Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved1 Introduction For many, the hardest part of buying a home is making the decision to buy. The decision to buy a home is a major milestone in the life of most people. The biggest mistake you can make is not learning about the home buying process before you start the process. Having this knowledge can be invaluable! Not having this knowledge can be frustrating and expensive!

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved2 Objectives You should be able to do the following after completing this lesson. Explain why buying a home can be intimidating and stressful Identify what you should know before starting to buy a home Review the reasons some people rent rather than buy Discuss how long it takes to complete the home buying process Explain what a mortgage lender does and how you find one Describe how a first-time home buyer program works Summarize what a real estate agent does and who pays them Define the key terms introduced in this lesson

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – The Home Buying Process What the home buying process is Why it’s important to know the sequence of the steps in the home buying process Why it’s critical to understand the home buying process before you actually start the process In this section, you will learn Why the home buying process can be intimidating and stressful Why it is important to know and follow the logical steps

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 1 – Make the Decision Why the decision to buy can be hard to make How much money and time is involved In this section, you will learn What typically happens when it costs more to rent How the cost of renting and buying compares Why some people would rather rent than buy Rent vs. Buy Exercise You will run the following Interactive Exercise How the decision to buy will affect your financial future

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 2 – Preliminary Work How much time is spent preparing to buy Why a budget is an important part of getting prepared Why you should review and repair your credit history Why it is important to reduce your existing debt More about the home buying process In this section, you will learn

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 3 – How Much Can You Afford? What a mortgage lender is How a lender determines how much house you can afford What the Rule is and how it works In this section, you will learn What household gross income is and how to determine it How to estimate how big of a loan you can afford Loan Qualification Example You will run the following Interactive Example

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 4 – Select Home Features What housing Wants are What housing Needs are Why it is important to create a list of home features you Need In this section, you will learn How the list will help reduce the amount of time spent searching Housing Needs vs. Wants Example You will run the following Interactive Example

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 5 – Check First-time Buyer Programs What first-time buyer programs are designed to do Who is eligible for first-time buyer programs Who offers first-time buyer programs How a first-time buyer program helps you buy a home How first-time buyer programs deal with the down payment, mortgage insurance and interest rates In this section, you will learn

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 6 – Select a Real Estate Agent Why selecting a good real estate agent is critical What services a good real estate agent should provide Who pays for the real estate agent’s services What items a real estate agent should be familiar with In this section, you will learn Why it’s important to interview several real estate agents What questions to ask before selecting one

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 7 – Select a Mortgage Company What a mortgage lender does Who defines the qualifying standards used by a lender What it means to be pre-qualified by a lender What it means to be pre-approved by a lender In this section, you will learn What the closing costs consist of Who can tell you how much your closing costs will be

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 8 – Begin to look at Homes How a good real estate agent can help you What things the real estate agent should coordinate What to do if a home is under/over priced for the area What you should do while viewing and evaluating homes In this section, you will learn Why you should periodically review your list of housing Needs and Wants

Lesson 11.2 Preparing to Buy July 2011Copyright © … REMTECH, inc … All Rights Reserved12 Discussion Questions What should you look for when your real estate agent takes you to look at homes you might want to purchase? What should you do if your real estate agent insists on taking you to homes that cost more than you can afford or don’t have the features you are interested in?