Presentation on theme: "Primerica Home Buyers Workshop How to get the most house for your money."— Presentation transcript:
Primerica Home Buyers Workshop How to get the most house for your money.
Today Were Going to Talk About: How Primerica Can Help You Achieve Your Goals The Benefits of Home Ownership The Home Buying Process Financing Your Home Flexible Financing Alternatives Process Recap and Guest Information Card
Lets Talk About Money Most families want to buy their own homes but one of the main reasons they do not is because of money. If we could help you develop a game plan to buy a home, pay it off sooner, protect your investment and plan for a great financial future, would that be of value to you and your family?
How Do You Make Goals and Dreams Come True The route to home ownership begins with: The Financial Needs Analysis (FNA) Customized Confidential Complimentary
FNA The FNA helps families look at how to: Get out of debt sooner Pay off your mortgage earlier Have a game plan to retire comfortable Save for your childs education
After Tax Monthly Cost RENTING $975 OWNING * $874 Mortgage Payment + $137 Real Estate Taxes + $40 Property Insurance + $81 Private Mortgage Insurance = $1,132 Total Monthly Mortgage Payment - $255 First Year Monthly Tax Savings $877 * Assumes $131,580 Outstanding Mortgage Loan Balance with 5% Down Payment, 30 Year Fixed Rate Mortgage at 7.5%, 28% tax bracket, assumes full tax deductibility. Consult your tax advisor for actual tax savings.
How You Build Equity
Why Buy Now? * Mortgage Rates: 30 Year Fixed Rate Average. Based on a $125,000 First Mortgage SOURCE: Mortgage Bankers Association
Why Buy Now?
Benefits of Home Ownership The Home Buying Process Everyday Living Needs Neighborhood Future Needs Personal Preferences
Location, Location, Location Neighborhood Property Values Streets and Transportation Environment Community Services Schools and Shopping Proximity to Workplace Personal Tastes
A Real Estate Agent Can Help Realtors ® Know the Community They Know Whats Available They Arrange Home Showings You Can See More Homes
Determining A Fair Price What do homes sell for in that area? Did the Realtor give you comparable sales? Neighborhood meet your needs? In your price range?
Everything Is Negotiable Sales Price Financing Date/Location of Closing Pro-rating Expenses Selecting Attorney/Title Company
Making An Offer Negotiate a price –Work with the Realtor Finalize Contract –Bind with a small deposit –Deposit is generally non- refundable! Closing Provisions –Allow time to move –Allow time to sell current home or finish your lease
Financing Your Home Good Faith Estimate The Approval Process Appraisal Loan Decision Closing/Settlement –Need out-of-pocket cash for closing costs –Get a Settlement Statement (HUD-1)
What Lenders Consider Income Employment Assets Debts Credit History Property
* You do not have to disclose this income if you do not wish to have it considered as a basis for repaying the loan. Income & Employment History Salary Second Job Overtime Alimony/Child Support* Commissions Dividends Social Security Income Pension Lenders consider your gross income, as long as it is steady & verifiable.
Assets Savings and Checking Accounts Investments Equity in Your Current Home Gifts/Grants
Debts Installment Loans Credit Cards Lines of Credit Other Mortgages Other Kinds of Debt (Auto Loans) Lenders Will Consider All Your Debts Since They Affect Your Ability to Make Your Mortgage Payments
Credit History A Credit Rating May Include: Fixed Loan Balances and Payment History Revolving Credit Balances and Payment History Judgments/Bankruptcy/Foreclosure Delinquencies/Collection Accounts Suits/Repossessions Number of New Inquiries Credit Available vs. How Much is Used
No Credit History? 12 Months Utility Bills (electric, gas) Rent Receipts Telephone and Cable Bills Layaways Alimony Payment History, if applicable Any Recurring Monthly Obligation
Property Appraisal Factors: Property Condition Age of Property Comparable Sales of Properties Nearby The Value of the Home You Are Financing Will Be Determined Through an Appraisal
Property Loan to Value (LTV) $125,000 = Loan Amount $131,580 = Value of Home 95% = Loan to Value Note: If the LTV is greater than 80%, lenders may require mortgage insurance and the interest rate may be slightly higher.
Primericas H.O.M.E. Loan Program Financing Options Through CitiMortgages Standard Home Financing Options Expanded Lending Programs
Get Off To A Sure Start With SureStart on your side, youll be more confident as you begin shopping for your home, because youll be pre- approved for a specific loan amount. Plus, home sellers will know that youre a serious buyer, because youll have a commitment in hand.
Why rent when you can own? Benefits of Home Ownership RENTING No Potential Tax Deductions No Return on Money Potential Landlord/ Tenant Issues Potential Lease/Rental Agreement Hassles OWNING You Get To Select An Area of Your Choice Equity Builds Up Tax Deductions* Its YOUR Home! Pride of Ownership *Your total deduction may be limited. You should consult your tax advisor.
CitiMortgages Expanded Lending Programs More Flexible Qualifying Guidelines Programs Specifically Designed for Self-Employed Borrowers
Mortgages Stated Income Programs for Self- Employed Borrowers Expanded Approval With Timely Payment Rewards Conventional Loan Programs Including Jumbo Mortgages
Qualifying Guidelines Monthly Housing Costs: –mortgage payments –property taxes –insurance –monthly maintenance fees –PMI 1. As a percentage of gross income (Housing or Front End Debt Ratio) 2. Plus other long term debt as a percentage of gross income (Total or Back End Debt Ratio). Qualifying or underwriting guidelines determine how much of your income is available to pay your housing expenses.
Now Is The Time To Act Affordable Mortgage Rates + Primerica H.O.M.E. Loan Program Equals….
Your New Home!
Process Recap Guest Information Card Name_______________________________________ Phone#(___)_______________ Address_________________________________________________________________ City______________________State______________ Zip Code___________________ Are you interested in: _______ Buying a principal residence or vacation property in the next 90 days? Do you have any money set aside for the purchase of this property?yes_____no_____ Are you willing to commit a minimum of $150 to the process as a non-refundable deposit?* yes_______no_______ Is it ok to call you at work? yes_____ no_____ Phone #(____)_____-_______________ *Applied toward closing costs upon closing
Process Recap Complete The Guest Information Card Get With Your Primerica Representative And Set Up An Appointment Complete The Primerica H.O.M.E. Loan Borrower Information Kit A CitiMortgage Consultant Will Call You Within 24 Hours