Realizing the American Dream

Shoppingfor a

Home

Presented By

•Colin Rosenthal•DFW Metro Housing•Tel 214-704-4005• E-mail: colin@dfwmetrohousing.com• Fax 817-704-4293• http://www.dfwmetrohousing.com

Are You Ready?• Steady Income

• Credit History

• Savings

• Low Debt

• Pre-Qualified Be Qualified

What Are Some Pros & Cons of Home Ownership?

Advantages of Home Ownership

Tax deductions

Interest

Property Tax

Equity

Control over environment Your own home

Privacy

Pride of Ownership

Stability

Disadvantages of Home Ownership

Usually more expensive

Repairs & maintenance These are the main expenses not involved when

you rent.

More difficult to move

Fewer Amenities

Long – Term Commitment especially when using

grant money such as NSP or HAP

What Are the Steps for Buying a Home?

1. Determine if you should rent or buy

2. Attend homebuyer education classes

3. Determine how much you can afford to spend

4. Get your loan approved

5. Decide what kind of home you want and need and

What you can comfortably afford to pay every month

What Are Some Other Costs of Home Ownership?

Upfront Costs

Down payment On an FHA

Loan 3.5 %

Closing costs Normally average

6%

Most Government programs

require $1000 total investment

Move in costs

Reserves needed if your credit

score is below a 620

Ongoing Costs

Utilities

Maintenance and repairs

Always make sure you are

getting an Extended Home

Warranty and pay for it monthly

once the first year is up normally

about 435 to $40 a month but

worth its weight in gold Insist

on it

The Role of the Realtor• Show homes that meet your requirements• Provide information about the community• Present your offer to the seller and

negotiate the offer• Advise about lenders, inspectors, and title

companies and government assistance programs. Your Realtor must Know and understand these programs.

• Co-ordinate everything to make sure you get your home

Show homes that meet your requirements

• Have your “Realtor” set you up with Automated Home listings that meet your exact home requirements.

• Have you realtor teach you how to read an MLS listings. (Next set of Slides)

• Go directly to Free On-line MLS listing Service at http://www.dfwmetrohousing.com

• MLS Listings,,South Arlington.pdf• Double click the Photo to view all pictures• Double click the address to see a map

Double click picture

View all online information and pictures

More pictures

Double click the address

The bottom half of the listing

Provide information about the community

• Your Realtor can provide you with all the County demographic information available.

• Example:

• County Tax Information

• Schools

• Neighbors etc

County information

County tax Information

County house information

Present your offer to the seller and negotiate the offer

• Your realtor will write up the contract and have you initial pages one through six and sign page 7 of the contract. Watch the price on page one, who is paying title policy also on page one. Who is paying survey on page two, check the closing date, what seller concessions are being asked for, make sure you always ask for a home warranty etc.

Page one Top

Page One Middle

Page One bottom

Page two Survey…Note on a foreclosure the seller never pays

survey

Page two HOA

Page three property condition report

Page 4 Home Warranty Contract, Closing and Possession

Special provisions

Concessions

Page 6 buyer and seller info

Page 7 Signatures and execution of Contract

Advise about lenders, inspectors, and title companies and

government assistance programs.• A good Realtor will stay on top of

everything and do his/her utmost to make sure the deals closes. This is where your partnership begins and it is imperative you send your Realtor everything he request as soon as possible. Communication is essential to make your dream come true.

Your realtor should be able to help you with everything

• As I do with all my clients, your Realtor should be able to assist you from the very beginning in applying for a home loan all the way through the process to the closing and beyond. I still have client from 4 years ago calling me and asking me questions about their home. Your Realtor should remain your Realtor for life.

Real Estate Agents Listing Agent

Has a contract with a seller to advertise property and represent seller when offer is made

Buyer’s Agent

enters contract with the buyer and usually gets paid through split commission

The Agent’s Job• Researches homes available in your price range

• Gives you copies of listing sheets

• Helps determine how much homes are worth

• Refers you to other professionals

• Helps write purchase offer (Contract and

Amendments Etc)

• Negotiates with seller to get a good price for you

• Explains all legal paperwork

Finding an Agent:

• Please make sure you find an agent who has already dealt with the Down payment assistance or NSP Program. I have been contacted by many a frustrated Buyer who was working with an agent who had no idea of what needs to be done to close an assisted deal.

Shopping for a Home

You are now 100% qualified (Not just pre-qualified) with your lender and you are ready to start your home search. You are already receiving automated MLS listings in your selected criteria and know what you want

The home search

The Biggest MistakesThe Biggest Mistakes

Wanting a large home when all you can afford is a Wanting a large home when all you can afford is a smaller home?smaller home?

Remember that the bigger and cheaper the home the more work it

will be needing.

Remember the bigger the home the more expensive it will be to

cool and heat?

Once again remember not to over extend your self financially

Don’t over extend yourself

Only buy a home priced at what you can comfortably spend every month. Don’t let your home own you. If your present rent is $600 a month don’t go and buy a home costing you $1000 a month. Remember you will be paying for the repair and Maintenance.

Remember the 1% law $100000 home will cost you about $1000 a month including taxes and insurance only if the house has a tax appraisal of $100000

Remember the property Tax

• Many Foreclosed homes are selling for up to $20000 to $30000 les than their appraised tax value. Should you secure a Foreclosed home please have your REALTOR check the annual tax because it could add as much as another $150 a month to your payment

High Tax value for a home priced at $124900

Example of Expensive Taxes the property taxes on this home are $400 a month

Shopping for a home

Deciding what you want:

• Location, new or pre-existing, special

features. Target area’s , local area’s or NSP?

This is where your Realtor can advise you

what fits your budget and what Government

program is available and where.

House-Hunting Strategies

• Work with a real estate agent (The first step)• Drive through the selected neighborhood

• Checkout the MLS system (To use my Free MLS listing service

go to)

• MLS Listings,,South Arlington.pdf

• http://ntreis.immobel.com/personal/1/searchLocation.do?loc=0&la=EN&per=dfwmetrohousing

• Ask friends and relatives to refer you.

Deciding on a House

• House-hunting with your REALTOR

• Pick one or more homes you like

• Get a Market value Your realtor will do this for you?

• Present a contract to seller

• Home inspection (Very important step) once under contract

• Price strategy. Your realtor should know everything from your

lender to be able to advise you on a pricing strategy.

Third Party Financing Addendum

• Third party Finance Addendum

• Here you are asking the seller for time (30Days) to secure a Mortgage or get your earnest money back. Also you are telling the seller what type of loan you are requesting

Page 1 Loan Time Frame

Page one type of loan

Page two sign TPFA

Thank you very much

• Please fell free to call me 7 days a week at 214-704-4005 Cell and 972-625-2612 Office

• Fax me at 214-666-3227 or 817-704-4293

• E-mail me at Colin@dfwmetrohousing.com

• Mortgage Application.doc