Home Buying Workshop. Today s Workshop 2/22/2017. **Cash Rebate. Outline the services offered through the Real Estate Advantage Program

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Damon Johnston
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Home Buying Workshop Today s Workshop Outline the services offered through the Real Estate Advantage Program Step you through

#442121 Cash Rebates Purchase or Sale Price **Cash Rebate HUECU, Harvard University, and Coldwell Banker created a partnership

rebate after closing on the purchase and/or sale of your home Moving services $ 50,000-99,999 $ 300 $ 100,000-199,999 $ 400 $

700,000-799,999 $ 1,875 $ 800,000-899,999 $ 2,125 $ 900,000-999,999 $ 2,375 $ 1,000,000 - $1,099,999 $ 2,625 *If the purchase or

1 Home Buying Workshop Today s Workshop Outline the services offered through the Real Estate Advantage Program Step you through the home financing process Highlight key considerations in your decision to buy Explain the homeownership process NMLS License # Cash Rebates Purchase or Sale Price **Cash Rebate HUECU, Harvard University, and Coldwell Banker created a partnership offering you a unique real estate program that provides: Individual consulting services Selection of your Real Estate Agent Cash rebate after closing on the purchase and/or sale of your home Moving services $ 50,000-99,999 $ 300 $ 100, ,999 $ 400 $ 200, ,999 $ 625 $ 300, ,999 $ 875 $ 400, ,999 $ 1,125 $ 500, ,999 $ 1,375 $ 600, ,999 $ 1,625 $ 700, ,999 $ 1,875 $ 800, ,999 $ 2,125 $ 900, ,999 $ 2,375 $ 1,000,000 - $1,099,999 $ 2,625 *If the purchase or sale price is higher, the cash bonus will be adjusted incrementally. **The ability to pay a cash rebate may be prohibited in some states 1

Close on the property with the Agent referred to you through the program Specialist 4.

2 Program Guidelines Exclusive Offers from HUECU for First Time Home Buyers 1. Register for the program at huecu.org/reap 2. View the home that you intend to purchase only with the Agent referred to you through the program Specialist 3. Close on the property with the Agent referred to you through the program Specialist 4. If selling, list and close on the property with the Agent referred to you through the program Specialist Home Financing Mortgage Products and Services Approved Home Buyer Certificate We pre-approve based upon credit review. This certificate is verification of your credibility as a serious homebuyer. 2

Your Credit Report It s a good place to start HUECU First Time Home Buyers Benefits 720 FICO Score or more Joint credit review Free

Lender will obtain updated credit report 24-48 hours prior to closing. BALANCE Financial Fitness at huecu.balancepro.

125% Rate Discount* $300 Credit Towards Closing Costs Discounted HUECU Attorney Fees *Rate subject to change How Much Can I Afford?

3 Your Credit Report It s a good place to start HUECU First Time Home Buyers Benefits 720 FICO Score or more Joint credit review Free Credit Report at annualcreditreport.com What s on your credit report? Lender will obtain updated credit report hours prior to closing. BALANCE Financial Fitness at huecu.balancepro.org FREE Pre-Approval 90 Day Rate Lock.125% Rate Discount* $300 Credit Towards Closing Costs Discounted HUECU Attorney Fees *Rate subject to change How Much Can I Afford? General Guidelines Spend no more than 43% of monthly salary (before taxes) on monthly credit obligations, including your new mortgage payment Housing payment should not exceed 28% of your gross monthly income including principal, interest, real estate taxes and homeowners insurance, Calculators available at huecu.org 3

Other considerations when looking for a mortgage: Conventional or Conforming Loan amounts up to $517,500 Jumbo Loan amounts greater than $517,500 and will generally have a higher interest rate.

4 Other considerations when looking for a mortgage: Conventional or Conforming Loan amounts up to $517,500 Jumbo Loan amounts greater than $517,500 and will generally have a higher interest rate. Down payment requirements may be higher for a jumbo loan. What Type of Loan is Right For You? Fixed Rate Loan vs. Adjustable Rate Mortgage (ARM) PAYMENT $350, % 1, % 1,671 $208 Leverages $43,500 more in loan amount with same payment! If you choose an ARM Check: Index: One Year Treasury Bill Index Margin: How much is added to index? (2.75%) Caps: What are the maximum and minimum increases? (2.00% and 6.00%) How long is the rate locked and how often can it change? Credit Union Down Payment Requirements Single Family 5.00% of the purchase price Multi-Family Homes Two Family is 15% of the purchase price Three or Four Family is 20% of the purchase price If less than 20%, you will have to pay Private Mortgage Insurance (PMI). Guarantees your mortgage to the lender Condominium Owner occupancy percentage must be 70% There are laws that dictate when the lender is required to cancel the mortgage insurance. 4

