• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
2010 Home Buying Seminar
 

2010 Home Buying Seminar

on

  • 2,182 views

* How the Stimulus Plan benefits first time home buyers and trade-up buyers * Why buy a home in 2010? * Steps for a successful home or condo purchase * Differences between owning a condo vs a single ...

* How the Stimulus Plan benefits first time home buyers and trade-up buyers * Why buy a home in 2010? * Steps for a successful home or condo purchase * Differences between owning a condo vs a single family home in San Mateo County * How to finance your home purchase? * State of the San Mateo County real estate market

Statistics

Views

Total Views
2,182
Views on SlideShare
2,182
Embed Views
0

Actions

Likes
0
Downloads
47
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    2010 Home Buying Seminar 2010 Home Buying Seminar Presentation Transcript

    • Buy A HOME ON THE SAN FRANCISCO PENINSULA 2010
      Aimee Snodgrass Klarich
      Realtor ®
      Alain Pinel Realtors
      Burlingame, Ca
      Business 650-483-3795
      aklarich@apr.com
      www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
      San Mateo, Ca
      Business 650-645-1775
      eileenhoran@mortgagecalifornia.com
    • Home Buying Seminar
      Presentation Topics
      • How the Stimulus Plan benefits first time home buyers
      • Tax Credits available for home ownership
      • Why buy a home in 2010?
      • Steps for a successful home or condo purchase
      • Differences between owning a condo vs a single family home in San Mateo County
      • How to finance your home purchase?
      • State of the San Mateo County real estate market
      Aimee Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • WHY BUY A HOME IN 2010?
      • Stimulus Plan benefits local buyers by enabling them to qualify for specific loan programs with lower interest rates.
      • $8000 First Time Home Buyer tax credit on purchases through 6/30/10 for qualified buyers.
      • $6500 Tax Credit for current qualified homeowners
      • Mortgage rates remain historically low but are projected to increase.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • WHY BUY A HOME?
      • You build wealth as value appreciates
      • It can be a tax write-off
      • House expenses usually increase slower than renting
      • You have much more flexibility in how you use, decorate and make physical changes to your home
      • Pride of homeownership
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • STIMULUS PLAN
      The "American Recovery and Reinvestment Act of 2009," was signed by President Obama on February 17th, 2009.
      On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. This means lower interest rates for those getting a loan between the $729,750 and $625,500 in San Mateo and San Francisco Counties.
      On Nov 13th, 2009, congress extended this thru Dec. 31st, 2010. .
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • STIMULUS PLAN
      The bill also increases the first-time home buyer credit from $7,500 to $8,000 through June 30th, 2010.
      See Appendix for more details
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Other Tax Credits
      Homeowners who currently do not qualify for aid under the federal housing-rescue plan still may qualify for tax credits on energy-efficient upgrades.
      Homeowners may qualify for up to $1,500 in tax credits for adding qualifying windows, doors, insulation, roofs, heating and cooling equipment, water heaters, and wood and
      pellet stoves.
      The installations must take place in 2010 to qualify for the tax credit.
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Renting vs Buying a home
      • $1000 per month in rent
      • 5% annual rent increase
      • After 5 years you have spent $66,307 in rent.
      • Net equity gain: $ 0
      • You have nothing to show after spending all this money.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Renting vs Buying a home
      The rent you pay could build equity in your own real estate.
      Using this chart, find your month rental payment and you can determine how much money you are “giving away” in rent and interest (5%) over 10, 20, 30 years.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • HOMEOWNERS HAVE TAX DEDUCTIONS
      The government rewards homeownership through write-offs and deductions on your taxes.
      Homeowner Deductions
      • Mortgage Interest Payments
      • Property Taxes
      • Discount points (closing costs)
      • It is customary in San Mateo County that buyers pay closing costs. This is negotiable.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • TAX DEDUCTION EXAMPLE:
