Home Buying 101 A Primer Exclusively  for  First Time Home Buyers
Now is the Time to Buy <ul><li>First Time Buyers benefit in today’s real estate market </li></ul><ul><ul><ul><li>Lowest In...
So You’ve Decided to Buy a Home <ul><li>Steps in the Home Buying Process </li></ul><ul><ul><li>THE LOAN </li></ul></ul><ul...
So You’ve Decided to Buy a Home <ul><li>Steps in the Home Buying Process </li></ul><ul><ul><li>THE LOAN </li></ul></ul><ul...
So You’ve Decided to Buy a Home <ul><li>Steps in the Home Buying Process </li></ul><ul><ul><li>THE LOAN </li></ul></ul><ul...
Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>HOME WANTS AND NEEDS </l...
Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>HOME WANTS AND NEEDS (co...
Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>THE TOUR </li></ul></ul>...
Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>THE TOUR (cont.) </li></...
Making An Offer <ul><li>Negotiation is the key </li></ul><ul><ul><li>STRUCTURING THE OFFER </li></ul></ul><ul><ul><ul><li>...
Making An Offer <ul><li>Negotiation is the key </li></ul><ul><ul><li>GETTING INTO CONTRACT </li></ul></ul><ul><ul><ul><li>...
Escrow <ul><li>Negotiation is the key </li></ul><ul><ul><li>CLOSING ESCROW </li></ul></ul><ul><ul><ul><li>Acceptance is th...
Closing and Signing <ul><li>Buyers performance </li></ul><ul><ul><li>CONTINGENCY REMOVAL </li></ul></ul><ul><ul><ul><li>A ...
Delivery of Keys <ul><li>Funding means you can move in </li></ul><ul><ul><li>FINAL INSPECTION </li></ul></ul><ul><ul><ul><...
Conclusion <ul><li>I hope you found this information useful.  Only until you take action to pursue home ownership, will yo...
Contact Information <ul><li>Arturo C. Shivers, Realtor </li></ul><ul><ul><ul><li>CA DRE Lic. #0179941 </li></ul></ul></ul>...
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Home Buying 101 - A Primer for First Time Buyers

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This is a brief synopsis of the home purchase process, directed to first time home buyers that are interested in building wealth through real estate.

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Home Buying 101 - A Primer for First Time Buyers

