Buying your Home is Within Reach

Transcription

1 Buying your Home is Within Reach Derick Hungerford October

2 Today s Seminar Intent: Purpose: Goal: To clear up the confusion of buying a home To strengthen our home purchase/financial IQ To be a successful homeowner

3 MODULE I The Awesome Benefits of Homeownership

4 The Financial Benefits of Homeownership Tax Write-Off

5 Example of the 1 st Tax Benefit Cost of Home $250, Interest rate 4.0% Yearly Interest $10, Yearly Property Tax + $4, Tax Deduction $14,700.00

6 Example of the 2 nd Tax Benefit Single Person $250, Married Couple $500, TAX FREE

7 The Financial Benefits of Homeownership Leverage Equity Benefit Automatic Savings Investment Opportunities

8 4 Cs of Approval Credit Your character Capital Your money Capacity Your ability to make payments Collateral Your property selection

9 Your Credit Scores Matter 700 Above = Excellent Minimal Review = Good = Fair Below 620 = Challenge Cautious Review

10 Finding Capital First-Time Homebuyer IRA/Withdrawal Have a yard sale Cash in Vacation Tax Refund Income Tax Withholdings (increase exemptions) Gift Funds Local Community Programs Borrow from 401k or Retirement Plan

11 Capacity How Much Can You Afford? For which of you, intending to build a tower, sitteth not down first and counteth the cost, whether he have sufficient to finish it? Luke 14:28

12 Debt To Income Ratio This calculation is based on your monthly debt and proposed mortgage payment divided by your gross monthly income A maximum monthly back end debt to income Ratio (DTI) of 50% is required (above 620) Example Gross Income: $60,200 / 12 = $5, Monthly Debt: $500 + $1,200 = $1,700 $1,700 / $5, = 34%

13 Get Prepared For Upfront Cost Credit Report - $25 Earnest Money Deposit $ $2000 Inspection $300 - $600 Appraisal $425 - $450

14 Two Cost of Buying a Home Down Payment 3.5% Closing Costs 6.0% Total needed will be 9.5% between the Program, The Seller, and YOU!

15 Example: Purchase Price = $100, Down payment (3.5%) = $3, Closing (6.0%) = $6, Total needed = $9, Seller can pay (0-6%) Program/credit You!!

16 MODULE III Your Money Blueprint The Proper Mindset to Build a Home

17 Money is What to you???

18 5 Financial Goals 1) Financial Security 2) Financial Vitality 3) Financial Independence 4) Financial Freedom 5) Absolute Financial Freedom

19 Example of a Personal BROKEN System Using the ATM/Debit card frequently Budget not completed and no monthly P&L Shopping for a mortgage incorrectly Paying credit cards after due date Not balancing check book Not spending time reviewing assets

20 Example of an Effective System Make all bill payments at one time (change due dates) Deposit enough to pay bills only (put rest in savings) Become a member of NSL Credit Union (and deposit money monthly) Have a specific allowance 1 credit card with max limit (purchases above $20.00 payoff EVERY month.

21 Example of an Effective System Implement the 2 week rule (wants) 10% Tithe 10% of gross Identify one spouse as the CFO (meet once a month for min 1 hour) Have written plan for 5, 10, 15 years Know your monthly survival Number

22 The 3 Financial Miracles

23 Paying Off Your Mortgage 6 Step Planning Track every dime Build survival account Eradicate all bad debt Maximize your retirement Invest in the market Pay down/off your mortgage

24 Derick Hungerford October 4, 2017