presented by: jake planton and scott werner march 26th, 2011 home buying 101
TRANSCRIPT
![Page 1: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/1.jpg)
PRESENTED BY:JAKE PLANTON
ANDSCOTT WERNER
MARCH 26TH, 2011
Home Buying 101
![Page 2: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/2.jpg)
LOAN OFFICER WITH ROSE CITY MORTGAGE
Jake Planton
![Page 3: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/3.jpg)
Benefits of Home Ownership
Advantages A place of your own
Tax benefits
Long-term investment
Stable housing costs
![Page 4: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/4.jpg)
Are You Ready?
What should you consider before buying a home? Steady income and stable employment Looked at your financials? Can you afford a monthly
mortgage payment? Money for down payment and closing costs? How long do you plan to live in your new home? Do you foresee a career change in the near future that
might require you to relocate? Do you have a good credit history or good record of
paying bills and other debt?
![Page 5: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/5.jpg)
Different Types of Loans
Conventional- Most widely used, 5% minimum down payment, higher credit needed (680+), tighter guidelines.
FHA- Insured by government, 3.5% minimum down payment, credit scores down to 640, less strict guidelines. Example: Funds to close can be all from a gift.
VA- Guaranteed by the VA, 100% financing available, credit scores down to 640, more paperwork, less strict guidelines.
USDA- Rural properties, 100% financing available, credit down to 640.
![Page 6: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/6.jpg)
What You Will Need
~For Pre-Approval~• Pay stubs for the last month.• Consecutive W-2 forms for last 2 years.• Signed personal tax returns with all schedules
for last 2 years.• Bank or investment statements for past 2
months.• Information about your assets and long-term
debts.• Credit account information.• Personal identification information.
![Page 7: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/7.jpg)
PITI
Your monthly mortgage payment will generally reflect the following costs:
• P = Principal• I = Interest• T = Taxes• I = Insurance• M.I. = Mortgage Insurance
![Page 8: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/8.jpg)
Now That You Have Started
Rules of the Lending Road
Do not change jobs while getting the loan.
Do nothing with your credit, including getting new credit, until loan is closed.
No large deposits you can not paper trail.
![Page 9: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/9.jpg)
![Page 10: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/10.jpg)
REALTOR WITH BRIDGETOWN REALTY
Scott Werner
![Page 11: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/11.jpg)
You are Building a Team
Loan OfficerRealtorTitle and EscrowInspectorInsurance AgentRepair and Trades PeopleAppraiserLender
![Page 12: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/12.jpg)
LICENSED REALTOR LEGAL RESPONSIBILITIES
COORDINATION POINT PERSONRESOURCES EXPERIENCEMARKET KNOWLEDGEPROPERTY ACCESS
Select a Broker to Represent You
![Page 13: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/13.jpg)
Find a Broker Who…
You are comfortable withIs a good communicatorIs availableIs diligent and thoroughHas references ( who have had a professional
working contacts)Loan Officer, Friends, Relatives
![Page 14: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/14.jpg)
Finding A Home
NeedsWantsVetoesBudgetMatching your lists to the market
![Page 15: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/15.jpg)
Searching for a Home
Computer Search Engines RMLS.com
SignsWord of mouthRealtorHomequest
![Page 16: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/16.jpg)
Making an Offer
PriceSeller ConcessionsContingencies appraisal, loan, inspection, other
(eg.selling)Earnest MoneyProvisionsClosing DateType of Financing
![Page 17: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/17.jpg)
Counter Offer
To Mutual Agreement In Contract In Escrow
![Page 18: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/18.jpg)
“Open Escrow”
Title and Escrow: One Company with Two Functions
![Page 19: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/19.jpg)
Title
Opening Escrow will begin the research phase of Property’s Title’s past
The research guarantees the Title you will receive at closing is correct and Indisputable ownership.
![Page 20: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/20.jpg)
Escrow
Neutral Third PartyHolds Buyer's earnest moneyAssures specifics of contract and law are being
performed and are completed prior to ClosingAssist buyers and sellers with all of the deed
transfer paperworkAssist buyers with the Loan documentsDistribute the funds Records the new owner in the County
Recorders Office
![Page 21: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/21.jpg)
Disclosures
![Page 22: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/22.jpg)
Inspections
House Plumbing Electrical Roof Furnace Leaks
Oil TanksSewer systemRadon?
![Page 23: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/23.jpg)
Repair Addendum
‘Buyer has completed Inspections and wishes to proceed with the transaction, with the following provisions’:
1.2.3.
• Negotiating repairs~ Seller may accept, reject, or counter.
• Lender/Appraiser may require repair on property before funding the loan.
![Page 24: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/24.jpg)
Repairs
Prior to closing
Seller’s Control
Buyers Input BIDS
![Page 25: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/25.jpg)
Red Flags and Pitfalls
![Page 26: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/26.jpg)
Cost of Realtor Services to Buyer
![Page 27: PRESENTED BY: JAKE PLANTON AND SCOTT WERNER MARCH 26TH, 2011 Home Buying 101](https://reader034.vdocuments.us/reader034/viewer/2022051619/56649e4d5503460f94b42704/html5/thumbnails/27.jpg)
Thank You!
Any Questions?