Home Buyer Workshop

Benefits of Owning a Home

In today's economy, rent continues to increase year after year. Here are 5 perks of homeownership. 

Before Looking for a House you need to master 2 things: BUDGETING and SAVING!!!

Being a home owner means juggling a number of financial obligations: mortgage (principal and interest payments), property taxes, home owners insurance, maintenance, repairs, upgrades, gas, water, electrical, internet/cable/phone, alarm system, lawncare, streaming services, etc. 

You need to know how to properly divide your budget to be able to take care of your housing expenses and personal expenses and still save for a rainy day. 

EXCERCISE:

Go window shopping on Realtor.com and pick out your dream house. Here's one I like.

I like that Realtor.com gives you a calculator to help you estimate your monthly costs for principal, interest, taxes, and insurance (PITI). 

Once you add in you Down Payment costs and Interest Rates, the calculator will give you your estimated PITI payments.

Multiply your monthly PITI by 3-6 months, and that's the minimum you need to have saved before you can buy. This is called your Cash Reserves!

 In addition to your Cash Reserves you need to save for the following:

How to Prepare to Buy a home?

The most important thing when it comes to buying a home is financing! How are you going to pay for that home. Getting your financing in place is a key step to buying a home. 

Types of Financing:


Pre-Approval = Credit, Income and Assets


Debt to Income Ratio 

Get Pre-Approved

Once you think you have your credit, income, and assets in place, it's time to reach out to a lender or mortgage broker to get pre-approved. If you need a recommendation for a lender, please reach out to me. I can give you the email and phone numbers for lenders who I have used or worked with in the past. 

Research Properties

Analyze properties to make sure you it meets your needs. If you want to get into real estate investing, you will be doing a deeper property analysis than someone who is looking to buy their dream home, regardless of the investment potential.

If you are looking to buy a Starter Home look at these things:

If you are looking to buy your Dream Home, look for these things:

If you are looking to buy an investment property, look for these things:

Be Prepared to Write a Quick and Strong Offer

Since this is such a competitive market, it's important that you are ready to write a quick offer within a day of seeing the property. 

WHAT CONSTITUTES A STRONG OFFER


Waiving contingencies is a good way to get your property under contract, but it offers little protection it if turns out that its not a good property. Sometimes, I'll write a slightly less strong offer because I want to protect myself. This is what I put in my offers. 

IF you are in a buyers market, here are some additional contingencies you can add:

Negotiating your Offer

Negotiating an offer to buy a home is a crucial step in the home buying process. Here are some key considerations to keep in mind when entering negotiations:

1️⃣ Research Market Conditions: Understand the current real estate market conditions in the area where the home is located. Are prices generally rising or falling? Is it a buyer's market or a seller's market? This knowledge will help you gauge how aggressive or conservative you can be with your offer.

2️⃣ Comparable Sales: Look at recent sales of similar properties in the neighborhood to determine the fair market value of the home you're interested in. These comparable sales, also known as "comps," will provide you with a baseline for your offer.

3️⃣ Property Inspection: Conduct a thorough inspection of the property and identify any issues or repairs needed. Use the inspection report to negotiate repairs, credits, or a reduction in the purchase price, depending on the severity of the issues.

4️⃣ Seller's Motivation: Try to understand the seller's motivation for selling the property. Are they looking to sell quickly? Are they in a time-sensitive situation? This information can help you tailor your offer to align with the seller's needs and increase the chances of a successful negotiation.

5️⃣ Contingencies: Determine the contingencies you want to include in your offer, such as financing, appraisal, or home sale contingencies. These contingencies provide you with protection and flexibility during the negotiation process.

6️⃣ Flexibility: Consider the flexibility you have in terms of closing timeline, possession date, and other terms. If you can accommodate the seller's preferences, it may strengthen your negotiation position.

