1. Home Buying Process Presented By:
Agent name

2. Why buy now? Interest rates are near record lows
Inventory could go lower
Prices are increasing
Prices are lower than 2005 highs
There is no fee to use a Realtor to buy a home.

3. Why Buy A Home? Deduct the interest payment and property taxes
Stable housing costs. No landlord to raise your rent.
Grow your equity and wealth through appreciation of the property.
Future equity build up lets you set up retirement investments.

4. Are You Ready To Buy? Do you have a steady income?
Do you pay bills, including your rent, on time?
Do you have low to medium debt?
Do you have cash for closing costs or down payment?
Do you have 2 month’s reserves of PITI in the bank?
Do you have the ability to make the mortgage payments?

5. How Much Home Can You Afford?
Housing costs should be less than 29% – 36% of gross monthly income.
Housing costs include mortgage payment, taxes, homeowners insurance, condo fees, other association fees.
Mortgage payment is based on the lender's "qualifying rate".
Housing costs plus long-term debt not to exceed 40% to 55% of gross monthly income.
Long term debt includes car payments, credit card payments, other loan payments.

6. Why be Pre-Approved?
You know what you can afford to pay before you look for a house.
You know if you are in a position to buy a home in your target neighborhood.
It tells sellers that you are a qualified buyer.
It lets you make an offer right away, before someone else does.
It makes it easier to get the service of a Realtor.

7. How to Improve Your Credit Score
Pay all bills on time.
Keep balances below 50% of available limit, and below 30% if possible.
Don't close unused accounts. The zero balance can help your score.
Pay off recent collection accounts or charge-offs.
Let old items over 2 years remain unpaid.
Become an authorized user on someone's credit card with a good payment history.

8. Determining How Much to Offer
Know what the comps are for similar homes.
Know the home's condition and short-term repair expenses.
Know how long the home has been on the market and how fast homes are selling.
Know your financing options. Get pre-qualified by your mortgage consultant.
Know the seller's situation and motivation.
Be prepared to negotiate.

9. Making an Offer to Purchase
Your Realtor will fill out a purchase agreement with you.
The amount of earnest money will be determined.
Earnest money goes toward the down payment or returned to you if the deal does not go through.
The down payment and amount financed will be determined.
Determine a settlement date.
Understand what is included with the purchase of the home as in fixtures, appliances and even plants.

10. When the Offer is Accepted
Schedule a home inspection. This can be done with your Realtor.
Schedule a home appraisal. This is done by your mortgage broker.
Get your mortgage application in process.
Select a title agency or escrow company. This is done by your Realtor.
Get a homeowner’s insurance policy.
Get your documentation together for your mortgage application.

11. Inspections and Tests You Need
Termite inspection will uncover potentially devastating wood damage.
Home inspection will uncover any problems with your home's structure and systems.
Radon and mold tests will make sure you have no environmental hazards.
Municipal inspection lets you know of any code violations and hazards.
A Certificate of Occupancy may be required by your municipality.

12. Home Warranty Programs
A service contract which helps protect against the expense of repairing or replacing covered home appliances and mechanical systems which breakdown due to normal wear and tear .
Basic coverage includes: heating system, plumbing system, electrical system, water heater, oven/range/cook-top, dishwasher, built-in microwave oven, garbage disposal, built-in whirlpool motor and pump, exhaust fan, garage door opener, sump pump and other items.
1-year contract is about $

13. Property Appraisal
Appraisal determines the estimated market value of the property.
Mortgage is based on the lower of the sales prices or the appraised value.
Value is determined by looking at recent sale prices of properties in your area that are similar to yours.
Adjustments are made for differences in property features and amenities.
The appraiser also looks at the property value based on its replacement cost.
An appraisal does not warrant the condition of the property or that it meets local code.

14. Settlement Day
Closing agent will prepare and present a HUD-1 form. This lists the money you owe and the credits you get.
The deed and mortgage will be recorded
Seller will provide proof of any warranties or inspections.
You will sign a stack of about 40 forms and documents.
You and/or the seller will pay the closing costs.
You get the keys to your new home!