THE GOOD NEWS ABOUT BUYING A HOME

National Association of Realtors®

Lorain County Association of REALTORS®

April 10, 2008

Lorain County Community College

DID YOU KNOW?

You can own a home for a monthly payment equivalent to what you currently pay in rent!

Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?

Homeownership provides a tax benefit.

Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?

60% of a homeowners wealth is from their homes.

Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?

Home values have increased an average of 6% per year, nationally.

Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?

Rents increase on average about 2% per year.

Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?

On average the value of a home nearly doubles every ten years.

Based on a national survey conducted by the National Association of Realtors

Steps to Homeownership

Step 1:Find a local REALTOR ®

REALTORS® are responsible for protecting the best interest of their

clients. REALTORS® can guide you through every step of the homebuying process.

Steps to Homeownership

Where to find a local REALTOR ®

www.LoCAR.org

www.MyNewCommunity.net

www.realtor.com

WHAT A REALTOR® PROVIDES

Obedience Loyalty Disclosure Confidentiality Accountability Reasonable skill and care

WHAT A REALTOR® PROVIDES

Negotiating Experience Market Knowledge Professional Competence Marketing Experience

Steps to Homeownership

Step 2: Assess your Credit and Finances Determine what You can Afford

You can obtain a free credit report from www.annualcreditreport.com

Identify and resolve credit problems to receive the best loan terms possible.

Steps to Homeownership

Determine what you can afford, two rules of thumb:

1.) Your maximum monthly mortgage payment should not exceed 28 percent of your gross (pre-tax) income.

EXAMPLE: Monthly Income: $1,500

Mortgage Payment: $420

Steps to Homeownership

Determine what you can afford, two rules of thumb:

2.) Your maximum debt load, including your mortgage payment, should not exceed 43 percent of your gross (pre-tax) income. EXAMPLE: Monthly Income: $1,500

Maximum Debt Load: $645

Steps to Homeownership

Step 3: Decide on what you need:

location,

number of bedrooms,

bathrooms,

square footage,

style,

age

Prioritize them with what you can afford (price).

Steps to Homeownership

Step 4:SHOP FOR A HOME

Your REALTOR® can help you consider things like:

Type of neighborhood that appeals to you. Quality of the school districts.

Property tax rates. Affordability

Steps to Homeownership

Step 5:MAKING AN OFFER & NEGOTIATING

THE PURCHASE TERMS

A REALTOR® will help you: Develop a purchase offer and strategy.

Steps to Homeownership

Step 5:MAKING AN OFFER & NEGOTIATING

THE PURCHASE TERMS

A REALTOR® will help you: Negotiate the terms & conditions with the

seller’s agent.

Steps to Homeownership

Step 5:MAKING AN OFFER & NEGOTIATING

THE PURCHASE TERMS

A REALTOR® will help you: Reach an agreement on the price, and

how/when you buy it.

Steps to Homeownership

Step 6:OBTAIN A MORTGAGE

A REALTOR® can help you:

Select your lender.

Steps to Homeownership

Step 6:OBTAIN A MORTGAGE

A REALTOR® can help you:

What type of mortgage meets your financial situation.

Steps to Homeownership

Step 6:OBTAIN A MORTGAGE

A REALTOR® can help you:

Understand the loan application process.

Steps to Homeownership

Step 7:CHECKLIST FOR THE CLOSING

Obtain insurance on the home.

Steps to Homeownership

Step 7:CHECKLIST FOR THE CLOSING

Have a professional inspect the home.

Steps to Homeownership

Step 7:CHECKLIST FOR THE CLOSING

Walk through before signing the closing statements.

Steps to Homeownership

Step 7:CHECKLIST FOR THE CLOSING

Read and understand all the closing documents.

Steps to Homeownership

Step 8:CLOSE

After all documentation has been signed and monies paid, possession is

transferred at thecounty court house and you receive the

keysto your new home!

Steps to Homeownership

Step 9:“THE MOVE”

Remember, the expenses associated with moving, from packing materials

and utility hookups to the cost of movers or truck rental.

Steps to Homeownership

Step 10:CELEBRATE!

CONGRAGULATIONS … You and your REALTOR® have turned the American

dream into your realityfor personal and financial growth,

self-reliance, security, pride of ownership, and prosperity for you and your family.