Buying Your First Home
what first-time buyers need to know about mortgages
PRESENTED BY
MIKE P. JOHNSON
Mortgage Specialis...
Where to Start?
• You might know what you’re looking for
– Where you might like to live
– What kind of house appeals to yo...
Who Can Help?
• Your Loan Officer
– Knows your community, local and regional
programs and is a home financing expert
• Int...
How Much?
• Rent = Mortgage
• How much house you can afford depends on
a lot of things*:
– Your employment
– Your savings
...
Your Credit Score
• Credit plays a big role in qualifying for a mortgage
– Make sure your credit situation is as good as i...
Down Payment
• The amount YOU pay up front to purchase the
house. It is a percentage of the sale price:
– Example: $150,00...
The Loan
• There are many different kinds of loans, available.
Different loans may be right for different people,
dependin...
The Language
• There are some basic terms you need to know before
looking at mortgage types:
– Adjustable Rate Mortgage – ...
The Common Options
• Fixed-Rate Mortgage
– Usually 30-, 20- and 15-year options
– Monthly payments stay the same
• Some va...
More Choices
• First Time Home Buyers often have additional
resources:
– State/local home buying programs
• (insert exampl...
Getting Started
• Meet with a Mortgage Professional
– Review your financial situation/plans
– Understand your mortgage opt...
Things to Know
• Interest Rate vs. APR (Annual Percentage Rate)
• Discount Points & Origination Fees
• Other Costs to anti...
Happy House Hunting!
• Find A Realtor
• Attend Open Houses
• Find the home you want!
– CONSIDER A RATE LOCK as you narrow ...
Offer Approved?
• Once your offer is approved, it’s time to apply for
your loan.
– Your credit, income and asset informati...
Important Documents
• Purchase Agreement
– Sets the date for your closing
– Spells out the events that must take place BEF...
Closing
• Closing is simply the meeting between you, the
seller and the lender where the property (and the
money) official...
Find Out More
Mike P. Johnson
Mortgage Banker
NMLS ID 847494
Newport Beach, CA
Direct: (949) 529-0784
mjohnson@mikepjohnso...
Upcoming SlideShare
Loading in …5
×

Buying Your First Home - Mike P. Johnson Mortgage Banker

472
-1

Published on

My newly released presentation on what you should know when buying your first home.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
472
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Buying Your First Home - Mike P. Johnson Mortgage Banker

  1. 1. Buying Your First Home what first-time buyers need to know about mortgages PRESENTED BY MIKE P. JOHNSON Mortgage Specialist, NMLS ID 847494 Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  2. 2. Where to Start? • You might know what you’re looking for – Where you might like to live – What kind of house appeals to you – When you’d like to move • But none of this can happen until you know: HOW MUCH HOUSE CAN YOU AFFORD? Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  3. 3. Who Can Help? • Your Loan Officer – Knows your community, local and regional programs and is a home financing expert • Internet – Lots of information available, difficult to compare apples-to-apples • Your REALTOR® – Knows the homes in your area, good guide to the entire process Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  4. 4. How Much? • Rent = Mortgage • How much house you can afford depends on a lot of things*: – Your employment – Your savings – Your credit card and other loan balances – Your FICO or credit score – Your future plans * The Buyer Worksheet on LendRIGHT.com can help you prepare for a conversation with a loan officer Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  5. 5. Your Credit Score • Credit plays a big role in qualifying for a mortgage – Make sure your credit situation is as good as it can be • Check your credit score for accuracy • Close any unused credit card accounts • Ensure you are up-to-date on all payments owed (credit cards, auto loans, etc.) • Do not apply for any new credit cards • Avoid major purchases on credit Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  6. 6. Down Payment • The amount YOU pay up front to purchase the house. It is a percentage of the sale price: – Example: $150,000 house • 5% down = $7,500 • 10% down = $15,000 • 20% down = $30,000 Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  7. 7. The Loan • There are many different kinds of loans, available. Different loans may be right for different people, depending on a number of factors: – Your current financial situation – How you expect your finances to change – How long you intend to keep your house – How comfortable you are with your mortgage payments changing in the future – What kind of home you want to buy (house, condo, farm, etc.) Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  8. 8. The Language • There are some basic terms you need to know before looking at mortgage types: – Adjustable Rate Mortgage – often called an ARM – Borrower (that’s you) – Down Payment – Equity – Fixed Rate Mortgage – Interest Rate – Lender (that’s me) – Principal – Private Mortgage Insurance – often called PMI Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  9. 9. The Common Options • Fixed-Rate Mortgage – Usually 30-, 20- and 15-year options – Monthly payments stay the same • Some variation if you include insurance and taxes – Better when rates are low and you plan to stay in the home for an extended period of time (5+ years) • ARM – Permits changes/adjustments to the interest rate – Usually stays the same for an initial period of time. • Example: a 3-year ARM would mean the initial interest rate would stay the same for the first three years, then would adjust each year beginning with the fourth year. Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  10. 10. More Choices • First Time Home Buyers often have additional resources: – State/local home buying programs • (insert examples specific to your community here) – Federal Mortgage Programs (FHA loans) – Veterans Programs (VA loans) – USDA Financing Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  11. 11. Getting Started • Meet with a Mortgage Professional – Review your financial situation/plans – Understand your mortgage options – Apply for Prequalification or Preapproval • You will know how much the lender is willing to lend you, which tells you how much house you could buy • This puts you in a good position to go house hunting! » Gives you better negotiating power » Gives you preference if the seller receive multiple offers » Realtors may not work with you until you are able to share Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  12. 12. Things to Know • Interest Rate vs. APR (Annual Percentage Rate) • Discount Points & Origination Fees • Other Costs to anticipate (your Lender & Realtor can help you here) – Appraisal – Credit report – Title work – Recording Fees – Taxes Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  13. 13. Happy House Hunting! • Find A Realtor • Attend Open Houses • Find the home you want! – CONSIDER A RATE LOCK as you narrow down your choices • Ask about the costs involved, what it protects and for how long • Make an offer! Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  14. 14. Offer Approved? • Once your offer is approved, it’s time to apply for your loan. – Your credit, income and asset information will be formally reviewed and collected. – Information about the house will be collected and verified – You will need to secure Homeowners Insurance • We also strongly recommend you schedule a Home Inspection Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  15. 15. Important Documents • Purchase Agreement – Sets the date for your closing – Spells out the events that must take place BEFORE closing • Good Faith Estimate (GFE) – Lists all fees paid before closing, all closing costs and any escrow costs you will encounter – The Lender is required to provide this within 3 days after your loan application has been completed Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  16. 16. Closing • Closing is simply the meeting between you, the seller and the lender where the property (and the money) officially change hands. You will: – Sign legal documents • Agreement between you and the lender • Agreement between you and the seller – Pay Closing Costs, Escrow and Down Payment (via cashier’s check) Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784
  17. 17. Find Out More Mike P. Johnson Mortgage Banker NMLS ID 847494 Newport Beach, CA Direct: (949) 529-0784 mjohnson@mikepjohnson.com ftin Mike P. Johnson Mortgage Banker www.mikepjohnsonloans.com (949) 529-0784 Schedule a FREE Loan Consultation

×