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Semelhante a New Homebuyer Presentation
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New Homebuyer Presentation
- 1. It’s Great to be Home™ Homebuyer Workshop Presented by XX <Date>
- 4. Homeownership Advantages and Disadvantages *Consult your tax advisor Advantages Disadvantages Tax benefits* Maintenance and repairs Equity in property ownership over the long-term No guarantees that the property will appreciate in value Pride of owning a home Decreased mobility
- 23. Bank of America, N.A., Member FDIC Equal Housing Lender © 2009 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. 00-62-1471NSB
Notas do Editor
- You may be wondering why Bank of America Home Loans is putting on this workshop. This workshop demonstrates our brand promise: We will always be a responsible lender and we will help create successful homeowners. Knowledge is power and the information you receive today will help you make more informed decisions about the homebuying process. In addition to information about the homebuying process, you will also receive information on how to protect your home, which in most cases is our biggest investment. We will also provide information about various affordable loan programs.
- Since homeownership is a huge investment, before taking that step, you want to make sure that you understand your responsibilities as a homeowner and ensure that you have the tools in place that will help you be a successful homeowner. The information you will learn today will help you assess whether you are ready for homeownership. Let’s begin with the Advantages and Disadvantages of Homeownership. Who can tell me what some of the advantages are of homeownership? What about the disadvantages?
- Those are all good comments. Here are some additional Advantages and Disadvantages you may want to consider: Advantages Tax benefit : you may typically be able to deduct mortgage interest, along with property taxes, from your taxable income. Please consult with a tax professional for more information Stability : Being a homeowner can give you a sense of stability and permanence. Gives you flexibility to make home improvements, you don’t have periodic rent increase, you establish relationship within your neighborhood Equity: equity is the difference between the value of your home and the amount you still owe on the mortgage. As you pay down your balance, you may build equity in your home. You may also gain equity as the market value of your home increases. You may use your equity to borrow money for home improvements, a new car, or school tuition Disadvantages: Maintenance and Repairs: you are responsible for your home maintenance Increased responsibility: home maintenance, mortgage payment
- Besides weighing the pros and cons of homeownership, here are some otther questions to ask yourself: Are you ready to make a long term commitment to being a homeowner? Being a homeowner is usually a long term commitment, and should not be taken lightly. Are you prepared to maintain your home? And are you willing to make repairs yourself or hire someone to make repairs? Unlike a rental property where you can call your landlord to fix a problem, if something needs repair in your home, you are responsible for the repair. Are you able to establish and pay for all monthly utilities? Again, there is no land lord to pay for utilities and you need to be sure that you are prepared to pay for the usual telephone, gas, electricity, water and also trash and perhaps a gardener. Are you able to pay for the monthly taxes and insurance on a home? Besides property taxes, you are responsible for homeowner’s insurance which covers the home in case of fire, etc. Are you willing to make a long-term commitment to live in this home? Homeownership is a long term commitment, so if you plan to relocate in the near future you may want to reconsider buying a home at this time.
- We have talked a little about prequalification, now let’s review the definition of a pre-approval. A pre-approval is a formal commitment to lend based on verification of income and assets. Because a pre-approval is a commitment to lend you money to buy a home the lender will order a credit report. Although not required it is wise to get a pre-approved before looking for a house because having the bank/lender’s commitment is like having “money in the bank” and it gives you more bargaining power with the seller.
