CHARM! THIS HOME IS NOT A DRIVE BY!! YOU WILL BE
SO GLAD YOU TOOK THE TIME TO SEE THIS WONDERFUL
STARTER OR RETIREE HOME!! 2 bedroom BLOCK home
with a bonus room which can be a 3rd bedroom,
office or den! Lots of storage! Move in ready
with gleaming hardwood floors, neutral colors
thru out with all white kitchen and ceramic tile!
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Thank YOU so much for attending! We hope it was
informative. We have agents here that can answer
any of your questions and invite you to stay to
get all of your questions answered.
Happy house hunting