HERE’S THE STORY OF HOW TO
BUY A HOME a z o o l a p a l a Re Thursday, Nov. 7 6 PM - 9 PM Catalyst Ranch
AGENDA
AGENDA WELCOME TO REALAPALOOZA! WHAT ARE WE DOING HERE? MAGIC MORTGAGE MOVES TWO STEP – SELECTING AN AGENT FOR THE HOME BUYING DANCE THE LEAP OF FAITH – FALLING IN LOVE WITH A HOME – WHAT’S NEXT? TRIVIA! REAL ESTATE ATTORNEY LAYS DOWN THE LAW INSPECTION OF INSPECTIONS GETTING OVER THE CLOSING LINE SPEED DATING – REAL ESTATE STYLE!
4 REASONS TO BUY NOW
4 REASONS TO BUY NOW 1. HOME PRICES VARY DEPENDING ON MARKET STABILITY, (IS IT IS A BUYERS’ MARKET OR A SELLERS’ MARKET?) THE LOCATION AND CONDITION OF THE HOME. •
According to CoreLogic’s Home Price Index (2019), home prices are predicted to increase by 5.4% from April 2019 to April 2020
•
Prices will continue to increase at varying levels across Chicago depending on market conditions particular to neighborhood trends
2. INTEREST RATES ARE ALWAY SUBJECT TO VARIABILITY •
Current interest rates are at almost historic lows making it a great time to buy as mortgage rates remain reasonable
•
Mortgage rates are running about 2% below levels predicted by experts and are predicted to stay below 4% through 2020
•
The low interest rates make your monthly payment more affordable in the long term
3. EITHER WAY YOU ARE PAYING A MORTGAGE •
Pay your landlord’s mortgage or pay your own. Either way you are paying a mortgage! Let’s do the math: Your rent is
$
x 12 months = x 3 yrs.
$ •
Want to learn how much you can save by buying? Ask your agent!
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4 REASONS TO BUY NOW
4. IT’S TIME FOR THE NEXT STEP IN YOUR LIFE •
According to the latest Rent vs. Buy Report from Trulia, (2018) buying a home is 26.3% cheaper than renting nation-wide
•
The monthly cost of a home is determined by your mortgage, property taxes and homeowner’s insurance. The total monthly payment covering all expenses will in most cases be lower than your rent – while you build equity!
•
The purchase price of your home is determined as previously stated, by condition, location and market trends
•
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You must consider all factors into your buying decision
STEPS FOR HOME BUYING
STEP #1: HOW TO NAVIGATE GETTING PRE-QUALIFIED FOR A MORTGAGE THROUGH RICK PANTOGA WITH PROSPERITY HOME MORTGAGE, YOU CAN EASILY BE PRE-QUALIFIED ON THE SPOT! STEPS FOR A SUCCESSFUL PRE-APPROVAL 1.
Three ways to apply for a pre-approval with Rick Pantoga:
FACE-TO-FACE
PHONE
ONLINE
INFORMATION COVERED DURING THE PRE-APPROVAL PROCESS •
Range of purchase price/down payment
•
Income verification, credit history, and asset information
•
Determine a monthly payment comfort level
•
Budgeting for closing costs
2. Start gathering documentation: •
1–2 month(s) of pay stubs
•
2 years of W2’s/1099’s/K1’s
•
2 years of 1040’s (tax returns)
•
2 months of broker/bank statements (checking, savings, 401K’s, etc.)
3. Shop with confidence!
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STEPS FOR HOME BUYING
STEP #2: SELECT YOUR REAL ESTATE PROFESSIONAL TOTAL REPRESENTATION •
It is important to understand the various agent designations in order to receive exclusive representation. BUYER’S AGENT: represents only the home buyer’s best interest throughout the home buying process. SELLER’S/LISTING AGENT: represents only the home seller’s best interest through the home selling process.
DUAL AGENT: represents both the buyer and seller ethically and honestly, safeguarding the confidentiality of both clients.