- Your Credit Report provides a lender a level of confidence in your willingness to pay back the money you wish to borrow How is good and poor credit history defined? Good credit history : a record of paying what you owe in a timely fashion and using credit responsibly Poor credit history : a record of not paying bills on times and allowing debt to build up. Poor credit doesn't make is impossible to obtain loan approval, but it does make it difficult, and approval usually comes with higher interest rates. No credit history : no record of borrowing money or using a credit card, so a lending institution is unable to evaluate your spending or repayment behavior. In this case, the first step is to establish a credit history Types of Credit (Traditional Credit) Installment : you sign a contract to repay a fixed amount of credit in equal payments over a period of time. For example loans to pay mortgages, automobiles, furniture, and major appliances Revolving : you have the option of paying the balance in full each month, making a minimum payment based on the outstanding credit balance, or making any payment amount as long as it exceeds the minimum payment requirements. For example credit cards such as bank or department store issued Open 30-day : you promise to repay the full amount owed each month. For example American Express, travel and entertainment charge cards, and accounts with local businesses
- Think of your Credit Report like your Financial Report Card and your Credit Score as your Grade. Credit score changes as your credit information changes Fair Isaac initiated the standardization of credit scores for consumers, and ever since, credit scores have been known as FICO Scores. FICO Score Generally the higher FICO score, the less risk there is for a lender, and the more creditworthy a consumer is considered to be What is in a FICO Score: 35% Payment History – Advise: pay your bills on time. 30% Amount Owed – Advise: decrease your balance in order to increase your limit-to value ratio (amount of available credit currently being used) 15% Length of Credit History – Advise: Keep old accounts open and don’t swap accounts constantly 10% New Credit – Advise: Apply for new credit only when you really need it 10% Types of Credit – Advise: have a sensible mix of credit VantageScore: is a scoring method initiated by the 3 major credit reporting agencies, with the purpose of ultimately utilize just one method to measure credit risk.
- You are entitle to a free Credit report once per year, or if you have been turned down for credit. Usually you will pay a small fee to get your credit score All three bureaus may not all have the same information Tips for maintaining a high credit score: Don’t “max out” your credit limit Reduce your credit card debt to below 25% of the limit Don’t open new accounts unnecessarily Strive for combination of different types of credit If there are mistake on your report contact the credit bureau reporting the mistake If you suspect identity theft contact all three credit bureaus immediately
- How long does the process take? With the proper documentation, the standard process of applying for a mortgage loan should take between 30 and 45 days from Prequalification to Loan Closing. This slide outlines the proper documentation needed with your loan application that will help expedite the application process.
- BAC is also proud to introduce the Clarity Commitment available on many products. In response to “Voice of Customer” we developed this simple one-[age home loan summary of key loan terms. It highlights important information about your loan in easy-to-read formant: loan details, payment information, rate, and estimated escrow charges.
- The It’s Great to be Home workbook has a variety of tools that will help you prepare for homeownership, including the Home Features Checklist. You are also not alone when it comes to selecting a home. Some of the people on your “Home Buying Team” include: Real Estate Professional – an expert who knows exactly which homes are for sale, and which ones can meet your requirements and desires. Show them your pre-qualification letter to select homes in your price range The Real Estate Attorney – in some states you need a real estate attorney to make certain that all legal documents that bind you during the process are correct The Mortgage Lender – lenders can be banks, mortgage companies, savings and loans, credit unions, government agencies, or private individuals. Choose a lender that you trust and offers the best loan programs for your current finical situation. It’s also important to familiarize yourself with the types of dwellings you may want to purchase. Other types of homes include: 2-4 family Dwelling Co-operative apartments Townhouse Planed Unit Developments Manufactured Homes Modular Housing Land Lease **For detailed description of the different types reference “It’s Great to Be Home” book pg 41-43** Location: consider proximity to work, proximity to family and friends, neighborhoods Neighborhood: consider schools, shopping district, recreation, crime statistics It’s Time to Make an offer Have your Real Estate agent prepare a Purchase Contract You can negotiate the price and ultimately it is your decision as to the amount you are willing to pay for the home. A Real Estate Agent can guide you in the negotiation process
- Making your monthly Payment is very important. The easiest method is to have the payment automatically deducted from your bank account each month. Other items to be prepared for include: Be prepared for additional costs such as utility bills, home maintenance, and repairs Adjust your budget according to your new obligations as a homeowner and do not take unnecessary debt that could jeopardize your financial future. Avoid Foreclosure The earlier you contact the lender the more options you may have Be honest with your lender
- Maintaining your home is crucial in preserving its value. It is also one of your obligations as a homeowner. Make sure to use licensed contractors, do your homework, get recommendations from past customers.
- BAC is a responsible lender and committed to helping create successful homeowners, this is our brand promise. We also promise Personal and reliable service by a mortgage loan expert Free homebuyer consultation and estimates Affordable loan programs and products for qualified borrowers And homebuyer education resources
- This workshop was designed as a general overview of the loan process. We have a variety of resources available on line where you can obtain more detailed information, including a copy of the It’s Great to Be Home workbook.
- We’ve also included an appendix of common mortgage terms, and your workbook has a more extensive list.