Kimberley Hill home buying ideas. This helps you to make your real estate investment much more easier. Read carefully for more information.

1. Welcome to...
Partner PowerPoint
Demonstration for
the Release to
Real estate
textbook

2. Homeownership

3. Quick Facts
Home ownership has both benefits & drawbacks.
It is not always the best option at a time.
Buying your first house needs preparing &
preserving.
Prepare a guidelines to help you store for a
house.
Prequalify for home financing to see how much
house you are able.
There are several govt applications for first-time &
low- to moderate-income real estate customers.

4. Home ownership: The
United states Dream
Purchasing a home is one of the
most important choices children
Can make. It has serious economical &
psychological effects and is a main
issue with the United states desire.

5. Advantages
Pressured benefits plan because your
home loan major expenses are
maintained as value in the home
Usually a good long-term investment–
value will most likely improve
eventually
Deduct residence taxation & interest
rates from earnings tax
Over time home become less
expensive in "real" dollars

6. As value develops, you can step up to a
bigger house or lend against your house
(home value loan) to fund large purchases
Home ownership can improve a family's
sense of control over their lifestyles &
atmosphere, as well as improve more
powerful group connections
You can personalize the
home to match special needs & tastes

7. Disadvantages
Per month installments (principal, interest,
taxation & insurance) may be higher than
lease payments
You must pay for normal servicing &
frequent repairs
Owning is less versatile than renting; most
first-time real estate customers live in a
house for 7 years
Like any financial commitment, there is no
assurance that value boosts

8. What Do We Want? (Professional
Builder magazine, 2006)
Boomers (age 41-60)
No stairs—ranch design houses recommended,
but first-floor expert packages and/or personal lifts
acceptable
Fireplaces
Low-maintenance areas such as marble & quartz
Pedestrian-friendly areas with paths & facilities for
fitness and health & public interaction
Emphasis on quality & outlining instead of
rectangle footage

9. Gen XERS (26-40) & Echo Boomers (18-25)
Smart-home technology—every room wired for
mobile phones, locations & DSL
Home enjoyment facilities in the family room—the
middle of activity
Built-in cabling & conduits for flat-screen TVs, with
cables & cables out of site
Breakfast bar or place as additional eating space
Green/environmentally
delicate features

10. Features Important to All 3 Groups
Large, start cooking areas to make meals &
amuse guests; they are the “new living
room”
Kitchen isles no broader than 40”
Quality units
High great quality, high-performance
appliances
Separate tub & shower

11. Prepare for Homeownership
Buying your first home includes planning &
saving—attend a real estate customer
education class to help you get prepared for
homeownership
Possible obstacles:
High Cost
Explore solutions to the traditional single-
family separated house: apartment,
produced home, or older home (generally
can afford a home 2.5 times total yearly
income)

12. Credit
Pay off your debt & delay major purchases
until after you purchase a home
Get a copy of your credit rating score to see
if any problems exist
If your credit rating is not great,
check out subprime loans

13. Down payment
Most traditional mortgages--20% of the
amount
However, there are methods to lessen down
payments to the 0 to 5% range:
--government-insured loans
--local real estate organizations & creditors
may have applications for first-time home
buyers
--curtail your investing & ask relatives

14. Closing Costs
Right of possession leaves supplier to
customer at the closing
Can achieve several a large number of
dollars
Some of the applications that help with
down payments can also help with
settlement costs

15. Long-term Affordability
Per month major, attention, residence
taxation & insurance (PITI) expenses
No more than 28% of your total monthly
earnings should go to PITI (front-end ratio)
Monthly PITI expenses plus any other long-
term debts expenses should not surpass
36% of your total monthly earnings (back-
end ratio)
Also need a support to protect servicing &
repairs

16. Project
You have been offered two projects, one in
Knutson, MS, and the other in LA. Go to
appropriate residence Sites & select two
identical homes. Describe each house such
as its cost & features, and fix an picture.
Given that 28% of your income can go
towards actual estate, how much would you
have to produce to handle each home?
Which would you choose?

