Mel Wilson 18860 Nordhoff Street Northridge, Ca 91324 Phone: 818-534-2400 Ext. 2424 Mobile: 818-402-6708 E-mail: [email protected] The American Dream Mel Wilson and Associates © Are You Ready? Mel Wilson.
Download ReportTranscript Mel Wilson 18860 Nordhoff Street Northridge, Ca 91324 Phone: 818-534-2400 Ext. 2424 Mobile: 818-402-6708 E-mail: [email protected] The American Dream Mel Wilson and Associates © Are You Ready? Mel Wilson.
Slide 1
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 2
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 3
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 4
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 5
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 6
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 7
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 8
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 9
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 10
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 11
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 12
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 13
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 14
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 15
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 16
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 17
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 18
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 19
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 20
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 21
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 22
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 23
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 24
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 25
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 26
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 27
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 28
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 29
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 30
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 31
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 32
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 33
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 34
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 35
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 36
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 37
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 38
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 39
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 40
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 41
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 42
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 43
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 44
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 45
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 46
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 47
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 2
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 3
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 4
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 5
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 6
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 7
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 8
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 9
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 10
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 11
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 12
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 13
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 14
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 15
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 16
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 17
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 18
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 19
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 20
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 21
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 22
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 23
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 24
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 25
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 26
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 27
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 28
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 29
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 30
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 31
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 32
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 33
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 34
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 35
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 36
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 37
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 38
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 39
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 40
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 41
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 42
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 43
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 44
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 45
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 46
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
Slide 47
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]
The American Dream
Mel Wilson and Associates ©
Are You Ready?
Mel Wilson & Associates ©
The American Dream of
Homeownership
• Would you like to share in
the American Dream?
Today, we will show you
how.
Mel Wilson & Associates ©
Homeownership is the basis for a number
of Positive Social, Economic, Family
and Civic Outcomes
• Owning a home embodies the promise of
individual autonomy and is the aspiration of
most American households
• Homeownership allows households to
accumulate wealth and social status
Mel Wilson & Associates
ALTERA Real Estate
It’s More Than Just a House!
It’s:
• A Place of Comfort
• A Milestone In Life
• Your Anchor
• A Family Affair
• A Tax Advantage
• An Investment
• A Home
Mel Wilson & Associates ©
©
Would you like to share in the
American Dream?
Mel Wilson & Associates ©
What You Will Learn Today
•
•
•
•
•
•
•
•
•
•
•
•
Housing Steps
Fair Housing
Importance of Pre-Approved Financing
Elements of Choosing a Home
The Importance of Using a Realtor®
The Escrow Process
Government Home-Buying Programs
Government Agencies
Loan Types
Budget Techniques
Elements of Credit
Beware of Identity Theft and Fraud Mel Wilson & Associates ©
Agency Relationship Disclosure
Mel Wilson & Associates
ALTERA Real Estate
Buyer
Agreement
Buyer Representation
Representation Agreement
Mel Wilson & Associates
ALTERA Real Estate
How Much Can I Afford?
• What does my budget look
like?
• What are my financing
options?
• How much money do I have
for down payment?
• What are the market
conditions?
Affordability depends on budgeting, financing options, and market conditions.
Mel Wilson & Associates ©
Housing Steps
Homeownership
Renting
Buying my first home is a very
important step in my life.
This is a decision that I should
weigh carefully.
So what is best for me and my
family? Renting or owning my
own home?
Homeless
Mel Wilson & Associates ©
You are in Charge!
•
•
•
•
Should I rent or should I buy?
How do I pay for my home?
What area do I want to live in?
What kind housing do I want?
Mel Wilson & Associates ©
Fair Housing is My Right
•
•
•
•
•
Fair Housing Act
Civil Rights Act 1968
Section 8
Unruh Civil Rights Act 1959
Fair Employment and
Housing Act of 1963
• California Fair Housing Act of
1992
Housing discrimination based on your race,
color, national origin, religion, sex, family status,
or disability is illegal by federal and state laws.
Mel Wilson & Associates ©
Fair Housing is My Right
It is illegal to:
• Give different housing services or facilities
• Deny that housing is available for inspection,
sale, or rental
• Persuade owners to sell or rent (blockbusting)
• Deny anyone access to or membership in a
facility or service (such as a multiple listing
service) related to the sale or rental of housing.
Mel Wilson & Associates ©
Fair Housing is My Right
•
You can file a complaint by using HUD’s online form
found at http://hud.gov.
•
You can call toll-free 1 (800) 669-9777.
•
You can print out a form ,
complete it, and drop it or mail it
to:
Office of Fair Housing and Equal
Opportunity
Department of Housing and Urban
Development
Room 5204
451 Seventh St. SW
Washington, DC 20410-2000
San Francisco Regional Office of
FHEO
U.S. Department of Housing and
Urban Development
600 Harrison Street, 3rd Floor
San Francisco, California 941071387
(415) 489-6524
1-800-347-3739
TTY (415) 436-6594
Mel Wilson & Associates ©
Why Should I Get
Pre-Approved Financing?
