[REQUIRED – please add the main presenter’s photos]
[REQUIRED]Add Lender’s name if he/she’s presenting
[REQUIRED – Update with local lender]
You should not be reading all of these. Pick you top three and chat about those.
The visual of the HUD would be great and could eliminate some of the verbiage here. REQUIREDA HUD is divided into two parts:Lender charges Includes origination fee, appraisal fee, credit report, insurance and tax escrowsTitle chargesIncludes settlement fee, and owner’s and lender’s title insuranceGovernment chargesIncludes recording fees, recordation taxes and property taxes
OPTIONALThis is different by market so we should have different slides for each.
Notes from Matt:- Update this slide so it is easier to read
We’ll stick around…
Redfin's Free Home Buying Class - Boston, MA
Redfin’s Home Buying Class
College Club of Boston
February 19th 2014
Redfin’s Metro Boston Team
James Gulden Simon Anderson
They’ve closed 65+ deals in the past 12 months!
A Little Bit About Who We Are
Redfin is a real estate brokerage that has helped over 20,000
people buy or sell a home; 97% would refer us to a friend.
● Customers, not commissions
● Informed decisions
● Right home for the right price
Are You Ready to Buy?
Do you have a family and need room to grow?
Do you expect to own the home for 5 or more years?
Have you saved up a down payment?
Can you rent for less?
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
● W-2, two pay-stubs, tax returns, bank statements
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
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
● Maintaining a pre-approval
has a negligible impact on
your credit score
Types of Loans
► As low as 5% down
► Fixed or adjustable rates, conforming or non-conforming
● Federal Housing Administration Loan (FHA):
► Always have mortgage insurance
► Buyers need only a 3.5% down payment
● VA Guaranteed Loan:
► Veterans, active duty personnel, reservists/national guard, surviving
► No down payment
Current Average Rates
Type of Loan
February 13, 2014
February 6, 2014
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
*Know your lender
Local Recommended Lenders
In no way does
lenders – we just
think they’re great
Find dream home
Consult with agent, write offer
Submit offer to listing agent
Success! Mutual Acceptance
Overview of a
Earnest money [$1000]
Success! Mutual Acceptance
Inspection contingency [5-10 days]
P&S Review [10-14 days]
5% of Purchase Price
Financing contingency [20-25]
Final walk thru - details
Get keys and take possession!
Receive Redfin refund
Complete Redfin survey
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
► All appliances to stay
What Next…Under Agreement!
● Schedule Home Inspection
► Look for pdf. reports with photos
► Ask us or use personal references
► Mention if you want tests perform:
Radon- canister or computer?
► Have a check or CC ready
► Shop around – priced by sqft. and # of bedrooms
► Stay involved – home education
► Ice Dams? Flooding?
Home Inspection Hints
Watch out for:
•Galvanized steel pipes
•Knob and tube wiring
•Cracks in foundation
•Mold, mildew or signs of
leaking near walls or floors
Look for and Check:
•Chimney sweep fireplace •Double-paned windows
•Well ventilated attic
•Check all included
•Stairs have handrails
•Check water pressure
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
● Get an Attorney – They’ll have one so should you!
● Are they a Real Estate attorney?
► What % of work is real estate?
► Who in the office will you be working with?
► What kind of availability, accessibility, responsiveness?
► How long have you been doing this?
● Ask about pricing up front – flat fee vs. hourly
● Buyer services provided
► Purchase and Sales review
► Buyer Addendum
► Condominium Document review
● Lender services provided
► Dual representation
► Title Search, Plot Plan, Lien Certificate
► Role at Closing
● Important protections
► Title insurance
Local Recommended Attorneys
In no way does
attorneys – we
just think they’re
Walkthrough & Closing
A day or two prior to closing you will do a walkthrough to make
sure the property is in the agreed upon condition
At closing you will sign all necessary mortgage and closing
documents and get your keys!
Better Service, Lower Fees
● We’re on your side
► Agents paid on your satisfaction
● Double your exposure
► Premium placement on Redfin
► Zillow, Trulia, Craigslist and Realtor
● 1.5% listing fee
► Professional photos
► Beautiful flyers
We’ve helped over 50 people sell their homes in the last six
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