Buying Your First Home

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Peter Hart
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2 About Northwest Federal Credit Union Not For Profit Federally Insured In existence for over 68 years Local Lender based in Herndon, VA Additional branches located in Leesburg, Chantilly, Vienna, Manassas, and Gainesville COMING SOON 2 nd Herndon Branch with Drive-through Manages all aspects of your mortgage loan including the servicing of your loan Non-commissioned Loan Officers & Staff

3 Agenda Benefits of Home Ownership Free Loan Pre-Approval Mortgage Options to Fit your Budget Perfect Loan for your Perfect Home Housing Inventory, Sales & Statistics Working with a Realtor to Purchase Strategic House Hunting Writing a Winning Offer Home Buying Expenses/Contract to Closing Home Advantage Rebate Program

4 Benefits of Home Ownership Gain Equity as you pay down the loan Piece of Mind knowing there are Fixed Monthly Payments A Similar Monthly Payment compared to rental properties Ability to make changes/improvements to the property no permission needed and you reap the benefits More Privacy Itemizing on your Tax Return

5 Buying is Cheaper than Renting Buying a home remains cheaper than renting in the DC region, according to an analysis from Trulia released on October 15, Interactive Map: Specifically buying a home is 34 percent cheaper than renting, according to the company s analysis, a percentage unchanged since early in Nationwide, it s on average 38 percent cheaper to buy than to rent. Fairfax, VA: 25% cheaper Loudoun, VA: 26% cheaper Arlington and Alexandria, VA: 30% cheaper District of Columbia: 33% cheaper Montgomery County, MD: 34% cheaper Prince William, VA: 35% cheaper

6 3 Ways to Apply Loan Pre-Approval at NWFCU is FREE Apply Online Click Apply Now Contact Mortgage or Mortgages@nwfcu.org Apply in Person with a Mortgage Loan Officer (Appointment is recommended)

7 Mortgage Options to Fit your Budget 100% Homebuyer s Edge* 30 Year, Fixed Rate Term Maximum loan amount of $417,000 Single Family, Townhome, and Condos are eligible Zero down payment 97% Financing Mortgage Loan Program* 30 Year, Fixed Rate Term 3% down payment Minimum credit score of 620 *Credit qualifications apply, private mortgage insurance required

8 Perfect Loan for Perfect Home When it comes to buying a home, we ve got all your real estate needs covered. Let us do it all for you and save!! Close by April 30, 2015 and SAVE Origination fee credit with qualifying direct deposit & auto loan payment set-up¹ (Example:.50% of $400,000 loan = $2,000) Up to a $250 home inspection credit² $250 off Northwest Title & Escrow settlement fees³ See Perfect Loan for Perfect Home Brochure for Terms on 1, 2, and 3 above

9 Current Market Conditions Sales Activity and Prices DC Metro Percentage Change from January to December Year to Date % Change Avg. Sold Price $496,469 $481, % Units Sold 46,180 49, % Average Days on Market % Stable Market Less Advantages Prices have stabilized across most of the area Higher inventory in Summer of 2014 balanced the market

10 Housing Inventory Number of Months Detached Townhomes/Condos Fairfax County Loudoun County Prince William County Arlington County Montgomery County Washington D.C Properties sell faster as inventory drops below 6 months, prices will increase as inventory decreases. Current as of December 2014.

11 Housing Inventory Active Listings - County: December Location % Change Fairfax County, VA % Loudoun County, VA % Prince William County, VA % Arlington County, VA % Montgomery County, MD % Washington D.C %

12 Sold Listings - County: December Housing Sales Year to Date Location % Change % Change Fairfax County, VA % % Loudoun County, VA % % Prince William County, VA % % Arlington County, VA % % Montgomery County, MD % % Washington D.C % %

13 Average Sold Price December YTD Avg. Sold Price Avg. Sold Price Median County Detached Townhomes Sold Price Fairfax County $702,606 $368,002 $460,000 Loudoun County $593,109 $360,218 $432,000 Prince William County $416,130 $262,711 $318,700 Arlington County $886,044 $460,700 $537,400 Montgomery County $652,491 $316,204 $400,000 Washington D.C. $915,619 $567,103 $499,000

14 Choosing a Realtor Role of Buyer s Agent quarterback of your team Represent your interests Brokerage Relationship VA Law Facilitate home search and show properties objective data Review recent sales information Strategize, present offers and negotiate understand contingencies Post contract logistics understand Condo/HOA documents Pre-settlement logistics final walkthrough Guide throughout entire process to home ownership Things to know: Agent commission is typically paid by seller Agents can access listings of other agents

15 Strategic House Hunting Search Sites (mycuhomesadvantage.com or mrishomes.com) Existing (Resale) or New Construction Determine Price Range, Home Type, Location, and Features Detached, Attached or Condominium Zip Codes, County, Town, Subdivision or Map Area Distance to Work, Friends, Family, and Activities Square Footage, Bedrooms/Baths, Acreage, Levels Walk-out Basement, Finished Basement, Garage, Deck Public Water and Sewer? Future Value (Trees/Common Area, Busy Roads, Level Lot & Size) Eliminate criteria that may prohibit results rely on Realtor Think outside the box/search area

16 Make a Winning Offer Pre-Approval Letter from NWFCU Sales Price Highest & Best! Size of Down Payment Amount of Earnest Money Deposit Seller Subsidy Amount to be used toward purchaser closing costs Number of Contingencies Flexible Settlement Date Offer a Rent Back if Needed

17 Home Buying Expenses What Estimated Costs should you expect? Deposit Recommendation is 1% of the Sales Price (New Construction Deposit can be 3% to 5%) Cost of Home and Radon Inspections are $400 - $600 Estimated Cost of Appraisal $400 - $450 Your liquid cash prior to settlement should include 1% of the sales price (deposit), the home inspection costs above, and the appraisal fee; the balance of down payment and closing costs are needed on the day of settlement.

18 From Contract to Closing days average not all lenders can accommodate 30 days After contract is ratified, call to lock in Interest Rate with NWFCU Schedule Inspections (Home, Radon, Termite) Obtain homeowners insurance Review Condo & HOA documents Confirm Appraisal Results Obtain Final Loan Approval Transfer Utilities Walk-through or Pre-Settlement Inspection Settlement

19 HomeAdvantage Rebate Program Agents provide a rebate of 20% of their commission to members Members-Only Home Rebate Program Credit Union-Owned and Operated Access to MLS and list of Approved Agents screened & reviewed Enroll today with the form provided

20 Sample Rebates Rebate is 20% of your Realtor s Commission Sales Price Average Rebate* $300,000 $1,800 $400,000 $2,400 $500,000 $3,000 $600,000 $3,600 *Based on 3% commission offered to your Realtor, commissions are not standard and may vary.

21 Questions? Kevin Carter, Re/Max Select Properties, Realtor Top 100 Re/Max Agents in the US Approved HomeAdvantage NWFCU Licensed in Virginia and Maryland Kevin@CarterAdvantage.com or We thank you for attending! If you are attending this webinar the day of the event, February 4 th, 2015, you will receive an from ksoller@nwfcu.org with a copy of the presentation and a request for your mailing address to send you the coupon within 48 hours.

Welcome to the. Harvard Faculty Real Estate Services. Home Buying and Financing Seminar

Welcome to the. Harvard Faculty Real Estate Services. Home Buying and Financing Seminar Welcome to the Harvard Faculty Real Estate Services Home Buying and Financing Seminar Our Goals Outline the services offered through the Harvard University Real Estate Advantage Program, administered through