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Primerica Home Primerica Home Buyers WorkshopBuyers Workshop
How to get the most house for your money.
Today We’re Going to Today We’re Going to Talk About:Talk About:
How Primerica Can Help You Achieve Your
Goals
The Benefits of Home Ownership
The Home Buying Process
Financing Your Home
Flexible Financing Alternatives
Process Recap and Guest Information Card
Lets Talk About MoneyLets Talk About Money
Most families want to buy their own homes but one of the main reasons they do not is because of money.
If we could help you develop a game plan to buy a home, pay it off sooner, protect your investment and plan for a great financial future, would that be of value to you and your family?
How Do You Make How Do You Make Goals and Dreams Goals and Dreams
Come TrueCome TrueThe route to home ownership begins with:
The Financial Needs Analysis (FNA)
Customized Confidential
Complimentary
FNAFNA
FNAFNA
The FNA helps families look at how to:
Get out of debt sooner
Pay off your mortgage earlier
Have a game plan to retire comfortable
Save for your child’s education
After Tax Monthly CostAfter Tax Monthly Cost
RENTING
$975
OWNING*
$874 Mortgage Payment
+ $137Real Estate Taxes
+ $40 Property Insurance
+ $81 Private Mortgage Insurance = $1,132 Total Monthly Mortgage
Payment
- $255 First Year Monthly Tax Savings
$877* Assumes $131,580 Outstanding Mortgage Loan Balance with 5% Down Payment, 30 Year Fixed Rate Mortgage at 7.5%, 28% tax bracket, assumes full tax deductibility. Consult your tax advisor for actual tax savings.
How You Build EquityHow You Build EquityHow You Build Equity
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
0 5 10 15 20 25 30
Appreciation
Monthly PrincipalPayment
Why Buy Now?Why Buy Now?
14%
1984$1 ,481
10%
1989$1 ,096
7 .5%
2001$874
* Mortgage Rates: 30 Year Fixed Rate Average. Based on a $125,000 First Mortgage
SOURCE: Mortgage Bankers Association
Why Buy Now?Why Buy Now?A ve ra ge H o u s in g P r ice s
$72 ,400
1984
$93 ,100
1989
$133 ,300
1999
Benefits of Home Benefits of Home OwnershipOwnershipThe Home Buying
Process
Everyday Living Needs
Neighborhood
Future Needs
Personal Preferences
Location, Location, LocationLocation, Location, Location
Neighborhood Property Values
Streets and Transportation
Environment
Community Services
Schools and Shopping
Proximity to Workplace
Personal Tastes
A Real Estate Agent Can A Real Estate Agent Can HelpHelp
Realtors® Know the Community
They Know What’s Available
They Arrange Home Showings
You Can See More Homes
Determining A Fair Determining A Fair PricePrice
What do homes sell for in that area?
Did the Realtor give you comparable sales?
Neighborhood meet your needs?
In your price range?
Everything Is Everything Is NegotiableNegotiable
Sales Price
Financing
Date/Location of Closing
Pro-rating Expenses
Selecting Attorney/Title Company
Making An OfferMaking An OfferNegotiate a price
– Work with the Realtor
Finalize Contract– Bind with a small deposit– Deposit is generally non-
refundable!
Closing Provisions– Allow time to move– Allow time to sell current
home or finish your lease
Financing Your HomeFinancing Your Home
Good Faith EstimateThe Approval ProcessAppraisalLoan DecisionClosing/Settlement
– Need out-of-pocket cash for closing costs
– Get a Settlement Statement (HUD-1)
What Lenders ConsiderWhat Lenders Consider
Income
Employment
Assets
Debts
Credit History
Property
* You do not have to disclose this income if you do not wish to have it considered as a basis for repaying the loan.
Income & Employment Income & Employment HistoryHistory
Salary
Second Job
Overtime
Alimony/Child
Support*
Commissions
Dividends
Social Security
Income
Pension
Lenders consider your gross income, as long as it is steady & verifiable.
