first time homerbuyer seminar

© 2007, All Rights Reserved, YourOrlandoMortgage.com© 2007, All Rights Reserved, YourOrlandoMortgage.com

Buying Your First Home

Seminar Presentation


Travis BeMent – Owner YourOrlandoMortgage.c

om


What We Will Cover Today

Why this is a great time to buy

3 economic reasons to ownFinancing for first time buyersOvercoming obstaclesPlanning for your first home


Why The Market is Hot

Population growth fueled by immigration

Home prices at record lows

Lower interest ratesDiversified portfolio a key


Fannie Mae SurveySecurity, permanence & control:

69% gave as reasons Owning a good investment: 78%Two-thirds would choose to work

an extra decade to ownOwning is truly the--

American DreamAmerican Dream


Wealth Is Created Through Real Estate...


Ask This Question...Would you rather pay $975 a

month for rent that goes totally down the drain?

Or would you rather pay $975 a month to own a home...and have a savings account

growing steadily each month?


Three Financial Reasons

****The Power of Leverage

****Rental Equivalency

****Inflation Hedging


The Power Of Leverage

Home Savings

Investment $ 10,000 $10,000Total Asset $100,000 $10,000Appreciation 4% 4%10 Year Return $ 39,803 $ 4,800Rate of Return 17% 4%


Rental Comparison Own Rent

Monthly Payment $1,116 $ 850

Tax Deductible $ 983Tax Savings @22.3% (220)After Tax Payment $ 896Principal Reduction (45)Rental Comparison $ 851 $ 850


Inflation Hedging Own Rent

Monthly Payment $1,116 $ 850Inflation @4% Portion AllPayment Year 10 $1,234 $1,258Principal Reduction (120) N/APre Tax Year 10 $1,114 $1,258After Tax Year 10 $ 805 $1,258


Fannie Mae SurveyMajor obstacles to home ownership

51% Cash44% Income29% Job Security25% Credit Record


The FHA SolutionNo income limitLimitation upon loan amountAllows 100% giftsAllows non-resident aliens3.5% down paymentParents can co-sign29/41 ratios are liberal


The VA SolutionQualified veterans & active

militaryMaximum loan limitNo down paymentSeller can pay all closing

costs41% ratio100% gifts allowed


Conventional SolutionFannie Mae & Freddie Mac5% down payment Maximum income limits for some programs

Seller can pay some closing costs


Short Income? Assumptions: harder to findLower rate: buy-downs &

adjustablesHigh ratio programs: FHA/VACo-borrowerAsk employer for a raise!Pay off debts


Short Cash?Low down payment programs:

FHA, VA

No point & reduced closing cost Gifts: 100% ruleSeller paid closing costsBorrowing Co-borrowersSavings over time


Moving Forward

Homebuyers Financial Planner

&

Residence Analysis

"Plan the action"


Why Do It Backwards?

Approval before you shopGives you confidenceEliminates last minute

problemsMore negotiating power


The Time Is Now

first time homerbuyer seminar

Documents

tax payment

payment programs

payment seller

payment parents

portionall payment year

rent monthly payment

tax savings

tax deductible