First Time Home Buyer Information | Mickey Ferrell Chesapeake, VA Realtor

First Time Home Buyer Boot Camp

Hosted By:

Mickey Ferrell

Rountree Property Team at Rose and Womble Realty

Featured Guests:

Holly Cross & Lori Walder

Tidewater Home Funding

Welcome Home Buyers!

Hi, I’m Mickey!

I’m a Real Estate Agent at Rose and Womble Realty

on the Rountree Property Team.

757-338-1267MrMickeyHouse.com

Our Special Guests

Holly Cross Lori Walder Debbie Rountree

Tidewater Home Funding

757-589-0863757-305-8442 757-648-0999

Rose and Womble Realty

Topics We’ll Cover . Prequalification .

Loan Programs .

Down Payment .

Closing Costs .

Inspections .

Real Estate Agent’s Role .

How Much an Agent Costs (You’ll be surprised) .

DefinitionsDown Payment: A payment made during the onset of a big purchase. Difference between purchase price and mortgage amount.

Earnest Money: A deposit made to a seller showing the buyer's good faith in a transaction.

Escrow: Money held by a 3rd party that is released when all obligations have been met. Earnest money is held in escrow.

Debt to Income Ratio: A measurement comparing a buyer’s debt obligations to their income. Determines qualification amount.

Closing Costs: Fees associated with the processing of a real estate transaction. Examples: Title search, inspections, credit report

Foreclosure: A property that has been repossessed by the lender for non-payment.

Short sale: A property that is offered for sale below the amount that is owed to the lender. Requires lender approval to proceed.

How is a first time home buyer defined?A person that has never owned a home.

or

has had no ownership in a home over the past 3 years.

The First Step --- Get Prequalified- Establishes our budget

- Assures sellers we are serious

- Helps prevent broken hearts

What’s Prequalification?A prequalification states the amount which you likely qualify to buy a home

It’s based on your

- Credit report

- Income (unverified)

- Application and the information that you supplied.

The Prequalification is Not Fully Verified

Be as accurate as possible to avoid a costly disappointment later.

And Then……

Limit Your Spending to the 2 G’s:

- Gas

- Groceries

and your normal bills.

Don’t…- Buy a car

- Make any large purchases

- Go on vacation

- Let anyone run your credit

- Buy furniture

- Miss a debt payment

- Quit your job

- Start a business

- Apply for ANY Credit

- Go to jail

(ok that’s not limited to after prequalification)

Buy This

Park Here

Common Types Of Home Loans for First Time Buyers-FHA Plus

-Conventional Bond

-VHDA

-203k Renovation Loans

-VA Loan

-RHS (Rural Housing)

Let’s Go House Hunting! .

With a prequalification in hand we can go find your dream home. .

...But First We Need to Fill Out The Paperwork.A buyer brokerage agreement allows me to act as your representative. It’s a document

that defines both of our roles in the transaction.

The agreement creates an “agency” which basically means I act in your best interest.

Here’s an example: We view a house. I feel that it’s overpriced and there’s a crack in

the ceiling that might mean foundation problems. If we don’t have agency, I couldn’t

offer my opinion on price or point out the crack. It would harm the seller’s chances to

sell the home and they could sue me.

On the other hand, with agency my only concern is YOUR best interest. So I can

immediately point out the crack or offer an opinion on the right price. It’s the

difference in being a customer and a client.

How Much Will You Pay Your Real Estate Agent?This is probably the best part because the seller pays the bill!

When they list the home for sale - they agree to pay a commision. The commission is

fixed whether you have an agent or not.

If you choose to go without your own agent then the agent that listed the house will

collect the entire portion.

So it only makes sense to make sure you have someone on your side that will ensure

your best interests.

Let’s make a listWhat are your MUST “haves” in your future home?

This list will narrow the list of homes from 100’s to 10’s.

Examples: Certain schools, distance from work, # of bedrooms

This is a time to be rather specific because there is no use looking at a home that

doesn’t meet your minimum requirements.

Let’s make another list This is the “it would be nice if” the house had…

We will use this list to further narrow the homes that met your first criteria.

Examples might be pool, waterfront, prefer new construction, etc

We’ve Found Your Future Home! Now what? 1. Submit an offer

- Create a fair offer with the correct contingencies

- Consider what you really need

- Present our offer

- Attach earnest money deposit

Contingencies?Contingencies are items or actions that must occur for the contract to be valid.

Examples:

- Acceptable Inspection Report

- Obtaining Financing

- Selling another home

Negotiation and ConcessionsNegotiation is an art with some science mixed in.

As a first time buyer some concessions may be necessary for you to close.

Example: You may not have enough capital for both the down payment and the

closing costs. So you may ask a seller to provide for closing costs from their proceeds.

It’s important to understand that if you need something from the seller they are going

to want something in return. Maybe a higher asking price or maybe they need you to

allow them to rent back the home for 30 days.

Almost anything can be written into your sales agreement.

Offer Submitted! Now What?

We Wait.

Literally the worst part.

Offer accepted!There will be a whirlwind of activity.

Inspections, repair lists, surveys, appraisals, title searches...

Collecting and delivering financial documents...

Packing and looking for things you’ve already packed…

Figuring out where the furniture goes

And it’s all worth it!

Walk through and ClosingWe’ll check the home one last time to make sure everything just right.

Meet with the closing agent, sign,

and get your keys!

You Are A Homeowner! .