Buying A Home? “Details To Follow” Tom Scaglione, e-PRO, SFR, REALTOR® ~ Tampa Bay Area Specialist ~ Click On Slide Arrows Below Copyright by Tom Scaglione, LLC

What You Need To Know To Buy A Home... Everything You Need To Know To Make Buying Your New Home Easy and Affordable. Using Tom’s Proven Buyer’s Detail Plan. Copyright by Tom Scaglione, LLC

Why Buy?  Tax deductions  Stable housing cost  Appreciation of home  Equity gain in home  Control of your property  Buying for yourself not your Landlord… Copyright by Tom Scaglione, LLC

Are You Ready To Buy?  Steady income  Pay bills on time  Low to medium debt  Down payment available  Available closing cost money  Ability to pay mortgage Copyright by Tom Scaglione, LLC

What Type Of Home  Type of community  New home  Resale home  Fixer-upper home  Features  Bedrooms, how many?  Baths, how many?  Garage, Pool, etc. Copyright by Tom Scaglione, LLC

How Much Home Can You Afford  Housing costs less than 29% of gross income  Housing costs & debt no more than 36% of gross income  Consider special loan programs  Get pre-approved for your loan is a must Copyright by Tom Scaglione, LLC

Why Be Pre-Approved?  You know what you can afford before you begin to shop  Shows sellers you are serious about buying  Can make an offer as soon as you find the home you want to buy  Required by banks for REO and Short Sale purchase approvals Copyright by Tom Scaglione, LLC

Documents For Pre-Approval  Pay stubs (2-3 months)  W-2 forms or 1099 forms (2 years)  List of long term debt  Recent bank statements (3 months)  Tax returns (2 years)  Proof of any additional income Copyright by Tom Scaglione, LLC

Fixed Rate Mortgage  Payments remain the same for life of loan  15 or 30 year repayment terms (interest lower on 15 year loan)  Advantages:  Predictability  Insurance against rising interest rates Copyright by Tom Scaglione, LLC

Adjustable Rate Mortgage (ARM)  Payments increase or decrease on a regular schedule with interest rate changes  Increases are subject to limits  ARM linked to specific index or margin  Advantages include a low initial interest rate with lower monthly payments Copyright by Tom Scaglione, LLC

15 vs. 30 Year Mortgage  30-Year… In the first 23 years of the loan more interest is paid than principle affording a larger tax deductions.  15-Year… Loan is generally at a lower interest rate and equity is built faster because early payments pay more to the principle. Copyright by Tom Scaglione, LLC

Special Programs Available  First time buyer  100% Financing (USDA / VA)  Low down payment (FHA / Home Path)  Interest only  Less than perfect credit  Heavy debt burden  Irregular income or self employed Copyright by Tom Scaglione, LLC

Credit Scores  The minimum credit score to acquire a standard mortgage is 640  The higher the credit score… the better the interest rate Copyright by Tom Scaglione, LLC

Tom Scaglione, e-PRO, Realtor Can Help  Guide you through the process of buying or building a home  Knows the community (Born and Raised Here)  Provide you with lists of homes that meet your specific requirements Copyright by Tom Scaglione, LLC

Tom Scaglione, e-PRO, Realtor Protects You  Seller is represented by the listing Realtor  Listing Realtor is bound to protect the seller  As a Buyer’s Agent I will be bound to protect and represent you… The “Buyer” Copyright by Tom Scaglione, LLC

How to Begin Looking For A Home  Get pre-approved  Complete a list of must haves  Start Looking at Homes w/ Tom  Picture your furniture… will it fit  What amenities do you want  Look at the state of repair or disrepair  Ask Tom to point out the pros and cons of each home you view Copyright by Tom Scaglione, LLC

What To Do When… You’ve Found The Home You Want  Tom will prepare a Comparative Market Analysis of recent sales in the neighborhood (CMA)  You can then determine the amount you’re willing to offer  You will decide how much earnest money you will put in escrow  Tom will then prepare an offer contract in writing to be signed by you and presented to the seller Copyright by Tom Scaglione, LLC

Determining The Amount Of The Offer  What are comparable homes selling for?  What is the home’s condition?  How long has the home been on the market?  What are the financing terms?  What is the seller’s situation?  Rely on advise from Tom to guide you through the process  Be Prepared to negotiate Copyright by Tom Scaglione, LLC

About The Earnest Money  Usually between 1%-5% of the purchase price  If offer is accepted, earnest money becomes part of your down payment or closing costs  If offer is rejected, the earnest money is returned to you  If you back out of the deal, you could forfeit the earnest money if you back out for anything other than one of the contract contingencies Copyright by Tom Scaglione, LLC

Making the Offer  Tom, your REALTOR and buyer’s agent, Tom will assist you in making the offer, which will include:  Legal description of property  Amount of earnest money  Down payment and financing details  Proposed closing date  Price you are offering  Length of time you offer is valid  Details of the of the offer  Offer Contingencies Copyright by Tom Scaglione, LLC

The Home Inspection  Your offer will be contingent upon a satisfactory home inspection… A Professional inspector will evaluate the safety and condition of the home  Items include, Structural, Electrical, Plumbing, Mechanical Air and Heat, Pool, Roof, Windows and Doors and Appliances Copyright by Tom Scaglione, LLC

Closing Costs Include  Property taxes (pro-rated)  Interest (if applicable)  Loan origination fee (if applicable)  Recording fees  Survey fee  Credit Report fee  Appraisal fee  Homeowners insurance  Mortgage insurance (if applicable)  Title insurance for mortgagee  Loan discount points (if applicable)  Tax and insurance escrow accounts  Documentation prep fees Copyright by Tom Scaglione, LLC

On Closing Day  Present your receipt for homeowners insurance or paid at closing  Closing agent will list money you owe seller and money seller owes you  Seller will provide proofs of any warranties or inspections and repairs  You will have documentation for your loan/mortgage explained to you and you will sign on the dotted lines  You will pay all closing costs listed on the Buyer side of the HUD-1 settlement statement and receive a executed copy from the closing agent  The deed will be recorded and sent to you Copyright by Tom Scaglione, LLC

My Credentials…  Serving the Tampa Bay Area for 30 plus years  Native born, so I know the market in the Tampa Bay Area  Member of the Greater Tampa Association of Realtors® (GTAR) (Past President)  Member of the Florida Association of Realtors® (FAR)(Past District 6 Vice President)  Member of the National Association of Realtors® (NAR)  Member of the My Florida Regional Multiple Listing Service (MFRMLS)(Past President) Copyright by Tom Scaglione, LLC

My Credentials… Continued  2006/2007 President MFRMLS  2005/2006 President-elect of MFRMLS  2004/2005 Treasurer of MFRMLS  2003 Board Member of GTAR  2003 Chairman of Business Trends and Technology FAR  2001 District 6 Vice President FAR  2000 President of GTAR  2000/01 President Rebuilding Together Tampa Bay Copyright by Tom Scaglione, LLC

Congratulations… You are now a Homeowner!! Helped by Tom Copyright by Tom Scaglione, LLC

For All Your Real Estate Needs Contact Tom Scaglione, e-PRO, SFR, Realtor® Future Home Realty, Inc ~ Tampa Bay Area Specialist ~ Copyright by Tom Scaglione, LLC