Redfin's Free Mortgage Class - Temecula, CA


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  • [REQUIRED – to be updated by the presenter to suit their strong points]
  • [REQUIRED – Update with local home in the $400-$500 range, ideally listed by Redfin]Talking points:- Refund is based on your list price not offer price.- You’ll get it as a closing credit or check after close, depending on your lender
  • [REQUIRED – Update with local lender]
  • [REQUIRED – Update each time with latest rate information]
  • Chart: rates rise or remain relatively unchanged? Experts and Bankrate analysts predict where mortgage rates are headed over the next week.This week (July 5-11), 31 percent of the panelists believe mortgage rates will rise over the next week or so; 38 percent think rates will fall; and 31 percent believe rates will remain relatively unchanged (plus or minus 2 basis points). Read more: Rate Trend Index - Mortgage Rate Trends -
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  • Redfin's Free Mortgage Class - Temecula, CA

    1. 1. How to Finance Your Home Presented by: Temecula/Murrieta Team, Redfin December 17, 2013 Temecula, CA @Redfin Slide 1 of 19
    2. 2. Tim Hoferer, Team Lead & Brian Lopiccolo, Agent Southwest Inland Empire Meet Tim & Brian: ● Over 33 years of combined experience: Tim 15+ yrs, Brian 18+ yrs ● Together, we’ve closed over 400 homes ● Specialize in: First Time Home Buyers including FHA and VA, Multiple Offer Scenarios, Investors, etc ● Services: Southwest Inland Empire ● We’re Local! Tim lives right here in Temecula, Brian lives in Murrieta Slide 2 of 19
    3. 3. Working with Redfin Slide 3 of 19
    4. 4. A Little Bit About Redfin 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 ● Right home for the right price  No obligation  Commission credit Slide 4 of 19
    5. 5. Save $4,000 on Average Slide 5 of 19
    6. 6. Mortgages Slide 6 of 19
    7. 7. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders! Slide 7 of 19
    8. 8. 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 typically 28 – 40% healthy ● Pay down credit balances to 1/3rd of high limit ● Don’t open any new lines of credit ● Don’t buy any big ticket items ● Determine source of funds ● Current employment status Slide 8 of 19
    9. 9. Organize Your Assets ● ● ● ● ● Get ready for the down payment Cash accounts (liquid funds) 401(k), stocks, other investments Gift funds? (Max. allowed varies) Move funds around before you start shopping Slide 9 of 19
    10. 10. 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 ● Maintaining a pre-approval has a negligible impact on your credit score ● Don’t allow lots of lenders to pull your credit score repeatedly Slide 10 of 19
    11. 11. Getting Pre-Approved 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 ● 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? Information needed: ● W-2, two pay-stubs, tax returns, bank statements Slide 11 of 19
    12. 12. Facts on Getting Pre-Approved ● Applications are usually free and credit checks should not cost more than $20 ● If you get multiple credit checks from multiple lenders within a 30 day period, this will only count as one credit check against your credit score ● The application does not bind you to a lender, loan or rate ● You will get a better idea of any other action items you need to complete before you can buy ● Gives you a chance to discuss different financing options ● Your pre-approval stays valid as long as your finances constant (check with your lender to see if they have limits on this) ● Being pre-approved is required by sellers to consider offers Slide 12 of 19
    13. 13. Types of Loans ● Conventional: ► 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 spouses ► No down payment Slide 13 of 19
    14. 14. Start Shopping for Lenders Compile a list of 2-3 lenders & brokers Good sources include: ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Banks or credit unions you have accounts with ● A large, national bank with an advertised rate ● Your real estate agent ● Online review sites, such as Yelp ● BEWARE OF OUT OF STATE LENDERS!!! Slide 14 of 19
    15. 15. 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) Slide 15 of 19
    16. 16. Where Are Rates Headed? Type of Loan November 27, 2013 November 21, 2013 30-Year Fixed 4.29% 4.22% 15-Year Fixed 3.30% 3.27% 5/1 ARM 2.94% 2.95% 1-Year ARM 2.60% 2.60% Slide 16 of 19
    17. 17. Where Are Rates Headed? Slide 17 of 19
    18. 18. 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. Slide 18 of 19
    19. 19. Thanks for Coming! Questions? Get in touch: Tim Hoferer Brian Lopiccolo Check out our upcoming classes: Slide 19 of 19