Your First Home: What You Need to Know Presented by Alex Gorodinsky.
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Transcript of Your First Home: What You Need to Know Presented by Alex Gorodinsky.
Who we are:1. In business since 2004
2. Routinely rated Top 3 in Missouri Lenders on Zillow
3. Only licensed and specialize in Missouri
4. Both owners are Washington University graduates
5. Low Interest Rates and No Broker Fees
6. Specialize in First-Time Home Buyers
7. Why use a broker?
Advantages of owning a home
1. Stable housing costs - no landlord to raise your rent
2. Usually a good long-term investment– value will most likely increase over time
3. Deduct property taxes & interest payments from income taxes
Advantages of owning a home
4. Over time mortgage payments become cheaper in "real" dollars
5. Homeownership can enhance a family's sense of control over their lives & environment and promote stronger community ties
6. You can customize the home to suit your special needs & tastes more so than your rental place
Why Get Pre-Approved?
• You will know what you can afford to pay before you look for a house.
• You know if you are in a position to buy a home in your target neighborhood.
• It tells sellers that you are a qualified buyer.
• It lets you make an offer right away, before someone else does
• It makes it easier to get the service of a realtor.
Before You Buy: What to Do
• Check your credit– Fix any issues that may prevent you qualifying
for a mortgage• Determine a monthly payment that you
can afford– Based on this monthly payment – a home price
can be determined• Set your price range• Get Pre-Approved with a lender
Approval Documents
• Provide 3-4 pay stubs.• 2 years worth of tax returns and W2
forms.• Provide bank statement• Proof of any additional qualifying income
such as alimony and child support.
• Show a 2 year employment history– Note: we can use stipend income
• 600 is the minimum credit score that is considered
Credit: What you need to know
• A credit report is a record of your credit history.
• It records payment histories, amount of time accounts are open, credit inquiries, and any negative items
• A credit score can typically be between 350 and 800.
• It has the greatest effect on your interest rate.
• Get a copy of your credit report to see if any problems exist:– Free credit reports at -
www.annualcreditreport.com
How to Improve your Credit Score?
• Pay all bills on time• Keep credit card balances below 50%
of available credit limit• Don't close unused accounts. The zero
balance can help your score• Pay off recent collection accounts or
charge-offs• Let old negative items over 2 years
remain unpaid• Become an authorized user on someone's
credit card with a good payment history.
Loan Options
• Conventional Loans (typically 5% or more down)– Usually 30-year and 15-year maturities
• FHA (Government loans) – 3.5% down– Higher upfront costs, but more lax approval guidelines
• VA (Veterans loans) – 0% down• Fixed vs. Adjustable Loans
– When a 5-Yr or a 7-Yr adjustable loan makes sense
Understanding Closing Costs
• Costs associated with obtaining a mortgage– Lender & Broker Fees– Title Fees– Appraisal– Inspections & Survey– Home Insurance
• These costs typically range from $3,000 to $7,000
• Sellers are allowed to cover them for you
Buying a Home: Timeline1. Get Pre-Approved2. Find a Realtor3. Look at Homes4. Make a Purchase Offer5. Negotiate and Enter into a Contract6. Get a Home Inspection7. Pick a Loan Program & Lock Your Interest Rate8. Meet with your Loan Officer9. Submit your Loan Application10.Order an Appraisal11.Receive Loan Approval12.Attend Closing13.Join the Ranks of Homeowners