      3 Bedroom 1 Bath Single Family Home
      East Side San Mateo
      • Home Price
      • 20% Down Payment
      • Home Mortgage
      • Interest Rate
      • Annual Interest Paid
      • Annual Property Tax
      • Total Deductions
      • $500,000
      • $100,000
      • $400,000
      • 5.50%
      • 22,000
      • 6,250
      • $28,250
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • TAX DEDUCTIONS = TAX SAVINGS
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Tax Deduction Example
      2 Bedroom 1 Bath Condominium
      West Side San Mateo
      Purchase Price $340,000
      Buyers Combined Annual Salary $65,000 (28% Tax Bracket)
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • OUR MARKET?
      Months of Inventory is used as an analytical tool in determining who holds the power in negotiations.
      Months of Inventory = # homes of sale/#homes sold
      Supply and Demand…
      Months of Inventory <4 = Seller Market
      Months of Inventory =4 = Flat Market
      Months of Inventory >4 = Buyer Market
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • FLAT MARKET:
      SAN MATEO COUNTY SINGLE FAMILY HOMEs
      San Mateo County Single Family Homes
      All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
      * Cities within the county vary from the total.
    • STATE OF THE MARKET (Dec 2009):
      SAN MATEO COUNTY SINGLE FAMILY HOMES
      At an aggregate level, San Mateo County continues to be a flat market.
      All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • STATE OF THE MARKET (Dec 2010):
      SAN MATEO COUNTY SINGLE FAMILY HOMES
      • Inventory was down 37% to last year
      • Unit Sales were up 23% to last year
      • Most note worthy was the significant increase in pending sales: up 47% to last year.
      • Average Days On Market was 64 days vs 79 last year
      • Avg Sales Price vs. Original List Price: 93%
      Median Sales Price: $755,000 (+28% to last year)
      Each city, neighborhood and area shows a different picture. Schools, commute, weather are all key factors in the variances between cities and areas.
      All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • FLAT MARKET:
      SAN MATEO COUNTY CONDOs &TOWNHOMEs
      San Mateo County Condos and Townhomes
      All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
      * Cities within the county vary from the total county picture.
    • STATE OF THE MARKET (DEC 2009):
      SAN MATEO COUNTY CONDOS & TOWNHOMES
      At an aggregate level, San Mateo County continues to be a flat market. Months of Inventory based on closed sales was 3 last month vs 5.6 a year ago.
      All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • STATE OF THE MARKET (May 09):
      SAN MATEO COUNTY CONDOS & TOWNHOMES
      • Inventory was down 26% to last year
      • Unit Sales were down 3% to last year.
      • Average Days on Market was 77 days vs 83 last year
      • Avg Sales Price vs. Original List Price: 98%
      Median Sales Price: $465,000 (+23% to last year)
      Each city, neighborhood and area shows a different picture. Schools, commute, weather are all key factors in the variances between cities and areas.
      All reports are published Jan. 2009, based on data available at the end of Dec. 2008. All reports presented are based on data supplied by San Mateo County Association of Realtors. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • MORTGAGE RATES ARE HISTORICALLY LOW
      Aimee Snodgrass Klarich
      Realtor®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • WHY BUY A HOME ON THE
      San FRANCISCO PENINSULA?
      LOCATION, LOCATION, LOCATION
      • Bridgeless commutes to San Francisco and Silicon Valley
      • Employment opportunities
      • No more land to build upon since we are flanked by the bay and the ocean
      • Moderate weather
      • Good schools
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • WHY BUY A HOME ON THE
      San FRANCISCO PENINSULA?
      San Mateo County sub-prime loans are only 1.5% of total housing units.
      SOURCE: FirstAmerican CoreLogic, LoanPerformance Data, U.S. Census Bureau, and Federal Reserve Bank of New York
      Dec 07
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Advice FROM First-Time Home Buyers:
      Top 10 Answers from a Survey of 1000 Buyers by California Association of Realtors on advice they would give other home buyers.
    • Who’s Who In Real Estate ?
      • Lender: Qualifies buyer and provides the home financing.
      • Buyers Agent (Realtor ® ): Fiduciary responsibility to buyer(s)
      • Selling Agent (Realtor ® ): Fiduciary responsibility to seller(s)
