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Redfin Mortgage Class South Montgomery

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Redfin Mortgage Class South Montgomery

  1. 1. Redfin’s Mortgage Class Redfin’s South Montgomery Team April 15, 2014 ~ Bethesda, MD Host: Kris Paolini @Redfin http://www.facebook.com/Redfin
  2. 2. Meet Redfin’s South Montgomery Team
  3. 3. Agenda ● Overview of the process ● Understanding the market ● Are you ready to buy? ● Mortgages ● Making an offer ● Acceptance to closing ● Thanks for coming
  4. 4. A Little Bit About Redfin Redfin is a real estate brokerage on a mission to make buying and selling a home better for you. ● Accountability: we’re on your side, giving you honest advice ● Technology: sellers get more traffic; buyers tour homes first ● Value: a full-service brokerage that saves you thousands  No obligation
  5. 5. Save $8,000 on Average
  6. 6. Understanding the Buying Process
  7. 7. Overview of Buying a Home Research Neighborhoods Real Estate Agents Mortgage Options Preapproval Consider your needs Search Define Preferences Saved Search Home Tours Open Houses Offer Comparables Draft Offer Docs Negotiate Mutual Acceptance Closing Earnest Money Inspection Loan application Title Review Appraisal Financing Approval Closing
  8. 8. Understanding the Market
  9. 9. Current Market: Low Inventory
  10. 10. Current Market: Rising Prices
  11. 11. Bethesda Overview
  12. 12. Are You Ready to Buy?
  13. 13. Are You Ready to Buy? ● Do you have a family and need room to grow? ● Do you expect to stay put for 5 or more years? ● Have you saved up for a down payment? 3.5% to 20+% ● Have you saved up for closing costs? Typically 0-2% ● Can you rent for less?
  14. 14. Mortgages
  15. 15. Review Your Financial Situation ● Pull credit report, look for errors ● Establish comfort level for monthly payment ● Figure out how much monthly income goes towards debt: 28 – 33% healthy ● Pay down credit balances to 1/3rd ● Don’t open any new lines of credit ● Don’t buy any big ticket items ● Source of money ● Current employment status
  16. 16. Get Pre-Approved Early A pre-approval letter is a letter from a bank or a lender estimating how much they'll lend you ● Establishes what you can afford & makes offer process go faster ● Redfin asks that you get pre-approved before your third tour ● Good for 90 days, depending on lender Info needed: ● W-2, two pay-stubs, tax returns, bank statements
  17. 17. Pulling Credit: Is It Harmful? ● Your credit report must be reviewed by a lender before you can obtain a pre-approval ● If you know your score, a lender should be able to give you ballpark pricing for their loan products ● Better to know sooner rather than later about credit problems ● Maintaining a pre-approval has a negligible impact on your credit score
  18. 18. Start Shopping for Lenders Compile a list of 3-4 local lenders Good sources include: ● Redfin's partner lenders ● Referrals from friends, family & co-workers ● Online review sites, such as Yelp ● Local chains and offices *Know your lender
  19. 19. Local Recommended Lenders In no way does Redfin benefit financially from recommending lenders – we just think they’re great lenders!
  20. 20. Making an Offer
  21. 21. Crafting Your Offer ● Evaluate – your agent will provide you with information about market conditions and recent sales in the area ● Consider the situation – the seller’s preferences, days on the market, and other interest will influence the process. ● Decide on price & strategy with your agent ● Common contingencies & terms: ► Earnest Money ► Inspection ► Financing ► Appraisal ► Title Review
  22. 22. Tips for Winning a Bidding War 1. Just win, baby! Simply have the best offer. ► Cash is King ► Escalate your price? ► Tighten your timelines ► Remove some contingencies? 2. Get pre-approved with a local lender 3. What’s important to the seller? 4. Write a letter & appeal to the seller
  23. 23. Acceptance to Closing
  24. 24. Steps After Mutual Acceptance ● Earnest money deposit – usually 1-3%+ ● Inspection – approximately $500 ● Other inspections – sewer scope, septic, etc. ● Loan application – 5 days or less ● Title review ● Appraisal ● Loan approval ● Document signing ● Walk through ● Closing ● Receive your keys!
  25. 25. Home Inspection We recommend that you have a home inspection ● Cost runs $350 to $1200 depending upon the home’s size ● Your agent will accompany you ● Your time to evaluate the property Let’s talk about: ● What an inspection contingency covers and doesn’t cover ● Types of inspections
  26. 26. Title Companies ● Prepares the final documents, including the HUD-1 (visual example of HUD-1 on next slide). ● Conducts the closing ● Examines and clears the title to the property ● Records the deed, mortgage and any other recordable instruments ● Issues title insurance to the lender and the buyer
  27. 27. Signing and Closing Expect to be at closing 1 hour or longer to sign all documents. Bring your photo ID, check book and money for closing. On closing day, you usually get the keys to your new home.
  28. 28. So What Now? ● Make sure it’s the right time for you ● Start browsing online ● Check out our Home Buying Guide ● Find the right agent ● Look for a local lender and get pre-approved ● Start seeing homes in person ● Make an offer & close the deal
  29. 29. Thanks for Coming! Questions? Get in touch: Kris Paolini kris.paolini@redfin.com Michael Wells michael.wells@redfin.com Antonia Ketabchi antonia.ketabchi@redfin.com Check out our upcoming classes: http://www.redfin.com/classes

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