Atlanta New Construction Class 10.9.12

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Atlanta New Construction Class 10.9.12

  1. 1. New Construction HomeBuying ClassThings you need to know if you are considering a Brand New Home!October 9, 2012 Sandy Springs, GASlide 1 of 26
  2. 2. Working with RedfinSlide 2 of 26
  3. 3. 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 friendSlide 3 of 26
  4. 4. How Commissions Work We refund back part of our commission to you! • Subject to lender approval • Applied to closing costs • Refund is tax-freeSlide 4 of 26
  5. 5. How Our Team Works AGENT Responsible for your success Writes your offer Handles negotiations YOU FIELD AGENT COORDINATOR Takes you to see homes Schedules tours See 50+ homes a week Prepares paperwork Works with escrowSlide 5 of 26
  6. 6. Market ConditionsSlide 6 of 26
  7. 7. Case-Shiller: Atlanta Area v. 20-City 250.00 20 City Composite Atlanta 200.00 150.00 100.00 50.00 0.00Slide 7 of 55
  8. 8. Case-Shiller – By the NumbersCase-Shiller: Atlanta Area Down 12.1% year-over-year Peak was July 2007 Down 33% from peak Currently at October 1998 pricesCase-Shiller: 20-City Composite Up 0.5% year-over-year Peak was July 2006 Down 31.1% from peak Currently at July 2003 pricesSlide 8 of 26
  9. 9. Absorption Rate “The rate at which available homes are sold in a specific real estate market during a given time period” Number of Active listings or comps in a specific market Number of homes that sold in that last 12 monthsSlide 9 of 26
  10. 10. Buying a Brand New HomeSlide 10 of 26
  11. 11. New Pulte Homes have advantages● The benefits of new - Pulte homes are brand new, so they won’t come with old problems.● Quality built in - Our rigorous construction methods are designed to ensure your home will be built right. We handle the hard work so you can focus on the fun stuff, like choosing the perfect floor plan that fits your lifestyle.● The process you want - Our collaborative building process keeps you informed and Pulte Homes Home Protection Plan – a warranty among the best in the industry.● The Pulte Energy Advantage - Our homes are up to 30 percent more energy–efficient than the average existing home.● Plus, Glenridge Heights is partnered with Earth Cents for maximum efficiencySlide 11 of 26
  12. 12. Things to consider.. ● Earnest money at Glenridge Heights is $5,000 and due at the time of contract for deposit ● Pulte buyers have 3 days to apply for mortgage and 30 days for loan approval – if loan is denied Pulte will refund earnest money as long as deadlines are metSlide 12 of 26
  13. 13. Pulte Advantages● Over 60 years of building experience● Industry leading 1/2/5/10 Warranty● Seamless Process from contract to closing with experienced sales, construction & mortgage team members● Personalized meetings with the builder: pre-construction, pre- drywall & pre-closing orientation for a full overview of your new home and how it works.● Recorded success – it is easy to buy with piece-of-mind in Pulte communities leading sales and closings in the areas they serveSlide 13 of 26
  14. 14. Keys to Financing NCSlide 14 of 26
  15. 15. Pulte Preferred Lender● Pulte Mortgage (PMC)● Pulte Buyer Rewards Program – Pulte Homes pays $5,000 towards closing costs at Glenridge Heights● Celebrating 40 years of experience – PMC has provided lending services to more than 400,000 customers.● PMC finances new home construction for customers of Pulte Homes, Centex, Del Webb, DiVosta and Fox & Jacobs.● PMC is a wholly-owned subsidiary of PulteGroup, Inc and a financially stable partner you can trust.● PMC assigns personal Loan Consultants who are dedicated to helping customers select financing solutions to fit their unique situations.Slide 15 of 26
  16. 16. Redfin Preferred Lenders *In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!Slide 16 of 26
  17. 17. Get Pre-Approved ● A pre-approval letter is a letter from a bank or a lender estimating how much theyll lend a borrower ● Help you establish how much you can afford and makes offer process go faster ● Information needed: ► W-2, two pay-stubs, tax returns (get them ready), bank statements ● The process only takes a few days while banks get everything verified ● The approval is good for 90 days, depending on lender ● Ask for a few different amounts ● Redfin asks that you get pre-approved before your third tourSlide 17 of 26
  18. 18. 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 ● Your pre-approval stays valid as long as your finances constant (check with your lender to see if they have limits on this) ● Being pre-approved is required by sellers to consider offersSlide 18 of 26
  19. 19. Organize Your Assets● Get ready for the down payment ● Cash accounts (liquid funds) ● 401(k), stocks, other investments ● Gift funds? (Max. allowed varies) ● Move funds around before you start shoppingSlide 19 of 26
  20. 20. Review Your Debt● Pull credit report, look for errors● Figure out how much monthly income goes towards paying off debt: 28 – 33% healthy● Pay down balances to 1/3rd of credit available● Don’t open any new lines of credit● Don’t buy any big ticket items● Co-borrower will need to do the sameSlide 20 of 26
  21. 21. Comparing GFE Results● Gather Good Faith Estimates (loan quotes) ► A minimum of two, 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 21 of 26
  22. 22. Make Your Decision● When possible, get a loan commitment● Wait to lock your interest rate (30 - 60 days)● Make alternative funds liquid (401k, stock)Good news! Loan payments are made in arrears, soyour first loan payment won’t be for two months.You’ll have one month of no payments.Slide 22 of 26
  23. 23. Where Are Rates Headed?Type of Loan September 27, 2012 October 4, 201230-Year Fixed 3.40% 3.36%15-Year Fixed 2.73% 2.69%5/1 ARM 2.71% 2.72%1-Year ARM 2.60% 2.57%Slide 23 of 26
  24. 24. Where Are Rates Headed?Slide 24 of 26
  25. 25. After Class…Please fill out the survey handed out at the beginning ofclass. We’d love to get your feedback on how theclass could improve.To get even more info on the home buying process,check out our home buying guide:http://redfin.com/home-buying-guideSlide 25 of 26
  26. 26. Our next class! Home Buying Class October 17, 2012 6:30pm – 8:00pm Maunel’s Tavern Atlanta, GAhttp://www.redfin.com/buy-a-home/classes-and-eventsSlide 26 of 26

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