THE GOOD NEWS ABOUT BUYING A HOME National Association of Realtors® Lorain County Association of REALTORS® April 10, 2008 Lorain County Community College

DID YOU KNOW?  You can own a home for a monthly payment equivalent to what you currently pay in rent! Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?  Homeownership provides a tax benefit. Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?  60% of a homeowners wealth is from their homes. Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?  Home values have increased an average of 6% per year, nationally. Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?  Rents increase on average about 2% per year. Based on a national survey conducted by the National Association of Realtors

DID YOU KNOW?  On average the value of a home nearly doubles every ten years. Based on a national survey conducted by the National Association of Realtors

Steps to Homeownership Step 1: Find a local REALTOR ®  REALTORS® are responsible for protecting the best interest of their clients.  REALTORS® can guide you through every step of the homebuying process.

Steps to Homeownership Where to find a local REALTOR ®

WHAT A REALTOR® PROVIDES  Obedience  Loyalty  Disclosure  Confidentiality  Accountability  Reasonable skill and care

WHAT A REALTOR® PROVIDES  Negotiating Experience  Market Knowledge  Professional Competence  Marketing Experience

Steps to Homeownership Step 2:  Assess your Credit and Finances  Determine what You can Afford You can obtain a free credit report from Identify and resolve credit problems to receive the best loan terms possible.

Steps to Homeownership  Determine what you can afford, two rules of thumb: 1.) Your maximum monthly mortgage payment should not exceed 28 percent of your gross (pre-tax) income. EXAMPLE: Monthly Income: $1,500 Mortgage Payment: $420

Steps to Homeownership  Determine what you can afford, two rules of thumb: 2.) Your maximum debt load, including your mortgage payment, should not exceed 43 percent of your gross (pre-tax) income. EXAMPLE: Monthly Income: $1,500 Maximum Debt Load: $645

Steps to Homeownership Step 3:  Decide on what you need: location, number of bedrooms, bathrooms, square footage, style, age Prioritize them with what you can afford (price).

Steps to Homeownership Step 4: SHOP FOR A HOME Your REALTOR® can help you consider things like:  Type of neighborhood that appeals to you.  Quality of the school districts.  Property tax rates.  Affordability

Steps to Homeownership Step 5: MAKING AN OFFER & NEGOTIATING THE PURCHASE TERMS A REALTOR® will help you:  Develop a purchase offer and strategy.

Steps to Homeownership Step 5: MAKING AN OFFER & NEGOTIATING THE PURCHASE TERMS A REALTOR® will help you:  Negotiate the terms & conditions with the seller’s agent.

Steps to Homeownership Step 5: MAKING AN OFFER & NEGOTIATING THE PURCHASE TERMS A REALTOR® will help you:  Reach an agreement on the price, and  how/when you buy it.

Steps to Homeownership Step 6: OBTAIN A MORTGAGE A REALTOR® can help you:  Select your lender.

Steps to Homeownership Step 6: OBTAIN A MORTGAGE A REALTOR® can help you:  What type of mortgage meets your financial situation.

Steps to Homeownership Step 6: OBTAIN A MORTGAGE A REALTOR® can help you:  Understand the loan application process.

Steps to Homeownership Step 7: CHECKLIST FOR THE CLOSING  Obtain insurance on the home.

Steps to Homeownership Step 7: CHECKLIST FOR THE CLOSING  Have a professional inspect the home.

Steps to Homeownership Step 7: CHECKLIST FOR THE CLOSING  Walk through before signing the closing statements.

Steps to Homeownership Step 7: CHECKLIST FOR THE CLOSING  Read and understand all the closing documents.

Steps to Homeownership Step 8: CLOSE After all documentation has been signed and monies paid, possession is transferred at the county court house and you receive the keys to your new home!

Steps to Homeownership Step 9: “THE MOVE” Remember, the expenses associated with moving, from packing materials and utility hookups to the cost of movers or truck rental.

Steps to Homeownership Step 10: CELEBRATE! CONGRAGULATIONS … You and your REALTOR® have turned the American dream into your reality for personal and financial growth, self-reliance, security, pride of ownership, and prosperity for you and your family.