First Time Homebuyers Guide To Success

Title: The first time homebuyers guide to success

Purpose: To educate first time homebuyers on how to properly plan and prepare for buying a home and what to expect throughout the home buying process.

Thesis: Buying your first home can be an enjoyable, exciting and profitable experience given specific knowledge of the process and a basic understanding of the market place.

I. INTRODUCTION

A. Greeting: Hello, my name is Josh Turner and today I will be providing you with invaluable knowledge on realizing the American dream.

B. Attention Grabber:

C. Credibility Statement: The information I will provide you with comes from two sources. First, my expertise and vast knowledge of this material which I've attained over the past five years as a mortgage loan officer. Secondly, literature and material written by highly acclaimed professionals with in the real estate and mortgage industries.

D. Tell and Show why the topic is relevant to your audience: (AI) I will ask the classroom for a show of hands of who currently owns a home (my guess and hope is that those that already own are a small % of the class). I will then ask who knows the avg. age of generation Y FTH in the U.S. (take guesses, give correct age if not guessed, which is 26). I will then ask if home ownership was easy and affordable how many of you would like to own your first home by the time you are 26 or sooner!

E. Thesis Statement: Buying your first home can be an enjoyable, exciting experience given specific knowledge of the process and a basic understanding of the market place, furthermore if employed properly your home will also double as an investment and earn a great return on your money.

F. Preview of the main points: (1) When buying a home knowledge is crucial. This includes knowledge of the process and what to expect. Knowledge of how to prepare financially and emotionally for such a large investment. (2) It is very important to be aware of the housing market conditions, what is going on in the market in regards to interest rates and what mortgage products are available to you. (3) Other important facets I will cover will be the financial benefits of owning a home. And how investment in real estate can result in big bucks as well as residual income.

II. BODY

A. Main Point # 1. The first thing I do when meeting with you (a prospective client) is go over my presentation. This will educate you on the process of obtaining a loan and what goes into getting approved. Why I ask for the information that I do, and what I expect from you as well as what you can expect from me. (Present 2-3 slides to the class).

1. Subordinate Point: According to Broderick Perkins of Realty Times

"Studies reveal financially counseled or educated home buyers are more likely to be long-term home buyers and not lose their homes to default".

a. Support: I educate and help my borrowers prepare in a number of ways. The presentation will thoroughly educate you on the process and what to expect. My next step is to make sure that you are prepared financially and emotionally. I do this by meticulously reviewing your financial situation, from your assets and liabilities to your spending habits (By the time we're done I will know more about you than your mother). For this step I put together a list of documents (e.g. W2s & pay stubs) I need you to provide me with.

After making sure you are financially capable of purchasing a home I make sure you fully understand the benefits and possible consequences of home ownership (e.g. tax write off/life altering events). I then ask you to come up with any questions or concerns you may have and to call me in a couple of days. Clients who fully understand the responsibility of home ownership and who have spent time thinking about the Ð''what if's' have much less stress and anxiety during the process. "It's what you don't know that will hurt you. This saying can turn out to be true when going deeply into debt to make a purchase for maybe $200,000 or more. Thus it comes as no surprise that a professional's knowledge and expertise can prove invaluable to a first-time homebuyer, who doesn't know all of the necessary considerations, pitfalls to avoid, and available options", NAR.

b. Transition to Second Main Point: Now that you are financially and emotionally prepared, it's time to evaluate the housing market. Is it a buyers or a sellers market. What are interest rates doing? What mortgage products are available to you now, and could those options change?

B. Main Point # 2: It is very important to be aware of the housing market conditions, what is going on in the market in regards to interest rates and what mortgage products are available to you. All of these factors are significant in deciding your time frame for purchasing.

a. Support: This is not data that you will have to go out and collect. They are merely questions you should ask to determine the urgency of your purchase. Any qualified professional should be able to answer these questions for you and educate you on how they affect you.

First question, what type of real estate market are we in? Is it a buyers or a sellers market. This may very well determine if now is the right time for you to buy. Take 2004 as an example. At that point in time it was a very strong sellers market, which meant that sellers had more control over the transaction and could demand more from prospective buyers. Almost every seller was receiving multiple if not 10 or more contracts on their property. This turned every purchase into a bidding war between potential buyers, escalating purchase prices even higher! This type of market is not the best place for a first time homebuyer to be because they are typically working with very little capital. It may be more beneficial to wait for a while and see if the market softens.

A buyers market on the other hand is completely the opposite and is more representative of the market we are in currently. In this type of market you (the potential buyer) have the upper hand. You have the ability to offer less than the asking price. You can ask for Seller Subsidy's (where the seller will give you a pre-determined sum of money at settlement to help offset some or all of your closing costs). Typically in this type of market there is more inventory, which means there are more houses on the market and that they sit on the market for longer periods of time. Sellers are aware of this and will certainly take it into consideration when reviewing your offer.

Second question, what are interest rates doing? Are interest