First Time Home Buyer Seminar

Hosted By:

Trophy’s &Natasha Perez &

John Anastasopoulos

What’s In It For Me?

Top 8 Reasons To Buy Now1. Financial

2. Buyer’s Market

3. Tax Savings

4. Return on Your Investment

5. Programs Available For Free Money

6. Easiest Way to Move Into a Larger Home

7. No More Renting

8. Milestone in your life

Return on YOUR Investment In a great marketSan Diego saw tremendous returns around 30%

My story…Bought at $169,000 ->Sold $320,000

net: $138,000 In 2 years!!!!

In a down market…IT’S A GREAT DAY TO BUY!! Savings of 8-10% on sales prices earns you instant equity

(On a $300,000 house 8% savings is $24,000!) Economic cycles Real Estate cycles

Financial

Rent$900/mo. X 12=

$10,800 wasted money on rent

First & Last Month’s Deposit= $1,800 wasted money on deposit

____________________________

$12,600 Per Year

*Could be paid toward your mortgage

*No Tax Benefits

OWNConventional

$300,000 Condo

0 down

Seller to pay closing

$2,300/mo.

- 750 roommate

$1,550 - 500 tax savings 28% tax bracket + 200 homeowner’s association

$1,250

Think of your mortgage as you putting money in a cd for yourself

Buyer’s Market

Condo Sales 2005 vs. 2006 and Year to Date Sales 

360000

370000

380000

390000

400000

410000

420000

430000

2005 2006

December

November

YTD

8.76 % Decline from 2005 to 2006

Data from county recorders office 1/18/2007

Tax Savings

How much is being taken out of your paycheck?

Single?

No deductions?

IRS taking your money

or

Increase your deductions and put the money towards

your mortgage

Tax savings of approximately

$200 per paycheck

Easiest Way To Move Into Larger Home

Buy a condo no money down $300,000 Sell in 5 years at $347,782 (assuming 3% appreciation per

year)

Put money towards your new home or in your savings account!

No More Renting

You make the rules You decorate your home how YOU want No more credit checks or interviews You can kick out horrible roommates Throw your own house parties (way cheaper

than downtown)

Milestone in Your Life

Summary

I am now investing in myself and my financial future If I do nothing else for retirement, I will at least have a

sizeable asset for which to draw from when I retire I will not be wasting my money on rent anymore I am building my credit and asset portfolio I will own something that I can call mine I can use my first home as a stepping stone to my DREAM

HOME I will have a fun place to entertain my friends and family

Topics of Discussion

Mortgage Bank vs. Traditional Bank How does a bank qualify you? What documentation do I need to provide? How long does it take to get a loan? Identifying the right loan for you. Tax Benefits Involved

Mortgage Bank vs.

Traditional Bank

Mortgage Bank vs. Traditional Bank

Flexibility- We have over 100 investors to find you the best loan program.

Our job is to say “YES” to you and your loan needs.

We specialize in Home Loans…. That’s all. We are dedicated to you. We work on a

100% commission.

HOW DOES A BANK QUALIFY

YOU FOR A LOAN?

HOW DOES A BANK QUALIFY YOU?

4 Main Qualifying Factors

CREDIT INCOME ASSETS LOAN TO VALUE

3 CREDIT BUREAUS

Equifax TransUnion Experian

Bill Smith: 652 681 634

Jane Smith: 723 689 702

HOW DOES A BANK QUALIFY YOU?HOW DOES A BANK QUALIFY YOU?

CREDIT

•Higher wage earner

•Lower middle score of the two borrowers

HOW DOES A BANK QUALIFY YOU? CREDIT 850 – 780 Phenomenal 779 – 740 Excellent 739 – 700 Great 699 – 680 Good 679 – 640 Average 639 – 620 Ok 619 – 600 Below Average 599 – 580 Sub Par 579 – 520 Need Down Payment 519 – 350 Need a Bigger Down Payment

HOW DOES A BANK QUALIFY YOU?HOW DOES A BANK QUALIFY YOU?

CREDIT

HOW DOES A BANK QUALIFY YOU? INCOME

The income portion of your loan is based off a “Debt to Income Ratio”.

Debt to Income = Expenses / Income

Accounts Balance Minimum PmtCar Payment $7000 $150Credit Card $300 $30Macy’s Card $400 $20

HOW DOES A BANK QUALIFY YOU? ASSETS (Liquid)

The general rule of thumb with your assets is to have enough money to cover your closing costs,

down payment (if it’s a purchase), and 2 months of your monthly payments in reserves. See Example

Below.

