You Can Purchase a Home!.


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You Can Buy a Home - Powerpoint Training Slides
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Slide 1

You Can Buy a Home! MoneyWi$e A joint monetary training task of Consumer Action and Capital One MoneyWi$e: You Can Buy a Home

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Welcome Why we are here: To figure out how to explore the home purchasing procedure To recognize the strides important to accomplish our objective of homeownership MoneyWi$e: You Can Buy a Home

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In members\' envelopes: You Can Buy a Home leaflet Downpayment & Monthly Budget Worksheets (one finished contextual investigation and one clear) Home Shopping Checklist Loan Application Checklist Seminar Evaluation Form MoneyWi$e: You Can Buy a Home

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Benefits of Homeownership? Will you name a portion of the advantages of homeownership? MoneyWi$e: You Can Buy a Home

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Benefits of Homeownership Build riches Tax funds Pride of possession Security Build great credit MoneyWi$e: You Can Buy a Home

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Responsibilities of Homeownership Can you name a portion of the obligations of homeownership? MoneyWi$e: You Can Buy a Home

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Responsibilities of Homeownership On-time contract installments Property charges Insurance Repairs & support Purchase own apparatuses & gear MoneyWi$e: You Can Buy a Home

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Home Purchase Costs What are a percentage of the expenses of purchasing a home? MoneyWi$e: You Can Buy a Home

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Home Purchase Costs Loan charges Credit report charge Appraisal charge Earnest cash store Downpayment Closing expenses MoneyWi$e: You Can Buy a Home

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Home Purchase Costs PITI (chief, premium, charges & protection) Mortgage protection (PMI) Moving-in costs Emergency/hold reserves MoneyWi$e: You Can Buy a Home

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Assessing Your Financial Resources For your downpayment For your regularly scheduled installments MoneyWi$e: You Can Buy a Home

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Downpayment Sources Savings Private endowments and advances Retirement account advance Second (piggyback) advance VA advance Private and gov\'t downpayment help programs MoneyWi$e: You Can Buy a Home

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Tax Benefits of Homeownership: Case study   Eva purchases a home with a $225,000 contract   In terest and duties all out $17,050 every year   Eva is in the 28% duty section   Tax investment funds as a property holder: $4,774 every year Instead of sitting tight for a $4,774 charge discount, Eva transforms her W-4 structure at work to have less expenses taken out of her paycheck. Eva\'s increment in net pay is around $398 every month! MoneyWi$e: You Can Buy a Home

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Activity: Downpayment & Budget Assessment Are you fiscally arranged for homeownership? Decide next strides to achieve your objective! MoneyWi$e: You Can Buy a Home

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FICO Score A numerical preview of the data in your credit report Used by most home loan banks to survey your reliability Scale ranges from 300 to 850 Lenders need to see a score of no less than 620- - the higher, the better! MoneyWi$e: You Can Buy a Home

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Improving Your FICO Score Maintain or enhance installment propensities Repay accumulation accounts and other extraordinary obligations Reduce all out obligation Avoid tackling new credit Keep rotating obligation well under as far as possible Correct credit report blunders MoneyWi$e: You Can Buy a Home

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Where would you be able to get an advance? Contract organization Commercial bank Credit union Mortgage merchant Other budgetary establishment Federal gov\'t advance projects Housing account office MoneyWi$e: You Can Buy a Home

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Adjustable-rate contract (ARM) Interest rate modifies occasionally, so regularly scheduled installment is liable to change; normally offers a low beginning rate for a particular period Loan Types Fixed-rate contract Interest rate sticks with it for the life of the advance MoneyWi$e: You Can Buy a Home

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Compare Loan Features & Terms Interest rate (settled rate advance) Initial financing cost (ARM) Rate conformity periods and rate tops (ARM) Repayment period (advance term) Pre-installment punishment Fees & APR Lock-in alternatives & expenses Approval process & plan MoneyWi$e: You Can Buy a Home

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How quite a bit of a home loan would you be able to meet all requirements for? Relies on upon: Downpayment sum Loan-to-worth proportion Debt-to-salary proportion Housing expense to-wage proportion MoneyWi$e: You Can Buy a Home

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Loan-to-Value Ratio Example: Lender will loan up to 90% of the property estimation The property evaluates for $200,000 You get endorsement for an advance of $180,000 ($200,000 x 0.90 = $180,000) MoneyWi$e: You Can Buy a Home

