Download presentation
Presentation is loading. Please wait.
Published byClaud Freeman Modified over 8 years ago
2
Your Own Home The benefits and pitfalls of renting versus owning Renting Owning Mortgage 3 C’s Pre – Qualification Shop for a Loan Pre-Approval On-Approval
3
2 Renting No property maintenance You are only under contract for one year or less You do not have the costs of taxes and insurance You are able to move or transfer. No Local Govt. Rates
4
3 Owning a Home You can build equity A home generally increases in value The home is yours - security Your mortgage interest is tax deductible You can pass your home on to family members
5
4 Components of a Mortgage Payment P = Principal I = Interest T = Taxes I = Insurance F = Fees
6
5 The Three Cs Capacity - Ability to meet your payments Capital - Savings and assets for collateral Character - Credit history Repayments 25% of total income Deposit :- >10% of investment Deposit :- Savings in 12 months
7
6 Pre - Qualification Meeting with Loans Officer at Bank or other institution Informal, no paperwork, no obligation Figure is not exact Get idea of all costs
8
7 Shop for a Loan, NEGOTIATE! ♦How much mortgage you can afford ♦Check newspapers and Internet for terms and rates ♦Negotiate the best deal you can ♦Let lenders compete ♦Get the costs in writing
9
8 Pre-Approval Commitment from the lender to lend you money based on income etc. Tells you how much you can obtain and what you can afford to buy Tells the seller you are serious – negotiate for best price. Find best product (Be objective) Sign contract subject to Finance
10
9 On Approval Involve Solicitor Sign documents at bank Settle on Final price and inclusions Sign contract with Real Estate Agent Negotiate settlement date Weigh up deal prior to Exit date.
Similar presentations
© 2024 SlidePlayer.com Inc.
All rights reserved.