Home buyer seminar
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This document summarizes a home buyer seminar presented by a realtor and mortgage lender. It discusses the benefits of homeownership over renting, current market conditions making it a good time to buy, various loan programs available, and the basic steps involved in the home buying process. Key points covered include how much house one can afford, the importance of pre-approval, costs of owning vs renting over 5 years, how to qualify for different loan types, and the many professionals involved in a real estate transaction. Questions from attendees are invited at the end.
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Home buyer seminar
- 1. HOME BUYER SEMINAR Presented by Butch Leiber Uptown Realty Richard Silva LoanStar Home Lending WHAT YOU NEED TO KNOW TO BUY A HOME IN ARIZONA
- 2. AGENDA
- 3. WHY BUY A HOME • Stable Payments – no rent increases • Tax advantages – mortgage interest is tax deductible • Grow Equity – historically home values increase year on year • Freedom • Pride of Ownership • Stability
- 5. BOOMERANG BUYERS WHY NOW?
- 6. BOOMERANG BUYERS WHY NOW? 61,000 Buyers Returning to the Market INTEREST RATES $150,000 Rate Principal and Interest (30 year Fixed) 4.0 % $715 4.5 % $760 ($540) 5.0 % $805.50 ($1086) 5.5 % $852 ($1644)
- 7. WHY NOW? • Phoenix is in a Buyer’s Market • Loan programs for first time buyers • Zero to Low down payment programs • Down Payment assistance • Seller contributions towards closing costs • Prices below all time highs • Interests rates are still LOW. • Large inventory • Why wait to start making money?
- 8. RENTING VS OWNING A HOME • It’s all about the money. • Rent for $1410 a month. • Renter’s insurance: $30 • Rent for 5 years: Pay $86,400 • Leave with: Memories.
- 9. THE FINANCES OF BUYING A HOUSE • Buy a home for $200,000 • Loan Programs: • FHA – 3.5% down • Conventional – 5% – 20% down • VA Loan (if eligible) 0% down • USDA Loan 0% down • Special Programs • In a buyer’s market, sellers will often contribute to buyer’s closing costs. • Costs to Buy: • Loan costs • Title and Escrow Fees • Inspection Costs • Prepaids • Cost to buy a $200,000 house • $11,500 (estimated) • $7,000 down • $4,500 closing costs Monthly Payment: $1,410
- 10. COST OF HOME OWNERSHIP • 5 years of PITI (Principal, Interest, Taxes, Insurance) • $84,600 • Home Maintenance • $5,000 • Cost to Buy • $11,500 • Total Cost of Home Ownership • $101,100 (Renting cost $86,400)
- 11. MORTGAGE INTEREST IS TAX DEDUCTIBLE • Total Cost of Home Ownership • $101,100 (Renting cost $86,400) • Interest and Mortgage Insurance paid is tax deductible • Tax Savings of $11,951** • Actual Cost of Home Ownership • $95,707
- 12. REALLY GOOD NEWS • Historically, home values in Phoenix have increased 5%-7% per year. • At the end of 5 years, given a 5% increase per year * your $200,000 home is now worth • $255,200 • Cost to Sell • $20,416 • Pay off the loan and your profit is • $59,154 Phoenix home prices have traditionally risen every year over the last 50 except two or three years. This scenario assumes continues price increase which we cannot obviously guarantee.
- 13. THE BOTTOM LINE • 5 Year cost of home ownership • $95,707 • 5 Year cost to rent • $88,080 • Cost to own vs rent • $7,627 • Profit from home sale in 5 years • $59,154 • Money in your pocket •$51,527
- 14. HOW MUCH HOUSE CAN YOU AFFORD • Overall Debt Ratio should not exceed 43% of your gross income. • This includes mortgage, car loans, child support and alimony, credit card bills, student loans. • For example: $45,000 a year salary should have overall expenses below $1,600 a month
- 15. PRE-APPROVAL • Before looking at houses, get pre-approved • Know what you can afford • Make a qualified offer • When you find the right house you can offer immediately • Documents Needed: • Pay stubs, bank statements, W-2s, last two years tax returns, employment history, residency history, drivers license, other assets, etc.
- 16. LOAN PROGRAMS • Customized loan to meet YOUR needs • USDA for qualified neighborhoods 0% Down • VA for qualified veterans 0% Down • FHA 3.5% Down • CONVENTIONAL 5% Down • Renovation Loans • Down Payment Assistance Available
- 17. CREDIT SCORING
- 18. WAYS TO IMPROVE CREDIT • Build modest credit history • Pay all your payments on time • Pay more than your minimum payments • Maintain low balance on credit cards in relation to credit limits • 3 lines of credit, not maxed out
- 19. STEPS TO HOMEOWNERSHIP 1. Get Pre-Approved with a mortgage lender 2. Find a Realtor® you trust 3. The Home Search 4. The Offer 5. Contract to Close 6. Close and Move
- 20. IT TAKES A TEAM – PEOPLE INVOLVED IN A REAL ESTATE TRANSACTION: • Buyer • Seller • Realtor • Mortgage Broker • Mortgage Underwriter • Mortgage Processor • Appraiser • Home Inspector • Utility Companies • Movers • Repair Vendors (electricians, plumbers, painters, contractor, pool service, etc) • Movers • Escrow officer • Title Rep • County Recorder • Home Stager • Surveyor • Termite Inspector/Repair • Insurance Agent • Home Warranty Company • Notary • Couriers • Attorney
- 21. QUESTIONS?
- 22. CONTACT US Presented by Butch Leiber - 602-390-1399 EZAZRE.com Uptown Realty Richard Silva – 602-373-3654 RichieSilva.com LoanStar Home Lending
Hinweis der Redaktion
- Everything you need to know to buy a home in Arizona Financial advantages to home ownership Mortgage options and ways to improve your credit We’ll cover the step to home ownership
- Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.