7️⃣ Additional Incentives: Along with the purchase price, think about other incentives you can offer to sweeten the deal. This could include a larger earnest money deposit, waiving certain contingencies, or offering a quick and smooth closing process.

8️⃣ Communication: Effective communication with the seller or their agent is key. Clearly convey your offer, terms, and any specific requests or concerns you may have. Maintaining a respectful and professional dialogue can help foster a positive negotiation environment.

9️⃣ Know Your Limits: Determine your maximum budget and be prepared to walk away if the negotiation exceeds your comfort level. It's important to strike a balance between getting a fair deal and ensuring you don't overextend yourself financially.

🔟 Seek Professional Guidance: Consider working with a skilled real estate agent or attorney who can provide expert advice and negotiate on your behalf. They have experience in navigating negotiations and can help you make informed decisions.

Remember, negotiation is a give-and-take process, and compromises may need to be made. Stay focused on your priorities, be prepared to negotiate, and approach the process with a cooperative mindset. Good luck! 🤝🏡 #HomeBuying #NegotiationTips #RealEstateNegotiation #PropertyPurchase

Home Inspection


Appraisal

Preparing for Settlement aka Closing -

Preparing for settlement and closing on a house involves several important steps to ensure a smooth and successful transaction. Make sure that talk with your lender. They will tell you to not make any large deposits or withdrawals. That could hurt their ability to qualify you to purchase the home. Don't make this simple mistake. Talk with your lender before making any large deposits or withdrawals. 

Here's a checklist to help you prepare for the Week before Settlement aka Closing:

1️⃣ Review the Closing Disclosure: Carefully review the Closing Disclosure provided by your lender, which outlines the final terms of your loan, including the loan amount, interest rate, closing costs, and any additional fees. Compare it with the Loan Estimate you received earlier to ensure accuracy.

2️⃣ Schedule a Final Walk-Through: Arrange a final walk-through of the property shortly before the closing date. This allows you to verify that the condition of the property has not significantly changed since you last visited and that any agreed-upon repairs or inspections have been completed.

3️⃣ Coordinate with Your Lender: Communicate with your lender to ensure all necessary documents and funds are ready for the closing. Provide any additional documentation or information they request promptly to avoid delays.

4️⃣ Secure Homeowner's Insurance: Arrange for homeowner's insurance coverage to be effective from the closing date. Provide the insurance policy details to your lender as it may be a requirement for closing.

5️⃣ Set Up Utilities: Contact utility companies to transfer or establish new accounts for electricity, water, gas, internet, and any other essential services. Ensure these utilities are set to activate on or before the closing date.

6️⃣ Gather Necessary Documents: Organize and gather all the documents you'll need for the closing, including identification, proof of insurance, bank statements, and any other paperwork requested by your lender or attorney.

7️⃣ Obtain a Cashier's Check or Wire Transfer: Check with your closing agent or attorney to determine the amount and form of payment required for closing costs, down payment, and any other fees. Arrange for a cashier's check or wire transfer in advance to ensure the funds are readily available.

8️⃣ Review Closing Documents: Request to review the closing documents ahead of time, if possible. Familiarize yourself with the content and ask questions about any terms or items you don't understand. Seek clarification from your closing agent or attorney if needed.

9️⃣ Bring Identification: Ensure you have a valid form of identification, such as a driver's license or passport, to present at the closing.

🔟 Attend the Closing: On the scheduled closing day, bring all necessary documents, identification, and the funds required for closing. Be prepared to sign various legal documents, including the deed, mortgage note, and other settlement papers. Carefully review each document before signing.

After the closing, the property will officially be transferred to your name, and you'll receive the keys to your new home! Remember to keep copies of all the closing documents for your records.

It's advisable to consult with your real estate agent, lender, or attorney throughout the process to ensure you're fully prepared for settlement and closing. Good luck with your new home! 🏡🔑 #HomeClosing #SettlementPreparation #PropertyPurchase #HomeOwnership