Primerica Home Buyers Workshop

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Primerica Home Buyers Workshop

• How to get the most house for your money.

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Today Were Going to 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

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Lets 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?

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How Do You Make Goals and Dreams Come True

• The route to home ownership begins with
• The Financial Needs Analysis (FNA)
• Customized
• Confidential
• Complimentary

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FNA
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FNA

• 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 childs education

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After Tax Monthly Cost

• OWNING
• 874 Mortgage Payment
• 137 Real Estate Taxes
• 40 Property Insurance
• 81 Private Mortgage Insurance
• 1,132 Total Monthly Mortgage Payment
• - 255 First Year Monthly Tax Savings
• 877

• RENTING
• 975

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.
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How You Build Equity
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Why Buy Now?
Mortgage Rates 30 Year Fixed Rate Average.
Based on a 125,000 First Mortgage SOURCE
Mortgage Bankers Association
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Why Buy Now?
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Benefits of Home Ownership

• The Home Buying Process
• Everyday Living Needs
• Neighborhood
• Future Needs
• Personal Preferences

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Location, Location, Location

• Neighborhood Property Values
• Streets and Transportation
• Environment
• Community Services
• Schools and Shopping
• Proximity to Workplace
• Personal Tastes

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A Real Estate Agent Can Help

• Realtors Know the Community
• They Know Whats Available
• They Arrange Home Showings
• You Can See More Homes

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Determining A Fair Price

• What do homes sell for in that area?
• Did the Realtor give you comparable sales?
• Neighborhood meet your needs?
• In your price range?

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Everything Is Negotiable

• Sales Price
• Financing
• Date/Location of Closing
• Pro-rating Expenses
• Selecting Attorney/Title Company

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Making An Offer

• Negotiate 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

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Financing Your Home

• Good Faith Estimate
• The Approval Process
• Appraisal
• Loan Decision
• Closing/Settlement
• Need out-of-pocket cash for closing costs
• Get a Settlement Statement (HUD-1)

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What Lenders Consider

• Income
• Employment
• Assets
• Debts
• Credit History
• Property

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Income Employment History
Lenders consider your gross income, as long as it
is steady verifiable.

• Salary
• Second Job
• Overtime
• Alimony/Child Support

• Commissions
• Dividends
• Social Security Income
• Pension

You do not have to disclose this income if you
do not wish to have it considered as a basis for
repaying the loan.
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Assets

• Savings and Checking Accounts
• Investments
• Equity in Your Current Home
• Gifts/Grants

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Debts
Lenders Will Consider All Your Debts Since They
Affect Your Ability to Make Your Mortgage Payments

• Installment Loans
• Credit Cards
• Lines of Credit
• Other Mortgages
• Other Kinds of Debt (Auto Loans)

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Credit History

• A 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

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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

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Property
The Value of the Home You Are Financing Will Be
Determined Through an Appraisal

• Appraisal Factors
• Property Condition
• Age of Property
• Comparable Sales of Properties Nearby

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Property

• 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.

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Primericas H.O.M.E. Loan Program Financing
Options

• Through CitiMortgages Standard Home Financing
  Options
• Expanded Lending Programs

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Get Off To A Sure Start

• With SureStart? on your side, youll be more
  confident as you begin shopping for your home,
  because youll be pre-approved for a specific
  loan amount. Plus, home sellers will know that
  youre a serious buyer, because youll have a
  commitment in hand.

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Benefits of Home Ownership

• 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
• Its YOUR Home! Pride of Ownership

Why rent when you can own?
Your total deduction may be limited. You should
consult your tax advisor.
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CitiMortgages ExpandedLending Programs

• More Flexible Qualifying Guidelines
• Programs Specifically Designed
  for Self-Employed Borrowers

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Mortgages

• Stated Income Programs for Self-Employed
  Borrowers
• Expanded Approval With Timely
  Payment Rewards
• Conventional Loan Programs Including
  Jumbo Mortgages

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Qualifying Guidelines
Qualifying or underwriting guidelines determine
how much of your income is available to pay your
housing expenses.
.

• 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)

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Now Is The Time To Act

• Affordable Mortgage Rates
• Primerica H.O.M.E.Loan Program
• Equals.

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Your New Home!
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Process Recap

• Guest 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 (____)_____-_______________

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Process 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