Important First Time Homebuyers Info.

For all your Real Estate needs contact Tami Winbury Keller Williams Realty 805-798-3412 www.TamiWinbury.com DRE#01878369
First Time Homebuyers Important Info. Buying a home will probably be the most important purchase of your life, and the process can be intimidating. We are here to make it easy for you. This page outlines some of the basics you may want to know before getting started.

Renting vs. Buying

Renting:
Advantages	Disadvantages
Usually costs less than buying	No tax benefit
You can usually relocate more easily	No investment in or from property
Little responsibility for maintenance	No equity is accumulated
No responsibility for repairs	Rent amount may increase frequently

Buying:
Advantages	Disadvantage
Tax benefits	Responsible for property taxes
Greater stability	Responsible for maintenance and repairs
One of the best investments in today’s economy	Monthly housing may cost more
Your equity builds	Cash is tied up
First home often leads to a better home	Can’t always sell a home quickly
Pride of ownership and fulfills the American dream	Less mobility

Costs of Home Buying

How Much Money Do You Need? Enough to cover:

1. Down payment
2. Closing costs
3. Other housing related costs: mortgage payments, maintenance, repairs, private mortgage insurance

When it comes to down payment and closing costs, you may have several options – including little or no money down loan programs. Furthermore, some loan programs do not require private mortgage insurance. Consult your Loan Officer for details.
Tips for the First-Time Homebuyer
Educate Yourself
Become familiar with the home buying process. You can do this fairly inexpensively by picking up easily understandable books such as Home Buying For Dummies. Also look for local free first-time homebuyer seminars in your area.
Save for the Down Payment and Closing CostsKeep in mind that while minimum down payments start around 3% to 5%, the greater your down payment, the more favorable your terms. If you can purchase a home with at least 20% down, you won't need to buy private mortgage insurance (PMI). Also remember that closing costs typically range from 3% to 6% of the purchase price.
Determine How Much You Can Afford
Consider your other expenses, and make sure you are saving enough toward retirement and other goals when deciding how much to spend each month on mortgage payments.
Consider Other Home Ownership ExpensesWhen considering how much you can afford to pay each month, in addition to mortgage payments, factor in costs such as homeowner's insurance, property taxes, private mortgage insurance (if required), utilities, repairs, and maintenance.
Get Pre Approved for a Loan
You’ve made some estimates, but pre-approval will give you a more accurate picture of how much credit a lender is willing to extend to you. Knowing how much you can afford will help you and your Realtor spend your time more valuably, shopping for homes that are truly in your price range. Additionally, when it’s time to make an offer, pre-approval sends a message to the seller that you are serious and prepared to buy.
Location, Location, Location Determine what neighborhood features and characteristics are most important to you and then research areas that meet your criteria. Search for homes at www.GREATPRICEDHOUSES.COM
Consider factors such as safety, schools, convenience, community, and resale value.
Hire Real Estate Agent. Get referrals from friends, relatives, and co-workers, and then interview several agents before you choose one. Tami Winbury Keller Williams Realty is a Realtor® who specializes in the neighborhoods and First Time Home Buyers. Rely on her team for guidance but not to make decisions for you. Tami will guide you and let you know how much a home is worth, facilitate the sale process, and bring your offer to the seller's agent.
Inspection
Hire a professional Home Inspector. Get referrals from friends, relatives, and co-workers. Consult the Better Business Bureau as well.
A land survey may not uncover a disputed property line. And title insurance doesn't cover boundary line conflicts. A complete survey could save you lots of time, money, and frustration later on.
Closing PreparationGet a closing costs estimate from your Loan Officer. Make sure you’ll have enough money for closing costs and down payment.

Choosing the Right Loan Program

With the wide variety of financing options available today, how do you know which loan program is the right one for you? Your professional Loan Officer and Tax Advisor can guide you in selecting a loan that will help you achieve your financial goals. However, answering a few basic questions may provide you with some insight into which loan programs are suited towards your needs.

How Long Do You Intend to Occupy or Own The Property?

Length of Stay In Property	Loan Programs to Consider
1-3 Years	1 or 3-Year Adjustable Rate Mortgage
4-6 Years	5 or 7-Year ARM; 5 or 7-Year Balloon
7 Years	10 Year ARM; 15, 20, or 30-Year Fixed Rate Mortgage

Would You Prefer a Lower Payment or More Rapid Accumulation of Equity?