• There are many advantages of getting PreApproved Financing:
Faster closing times.
I know my price range.
I gain negotiating power.
I know my monthly payments.
I can immediately look at the right homes.
I know my interest rate and financing cost.
Peace of Mind.
Mel Wilson & Associates ©
Major Steps in the
Home Buying Process
• Decide whether to rent or buy
• Decide how much I can afford.
• Decide the price, type of home,
size, location, and features I
desire.
• Get pre-approved financing
• Decide who I want to work
with.
• Once I find a home, I must
carefully inspect
it.
Mel Wilson & Associates ©
Who Are The Players?
The Buyer(s)
The Seller(s)
Realtor®
The Lenders
Escrow
Inspector(s)
Mel Wilson & Associates ©
Credit is the Key
Mel Wilson & Associates ©
Elements of Credit
Report
Bureaus
FICO
Scores
Judgments
Mel Wilson & Associates ©
Credit Bureaus
• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com
Each of the nationwide consumer reporting companies is required to
provide you with a free copy of your credit report once every 12 months, if
you ask for it.
For a free credit report on: call 1-877-322-8228; visit
https://www.annualcreditreport.com; or complete the Annual Credit
Report Request Form and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Check your credit report at least once a year!
Mel Wilson & Associates ©
FICO Score
• Fair Issac Company (FICO)
• Represents your credit-worthiness and the
likelihood that you will pay your debt.
Mel Wilson & Associates ©
Don’t be a Victim!
• Educate yourself in order to protect your credit:
– Don’t fall into financial scams
– Don’t allow your personal information to be exposed
and available for thieves to retrieve
– No Mortgage fraud – deal with integrity
• Be Informed:
The Federal Trade Commission
Offers valuable information:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consum
ers/about-identity-theft.html
Mel Wilson & Associates ©
Where Do I Want To Live?
• Decisions, decisions, decisions….
What community amenities do I want?
Public transportation
Entertainment
Parks
What about the schools?
How safe is the neighborhood?
Are there any special incentives?
Tax breaks: MCC, property tax portability,
HERO tract
Closeness to my job, family, and/or
church?
Government programs
Mel Wilson & Associates ©
Why Work With A REALTOR®?
•
•
•
•
Helps you negotiate.
Guides you through the closing process.
Helps you determine your buying power.
Has resources to assist you in your home
search.
• Provides objective evaluation of buyer’s
proposal.
• Advise you on the best time to buy a property.
• Advise you on the best time to sell a property.
Mel Wilson & Associates ©
Why Work With A REALTOR®?
• Provides objective information about each
property.
• Helps you find other professionals involved
in the process.
• Helps you determine the value and condition
of the property.
• Helps buyers and sellers understand the
current market conditions.
• Helps you understand financing options and
identify qualified lenders.
• Provides up-to-date information on market,
price, financing, and competing properties.
Mel Wilson & Associates ©
Finding the Right REALTOR®
• Choosing a REALTOR® is a very important decision.
• Who you choose depends on a number of things:
– What kind of property do I want to buy?
•
•
•
•
•
•
•
Commercial
Industrial
Residential
Apartment Building
Land
Distressed (REO, Short-Sale)
International
– What type of buyer I am ?
•
•
•
•
•
Senior
First-Time Homebuyer
Repeat Buyer
Military
Special Needs
– Where do I want to buy?
• Location, Location, Location
There are many REALTOR® designations because they are professionals that have specialized market
knowledge. Which one do you need?
Mel Wilson & Associates ©
Does My REALTOR® Understand Me?
Having a REALTOR® that understands and speaks my
language, respects my culture, and caters to my physical
needs is VERY important:
•
•
•
•
•
To avoid fraud
To avoid confusion
To find the right home
To help me feel at ease
To walk smoothly through the home-buying process
Mel Wilson & Associates ©
Looking For A HOME
•
Amenities
# Bathrooms?
# Bedrooms?
Garage Capacity
Special Needs
• Style
•Craftsman
•Ranch
•Bungalow
•Modern
•Tudor
•Contemporary
• Location
• Suburbs
• Beach
• Desert
• City Life
Mel Wilson & Associates ©
I Would Like To Make An Offer That
Gets Accepted!
•
•
•
•
•
Client-Realtor Consultation
Client-Lender Consultation
Financial Pre-Approval
Update on Market Conditions
Properly Written Offer
• “P”rayer
• Successful Negotiation
Mel Wilson & Associates ©
Inspections
•
•
•
•
•
•
•
•
Structural Pest Control
Physical
Geological
Property Hazard
Disclosure Report
Hazardous Materials
Energy Audit
Roof
Pool/Spa
•
•
•
•
•
Well and Septic
Water Conservation
Structural Engineering
Chimney
Heating and Air
Conditioning
• Zoning and Building
Permit Compliance
Mel Wilson & Associates ©
Reports and Findings
•
•
•
•
•
Title Report
Termite Report
Insurance Claims Report
Environmental Report
Geological Activity
Report
Mel Wilson & Associates ©
Escrow & Closing
• Opening of Escrow
– 45-75 days
• Escrow’s Company Duties
– Neutral Third Party
– Custodians of transaction
documents
• Preliminary title report
• Termite report
• Loan documents
• Closing
– Escrow instructions
executed
– Funds disbursed
– Documents recorded
– Title insurance policy
issued
– Preparing final itemized
settlement statement
– Drafting and recording
documents
– Prepare escrow
instructions
Mel Wilson & Associates ©
California’s Tax Portability Programs
• Prop. 60. Allows transfers of base
year values within the same
county (intra-county). Must be 55
years or older.