      • Escrow Officer: Neutral 3rd party manager of the transaction
      • Appraiser: Hired by lender to confirm property values
      • Inspectors: Provide insight into the condition of a home
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Timeline of Buying a Home
      • Initial Consultation and Planning: Lender or Realtor
      • Get Pre-Approved for a loan
      • Search for a Home
      • Find a Home
      • Submit an Offer and Negotiate
      • Final Agreement on Terms and Price
      • Open Escrow with a Title Company.
      • Deposit your earnest money deposit into Escrow Account
      • Appraisal and other further needed inspections and reports
      • Secure Home Insurance as a requirement of the lender
      • Removal of remaining contingencies
      • Final Inspection and Walk Through of Home
      • Secure loan funds. Deposit your remaining funds into escrow.
      • Record Deed of Title
      • You take possession of property
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Financing a Home Purchase
      Meet with a Lender to see how much you qualify for.
      Your qualifications are based on the following:
      • Credit
      • Income
      • Assets
      The most important part of this is for you to decide how much you WANT to pay on a monthly basis.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Is my credit good enough?
      • It’s a fact: qualifying criteria has gotten tighter than in previous years.
      • Homebuyers need to pay more attention to their credit scores than they did before.
      • Credit history
      • Your credit score may impact your interest rate.
      • Your credit score may impact your down payment requirements.
      • But you don’t need perfect credit to buy a home.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • How much money do I need?
      • For a down payment?
      Source of Down Payment:
      Checking/Savings
      Money Market/Stocks
      Gift Funds
      Borrow from a 401k, 403b, etc.
      Your money must be seasoned
      • For closing costs?
      Appraisal
      Processing and Underwriting
      Title & Escrow
      What are Pre-Paids?
      Interim interest
      Insurance
      Impounds
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • How much money do I need?
      Monthly Payment Expenses:
      • Your monthly payments include:
      • Principal & Interest.
      • Property Taxes
      • Insurance
      • Mortgage insurance - if your down payment is less than 20%.
      • Association fees - if applicable.
      • Your maximum monthly payment is calculated using:
      • Your housing monthly debt.
      • Your other debt
      • Again, the most important part is to be comfortable with the calculated monthly payment:
      • Repairs and maintenance costs are part of homeownership.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • What type of mortgage should I get?
      • What type of documentation will be required?
      • 2 pay stubs
      • 2 years W2s and Federal Tax Returns
      • 2 months bank statements
      • What type of product?
      • What kind of rate?
      • How long a term?
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • What type of mortgage should I get?
      • We’ll help you select the product type that meets your needs:
      • Conforming loans up to $417,000* for a single-family.
      • Jumbo Conforming loans $417,001 up to $729,750*
      • Jumbo loans greater than $729,750*.
      • Combination loans: conforming first + a second mortgage.
      • Government loans: FHA & VA.
      *The conforming ceiling of $417,000 has been raised in high-cost housing markets starting 01/01/2009. The loan limit on these “conforming jumbo” loans varies by location but doesn’t exceed $729,750 in the continental U.S.
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • What type of mortgage should I get?
      What kind of rate?
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • What type of mortgage should I get?
      How long a term?
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Timeline of Buying a Home
      • Initial Consultation and Planning: Lender or Realtor®
      • Get Pre-Approved for a loan
      • Select Your Team of Professionals
      • Search for a Home
      • Find a Home
      • Submit an Offer and Negotiate
      • Final Agreement on Terms and Price
      • Open Escrow with a Title Company.
      • Deposit your earnest money deposit into Escrow Account
      • Appraisal and other further needed inspections and reports
      • Secure Home Insurance as a requirement of the lender
      • Removal of remaining contingencies
      • Final Inspection and Walk Through of Home
      • Secure loan funds. Deposit your remaining funds into escrow.
