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HOME BUYER
SEMINAR
Presented by
Butch Leiber
Uptown Realty
Richard Silva
LoanStar Home Lending
WHAT YOU NEED TO
KNOW TO BUY A
HOME IN ARIZONA
AGENDA
WHY BUY A HOME
• Stable Payments – no rent increases
• Tax advantages – mortgage interest is tax deductible
• Grow Equity – historically home values increase year on year
• Freedom
• Pride of Ownership
• Stability
BOOMERANG BUYERS
WHY NOW?
Over
38,000
Properties
BOOMERANG BUYERS WHY NOW?
BOOMERANG BUYERS
WHY NOW?
61,000 Buyers Returning to the Market
INTEREST RATES
$150,000
Rate Principal and Interest (30 year Fixed)
4.0 % $715
4.5 % $760 ($540)
5.0 % $805.50 ($1086)
5.5 % $852 ($1644)
WHY NOW?
• Phoenix is in a Buyer’s Market
• Loan programs for first time buyers
• Zero to Low down payment programs
• Down Payment assistance
• Seller contributions towards closing costs
• Prices below all time highs
• Interests rates are still LOW.
• Large inventory
• Why wait to start making money?
RENTING VS OWNING A HOME
• It’s all about the money.
• Rent for $1410 a month.
• Renter’s insurance: $30
• Rent for 5 years: Pay $86,400
• Leave with: Memories.
THE FINANCES OF BUYING A
HOUSE
• Buy a home for $200,000
• Loan Programs:
• FHA – 3.5% down
• Conventional – 5% – 20% down
• VA Loan (if eligible) 0% down
• USDA Loan 0% down
• Special Programs
• In a buyer’s market, sellers will often
contribute to buyer’s closing costs.
• Costs to Buy:
• Loan costs
• Title and Escrow Fees
• Inspection Costs
• Prepaids
• Cost to buy a $200,000 house
• $11,500 (estimated)
• $7,000 down
• $4,500 closing costs
Monthly Payment: $1,410
COST OF HOME OWNERSHIP
• 5 years of PITI (Principal, Interest, Taxes, Insurance)
• $84,600
• Home Maintenance
• $5,000
• Cost to Buy
• $11,500
• Total Cost of Home Ownership
• $101,100 (Renting cost $86,400)
MORTGAGE INTEREST IS TAX DEDUCTIBLE
• Total Cost of Home Ownership
• $101,100 (Renting cost $86,400)
• Interest and Mortgage Insurance paid
is tax deductible
• Tax Savings of $11,951**
• Actual Cost of Home Ownership
• $95,707
REALLY GOOD NEWS
• Historically, home values in Phoenix have increased 5%-7% per year.
• At the end of 5 years, given a 5% increase per year * your $200,000 home is
now worth
• $255,200
• Cost to Sell
• $20,416
• Pay off the loan and your profit is
• $59,154
Phoenix home prices have traditionally
risen every year over the last 50 except
two or three years. This scenario assumes
continues price increase which we
cannot obviously guarantee.
THE BOTTOM LINE
• 5 Year cost of home ownership
• $95,707
• 5 Year cost to rent
• $88,080
• Cost to own vs rent
• $7,627
• Profit from home sale in 5 years
• $59,154
• Money in your pocket
•$51,527
HOW MUCH HOUSE CAN YOU
AFFORD
• Overall Debt Ratio should not exceed 43% of your gross income.
• This includes mortgage, car loans, child support and alimony, credit card bills,
student loans.
• For example: $45,000 a year salary should have overall expenses below $1,600 a
month
PRE-APPROVAL
• Before looking at houses, get pre-approved
• Know what you can afford
• Make a qualified offer
• When you find the right house you can offer immediately
• Documents Needed:
• Pay stubs, bank statements, W-2s, last two years tax returns, employment history,
residency history, drivers license, other assets, etc.
LOAN PROGRAMS
• Customized loan to meet YOUR needs
• USDA for qualified neighborhoods 0% Down
• VA for qualified veterans 0% Down
• FHA 3.5% Down
• CONVENTIONAL 5% Down
• Renovation Loans
• Down Payment Assistance Available
CREDIT SCORING
WAYS TO IMPROVE CREDIT
• Build modest credit history
• Pay all your payments on time
• Pay more than your minimum payments
• Maintain low balance on credit cards in relation to credit limits
• 3 lines of credit, not maxed out
STEPS TO HOMEOWNERSHIP
1. Get Pre-Approved with a mortgage lender
2. Find a Realtor® you trust
3. The Home Search
4. The Offer
5. Contract to Close
6. Close and Move
IT TAKES A TEAM –
PEOPLE INVOLVED IN A REAL ESTATE TRANSACTION:
• Buyer
• Seller
• Realtor
• Mortgage Broker
• Mortgage Underwriter
• Mortgage Processor
• Appraiser
• Home Inspector
• Utility Companies
• Movers
• Repair Vendors
(electricians, plumbers,
painters, contractor,
pool service, etc)
• Movers
• Escrow officer
• Title Rep
• County Recorder
• Home Stager
• Surveyor
• Termite
Inspector/Repair
• Insurance Agent
• Home Warranty
Company
• Notary
• Couriers
• Attorney
QUESTIONS?
CONTACT US
Presented by
Butch Leiber - 602-390-1399 EZAZRE.com
Uptown Realty
Richard Silva – 602-373-3654 RichieSilva.com
LoanStar Home Lending