Financial Goal	Loan Programs to Consider
Equity Buildup	15 or 20-Year Fixed
Minimize Payment	1, 3, 5 or 7-Year ARM; 30-Year Fixed

What Do You Feel Interest Rates Will Do in the Future?

I Believe Interest Rates Will:	Loan Programs to Consider
Rise	30, 20, or 15-Year Fixed; 7 or 10-Year ARM; 7-Year Balloon
Fall	1-Year ARM
Stay the Same	1, 3, 5 or 7-Year ARM

How Well Do You Tolerate Risk?

Risk Tolerance	Loan Programs to Consider
Uncomfortable With Vulnerability to Interest Rate Fluctuations	15 or 30-Year Fixed; 10-Year ARM
Comfortable with Market Changes	1, 3, 5 or 7-Year ARM; 5 or 7-Year Balloon

For all your Real Estate needs contact Tami Winbury Keller Williams Realty 805-798-3412 www.TamiWinbury.com DRE#01878369

Article provided by Robert Clark

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Robert Clark

Senior Loan Officer

NMLS #440892

Direct: 805-322-3418

Mobile: 805-302-9444

Fax: 877-630-0933

Email Me!

1000 Town Center Drive #300

Oxnard, CA 93036

I am licensed to originate mortgage loans in the following state(s): CA

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Negotiating a Real Estate Offer

Negotiating a Real Estate Offer

Here are a few tips to think about when negotiating a Real Estate Offer. Sellers typically prefer deals with fewer contingencies.

Negotiation strategies differ depending on how well the home is priced and who's on the other side. If you're trying to buy a short-sale listing where the lender has to agree to accept less than the amount owed, the seller doesn't have much say in the negotiations about price unless he can contribute money to pay down the loan amount.

Regardless of who you're dealing with, you're more likely to grab a seller's or lender's attention if you are preapproved for the mortgage you'll need and can provide verification of cash for the down payment and closing costs.

Many buyers feel that cash is king. If buyers are willing and able to pay all cash with no mortgage, no hassling with the lender and no appraisal contingency, they feel they're owed a price concession.
Not all sellers agree. Some, who are confident in the value of their home, would rather work with an offer from a well-qualified buyer who needs to obtain a mortgage but who will pay a higher price.

Before you start negotiating, you should understand as much as you can about the other party. For instance, if the sellers are moving to a retirement home, they might go for the highest-priced offer in a multiple-offer situation, even though it might not be ideal in other regards. If they are liquidating their last asset, every penny will count.

An all-cash or large-cash-down buyer might not be able to negotiate a "deal" based on the fact that no lender will be involved. But if the home is a good value and suits your long-term needs, you might increase your offer price and include a mortgage. This way, you conserve cash for other uses.

HOUSE HUNTING TIP: Many buyers don't want to negotiate. They want their first offer to be their best offer. Usually, the only time this is effective is if yours is the only offer, the house is priced right for the market, and you offer full price. In this market, you're better off planning for some negotiation, and not putting all your cards on the table at once.

In most areas, the home-sale market still favors buyers. A lot of sellers are selling for less than they paid. Some have to bring money to the closing. Sellers who have owned for years are selling for less than they would have years ago. It's natural that they would want to try for the highest price possible.

Negotiations are about more than price. Generally, the fewer the contingencies or the cleaner the contract, the more attractive it will be to the seller. Closing and possession dates can become issues at the bargaining table. What's included and excluded, time periods to satisfy contingencies, and virtually everything in the contract is negotiable.

Since everything is up for grabs, be clear about what's not negotiable -- for instance, you can't go over a certain price. Show flexibility in areas that will hopefully be valuable to the sellers, such as buying "as is" regarding some needed repairs.

Don't waste your time with sellers who are firm at a price that is considerably over market value. Wait until they become realistic while you continue looking. Some sellers eventually get tired of having their home listed and reduce the price to market value. Others don't.

Sellers need to understand that buyers in today's market will walk away from a negotiation if they feel they're not getting anywhere or are being treated unfairly. Buyers could become suspicious or disappear if they're told by the sellers or their agent that other buyers are lining up to make an offer when they aren't.

THE CLOSING: A smart strategy is to defend your position while being honest and fair with the other party.
Contact Tami Winbury Keller Williams Realty for all your Real Estate needs. 805-798-3412 www.Shortssale.org
Diane Hiamer