•
Set-up a one hour meeting with your prospective agent
•
Discuss the home buying process
•
Develop an action plan with your agent including your preferred means of communication
•
Set maximum home buying price, location and criteria
•
Provide your mortgage pre-approval letter to your agent
•
Sign exclusive buyers’ agreement
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STEPS FOR HOME BUYING
STEP #3: YOU FOUND A HOME! •
Make sure you have been provided with all disclosures: lead paint, radon, mold, or property conditions such as asbestos, water in basement, etc.
•
Decide if you want to make an offer
•
Ask your agent to create a comparable market assessment that will evaluate recent sales of similar homes in the immediate area
•
Your agent will determine the fair market of the home and work with you to create a viable offer and an agreed upon negotiation stategy
•
Your agent will write up a contract for you to sign
PRESENTING THE OFFER •
Your agent will present the offer to the Sellers agent, who will communicate the offer to the Seller. Your agent negotiates directly with the seller’s agent and keeps you informed in a timely manner of counter offers.
•
If your offer is not accepted discuss the sellers counter offers and determine whether you want to counter with a higher offer
•
Repeat until offer is accepted or you decide to terminate the offer
•
When a price is agreed upon – the fun begins!
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STEPS FOR HOME BUYING
STEP #4: MY OFFER IS ACCEPTED HOME INSPECTION — CONTINGENCY #1 FIVE AREAS TO CONSIDER WHEN CHOOSING A HOME INSPECTOR 1.
Qualifications — determine what’s included in your inspection and if it warrants specific certifications/specialties.
2.
Sample Reports — request a sample to determine their style.
3.
References — request contact information from past clients.
4.
Memberships — not all inspectors belong to national/state associations, but memberships often mean additional education.
5.
Errors & Omission Insurance — determine what the liability of the inspector or company is once the inspection is over.
HOME INSPECTION TIPS & STEPS •
Talk with your inspector about also attending the home inspection
•
You will receive a detailed inspection report
•
This report will be forwarded to your attorney. They will notify the seller’s attorney of deficiencies and will request a repair or a credit at closing.
ATTORNEY REVIEW — CONTINGENCY #2 •
Attorney will review the accepted sales contract and handle legal notifications of inspection issues.
•
If purchasing a condo, attorney will review homeowner association documents (budget, meeting minutes, bylaws, declarations, rules and regulations)
•
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Attorney will attend closing to review all documents with you.
STEPS FOR HOME BUYING
MORTGAGE CONTINGENCY — CONTINGENCY #3 •
Apply for written mortgage application with Rick Pantoga
•
Provide
evidence
of
a
written
mortgage
commitment
letter
(clear to close) •
Once you receive clear to close from the lender, the attorney will schedule closing with the seller’s attorney
•
You will receive a closing disclosure from your lender at least 3 days prior to closing, reflecting the actual terms of your loan transaction, as well as the final amount due (closing costs)
•
Closing costs are also known as settlement fees. Closing costs are fees charged by the people representing your purchase such as your lender, title company and other third parties. These fees are typically between 2-5% of your purchase price.
PREPARING FOR YOUR CLOSING DAY DO
DON’T
1.
Do tell your mortgage loan officer or loan originator about all debts or liabilities.
2.
Do continue to make all your payments on time.
3.
Do contact your mortgage loan officer before changing your job, quitting your job, becoming self-employed or any changes to your income.
1.
Don’t authorize any inquiries into your credit (that is, don’t apply for any new financing including credit cards, furniture, appliances, vehicles, boats, cell phones, cable, alarm companies, etc.)
2.
Don’t incur any additional debts, including increases in credit card balances and co-signing for others.
3.
Don’t close any open accounts.
4.
Don’t sign-up with any credit repair or “consolidation” companies.
5.
Don’t spend money you have set aside for closing.
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STEPS FOR HOME BUYING
STEP #5: CLOSING DAY SET-UP A FINAL WALK THROUGH •
Final Walk through 24 to 72 hours in advance of closing day to ensure that the property is in good condition, any and all repairs agreed upon during attorney review have been completed and that nothing is out of order
CLOSING DAY WHAT YOU NEED ON CLOSING DAY •
A valid drivers license or state ID
•
Proof of Home Owners Insurance
•
Monetary amount your lender has instructed you to wire *When buying in Illinois, any amount greater than $50,000 must come by wire. Always confirm with your title company before wiring any funds. Your real estate agent or attorney will NEVER instruct you to wire funds. If you receive wiring instructions from either, call them.