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Home buyer seminar

  • 1. HOME BUYER SEMINAR Presented by Butch Leiber Uptown Realty Richard Silva LoanStar Home Lending WHAT YOU NEED TO KNOW TO BUY A HOME IN ARIZONA
  • 3. WHY BUY A HOME • Stable Payments – no rent increases • Tax advantages – mortgage interest is tax deductible • Grow Equity – historically home values increase year on year • Freedom • Pride of Ownership • Stability
  • 6. BOOMERANG BUYERS WHY NOW? 61,000 Buyers Returning to the Market INTEREST RATES $150,000 Rate Principal and Interest (30 year Fixed) 4.0 % $715 4.5 % $760 ($540) 5.0 % $805.50 ($1086) 5.5 % $852 ($1644)
  • 7. WHY NOW? • Phoenix is in a Buyer’s Market • Loan programs for first time buyers • Zero to Low down payment programs • Down Payment assistance • Seller contributions towards closing costs • Prices below all time highs • Interests rates are still LOW. • Large inventory • Why wait to start making money?
  • 8. RENTING VS OWNING A HOME • It’s all about the money. • Rent for $1410 a month. • Renter’s insurance: $30 • Rent for 5 years: Pay $86,400 • Leave with: Memories.
  • 9. THE FINANCES OF BUYING A HOUSE • Buy a home for $200,000 • Loan Programs: • FHA – 3.5% down • Conventional – 5% – 20% down • VA Loan (if eligible) 0% down • USDA Loan 0% down • Special Programs • In a buyer’s market, sellers will often contribute to buyer’s closing costs. • Costs to Buy: • Loan costs • Title and Escrow Fees • Inspection Costs • Prepaids • Cost to buy a $200,000 house • $11,500 (estimated) • $7,000 down • $4,500 closing costs Monthly Payment: $1,410
  • 10. COST OF HOME OWNERSHIP • 5 years of PITI (Principal, Interest, Taxes, Insurance) • $84,600 • Home Maintenance • $5,000 • Cost to Buy • $11,500 • Total Cost of Home Ownership • $101,100 (Renting cost $86,400)
  • 11. MORTGAGE INTEREST IS TAX DEDUCTIBLE • Total Cost of Home Ownership • $101,100 (Renting cost $86,400) • Interest and Mortgage Insurance paid is tax deductible • Tax Savings of $11,951** • Actual Cost of Home Ownership • $95,707
  • 12. REALLY GOOD NEWS • Historically, home values in Phoenix have increased 5%-7% per year. • At the end of 5 years, given a 5% increase per year * your $200,000 home is now worth • $255,200 • Cost to Sell • $20,416 • Pay off the loan and your profit is • $59,154 Phoenix home prices have traditionally risen every year over the last 50 except two or three years. This scenario assumes continues price increase which we cannot obviously guarantee.
  • 13. THE BOTTOM LINE • 5 Year cost of home ownership • $95,707 • 5 Year cost to rent • $88,080 • Cost to own vs rent • $7,627 • Profit from home sale in 5 years • $59,154 • Money in your pocket •$51,527
  • 14. HOW MUCH HOUSE CAN YOU AFFORD • Overall Debt Ratio should not exceed 43% of your gross income. • This includes mortgage, car loans, child support and alimony, credit card bills, student loans. • For example: $45,000 a year salary should have overall expenses below $1,600 a month
  • 15. PRE-APPROVAL • Before looking at houses, get pre-approved • Know what you can afford • Make a qualified offer • When you find the right house you can offer immediately • Documents Needed: • Pay stubs, bank statements, W-2s, last two years tax returns, employment history, residency history, drivers license, other assets, etc.
  • 16. LOAN PROGRAMS • Customized loan to meet YOUR needs • USDA for qualified neighborhoods 0% Down • VA for qualified veterans 0% Down • FHA 3.5% Down • CONVENTIONAL 5% Down • Renovation Loans • Down Payment Assistance Available
  • 18. WAYS TO IMPROVE CREDIT • Build modest credit history • Pay all your payments on time • Pay more than your minimum payments • Maintain low balance on credit cards in relation to credit limits • 3 lines of credit, not maxed out
  • 19. STEPS TO HOMEOWNERSHIP 1. Get Pre-Approved with a mortgage lender 2. Find a Realtor® you trust 3. The Home Search 4. The Offer 5. Contract to Close 6. Close and Move
  • 20. IT TAKES A TEAM – PEOPLE INVOLVED IN A REAL ESTATE TRANSACTION: • Buyer • Seller • Realtor • Mortgage Broker • Mortgage Underwriter • Mortgage Processor • Appraiser • Home Inspector • Utility Companies • Movers • Repair Vendors (electricians, plumbers, painters, contractor, pool service, etc) • Movers • Escrow officer • Title Rep • County Recorder • Home Stager • Surveyor • Termite Inspector/Repair • Insurance Agent • Home Warranty Company • Notary • Couriers • Attorney
  • 22. CONTACT US Presented by Butch Leiber - 602-390-1399 EZAZRE.com Uptown Realty Richard Silva – 602-373-3654 RichieSilva.com LoanStar Home Lending

Editor's Notes

  1. Everything you need to know to buy a home in Arizona Financial advantages to home ownership Mortgage options and ways to improve your credit We’ll cover the step to home ownership
  2.  Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.