On October 23rd, 2014, we updated our
By continuing to use LinkedIn’s SlideShare service, you agree to the revised terms, so please take a few minutes to review them.
Bank statements for checking & savings for most recent month
Proof of any additional income
Bankruptcy discharge and all schedules
List of your creditors
Documentation of any other assets (401K, IRA, CD’s)
Fixed Rate vs. Adjustable Rate
With Fixed Rates:
Your payment remains the same
15, 20 or 30 year repayment terms
Advantages: predictability and insurance against rising rates
With Adjustable Rates (ARM)
Payments increase or decrease on a regular schedule with interest rate changes
Increases are subject to limits
ARM linked to specific index or margin
Advantages include a low initial interest rate with lower monthly payments
How Much Home Can You Afford?
Housing costs (including taxes and insurance) should be less than 29% of your total gross income
Housing costs + your other debt should be no more than 41%-45% of your gross income
Special programs do allow a total debt ratio of up to 50% of your gross income
How a Realtor Can Help
Guides you through the process, buying or building
Knows the community
Can provide you with lists of homes that meet your requirements
Protects you with a contract, skills & knowledge
A buyer’s agent would be bound to protect and represent you (the buyer)
Listing agent is bound to protect and represent the seller
Looking for a Home
Compare the homes you see to a list of your “must haves”
Imagine your furniture—will it fit?
Is it in good condition? Or will you be spending a lot of money on repairs?
Ask your Realtor to point out the pros and cons
What is the neighborhood like? Are the other homes going up or down in value?
Make copies of this page and use it to keep track of the properties you visit. Property Address : ________________________________________________ Type of House: New or Existing Ranch /Split /2 Story/Multi Traditional Contemporary Construction: Brick - Stucco - Stone Vinyl Siding # of Rooms: Bedrooms: Baths: Living Room Dining Room/ Kitchen Basement Office Family Room Other Heat: Forced air Radiator A/C: Central Window - Evaporative None Extras: Fireplace Garage Deck Porch Neighborhood: Ideal Acceptable Poor
When You’ve Found the Home of Your Dreams!
Determine the amount you’re willing to offer
What are comparable homes selling for?
What is home’s condition
How long has home been on the market?
What is the seller’s situation
Rely on your Realtor for guidance
Be prepared to negotiate
Decide how much earnest money you’ll put down
Usually between 1-5% of purchase price
If offer is accepted, earnest money becomes part of your down payment
What are closing costs?
Loan Origination Fee
Documentation Prep Fee
MI (Mortgage Insurance)
At closing, you will:
Present receipt of homeowner’s insurance
Closing agent will list money you owe seller
Seller will provide proofs of any warranties or inspections
You’ll read documentation and sign loan papers
You’ll pay the closing costs and down payment
You’ll receive a settlement statement (HUD’s)
The new deed will be recorded
How to Get Started
Set Up A Personal Homebuyer’s Consultation with your Affinity Alliance Mortgage Loan Officer that includes: