First Time Homerbuyer Seminar
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Transcript of First Time Homerbuyer Seminar
© 2007, All Rights Reserved, YourOrlandoMortgage.com© 2007, All Rights Reserved, YourOrlandoMortgage.com
Buying Your First Home
Seminar Presentation
© 2007, All Rights Reserved, YourOrlandoMortgage.com© 2007, All Rights Reserved, YourOrlandoMortgage.com
Travis BeMent – Owner YourOrlandoMortgage.c
om
© 2007, All Rights Reserved, YourOrlandoMortgage.com© 2007, All Rights Reserved, YourOrlandoMortgage.com
What We Will Cover Today
Why this is a great time to buy
3 economic reasons to ownFinancing for first time buyersOvercoming obstaclesPlanning for your first home
© 2007, All Rights Reserved, YourOrlandoMortgage.com© 2007, All Rights Reserved, YourOrlandoMortgage.com
Why The Market is Hot
Population growth fueled by immigration
Home prices at record lows
Lower interest ratesDiversified portfolio a key
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Fannie Mae SurveySecurity, permanence & control:
69% gave as reasons Owning a good investment: 78%Two-thirds would choose to work
an extra decade to ownOwning is truly the--
American DreamAmerican Dream
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Wealth Is Created Through Real Estate...
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Ask This Question...Would you rather pay $975 a
month for rent that goes totally down the drain?
Or would you rather pay $975 a month to own a home...and have a savings account
growing steadily each month?
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Three Financial Reasons
****The Power of Leverage
****Rental Equivalency
****Inflation Hedging
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The Power Of Leverage
Home Savings
Investment $ 10,000 $10,000Total Asset $100,000 $10,000Appreciation 4% 4%10 Year Return $ 39,803 $ 4,800Rate of Return 17% 4%
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Rental Comparison Own Rent
Monthly Payment $1,116 $ 850
Tax Deductible $ 983Tax Savings @22.3% (220)After Tax Payment $ 896Principal Reduction (45)Rental Comparison $ 851 $ 850
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Inflation Hedging Own Rent
Monthly Payment $1,116 $ 850Inflation @4% Portion AllPayment Year 10 $1,234 $1,258Principal Reduction (120) N/APre Tax Year 10 $1,114 $1,258After Tax Year 10 $ 805 $1,258
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Fannie Mae SurveyMajor obstacles to home ownership
51% Cash44% Income29% Job Security25% Credit Record
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The FHA SolutionNo income limitLimitation upon loan amountAllows 100% giftsAllows non-resident aliens3.5% down paymentParents can co-sign29/41 ratios are liberal
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The VA SolutionQualified veterans & active
militaryMaximum loan limitNo down paymentSeller can pay all closing
costs41% ratio100% gifts allowed
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Conventional SolutionFannie Mae & Freddie Mac5% down payment Maximum income limits for some programs
Seller can pay some closing costs
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Short Income? Assumptions: harder to findLower rate: buy-downs &
adjustablesHigh ratio programs: FHA/VACo-borrowerAsk employer for a raise!Pay off debts
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Short Cash?Low down payment programs:
FHA, VA
No point & reduced closing cost Gifts: 100% ruleSeller paid closing costsBorrowing Co-borrowersSavings over time
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Moving Forward
Homebuyers Financial Planner
&
Residence Analysis
"Plan the action"
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Why Do It Backwards?
Approval before you shopGives you confidenceEliminates last minute
problemsMore negotiating power
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The Time Is Now