Welcome to…Welcome to…

The Home Buyers’ The Home Buyers’ WorkshopWorkshop

AgendaAgenda Your Real Estate Market The Importance of Credit The Home Buying Process Top Tips For Short Sales or Bank Repos How to Find the Hot Deals Your Next Best Step Q & A

Your Real Estate Market The Importance of Credit The Home Buying Process Top Tips For Short Sales or Bank Repos How to Find the Hot Deals Your Next Best Step Q & A

What’s important to us…What’s important to us…

Expand Your Knowledge Base because Knowledge is Power

Clarify your Values because when your values are clear your decisions are easy

Expand Your Knowledge Base because Knowledge is Power

Clarify your Values because when your values are clear your decisions are easy

1. Do Nothing2. Do It All On Your

Own3. Work With Typical

Realtor

1. Do Nothing2. Do It All On Your

Own3. Work With Typical

Realtor

4. Choose To Work With A Real Estate Consultant

4. Choose To Work With A Real Estate Consultant

1. Thought Provoking Questions2. Take the time to discover what’s important to

You about buying a home3. Negotiate On Your Behalf4. Oversee All The Transactional Details

1. Thought Provoking Questions2. Take the time to discover what’s important to

You about buying a home3. Negotiate On Your Behalf4. Oversee All The Transactional Details

Part One: Part One: The State of the The State of the

MarketMarket

Part One: Part One: The State of the The State of the

MarketMarket

Today’s Real Estate Market Today’s Real Estate Market

Inventory Foreclosures Loan Availability/Buyer Incentives

What Does This Mean For You?

Inventory Foreclosures Loan Availability/Buyer Incentives

What Does This Mean For You?

https://graphicleftovers.com/quickdownload/6638/

Three Categories of Homes For Sale:

1. Traditional Sales

2. Short Sales

3. Bank Owned Homes

Traditional 50% Top 50% Price

Short Sales 40% Entry to Mid Level

Bank Owned 10% Entry Level

Traditional 25% 45%

Short Sales 50%* 10%

Bank Owned 25% 45%

Pending Sales

Sold

(Last 30 Days)

*Pending Short Sale Does Not Mean An Offer Has Been Accepted

You or your realtor must know how to navigate the ins and

outs of each type of transaction

You or your realtor must know how to navigate the ins and

outs of each type of transaction

Important UpdatesImportant Updates Home Buyers Tax Credit:

Extended: April 30th/June 30th

Income Limits: $125K/$225K Credit: $8000/$6500

Home Buyers Tax Credit:

Extended: April 30th/June 30th

Income Limits: $125K/$225K Credit: $8000/$6500

Fed’s $300 Billion bond buy-back nears end…

Fed’s $300 Billion bond buy-back nears end…

Part Two: Part Two: Your Credit ScoreYour Credit Score

Part Two: Part Two: Your Credit ScoreYour Credit Score

Credit Scores are Based Credit Scores are Based on Five Factorson Five Factors

Credit Scores are Based Credit Scores are Based on Five Factorson Five Factors

1. Payment History2. % of avail credit used3. Mix of Credit (cc, home, car)4. # of Annual Applications5. Length of credit history

Helps the lender decide:“If I give this person a loan howlikely is it that I will get paid back on time?”

1. Payment History2. % of avail credit used3. Mix of Credit (cc, home, car)4. # of Annual Applications5. Length of credit history

Helps the lender decide:“If I give this person a loan howlikely is it that I will get paid back on time?”

Length of History

15%Available

Credit 30%

Mix of Credit 10%

Payment History

35%

New Apps 10%

Credit (FICO) ScaleCredit (FICO) Scale 720 and up: Great Options 680-720: Average 620-680: Needs work (FHA)

720 and up: Great Options 680-720: Average 620-680: Needs work (FHA)

Part Three: Part Three: The Home Buying The Home Buying

ProcessProcess

Part Three: Part Three: The Home Buying The Home Buying

ProcessProcess

Step One:Step One:Is Home Ownership right for

me at this time?

Benefits of Home Ownership are ?

Is Home Ownership right for me at this time?

Benefits of Home Ownership are ?

Benefits of Home OwnershipBenefits of Home Ownership

Control over your finances - Stability My Rent Went up, My Landlord is in Foreclosure

Pride of Ownership I Can Paint it Pink or Blue!

Build Equity in a Long Term Investment My Home is Worth $$$

Tax Advantages Sorry Uncle Sam…

Control over your finances - Stability My Rent Went up, My Landlord is in Foreclosure

Pride of Ownership I Can Paint it Pink or Blue!