  1. 1. Home Buying 101 A Primer Exclusively for First Time Home Buyers
  2. 2. Now is the Time to Buy <ul><li>First Time Buyers benefit in today’s real estate market </li></ul><ul><ul><ul><li>Lowest Interest Rates in US history </li></ul></ul></ul><ul><ul><ul><li>Price corrections in the market place </li></ul></ul></ul><ul><ul><ul><li>Home Buyer Tax Credits </li></ul></ul></ul><ul><ul><ul><li>Income levels are higher than ever </li></ul></ul></ul><ul><ul><ul><li>Inventory is available </li></ul></ul></ul><ul><ul><ul><li>Wealth building through real estate acquisition is the number one preferred method for small investors </li></ul></ul></ul>
  3. 3. So You’ve Decided to Buy a Home <ul><li>Steps in the Home Buying Process </li></ul><ul><ul><li>THE LOAN </li></ul></ul><ul><ul><ul><li>Determine what type of loan to choose </li></ul></ul></ul><ul><ul><ul><ul><li>30 Year Fixed Conventional </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Adjustable Rate Mortgage (ARM) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>VA loan, if eligible </li></ul></ul></ul></ul><ul><ul><ul><ul><li>FHA 30 Year Fixed </li></ul></ul></ul></ul>
  4. 4. So You’ve Decided to Buy a Home <ul><li>Steps in the Home Buying Process </li></ul><ul><ul><li>THE LOAN </li></ul></ul><ul><ul><ul><li>Get Prequalified for your mortgage loan (cont.) </li></ul></ul></ul><ul><ul><ul><ul><li>Gather income documentation (2 years W2’s, P&L, Paystubs, etc.) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gather Asset documentation (401K statement, Life Insurance statement, Brokerage statements, etc.) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gather Employment contact information </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Choose a Loan Officer at your local bank or credit union, or choose a Mortgage Broker </li></ul></ul></ul></ul>
  5. 5. So You’ve Decided to Buy a Home <ul><li>Steps in the Home Buying Process </li></ul><ul><ul><li>THE LOAN </li></ul></ul><ul><ul><ul><li>Get Prequalified for your mortgage (cont.) </li></ul></ul></ul><ul><ul><ul><ul><li>Present all documentation to your chosen mortgage professional who will assist you in completing a loan application; your FICO score should be 620 & greater </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Be sure to get at least 3 quotes </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Upon preliminary review, if passing, you will receive a letter of preapproval that you should present to your Realtor ® </li></ul></ul></ul></ul>
  6. 6. Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>HOME WANTS AND NEEDS </li></ul></ul><ul><ul><ul><li>Call your Realtor and request a consultation </li></ul></ul></ul><ul><ul><ul><ul><li>Address your budget (provided in the Prequalification letter from your chosen lender) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Address your WANTS </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>City, School Districts, Nightlife, Culture, etc. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Address your NEEDS </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Timeframe, Bedrooms, Bathrooms, Yard… </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Develop a hierarchy of the WANTS & NEEDS </li></ul></ul></ul></ul>
  7. 7. Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>HOME WANTS AND NEEDS (cont.) </li></ul></ul><ul><ul><ul><li>Want & Needs Hierarchy is a pyramid of what is important to you </li></ul></ul></ul><ul><ul><ul><ul><li>The very most important is at the top and is one or two things </li></ul></ul></ul></ul><ul><ul><ul><ul><li>The least important is the bottom base; a broad list of things that aren’t so critical </li></ul></ul></ul></ul><ul><ul><ul><li>Sign a written agreement with your Realtor ® that sets your wants and needs ‘pyramid’ in stone. </li></ul></ul></ul>
  8. 8. Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>THE TOUR </li></ul></ul><ul><ul><ul><li>Preview homes which fall within the guidelines of your written agreement </li></ul></ul></ul><ul><ul><ul><li>Rank each home on a scale of 1 to 10 </li></ul></ul></ul><ul><ul><ul><li>You should NOT need to see 15, 20, or 30 homes; YOU ALREADY CREATED A HIERARCHY AND WILL NOT BE SHOWN PROPERTIES THAT DON’T FIT WITHIN IT </li></ul></ul></ul>
  9. 9. Choosing the Right Home For You <ul><li>A home is more than room dimensions </li></ul><ul><ul><li>THE TOUR (cont.) </li></ul></ul><ul><ul><ul><li>You will find homes that fit within your PYRAMID </li></ul></ul></ul><ul><ul><ul><li>You will NOT find your DREAM HOME; if you do find it on a first time buyer budget, you are either royalty or you are committing fraud </li></ul></ul></ul><ul><ul><ul><li>You will choose a home that fits into your wants and needs PYRAMID </li></ul></ul></ul>
  10. 10. Making An Offer <ul><li>Negotiation is the key </li></ul><ul><ul><li>STRUCTURING THE OFFER </li></ul></ul><ul><ul><ul><li>Your Prequalification is your primary tool to seal the deal on the purchase of your home </li></ul></ul></ul><ul><ul><ul><ul><li>Because the property fits your PYRAMID, you can elect to use some or all of your Prequalification budget in the negotiation </li></ul></ul></ul></ul><ul><ul><ul><li>Secondary Tools – Terms & Contingencies </li></ul></ul></ul><ul><ul><ul><ul><li>Contingencies are the means for buyers to determine if they really truly want to buy the property that they are making an offer for </li></ul></ul></ul></ul><ul><ul><ul><ul><li>There are Loan Contingencies, Appraisal Contingencies, and Inspections Contingencies </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Contingencies are TIMEFRAMES, usually 17 days but can be shortened to IMPROVE YOUR NEGOTIATION; TIME IS OF THE ESSENCE </li></ul></ul></ul></ul>
  11. 11. Making An Offer <ul><li>Negotiation is the key </li></ul><ul><ul><li>GETTING INTO CONTRACT </li></ul></ul><ul><ul><ul><li>An contract must have 5 key elements </li></ul></ul></ul><ul><ul><ul><ul><li>Offer (Price, terms and contingencies) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Acceptance </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Adequate Consideration </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Notification </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Legality </li></ul></ul></ul></ul>
  12. 12. Escrow <ul><li>Negotiation is the key </li></ul><ul><ul><li>CLOSING ESCROW </li></ul></ul><ul><ul><ul><li>Acceptance is the property sellers’ signature that they have reviewed and AGREE to your price, terms and contingencies in your offer </li></ul></ul></ul><ul><ul><ul><li>Counter-Offer is not an acceptance; it is not agreement until signed by the party that is being countered </li></ul></ul></ul><ul><ul><ul><li>Once both parties are notified that they are in AGREEMENT, escrow will be opened according to the Escrow Instruction that is a part of the offer purchase contract document. The 3 rd party escrow coordinator will not deviate from those instructions. </li></ul></ul></ul><ul><ul><ul><li>Earnest money is deposited to evidence the consideration </li></ul></ul></ul><ul><ul><ul><li>If all parties are competent, over 18 years old, and not under duress, the transaction should meet legality requirements. </li></ul></ul></ul>
  13. 13. Closing and Signing <ul><li>Buyers performance </li></ul><ul><ul><li>CONTINGENCY REMOVAL </li></ul></ul><ul><ul><ul><li>A buyer that is under contract is obligated to complete the contingency stipulations or cancel the contract; there is no room for middle ground </li></ul></ul></ul><ul><ul><ul><li>The Prequalification from the lender will be fulfilled by a commitment to lend </li></ul></ul></ul><ul><ul><ul><li>The appraisal and inspections must be completed according to the CONTINGENCY TIMEFRAMES </li></ul></ul></ul><ul><ul><ul><li>A signing appointment is scheduled for signing loan documents needed to fund the loan and close the deal </li></ul></ul></ul>
  14. 14. Delivery of Keys <ul><li>Funding means you can move in </li></ul><ul><ul><li>FINAL INSPECTION </li></ul></ul><ul><ul><ul><li>About 5 days prior to closing, you will make one final inspection to ensure that the property is to your terms as specified in the offer; if there are repairs needed, this is time to ask the seller to make them </li></ul></ul></ul><ul><ul><ul><li>Keys are delivered and the property is yours! </li></ul></ul></ul>
  15. 15. Conclusion <ul><li>I hope you found this information useful. Only until you take action to pursue home ownership, will you actually realize the importance of careful and considerate planning. If done properly, your efforts will pay off over time and help to enable you to build wealth and achieve your dreams </li></ul>
  16. 16. Contact Information <ul><li>Arturo C. Shivers, Realtor </li></ul><ul><ul><ul><li>CA DRE Lic. #0179941 </li></ul></ul></ul><ul><li>Member NAR, CAR, CCAR </li></ul><ul><li>Notary Public </li></ul><ul><ul><ul><li>760 Camino Ramon, Suite 200, Danville, CA 94526 </li></ul></ul></ul><ul><ul><ul><li>Office: (925) 855-8333 Ext. 272 </li></ul></ul></ul><ul><ul><ul><li>Mobile: (415) 871-4239 </li></ul></ul></ul><ul><ul><ul><li>Email: arturo.shivers@kw.com </li></ul></ul></ul>
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