Know Before You Owe Loan Estimate Good Faith Estimate and Truth In

Provides Borrowers with Terms, projected payments and Closing Costs

to shop for best loan Strict rules on any increases in costs from what

5 Know Before You Owe Loan Estimate Good Faith Estimate and Truth In Lending Disclosure combined into a more understandable and user friendly Loan Estimate. Mandatory use by all Mortgage Lenders as of October 3, Provides Borrowers with Terms, projected payments and Closing Costs within 3 business days of application Can be used as a comparison tool to shop for best loan Strict rules on any increases in costs from what is disclosed to borrowers on the Loan Estimate Historically Low Interest Rates The Home Buying Process Navigating the Real Estate Market 5

6 Is This The Right Time to Buy? Current Market Conditions Housing Prices Housing Inventory Available Financing The Benefits of Homeownership Build home equity How long are you planning on staying in the home? Tax Benefits $250,000 (Single) / $500,000 (Married) Must be primary residence for 2 consecutive years, in the past five years Need 7% increase in sales price to break even when selling Mortgage payments which may end some day Flexibility and creative license with living space Selecting The Right Real Estate Agent Agency Relationships Designated Sellers Agency Designated Buyers Agency Facilitation Dual Agency Agency Disclosure Form 6

7 Real Estate Advantage Program Specialist Personally selects Real Estate Agents to meet your needs Full Time, Experienced, Knowledgeable Agent who will represent you as a Buyers Agent Fee is usually covered by the commission that the sellers real estate company is offering on behalf of the seller Access to home search resources/technologies While you are looking for a home. Make clear to your Agent your list of absolute Wants and Needs Plan to see a maximum of 6 homes in one day Make your Agent aware of your Likes and Dislikes If time permits, ask your Agent to preview homes Purchasing a Home 2 Step Process in Massachusetts Offer to Purchase Purchase and Sale Ask your Agent to do an analysis of recently sold properties Establish range of value within which to negotiate Objectively review properties pluses and minuses Offer to Purchase Always in Writing and Includes: Offer Price Closing Date Deposit Monies Mortgage Contingency Home Inspection Contingency Review of Condo documents Review of Condo Association Finances Any items to be included - Refrigerator, Curtains, Swing Set, etc. Legally binding contract only when signed by both parties Agent must be diligent in getting your purchase offer signed ASAP! 7

Property Inspections Purchase and Sales Agreement General Home Inspection Tests the structural and mechanical integrity of the home Pest Inspection Radon Odorless, colorless gas that seeps into home

0 and under picocuries is acceptable Water EPA Standard: 10,000 and under picocuries is acceptable (applicable if well water) Well/Septic Mandated or customary septic system inspections Well: Test

8 Property Inspections Purchase and Sales Agreement General Home Inspection Tests the structural and mechanical integrity of the home Pest Inspection Radon Odorless, colorless gas that seeps into home from basement Air EPA Standard: 4.0 and under picocuries is acceptable Water EPA Standard: 10,000 and under picocuries is acceptable (applicable if well water) Well/Septic Mandated or customary septic system inspections Well: Test for quality and quantity Cost of inspections Vary based on size of home and scope of inspection Local standard practice usually dictates who pays Includes any changes made as a result of the property inspections Mortgage contingency will still be in force for the remainder of the timeframe agreed upon at acceptance of offer Accepts deposit requirements Remember, everything must be in writing to be a valid contract Attorney Contract draft and review Conducts closing Before You Close At The Closing Perform a Walk-Through on home when sellers vacate Closing Disclosure Full accounting of all closing costs to be paid by the buyer and by the seller Buyer should receive statement 7 days prior to closing Certified check to pay remaining monies due to close Obtain an Insurance Binder: One year of pre-paid Homeowners Insurance Checklist: Photo ID Your Checkbook Certified Check Insurance Binder Closing takes 1 2 hours 8

9 Thank You For Attending We re with you through every step of the home buying process. 9

HOME BUYING WORKSHOP TODAY S WORKSHOP 9/19/2017. Introduction to the Harvard University Employees Credit Union (HUECU)

HOME BUYING WORKSHOP TODAY S WORKSHOP 9/19/2017. Introduction to the Harvard University Employees Credit Union (HUECU) HOME BUYING WORKSHOP NMLS License #442121 TODAY S WORKSHOP Introduction to the Harvard University Employees Credit Union (HUECU) Homeownership Process & Key Considerations in Decision Making Home Financing