Redfin Baltimore Mortgage Class

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Redfin Baltimore Mortgage Class

  1. 1. Slide 1 of 22 Redfin’s How to Finance Your Home May 6, 2014 Host: Tuniscia Okeke @Redfin http://www.facebook.com/Redfin Redfin’s Baltimore Team
  2. 2. Slide 2 of 22 Meet Redfin’s Baltimore Team
  3. 3. Slide 3 of 22 Working with Redfin
  4. 4. Slide 4 of 22 A Little Bit About Redfin Redfin is a real estate brokerage on a mission to make buying and selling a home better for you. ● Accountability: we’re on your side, giving you honest advice ● Technology: sellers get more traffic; buyers tour homes first ● Value: a full-service brokerage that saves you thousands  No obligation
  5. 5. Slide 5 of 22 Save $6,000 on Average
  6. 6. Slide 6 of 22 What We Have Accomplished Redfin is a real estate brokerage that has helped over 20,000 people buy or sell a home; 97% would refer us to a friend. ● Customers, not commissions ● Informed decisions ● The right home for the right price  No obligation  Get back up to 33% of our commission
  7. 7. Slide 7 of 22 Mortgages
  8. 8. Slide 8 of 22 Review Your Financial Situation ● Pull credit report, look for errors ● Establish comfort level for monthly payment ● Figure out how much monthly income goes towards debt: 28 – 33% healthy ● Pay down credit balances to 1/3rd ● Don’t open any new lines of credit ● Don’t buy any big ticket items ● Source of money ● Current employment status
  9. 9. Slide 9 of 22 Get Pre-Approved Early A pre-approval letter is a letter from a bank or a lender estimating how much they'll lend you ● Establishes what you can afford & makes offer process go faster ● Redfin asks that you get pre-approved before your third tour ● Good for 90 days, depending on lender Info needed: ● W-2, two pay-stubs, tax returns, bank statements
  10. 10. Slide 10 of 22 Pulling Credit: Is It Harmful? ● Your credit report must be reviewed by a lender before you can obtain a pre-approval ● If you know your score, a lender should be able to give you ballpark pricing for their loan products ● Better to know sooner rather than later about credit problems ● Maintaining a pre-approval has a negligible impact on your credit score
  11. 11. Slide 11 of 22 Start Shopping for Lenders Compile a list of 3-4 local lenders Good sources include: ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp ● Local chains and offices *Know your lender
  12. 12. Slide 12 of 22 Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  13. 13. Slide 13 of 22 Comparing GFE Results ● Gather Good Faith Estimates (loan quotes) ►A minimum of three, more is better ►Compare similar loans  Program (FHA, conventional)  Timeframe (same day) ● Compare costs side-by-side ►Discount & origination points ►Interest rates ►Insurance premiums (FHA, PMI) ►APR (interest rates + fees + points + PMI)
  14. 14. Slide 14 of 22 Understanding the Market
  15. 15. Slide 15 of 22 Current Market: Low Inventory
  16. 16. Slide 16 of 22 Current Market: Rising Prices
  17. 17. Slide 17 of 22 Baltimore Overview
  18. 18. Slide 18 of 22 Where Are Rates Headed? Type of Loan May 1, 2014 April 24, 2014 30-Year Fixed 4.29% 4.33% 15-Year Fixed 3.38% 3.39% 5/1 ARM 3.05% 3.03% 1-Year ARM 2.45% 2.44%
  19. 19. Slide 19 of 22 Make Your Decision ● When possible, get a loan commitment ● Lock your interest rate (30 - 60 days) ● Make alternative funds liquid (401k, stock) Good news! Loan payments are made in arrears, so your first loan payment won’t be for two months. You’ll have one month of no payments.
  20. 20. Slide 20 of 22 All Done!
  21. 21. Slide 21 of 22 So What Now? ● Make sure it’s the right time for you ● Start browsing online ● Check out our Home Buying Guide ● Find the right agent ● Look for a local lender and get pre-approved ● Start seeing homes in person ● Make an offer & close the deal
  22. 22. Slide 22 of 22 Thanks for Coming! Questions? Get in touch: Tuniscia Okeke tuniscia.okeke@redfin.com Check out our upcoming classes: http://www.redfin.com/buy-a-home/classes-and-events

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