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Debt-to-Income Ratio Total month to month obligation installments contrasted with gross month to month wage The lower your non-contract obligation, the greater the home loan you can get Total lodging cost (contract/PITI, in addition to PMI and HOA duty) to break even with close to 28% of gross wage Total obligation (contract, Visas, auto advances, and so on.) to rise to close to 36% of gross pay Some banks permit a higher proportion MoneyWi$e: You Can Buy a Home

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Debt-to-Income Ratio: Case study Lee & Shawna acquire $60,000 every year, or $5,000 every month They can convey a most extreme obligation heap of $1,800 ($5,000 x .36 = $1,800) Their just obligation is a month to month auto installment of $275 Lee & Shawna can meet all requirements for a $1,525 contract installment ($1,800 - $275 = $1,525) MoneyWi$e: You Can Buy a Home

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Prequalification versus Pre-endorsement Pre-capability: An assessment of the amount of an advance you may fit the bill for. It is not a firm duty. Pre-endorsement: A firm responsibility from a bank for a particular credit sum. The endorsement can be legitimate for as meager as 30 days and as much as 120 days or more. MoneyWi$e: You Can Buy a Home

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First Session Wrap-Up At the following session, we\'ll: Shop for a home Make an offer Get a home loan Close the buy! If it\'s not too much trouble return in 20 minutes. MoneyWi$e: You Can Buy a Home

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Shopping for a Home How will you locate your home? Web posting locales "Available to be purchased" signs "Open house" occasions Word-of-mouth Real bequest specialist MoneyWi$e: You Can Buy a Home

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Using a Real Estate Agent Access to the MLS (numerous postings administration) Market learning Guidance through purchasing process Handles printed material Incentive to succeed (operator just procures commission when you purchase) MoneyWi$e: You Can Buy a Home

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Making an Offer Property address Offer value Earnest cash (great confidence) store Downpayment Financing terms Closing costs Personal property to be passed on Closing date & ownership date Expiration of offer Contingencies MoneyWi$e: You Can Buy a Home

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Contingencies Common possibilities include: Financing: Loan subsidizing Appraisal Insurance Title (clear & attractive) Inspections Building/basic Pest/termite Well/water Environmental risks/lead paint Soil Flood MoneyWi$e: You Can Buy a Home

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Negotiations After considering your offer, the merchant may: Accept Reject Counteroffer MoneyWi$e: You Can Buy a Home

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Loan Application Checklist Identification Address history Proof of pay List of benefits List of liabilities Information about buy A check to cover charges MoneyWi$e: You Can Buy a Home

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What to Expect from the Lender Good Faith Estimate Truth-in-Lending Statement Commitment letter MoneyWi$e: You Can Buy a Home

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Good Faith Estimate Within 3 days of utilization Discloses all credit costs States loan cost and focuses Lists shutting & different expenses Helps you look at advances Is just an evaluation! MoneyWi$e: You Can Buy a Home

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Truth-in-Lending Statement States your APR (yearly rate) Lists account charges, all out installments, due dates and more Pre-installment punishment or not May give ARM points of interest Is not an assurance! MoneyWi$e: You Can Buy a Home

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Activity: Making an Offer Break into littler gatherings Choose the best property and credit item for the purchaser, and compose an offer Reconvene in 15 minutes Have a representative for your gathering clarify your decisions MoneyWi$e: You Can Buy a Home

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Closing/Settlement One or two days before shutting: Do a last "stroll through" Examine the HUD-1 Settlement Statement Day of shutting: Attend shutting/settlement meeting Review & sign all archives Write a check for any remarkable expenses MoneyWi$e: You Can Buy a Home

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Successful Homeownership Avoid hazardous advances Make contract installments on time Stay current on property charges Maintain satisfactory protection Keep the home fit as a fiddle Keep a just-in-case account prepared Avoid getting against your value for customer buys Get help at the primary indication of inconvenience MoneyWi$e: You Can Buy a Home

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Questions? Do you have any inquiries regarding this preparation? MoneyWi$e: You Can Buy a Home

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Class Evaluation Please round out the assessment shape and abandon it on out. Much thanks to you! MoneyWi$e: You Can Buy a Home

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