Build Equity in a Long Term Investment My Home is Worth $$$

Tax Advantages Sorry Uncle Sam…

FAQ’sFAQ’s

Do I see a realtor or lender first?

Do I have to have a “Buyers Agent”?

Do I see a realtor or lender first?

Do I have to have a “Buyers Agent”?

Step Two:Step Two:Calculate how much home you can affordCalculate how much home you can afford

Your Credit ScoreYour IncomeYour Monthly Minimum PmtsYour Down Payment

Get Pre-Approved FirstGet Pre-Approved First

Seller’s of ALL Properties Will Require You To Have A Pre-Approval From A

Direct Lender Before Even Considering Your Offer

Seller’s of ALL Properties Will Require You To Have A Pre-Approval From A

Direct Lender Before Even Considering Your Offer

Getting Pre-ApprovedGetting Pre-Approved

Fill out Loan Application Review Credit, Financials, Work History and

long term goals Determine whether you qualify for FTB

programs. Or, what program best fits your personal situation

Submit the loan package Receive pre-approval letter

Fill out Loan Application Review Credit, Financials, Work History and

long term goals Determine whether you qualify for FTB

programs. Or, what program best fits your personal situation

Submit the loan package Receive pre-approval letter

Down Payments OptionsDown Payments Options

Conventional Loan- 20% Conventional Loan- 10%* FHA- 3.5%* Minimum

* Mortgage Insurance Required

Conventional Loan- 20% Conventional Loan- 10%* FHA- 3.5%* Minimum

* Mortgage Insurance Required

Step Three:Your Home Search

Step Three:Your Home Search

Internet Drive Through Neighborhoods Open Houses 24 Hour Home Watch Email Service

Internet Drive Through Neighborhoods Open Houses 24 Hour Home Watch Email Service

Step Four:Make an Offer & Negotiate

Step Four:Make an Offer & Negotiate

Comparative Market Analysis Days on Market/Assess Bank-Seller # of Competitive Offers Time to Negotiate- Knowledge is Power Stay Committed to a sound course of action

Comparative Market Analysis Days on Market/Assess Bank-Seller # of Competitive Offers Time to Negotiate- Knowledge is Power Stay Committed to a sound course of action

Step 5Step 5

Your Offer Is Accepted Escrow Opens Turbulence Begins You Close Escrow You Move In….Time To Celebrate!

Your Offer Is Accepted Escrow Opens Turbulence Begins You Close Escrow You Move In….Time To Celebrate!

Foreclosures, REO’s, Short Sales, Traditional Sales

What Does It All Mean?

Foreclosures, REO’s, Short Sales, Traditional Sales

What Does It All Mean?

Day 0

MissPmt

90 90 21

21

REO

Traditional SaleTraditional Sale

Short Sale TransactionShort Sale Transaction

Bank Owned Transaction (REO)Bank Owned Transaction (REO)

5 Inside Secrets To Buying A Bank Owned Home Now!

5 Inside Secrets To Buying A Bank Owned Home Now!

1)  The Best Deals Sell Within Days    2)  Negotiating To Buy A Bank Owned Home Is

Different Than A Typical Transaction  3)  Bank Owned Sellers Are Exempt From Legal

Disclosures of A Home's Condition  4)  Your Offer Will Not Be Considered Without A

Pre- Approval From A Direct Lender 5)  Bank Owned Homes Have Their Own Terms 

1)  The Best Deals Sell Within Days    2)  Negotiating To Buy A Bank Owned Home Is

Different Than A Typical Transaction  3)  Bank Owned Sellers Are Exempt From Legal

Disclosures of A Home's Condition  4)  Your Offer Will Not Be Considered Without A

Pre- Approval From A Direct Lender 5)  Bank Owned Homes Have Their Own Terms 

What you need to know to find The HOT DEALS

What you need to know to find The HOT DEALS

Banks always use the services of a Real Estate Broker via MLS

The best deals sell within 1-3 days!!! Almost always with multiple offers

Use caution with online sites Lowest price is not always the best deal

Banks always use the services of a Real Estate Broker via MLS

The best deals sell within 1-3 days!!! Almost always with multiple offers

Use caution with online sites Lowest price is not always the best deal

Your Best StrategyYour Best Strategy

Develop a relationship with a proactive real estate consultant that understands what’s important to you and can alert you to the hottest deals as soon as they come on the market.

Develop a relationship with a proactive real estate consultant that understands what’s important to you and can alert you to the hottest deals as soon as they come on the market.

Questions & AnswersQuestions & Answers