Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved1 Introduction There is a high probability the first-time home buyer will make at least one costly mistake Being prepared isn’t just nice – it is a necessity! Every year, about ¼ of all home mortgage applications get rejected and it is not always those with bad credit Before attempting to buy, you should have knowledge of money, the home buying process and your personal finances You don’t want to be one of the those who are paying dearly because of what they didn’t know

Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved2 Objectives You should be able to do the following after completing this lesson. Identify actions that protect you from making costly mistakes Explain what a Comparative Market Analysis is List 3 things every offer to buy should be contingent on Review how much time a lender needs to prepare for closing Discuss why RESPA is important Explain why you have to buy homeowner’s insurance before closing Review what happens at closing Discuss why you might pay discount points at closing Define the key terms introduced in this lesson

Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved – Continuing the Home Buying Process You’ve made the decision to buy a home You’ve selected the homes features you Need You’ve checked out first-time buyer programs In this section, we will review what you done up to this point You’ve determined how much house you can afford You’ve got your financial house in order You’ve selected a real estate agent & mortgage lender You’ve started looking at homes

Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 1 – Making an Offer How you make an offer to the seller What the Comparative Market Analysis (CMA) is used for In this section, you will learn Why a CMA is part of determining the fair market value Who presents your offer to the seller Why you must provide earnest money when you make an offer Making an Offer Example You will run the following Interactive Example

Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 2 – Schedule Closing Who is responsible for scheduling the closing How much time the lender will need to prepare What happens if your offer is rejected Why you should review RESPA How to eliminate unnecessary fees at closing In this section, you will learn

Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 3 – Purchase Insurance Why homeowner’s insurance is important What is the collateral for your home mortgage Why you need homeowner’s insurance before closing In this section, you will learn How insurance protects the physical structure How insurance protects the contents of your home How insurance protects you if someone is injured in your home

Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved – Step 4 – Go to Closing How closing costs are calculated When you pay the down payment and other closing costs When home ownership is transferred to the buyer How discount points are calculated In this section, you will learn What happens at the closing Paying Discount Points Example You will run the following Interactive Example

Lesson 11.3 Closing the Deal July 2011Copyright © … REMTECH, inc … All Rights Reserved8 Discussion Questions How can buying a home be a good investment when you have to pay so much money just to get into the home plus make monthly payments for 15 to 30 years? Should your offer to purchase a home always be less than what you are willing to pay for the home?