Realizing the American Dream Shopping for a Home

Presented By Colin Rosenthal DFW Metro Housing Tel Fax

Are You Ready? Steady Income Credit History Savings Low Debt Pre-Qualified

What Are Some Pros & Cons of Home Ownership?

Advantages of Home Ownership  Tax deductions  Interest  Property Tax  Equity  Control over environment  Privacy  Pride of Ownership  Stability

Disadvantages of Home Ownership  Usually more expensive  Repairs & maintenance  These are the main expenses not involved when you rent.  More difficult to move  Fewer Amenities  Long – Term Commitment

What Are the Steps for Buying a Home? 1.Determine if you should rent or buy 2.Attend homebuyer education classes 3.Determine how much you can afford to spend 4.Get your loan preapproved 5.Decide what kind of home you want and need and What you can comfortably afford to pay every month

What Are Some Other Costs of Home Ownership? Upfront Costs  Down payment On an FHA Loan 3.5 %  Closing costs Normally average 6%  Most Government programs require $1000 total investment  Move in costs  Reserves Ongoing Costs  Utilities  Maintenance and repairs  Always make sure you are getting an Extended Home Warranty and pay for it monthly once the first year is up normally about 435 to $40 a month but worth its weight in gold

The role of the Realtor Show homes that meet your requirements Provide information about the community Present your offer to the seller and negotiate the offer Advise about lenders, inspectors, and title companies and government assistance programs Co-ordinate everything to make sure you get your home

Show homes that meet your requirements Have your realtor set you up with Automated Home listings that meet your exact home requirements. Have you realtor teach you how to read an MLS listing. Double click the Photo to view all pictures Double click the address to see a map

Provide information about the community Your Realtor can provide you with all the County demographic information available. IE: County tax Information Schools Neighbors etc

Present your offer to the seller and negotiate the offer Your realtor will write up the contract and have you initial pages one through six and sign page 7 of the contract. Watch the price on page one, who is paying title policy also on page one. Who is paying survey on page two, check the closing date, what seller concession are being asked for, make sure you always ask for a home warranty etc.

Advise about lenders, inspectors, and title companies and government assistance programs. A good Realtor will stay on top of everything and do his her utmost to make sure the deals closes. This is where your partnership begins and it is imperative you send your Realtor everything he request as soon as possible. Communication is essential.

Your realtor should be able to help you with everything As I do with all my client your Realtor should be able to assist you from the very beginning in applying for a home loan all the way through the process to the closing and beyond. I still have client from 4 years ago calling me and asking me questions about their home. Your Realtor should remain your Realtor for life.

Real Estate Agents  Listing Agent has a contract with a seller to advertise property and represent seller when offer is made  Buyer’s Agent enters contract with the buyer and usually gets paid through split commission

The Agent’s Job Researches homes available in price range Gives you copies of listing sheets Helps determine how much homes are worth Refers you to other professionals Helps write purchase offer Negotiates with seller to get price for you Explains all legal paperwork

Finding an Agent: Please make sure you find an agent who has already dealt with the Down payment assistance or NSP Program. I have been contacted by many a frustrated Buyer who was working with an agent who had no idea of what needs to be done to close an assisted deal.

If you don’t already have an agent please: Call me Colin Rosenthal Ask friends and relatives for recommendation Drive through neighborhood and look on ‘for sale’ signs Check with a national referral service Call your local Association of Realtors ®

Shopping for a Home The Biggest Mistakes Wanting a large home when all you can afford is a smaller home? #1 Not doing your homework #2 Buying with you heart not your head #3 Choosing a poor location #4 Picking an attractive exterior but poor floor plan

#5 Failure to check the professional's reputation #6 Not getting what you want because you’re impatient Remember the 1% law $ home will cost you about $1000 a month including taxes and insurance only if the house has a tax appraisal of $100000

Remember the property Tax Many Foreclosed homes are selling for up to $20000 to $30000 les than their appraised tax value. Should you secure a Foreclosed home please have your REALTOR check the annual tax because it could add as much as another $150 a month to your payment

Shopping for a home Deciding what you want: Location, new or pre-existing, special features. Target area’s, local area’s or NSP? What to look at: The neighborhood, construction details, major systems

House-Hunting Strategies Work with a real estate agent (The first step) Drive through the selected neighborhood Checkout the MLS system &per=dfwmetrohousinghttp://ntreis.immobel.com/personal/1/searchLocation.do?loc=0&la=EN &per=dfwmetrohousing Read real estate shopper magazines Watch the real estate channel Check newspaper ads Ask friends and relatives

Deciding on a House House-hunting checklist Market value Your realtor will do this for you? Home inspection (Very important step) Location Price strategy. Your realtor should know everything from your lender to be able to advise you on a pricing strategy

The Purchase Contract WHAT IT INCLUDES

The Purchase Contract Complete legal description Size of your down payment The type of financing The amount of earnest money Property condition Broker fees Closing date Special provisions

What Is Included with the Offer? List of property seller is to leave with house All contingencies Breakdown of fees and who pays Time limit for seller acceptance

What Are Typical Contingencies? Getting a loan at specific amount and rate Selling present home Seller buying another home Moving into property before closing date Seller living in property after closing date Satisfactory home inspection Clean termite report