      • Record Deed of Title
      • You take possession of property
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Choosing the Right REALTOR
      Things to consider…
      • How well does the agent know the market you are considering? How will the agent help focus your search?
      • How well does he or she listen to you?
      • Do you feel that the agent will be respectful of your desires, enabling (not forcing) you to make your own decisions?
      • Do you feel they will negotiate hard for you?
      • Do you feel a rapport?
      • Are they clear on their services and expectations?
      • Per the survey of Home Buyers from CAR:
      • Check references
      • What online services does the Realtor provide?
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Choosing the Right Home
      Meet with a Realtor®
      • Discuss present and future housing needs and wishes
      • Single Family Home, Condo or Townhome
      • Number of bedrooms and bathrooms
      • Home square footage and lot size
      • One story vs two story
      • Desired neighborhoods
      • Location vs. commute to work/school
      • Desired amenities (garage, laundry, pool, etc)
      • Your family size- current and projected
      • Hobbies or special needs to accommodate
      • Preferred condition of the property (fixer upper?)
      • Any non-negotiable points for you
      • Current housing and terms of current contracts
      • Learn and discuss types of sales
      Aimee’s Buyer Services Packet in Appendix
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Timeline of Buying a Home
      • Initial Consultation and Planning: Lender or Realtor®
      • Get Pre-Approved for a loan
      • Select Your Team of Professionals
      • Search for a Home
      • Find a Home
      • Submit an Offer and Negotiate
      • Final Agreement on Terms and Price
      • Open Escrow with a Title Company.
      • Deposit your earnest money deposit into Escrow Account
      • Appraisal and other further needed inspections and reports
      • Secure Home Insurance as a requirement of the lender
      • Removal of remaining contingencies
      • Final Inspection and Walk Through of Home
      • Secure loan funds. Deposit your remaining funds into escrow.
      • Record Deed of Title
      • You take possession of property
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • NEGOTIATION HOMEWORK: How much should I offer?
      • Know the sales history of similar sold properties within the area over the past 3-4 months.
      • Compare sale and list price
      • Months of Inventory
      • Days on market
      • Know the current property offer and disclosure packet activity, if any
      • Know the property condition and short-term repair expenses (including HOA Assessments)
      • Know the seller's situation and motivation for selling.
      • Examples of other things to negotiate on other than price:
      • Closing Costs
      • Repairs
      • 30 day rent backs
      • Know your financing options and have your pre-approval letter from your lender for the exact offer price
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • Making an offer on a property
      • Your offer will be written on a Purchase Contract by your Realtor.
      • Traditionally, the accepted deposit (earnest money) is 3% of the offer price.
      • The down payment and amount financed will be determined.
      • Understand what is included with the purchase of the home as in fixtures & appliances and negotiate accordingly.
      • Decide on needed inspections and contingencies to be negotiated into the contract
      • Examples of Contingencies
      • Financing
      • Appraisal
      • Property Condition
      • The close of escrow date will need to also be negotiated
      • The lender will most often influence the closing date so your lending partner must be involved during the negotiation process
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California
    • You’re In Contract… Now what?
      • Open Escrow with a Title Company.
      • Traditionally done by your Realtor.
      • Deposit your earnest money deposit into the Escrow Account
      • Complete appraisal and inspections
      • Secure home insurance as a requirement of the lender
      • Remove contingencies (if all is satisfactory)
      • Final Inspection and Walk Through of Home
      • Secure loan funds. Deposit your remaining funds into escrow.
      • Record Deed of Title
      • You take possession of the property
      Aimee Snodgrass Klarich
      Realtor ®
      http://www.AimeeKlarich.com
      Eileen Horan
      Mortgage Broker
      Mortgage California