Home Buying 101
Redfin’s Tacoma Team
December 14th 2013
Slide 1 of 26
A Little Bit About Who We Are
● Redfin is a real estate brokerage that has helped over
20,000 people buy or sell a home; 97% would refer us to a
● Customers, not commissions
● Informed decisions
● The right home for the right price
● No obligation
● Get back a portion of our commission
Slide 2 of 26
What Happens After You Find
a Home You Love?
Slide 10 of 26
What to Ask Any Agent
Is this your full-time job?
Familiar with foreclosures or short-sales?
Where were your last five deals?
Who else will be working with me?
Will you show me all properties for sale?
When am I committed to working with you?
Has a client ever filed a complaint?
How are you paid?
Slide 11 of 26
Redfin’s Partner Program
Partner agents are employed by other brokerages,
but have teamed up with us to provide RedfinCertified service to a wider range of customers.
We’ll refer you to a partner agent when:
► A home is outside of our direct service area
► A home is below our price minimum
► We’re experiencing an unusually high customer demand
We survey all partner agent clients
► All surveys are published on their Redfin page
► 97% of customers would recommend Redfin partners
Slide 14 of 26
We List Homes, Too!
● More people see your home
► Premium placement on Redfin.com
► Mobile apps target on-the-go buyers
► Professional flyers
● You’ll know it all at every step
► Email all buyers who see your home
► See how many people have viewed your home
► Advise you at every step in the process
Slide 15 of 26
Review Your Financial Situation
To Buy or Not to Buy
● 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
Slide 17 of 26
Start Shopping for Lenders
Compile a list of 3-4 lenders & brokers
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
Slide 18 of 26
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
● What’s the difference between Pre-Approval and PreQualification
● Good for 90 days, depending on lender
● Ask for a few different amounts
● Redfin asks that you get pre-approved before your third tour
● Are gift funds involved?
● How much do you have for a down payment?
● W-2, two pay-stubs, tax returns, bank statements
Slide 19 of 26
Comparing Loan Estimates
● Gather loan estimates
► A minimum of three, more is better
► These aren’t final numbers, but within a few thousand
► 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)
Slide 20 of 26
Types of Loans
► As low as 5% down
► Fixed or adjustable rates, conforming or non-conforming
● Federal Housing Administration Loan (FHA):
► Always have mortgage insurance
► Buyers need only a 3.5% down payment
● VA Guaranteed Loan:
► Veterans, active duty personnel, reservists/national guard, surviving
► No down payment
● Ask your lender if they have special loan programs
► Example: BB&T Chips Program
Slide 21 of 26
Where Are Rates Headed?
Type of Loan
December 5, 2013
November 27, 2013
Slide 22 of 26
Make Your Decision
● When possible, get a loan commitment
● 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.
Slide 23 of 26
Check out our agents and their reviews
Study the inventory and houses in your areas
Go out on tour with us, no obligation
Ask a lot of questions and see a lot of houses
Email me: firstname.lastname@example.org
Check the events page for upcoming classes
• Go back to work!
Slide 24 of 26