AssetsAssets
Savings and Checking Accounts
Investments
Equity in Your Current Home
Gifts/Grants
DebtsDebts
Installment Loans
Credit Cards
Lines of Credit
Other Mortgages
Other Kinds of Debt (Auto Loans)
Lenders Will Consider All Your Debts Since They Affect Your Ability to Make Your Mortgage Payments
Credit HistoryCredit HistoryA Credit Rating May Include:
Fixed Loan Balances and Payment History
Revolving Credit Balances and Payment History
Judgments/Bankruptcy/Foreclosure
Delinquencies/Collection Accounts
Suits/Repossessions
Number of New Inquiries
Credit Available vs. How Much is Used
No Credit History?No Credit History?
12 Months Utility Bills (electric, gas)
Rent Receipts
Telephone and Cable Bills
Layaways
Alimony Payment History, if
applicable
Any Recurring Monthly Obligation
PropertyProperty
Appraisal Factors:
Property Condition
Age of Property
Comparable Sales of Properties Nearby
The Value of the Home You Are Financing Will Be Determined Through an Appraisal
PropertyProperty
Loan to Value (LTV)
$125,000 = Loan Amount$131,580 = Value of Home 95% = Loan to Value
Note: If the LTV is greater than 80%, lenders may require mortgage insurance and the interest rate may be slightly higher.
Primerica’s H.O.M.E. Loan Primerica’s H.O.M.E. Loan Program Financing OptionsProgram Financing Options
Through CitiMortgage’s Standard Home Financing Options
Expanded Lending Programs
Get Off To A Sure StartGet Off To A Sure StartWith SureStart on your side, you’ll be more confident as you begin shopping for your home, because you’ll be pre-approved for a specific loan amount. Plus, home sellers will know that you’re a serious buyer, because you’ll have a commitment in hand.
Why rent when you can own?
Benefits of Home Benefits of Home OwnershipOwnership
RENTING No Potential Tax
Deductions
No Return on Money
Potential Landlord/ Tenant Issues
Potential Lease/Rental Agreement Hassles
OWNING You Get To Select
An Area of Your Choice
Equity Builds Up
Tax Deductions*
It’s YOUR Home! Pride of Ownership
*Your total deduction may be limited. You should consult your tax advisor.
CitiMortgage’s CitiMortgage’s ExpandedExpanded
Lending ProgramsLending Programs More Flexible Qualifying
Guidelines
Programs Specifically Designed for Self-Employed Borrowers
MortgagesMortgages
“Stated” Income Programs for Self-Employed Borrowers
Expanded Approval With Timely Payment Rewards
Conventional Loan Programs Including Jumbo Mortgages
Qualifying GuidelinesQualifying Guidelines
Monthly Housing Costs: – mortgage payments – property taxes– insurance – monthly maintenance fees– PMI
1. As a percentage of gross income (Housing or Front End Debt Ratio)
2. Plus other long term debt as a percentage of gross income (Total or Back End Debt Ratio)
.Qualifying or underwriting guidelines determine how much of your income is available to pay your housing
expenses.
Now Is The Time To ActNow Is The Time To Act
Affordable Mortgage Rates +
Primerica H.O.M.E.Loan Program
Equals….
Your New Home!Your New Home!
Process RecapProcess RecapGuest Information Card
Name_______________________________________ Phone#(___)_______________
Address_________________________________________________________________
City______________________ State______________ Zip Code___________________
Are you interested in:
_______ Buying a principal residence or vacation property in the next 90 days?
Do you have any money set aside for the purchase of this property? yes_____no_____
Are you willing to commit a minimum of $150 to the process as a non-refundable deposit?*
yes_______ no_______
Is it ok to call you at work? yes_____ no_____ Phone #(____)_____-_______________
*Applied toward closing costs upon closing
Process RecapProcess Recap Complete The Guest Information Card
Get With Your Primerica Representative And Set Up An Appointment
Complete The Primerica H.O.M.E. Loan Borrower Information Kit
A CitiMortgage Consultant Will Call You Within 24 Hours