Transcript Document

Realizing the
American Dream
for a
Presented By
•Colin Rosenthal
•DFW Metro Housing
•Tel 214-704-4005
• E-mail: [email protected]
• Fax 817-704-4293
Are You Ready?
Steady Income
Credit History
Low Debt
Pre-Qualified Be Qualified
What Are Some Pros & Cons
of Home Ownership?
Advantages of Home
 Tax deductions
 Interest
 Property Tax
 Equity
 Control over environment Your own home
 Privacy
 Pride of Ownership
 Stability
Disadvantages of Home
 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
4. Get your loan approved
5. Decide what kind of home you want and
need and What you can comfortably afford
What Are Some Other Costs
of Home Ownership?
Upfront Costs
Ongoing Costs
Down payment On an FHA
Loan 3.5 %
Maintenance and repairs
Closing costs Normally average
Always make sure you are
getting an Extended Home
Most Government programs
require $1000 total investment
Move in costs
Reserves needed if your credit
Warranty and pay for it monthly
once the first year is up
normally about 435 to $40 a
month but worth its weight in
score is below a 620
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
• 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
• 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
More pictures
Double click the address
The bottom half of the listing
Provide information about the
• 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
Page two HOA
Page three property condition report
Page 4 Home Warranty Contract,
Closing and Possession
Special provisions
Page 6 buyer and seller info
Page 7 Signatures and execution of
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
 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
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 Mistakes
Wanting a large home when all you can afford is a
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
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
• 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
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 972625-2612 Office
• Fax me at 214-666-3227 or 817-7044293
• E-mail me at
[email protected]
• Mortgage Application.doc