Redfin's Free Mortgage Class- Schaumburg

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  • http://www.freddiemac.com/pmms/
  • Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspxWill rates rise or remain relatively unchanged? This week (Nov. 7-13), half of the panelists believe mortgage rates will rise over the next week or so, one-third think rates will fall, and the rest believe rates will remain relatively unchanged (plus or minus 2 basis points).Read more: http://www.bankrate.com/news/rate-trends/mortgage.aspxRead more: Rate Trend Index - Mortgage Rate Trends - Bankrate.com http://www.bankrate.com/news/rate-trends/mortgage.aspx#ixzz2097YRlM8
  • [REQUIRED – Update with local lender]
  • Chart:http://www.mortgagenewsdaily.com/mortgage_rates/charts.aspPrediction:http://www.bankrate.com/finance/mortgages/mortgage-rate-trend-index.aspx
  • We’ll stick around…

Transcript

  • 1. How to Finance Your Home Redfin Western Suburbs Team November 13th Schaumburg, IL Follow: @Redfin Like: www.facebook.com/Redfin Slide 1 of 21
  • 2. Redfin Western Suburbs Team Rick Szekely Slide 2 of 21 Dave Fidanza Sebastian Rodak
  • 3. Working with Redfin Slide 3 of 21
  • 4. Working With Redfin is Different ● Service ► Advocates: client-satisfaction bonuses, not commissions ► Transparency: informed decisions ► Best Agents: The right home for the right price ● No obligation ► Switch Redfin agents ► Pause and re-start your search any time ► Tour on your schedule and pace ● Refund ► We’ll refund a portion of the commission back to you ● The Best Results ► Service: 97% would recommend us to a friend Slide 4 of 21
  • 5. The Redfin Refund The Listing Agent gets 2.5% commission. You save with Redfin. You buy and pay for your dream home. The 5% sales commission is split. Your Buyers’ Agent gets 2.5% commission. Redfin keeps a portion as our fee. Slide 5 of 21
  • 6. 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 a portion of our commission Slide 6 of 21
  • 7. Mortgages Slide 7 of 21
  • 8. Where Are Rates Headed? Type of Loan November 7, 2013 October 31, 2013 30-Year Fixed 4.16% 4.10% 15-Year Fixed 3.27% 3.20% 5/1 ARM 2.96% 2.96% 1-Year ARM 2.61% 2.64% Slide 8 of 21
  • 9. Where Are Rates Headed? Slide 9 of 21
  • 10. Get Pre-Approved ● A pre-approval letter is a letter from a bank or a lender letting the seller know your financing is in order ● The process helps you establish how much you can afford and allows you to make an offer with confidence ● Redfin asks that you get pre-approved before your third tour ● The process can be done in person or over the phone and in most cases a letter will be issued same day ● The pre-approval is good for 90 days, depending on lender Slide 10 of 21
  • 11. 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 ● A pre-approval letter is required by most sellers before the offer is considered Slide 11 of 21
  • 12. Start Shopping for Lenders Compile a list of 3-4 lenders & brokers Good sources include: ● Redfin Open Book ► Redfin Certified lenders ► Reviews you can trust ● Your real estate agent ● Friends, family & co-workers ● Banks or credit unions you have accounts with ● Beware of out-of-state lenders! Slide 12 of 21
  • 13. Open Book ● Redfin-Certified Providers ● Every professional is reviewed and all reviews are shown ● Search for local: ► Inspectors ► Lenders ► Attorneys Slide 13 of 21
  • 14. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders! Slide 14 of 21
  • 15. Review Your Situation Time to call the Lenders ● The Lenders will gather some basic information to: ● Determine qualified income ● Identify eligible assets ● Pull credit report, look for errors ● The purpose is to: ● Establish a comfort level for the monthly payment ● Identify and explore financing options ● Ensure that when the time is right the financing is ready Slide 15 of 21
  • 16. Review Your Income and Debt ● Things to do: ► Establish a budget ► Pull credit report, look for errors or derogatory information ► Gather the 2 most current Tax Returns, W2’s, Pay Stubs ● Things to avoid: ► Opening new lines of credit ► Closing old lines of credit ► Buying big ticket items (car, furniture, engagement ring) ► Changing jobs Slide 16 of 21
  • 17. Organize Your Assets ● How much do you have available and where is it coming from? ► Checking and Savings ► 401k Loan ► Sale of stock ► Gift funds? (restrictions apply) ► Proceeds from the sale of another home ► Distribution from an estate or trust ● Be prepared to provide a paper trail that reflects available balance and origin of funds Slide 17 of 21
  • 18. 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 18 of 21
  • 19. Make Your Decision ● Choose your lender wisely ► Lock your interest rate ► Review and return the Loan Application with any required documents promptly ► Be available to send any additional documentation as requested ► Stay informed and keep your finger on the pulse of the progress ► Be prepared with a contingency plan in the event there are any unexpected delays ► Buckle up and enjoy the ride Slide 19 of 21
  • 20. After Class… Please fill out the survey handed out at the beginning of class. We’d love to get your feedback on how the class could improve. To get even more info on the home buying process, check out our home buying guide: http://redfin.com/home-buying-guide Interested in having Redfin host a free 1 hour home buying session at your company? Let us know. We’ll provide lunch! Slide 20 of 21
  • 21. Thanks for Coming! Questions? Get in touch: Dave Fidanza dave.fidanza@redfin.com Rick Szekely rick.szekely@redfin.com Sebastian Rodak sebastian.rodak@redfin.com Erik Johansson erik.johansson@guaranteedrate.com Slide 21 of 21