Closing Costs: $5000Down Payment: $50,000Monthly Mortgage Payment: $2000 x 2 (mo.) = $4000

Total = $59,000

HOW DOES A BANK QUALIFY YOU? LOAN TO VALUE

This simply calculates how much your loan is compared to the appraised value or the sales price of the home.

Loan Amount: $200,000

Home Value: $400,000 Loan to Value = ($200,000 / $400,000) = 50%

WHAT DOCUMENTATION

DO I NEED TO PROVIDE?

DOCUMENTATION NEEDED FOR A LOAN

Income 2005 W2 2004 W2 If 1099 Employee: 2005 complete copies of Federal Tax Return. (Or 2003 if 2005 is not available) If 1099 Employee: 2004 complete copies of Federal Tax Return. If Self Employed - past two years Partnership or Corporation Tax Returns. If Self Employed - Two years business license’s or letter from CPA to verify self -employment for the last

two years. Pay stubs – must cover most recent one-month period Assets Three months bank statements for all checking accounts. (All pages) Three months bank statements for all savings accounts (All pages) Three months statements for any investments accounts (All pages) Documentation on Retirement, Social Security or Annuity income. Rental agreements for any rental properties owned. Liabilities Latest statements for any existing mortgages. Copy of divorce decree - if applicable? If you are currently renting-name, phone and fax number of present landlord. If you pay Homeowners Association Fees - Name and Telephone number of Homeowners Association. Proof of Homeowner’s insurance – Must reflect agent’s name and telephone number, amount of dwelling

coverage and premium. Miscellaneous Copy of Current Note on any 2nd mortgage or equity line that needs to be Subordinated. Copy of some form of identification – Drivers license, passport, green card or Alien card. After review of your application, additional information or documentation may be required. We will notify you

as soon as possible.

DOCUMENTATION NEEDED FOR YOUR LOAN

Income 2005 W2 2004 W2 Pay stubs – must cover most recent one-month period Assets Three months bank statements for all checking accounts. (All pages) Three months bank statements for all savings accounts (All pages) Three months statements for any investments accounts (All pages). Liabilities If you are currently renting-name, phone and fax number of present landlord. If you pay Homeowners Association Fees - Name and Telephone number of Homeowners

Association. Proof of Homeowner’s insurance – Must reflect agent’s name and telephone number, amount of

dwelling coverage and premium. Miscellaneous Copy of some form of identification – Drivers license, passport, green card or Alien card. After review of your application, additional information or documentation may be required.

We will notify you as soon as possible.

HOW LONG DOES IT TAKE TO GET A

LOAN?

How long does it take to get a loan?

TIMELINE OF A LOAN

Application (15-45 min.) Appraisal & List of Documents (4 days) Underwriter Approval (3-4 days) Final Documents sent to Escrow (1 day) Sign Final Documents send back to Lender (2 days) Lender does a final review (1 day) Loan Funds (1 day)

IDENTIFYING THE RIGHT LOAN

FOR YOU!

Identifying the right loan for you. Finding the right mortgage!!

Things to consider How long will you own this home? Expecting changes in income, short term or long

term? Is building equity a priority? Is stability in your monthly payment a priority? Expecting kids? College tuition? Retirement?

Identifying the right loan for you. Loan Programs

CONSERVATIVE (higher monthly payment) 30 / 15 FIXED LOAN 10/1 ARM 7/1 ARM 5/1 ARM 3/1 ARM 2/38 ARM PAY OPTION ARM LOAN

RISKY (lower monthly payment)

Tax Benefits

LOAN AMOUNT: $300,000 INTEREST RATE: 7.500% TAX BRACKET: 33%

Monthly Payment = $2097.64Tax Savings per month = $ 616.17Effective Monthly Pmt. = $1481.47

Please see your tax advisor for detailed information.

SUMMARY

How does a bank qualify you?Credit, Income, Assets, Loan to Value

What documentation do I need to provide?Checklist Provided

How long does it take to get a loan?As early as 15-30 Days

Is a loan affordable for me?Think of the tax savings / possibility of down payment / roommate.

Questions?

Testimonials…

Appendix

Identifying the right loan for you. Should you pay discount points?

30 Year Fixed Zero Point Rate Lowest Rate

Loan Amount 300,000 300,000

Discount Points 0 2 ($6,000)

Interest Rate 6.25 5.750

Monthly Payment 1847.15 1750.72

Total Interest 364,975.86 330,258.01

Interest Difference n/a 34,717.85

Months to Recover 5.19 Years

35

Identifying the right loan for you. PAY OPTION ARM

You have the option every month to make one of 4 payments

$300,0001% Start Rate 7.750% Fully Indexed Rate

Deferred Interest $900 Interest Only $1200 30 Year Amortized Pmt. $1800 15 Year Amortized Pmt. $2500