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

2.
AGENDA

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

4.
BOOMERANG BUYERS
WHY NOW?
Over
38,000
Properties

5.
BOOMERANG BUYERS WHY NOW?

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

17.
CREDIT SCORING

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

21.
QUESTIONS?

22.
CONTACT US
Presented by
Butch Leiber - 602-390-1399 EZAZRE.com
Uptown Realty
Richard Silva – 602-373-3654 RichieSilva.com
LoanStar Home Lending