17. Initial Selection of Homes
Once you are economically prepared to purchase
a home, identify one that fits your principles,
needs, wants & price range
Where to look?
--Real property part of a nearby newspaper
--Real property consumer books
--Real property Web websites
--Driving, bike riding & strolling through
neighborhoods
--Stop at model/open homes

18. Select a Real Estate Agent
Select a representative to help filter your
choices
Agents are a valuable source of information
because they are familiar with property in a
specific area

19. Requirements for choosing an agent:
--trust
--rapport
--track record
--level of persistence for first-time house
buyers

20. As you consider different homes, evaluate
each focused on concepts, needs, wants &
cost-effective issues
Be flexible, authentic & responsible—
Your first home will most likely not be
your wish home
Develop a checklist:
Can you & your close relatives be very
grateful
living in this home?

21. House Hunting Checklist
(Ideas of what to consist of, but your record must be customized
centered on your needs)
Is the area safe?
Are the houses in the area maintained?
Does the home have enough rooms &
bathrooms?
Is there sufficient storage area space?
Are there top quality educational institutions
in the area?

22. Is the place of the home and group
convenient?
Is there a property owners association?
Is the area quiet?
Does the floor-plan match your lifestyle?
Is the home power efficient?
Is the garden easy to worry for?
What group solutions are available?

23. Are the equipment & accessories
adequate?
What are the common servicing expenses
for the house?
How great are regional residence taxes?

24. Obtain Financing
While you shop for a home, also shop for a
mortgage
Get pre-qualified so you have a better idea
of affordability (price range of homes that
you can afford)
Mortgage lenders include: commercial
banks, savings & loan institutions, mortgage
brokers & credit unions

25. Two opportunities for low- and moderate-
income real estate customers are:
Fannie Mae's Group House
Buyers System
Freddie Mac's Cost-effective Silver
Program
Government agencies—
FHA
VA
RHS
State real estate & fund authority

26. Besides deposit, properly evaluate home
loan choices based on these criteria:
Amount (APR)
Total yearly cost of a home financial loan
as a amount of the financial loan amount
Includes the contract interest rate, home
financial loan insurance & points (each point
equals 1% of the financial loan amount)

27. Interest rate lock-ins
Lock in a low rate as soon as
possible

28. Application & source fees
Minimize charges to cover processing,
credit assessment, evaluation, points &
other expenses

29. Term
For most first-time home buyers a 30-year
phrase to pay off the home loan is appropriate
Determine if you want a set or arm
A set attention amount home loan
Loans are fully amortized with a set amount for the
entire phrase -- both the principal & attention are
paid off at the end of the loan

30. An adjustable rate mortgage (ARM)
Interest quantity customized consistently,
usually every 1, 3, or 5 years based on a
collection published into the loan contract
Might originally get a reduced interest
quantity, but upcoming enhances may mean
greater per month payments

31. Negotiate and Enter Into Contract
An arm (ARM)
Make a buy offer
Offer is generally given to the exact
residence agent who provides it to the
provider (earnest money)
Get a home evaluation report--a qualified
examiner provides an objective perspective
about home’s scenario
Purchase contract

32. Loan Approval
Obtain actual funding for home
Lender will ask about your income, costs,
history of credit score rating, career, & the
terms of purchase offer
You complete form & pay a software fee,
pay for a credit score rating computer file &
evaluation, get a quotation of high closing
costs & truth-in-lending statement
Loan handling occurs

33. Closing
Final step is the ending, a session between
you, your loan provider, owner &
other fascinated parties
Evaluation & indication financial loan
documents
Exchange of records between customer,
supplier & lender
Disbursement of funds
You take advantage of the action to the
property
& be a part of the positions of homeowners!

34. Potential Difficulties
Discrimination
Against the law—Fair Property Act
Fair housing—several customer guidelines
or features with the exception of
discrimination
Subprime & competitive lending
Credit impacted borrowers can benefit with a
subprime mortgage
Predatory loaning consists of unfair or
aggressive loans, along with a number of
competitive methods

35. Post purchase Concerns
Keeping up with maintenance & repairs (avoid an
expensive crisis) Create a maintenance fund
Remodeling & improvements—make informed
decisions in selecting the project, contractor, or
deciding to do it yourself
Refinancing—may be a good idea when interest
rates go down
Foreclosure prevention Loss mitigation tools such
as a loan modification