TIME TO CELEBRATE!
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Q&A
Q&A
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NOTES
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MEET THE TEAM
SONJA SOLBERG, REAL ESTATE BROKER (312) 590-7941 ssolberg@koenigrubloff.com sonjasolberg.koenigrubloff.com
RACHEL RAND MARTELL, REAL ESTATE BROKER
(763) 257-2116 rmartell@koenigrubloff.com rachelrandmartell.koenigrubloff.com
CAMERON SMITH, REAL ESTATE BROKER (915) 255-5703 csmith@koenigrubloff.com cameronsmith.koenigrubloff.com
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MEET THE TEAM
JAMIE CLEMMONS, REAL ESTATE BROKER (773) 844-3829 jclemmons@koenigrubloff.com jamieclemmons.koenigrubloff.com
CHRISTINE WHIMS, REAL ESTATE BROKER (815) 483-8609 cwhims@koenigrubloff.com christinewhims.koenigrubloff.com
BERKSHIRE HATHAWAY HOMESERVICES KOENIGRUBLOFF REALTY GROUP 980 North Michigan Avenue, Suite 700 | Chicago, IL 60611 (312) 590-7941
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MEET THE TEAM
JASON ROBERTS, MANAGING BROKER 980 North Michigan Avenue, Suite 700 | Chicago, IL 60611 (312) 513-3344 jroberts@homeserviceslending.com jasonroberts.koenigrubloff.com
RICK PANTOGA, MORTGAGE LOAN OFFICER NMLS 552590 Mortgage Consultant
Prosperity Home Mortgage, LLC 980 North Michigan Avenue, Suite 700 | Chicago, IL 60611 (312) 893-1397 RickPantoga@phmloans.com rickpantoga.phmloans.com
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Rick Pantoga Mortgage Consultant NMLS#: 552590 Office: 312-893-1397 Cell: 773-899-5100 Rick.Pantoga@phmloans.com www.rpantoga.com
980 North Michigan Ave Suite 700 Chicago, IL 60611
All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in AL, AR, AZ, CO, CT, DC, FL, GA, IL, IN, KS, KY, MA, MD, MI, MN, MO, MS, MT, NE, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VA, WA, WV and WI. NMLS #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2019 Prosperity Home Mortgage, LLC. All Rights Reserved.
Rick Pantoga Mortgage Consultant NMLS#: 552590 Office: 312-893-1397 Cell: 773-899-5100 Rick.Pantoga@phmloans.com www.rpantoga.com
Rick Pantoga
Mortgage Consultant NMLS#: 552590 Office: 312-893-1397 Cell: 773-899-5100 Rick.Pantoga@phmloans.com All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, www.rpantoga.com
980Bank NorthCommissioner. Michigan Ave SuiteAlso 700 licensed in AL, AR, AZ, C Department of Banking and Insurance. Licensed by the Delaware State Chicago, IL 60611 TX, VA, WA, WV and WI. NMLS #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2019 Prosperi
All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also licensed in AL, AR, AZ, CO, CT, DC, FL, GA, IL, IN, KS, KY, MA, MD, MI, MN, MO, MS, MT, NE, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, VA, WA, WV and WI. NMLS #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2019 Prosperity Home Mortgage, LLC. All Rights Reserved.
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Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. Georgia Residential Mortgage License Number: 32253. Regulated by the Colorado Division of Real Estate. Licensed by the Delaware State Bank Commissioner to engage in business in Delaware, License # 5837, Expiration 12/31/17. Illinois Residential Mortgage Licensee MB.6761077. Kansas Licensed Mortgage Company, License Number: MC.0025365. Ohio Mortgage Loan Act Certificate of Registration: 490683 SM.501899.000; Ohio Mortgage Broker Act Certificate of Registration: 490683 MB.804161.000. Oregon Mortgage Lending License ML-5251. 2700 Westown Parkway, Suite 345, West Des Moines, IA 50266.