IBM Southeast Employees` Federal Credit Union`s

Homebuyer Webinar
Is now a good time to
buy?
Home Prices and interest
rates are low!
Rental rates are rising!
Reasons to Buy
Renting vs. Buying
Source May 2015 http://www.trulia.com/vis/rentvsbuy-spring-2015/
Atlanta Sandy Springs Roswell 11.6% increase
last 5 years
MIA, Ft. Lauderdale, WPB 31.3% last 7 years
http://www.housingwire.com/articles/36848-home-prices-see-highest-increase-since-2007?eid=311680831&bid=1382180
Reasons to Buy
Renting vs. Buying
Rent $1,500 a month
Buy $200,000 No increase in Value
Deposit 2 X $1,500
3,000
Down Payment
10,000
Security
1,500
Closing Costs
6,000
5 Yrs Rent
90,000
5 Yrs Payments
90,000
Repairs
0
Repairs
5,000
Balance on Lease
0
Balance on
Mortgage
174,163
Value of Apartment
0
Value of House
200,000
Residual Value
0
Residual Value
25,873
How buying a home is easier with
IBMSECU
• We offer a HomeAdvantage Program
• We work with all Federal, State, County and
Municipality grant and down payment
assistants programs as long as the credit
union can service the loan
• For qualified low and moderate income
members, we offer a down payment
assistant program
How buying a home is easier with
IBMSECU
• HomeAdvantage Program
– You can enter search criteria and look for
properties
– Check out neighborhoods and schools
– 20% of the commission earned by Agent is paid
to Members after closing
– Available for Buying or Selling
Mortgage Hotline 800-873-5100 or 561-982-7722
How buying a home costs less with
IBMSECU
• 20% of the commission is given to you after
closing
– $300,000 Purchase Price
– 3% Real Estate Agent Split on commission
– $1,800 given to you for using the service
– Sign up is easy
Mortgage Hotline 800-873-5100 or 561-982-7722
Your Real Estate Resource
772-919-8600
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1. Looking at Homes You Can't Afford Leads
to Disappointment
2. You Can't Rush Buying a Home.
3. Make a Decent Offer Based on Comps.
4. Don’t let Home Décor Ruin your House
Hunt!
5. Never give up! Never give in!
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If you just call the agent who’s number is on a for
sale sign, you have elected to have that agent,
someone you’ve never even met, work with you.
If you knock on the door of a “For Sale by
Owner,” you may find yourself on your own with
no one representing you at all.
When you pop in to a builder’s model homes,
that builder’s agent becomes your only advisor
through a long and complicated process.
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Buyers pay nothing for commission!
Let Home Advantage help with this!
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Expectations?
Wants verses needs?
Plan Ahead
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Be Honest Be Flexible
Understanding the market!
Buyers' Market
Sellers' Market
Days on Market
Absorption Rate
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Lean on your Homebuying Team!
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Save
Improve Credit Score
Calculate
Get Mortgage Pre approval
Decide
Choose a Realtor
Visit Homes
Narrow Choices
Make an Offer
Schedule Home Inspection
Final Walk through
Close and Move in!
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CU Realty Home Advantage Program
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IBM Southeast ECU
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Sandy McAlister Broker/ Owner
McAlister Properties LLC
Tell your friends about our new program starting
next month. Help a friend buy or sell a home!
We can all do this!
Common Misconception About
Getting a Mortgage
Obtaining a mortgage loan is difficult…
Not with IBM Credit Union
 Apply Online
 Phone
 Face to Face
Home Buying Process
Apply
Search for a
Home
Get
Pre-approved
Sign a Sales
Contract
Review Loan
Application
w/ Loan
Officer
Inspect Home
Processor
Coordinates w/
Appraisal
Realtor, Title
Company &
Home Owner’s
Underwriter
Insurance
http://mortgage.ibmsecu.org
Closing
http://mortgage.ibmsecu.org
http://mortgage.ibmsecu.com
Home Equity or Fixed 2nd
http://mortgage.ibmsecu.org
http://mortgage.ibmsecu.org
http://ibmsecu.vlending.com
http://ibmsecu.vlending.com
Status Page
Available
24/7
http://mortgage.ibmsecu.org
Mortgage Approval
based on three (3) things
• Ability to pay for the mortgage
(Income & Assets)
• Willingness to pay for the mortgage
(Credit History)
• Amount borrowed vs. property value
Ability to Pay
• On a monthly basis, how much money
is coming in versus going out
• 30 days of pay stubs for wage earners
• 2 years’ tax returns for self employed
• 2 months’ bank statements
• Discuss requirements with your loan
officer
Willingness to Pay
• Past performance is our predictor of
future payment performance
• The higher your credit score the
better your interest rate
• The higher your credit score the
more you can borrow and the easier
to get approval
What makes up your
Credit Score
GET A FREE CREDIT REPORT and
Credit Monitoring Service
https://www.ibmsecu.org/Your-Services/Additional-Services/Credit-Monitoring
Components used in your score:
10%
15%
10%
35%
30%
Payment History
Length of your History
Types Of Credit Used
Amount Owed
New Credit Inquiries
Amount Borrowed
vs Property Value
• The more you put down on the
property, the easier approval will be
• Less than 20% down will require
Private Mortgage Insurance
– Additional PMI Underwriting means
more time to process
• 20% or more down is easier to
approve
Mortgage Terms
• Amount of the loan divided by house value
is known as LTV (loan to value)
• Government guidelines on all mortgage
loans cannot exceed 43% total DTI (debt to
income)
– Try our mortgage calculators
http://ibmsecu.vlending.com/loancenter-calculatorsdefault.aspx
Types of Mortgages
• Fixed rate mortgages: 30, 20, 15, and 10 year
• Adjustable rate mortgages: 10/1, 7/1, 5/1, 3/1,
1/1 ARM and 5/5 ARM
– Any ARM with initial term greater than 5/1 can adjust
up to 5% above the start rate on the 1st adjustment
and 2% yearly thereafter
• Home Equity Loans – Fixed and Home Equity
Lines of Credit
Closing Costs
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Processing fee = Zero with Credit Union
Intangible tax = Zero with Credit Union
Credit report fee
Appraisal fee (based on value of home)
Title insurance, attorney, and survey
Property inspection
Prepaid interest and insurance
Escrow reserves for taxes and insurances
Lender fees
Government taxes and filing fees
Discount and origination points
Should I Pay Points?
• A point equals 1% of the loan amount
• Discount points will lower your rate
• Origination points are fees paid to the
lender and will not lower your rate
• Points are paid at closing
• We advertise at zero (0) point rates
Benefits of a Mortgage with the
Credit Union
• 60-day lock in at no charge
• Rate Float Down option
• No intangible tax ($200 per $100,000 in FL
and $300 per $100,000 in GA)
• No prepayment penalties
• Mortgage payments stay with Credit Union
• A mortgage with the Credit Union gives
Members Gold Level REWARDS: no Credit
Union ATM fees and free or reduced fees on
many other services.
Links and Contact Information
IBMSECU
• (800) 873-5100 X 7722 or (561) 982-7722 http://www.ibmsecu.org/
• Online Mortgage information:
http://mortgage.ibmsecu.org e-mail [email protected]
• Mortgage Loan Calculators :
https://www.ibmsecu.org/resources/calculators
IBM Southeast Home Advantage Real Estate Services:
• http://www.curealty.com/public/Default.aspx?BrandCode=ibmsecu
Renting vs. Buying
 https://www.ibmsecu.org/education/articles/to-buy-vs-rent-your-home
Thank you for attending
Mortgage Hotline 800-873-5100 X 7722
or 561-982-7722