• Prop. 90 Allows transfers of base
year values between counties in
California. There are seven
participating counties: Alameda,
Los Angeles, San Diego, Orange,
San Mateo, Santa Clara, and
Ventura. Must be 55 years or
older.
• Prop. 110 Allows the transfer of a
base year value for severely and
permanently disabled persons
when they sell an existing home
and buy or build another.
Mel Wilson & Associates ©
Meet Fannie & Freddie:
Government Sponsored Enterprises
Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs)
that work in the secondary mortgage market (mortgage bankers, brokers
and other primary mortgage market partners) to help ensure they have
funds to lend to home buyers at affordable rates.
Functions:
• Provide liquidity to the financial market
• Stabilize residential markets
• Purchase primary mortgages from
banks
• They do not make direct home loans
Mel Wilson & Associates ©
Government Lending Agencies
• Federal Housing Administration
(FHA) provides mortgage
insurance on FHA approved
loans. It helps buyers get access
to affordable housing financing.
• U.S. Department of Veteran
Affairs (VA) offers loans to
veterans and members of the
military services.
Mel Wilson & Associates ©
Government Lending Agencies
•CalHFA is California’s affordable housing bank to make low interest
rate loans through the sale of tax-exempt bonds. Loan products
offered are conventional, real estate owned, and down payment
assistance.
•Cal-Vet loans are below market interest rate loans offered by the
California Department of Veteran Affairs. Active military personnel
and military veterans can apply for loans up to $521,250 with low or
no down payment.
•Secondary loans from the Local Government are designed to
increase purchasing power. The County and the City of Los Angeles,
and a number of cities within the County offer a number of down
payment assistance and secondary loans.
Mel Wilson & Associates ©
It Pay$ To Use A REALTOR
In addition to the governmental programs, you may be qualified to
receive additional help by using a Realtor.
The California Association of Realtors (CAR), and the Southland Regional
Association of Realtors (SRAR) offer home buying grants that can be
combined with the government programs and will effectively increase
your purchasing power.
CAR also offers the C.A.R.H.A.F Mortgage Protection Program which is
designed to provide peace of mind to first-time buyers who are hesitant
to enter the housing market due to concerns about potential job loss.
Qualifying buyers can receive up to $1,500 a month for up to six months
in the event of job loss, a qualified co-buyer can also receive a $750
benefit for up to six months to help pay the mortgage.
Ask a representative after the seminar!
Mel Wilson & Associates ©
Like The Weather-Every Market Is Local
• Location, location, location; an
old cliché, yet so true.
• What factors make a difference in
property values?
•
•
•
•
•
•
•
Weather
Community Amenities
Community Job Market
Schools
Geography
Views
Safety
Mel Wilson & Associates ©
How Much Can I Afford?
• It all depends on….
–
–
–
–
–
–
–
–
–
My budget
My credit score
The type of loan
The location
The kind of property
The condition of the property
My debt
Market conditions
Who represents me
Mel Wilson & Associates ©
Budget Techniques
•
•
•
•
•
Have a plan
Write it down
Discipline
Saving techniques
Spending techniques
Mel Wilson & Associates ©
the American Dream”
“Enjoying The
• Two-thirds of all U.S. households own their
home and enjoy many socio-economic
benefits.
Mel Wilson & Associates
ALTERA Real Estate
Homeownership
Home
OwnershipSocial
SocialBenefits!
Benefits
• Boosts the educational performance of
children.
• Induces higher participation in civic and
volunteering activity.
• Improves health care outcomes.
• Lowers crime rates.
• Lessens welfare dependency.
Mel Wilson & Associates
ALTERA Real Estate
Readiness Indicator Questions
“Readiness
Questions"
• Do I Have A Secure Job?
• Am I Willing To Adjust My Lifestyle To Save For A
Home?
• Am I willing to Take On A Second Job?
• Are Interest Rates Low?
• Can I Obtain A Loan?
• Can I Maintain My Lifestyle?
• Am I Ready to Search For Homes In My Desired
Neighborhoods?
Mel Wilson & Associates
ALTERA Real Estate
My Next Steps
• Make A Decision
• Start Working With A Realtor
• Get Your Pre-Approval Loan Letter
• Complete The Wish List
• Search For Homes On The MLS (Internet)
• Make an offer to purchase ‘My Dream Home’
Mel Wilson & Associates ©
Mel Wilson & Associates
Mel Wilson
18860 Nordhoff Street
Northridge, Ca 91324
Phone: 818-534-2400 Ext. 2424
Mobile: 818-402-6708
E-mail: [email protected]