Primerica Home Primerica Home Buyers WorkshopBuyers Workshop

How to get the most house for your money.

Today We’re Going to Today We’re Going to Talk About:Talk About:

How Primerica Can Help You Achieve Your

Goals

The Benefits of Home Ownership

The Home Buying Process

Financing Your Home

Flexible Financing Alternatives

Process Recap and Guest Information Card

Lets Talk About MoneyLets Talk About Money

Most families want to buy their own homes but one of the main reasons they do not is because of money.

If we could help you develop a game plan to buy a home, pay it off sooner, protect your investment and plan for a great financial future, would that be of value to you and your family?

How Do You Make How Do You Make Goals and Dreams Goals and Dreams

Come TrueCome TrueThe route to home ownership begins with:

The Financial Needs Analysis (FNA)

Customized Confidential

Complimentary

FNAFNA

FNAFNA

The FNA helps families look at how to:

Get out of debt sooner

Pay off your mortgage earlier

Have a game plan to retire comfortable

Save for your child’s education

After Tax Monthly CostAfter Tax Monthly Cost

RENTING

$975

OWNING*

$874 Mortgage Payment

+ $137Real Estate Taxes

+ $40 Property Insurance

+ $81 Private Mortgage Insurance = $1,132 Total Monthly Mortgage

Payment

- $255 First Year Monthly Tax Savings

$877* Assumes $131,580 Outstanding Mortgage Loan Balance with 5% Down Payment, 30 Year Fixed Rate Mortgage at 7.5%, 28% tax bracket, assumes full tax deductibility. Consult your tax advisor for actual tax savings.

How You Build EquityHow You Build EquityHow You Build Equity

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

0 5 10 15 20 25 30

Appreciation

Monthly PrincipalPayment

Why Buy Now?Why Buy Now?

14%

1984$1 ,481

10%

1989$1 ,096

7 .5%

2001$874

* Mortgage Rates: 30 Year Fixed Rate Average. Based on a $125,000 First Mortgage

SOURCE: Mortgage Bankers Association

Why Buy Now?Why Buy Now?A ve ra ge H o u s in g P r ice s

$72 ,400

1984

$93 ,100

1989

$133 ,300

1999

Benefits of Home Benefits of Home OwnershipOwnershipThe Home Buying

Process

Everyday Living Needs

Neighborhood

Future Needs

Personal Preferences

Location, Location, LocationLocation, Location, Location

Neighborhood Property Values

Streets and Transportation

Environment

Community Services

Schools and Shopping

Proximity to Workplace

Personal Tastes

A Real Estate Agent Can A Real Estate Agent Can HelpHelp

Realtors® Know the Community

They Know What’s Available

They Arrange Home Showings

You Can See More Homes

Determining A Fair Determining A Fair PricePrice

What do homes sell for in that area?

Did the Realtor give you comparable sales?

Neighborhood meet your needs?

In your price range?

Everything Is Everything Is NegotiableNegotiable

Sales Price

Financing

Date/Location of Closing

Pro-rating Expenses

Selecting Attorney/Title Company

Making An OfferMaking An OfferNegotiate a price

– Work with the Realtor

Finalize Contract– Bind with a small deposit– Deposit is generally non-

refundable!

Closing Provisions– Allow time to move– Allow time to sell current

home or finish your lease

Financing Your HomeFinancing Your Home

Good Faith EstimateThe Approval ProcessAppraisalLoan DecisionClosing/Settlement

– Need out-of-pocket cash for closing costs

– Get a Settlement Statement (HUD-1)

What Lenders ConsiderWhat Lenders Consider

Income

Employment

Assets

Debts

Credit History

Property

* You do not have to disclose this income if you do not wish to have it considered as a basis for repaying the loan.

Income & Employment Income & Employment HistoryHistory

Salary

Second Job

Overtime

Alimony/Child

Support*

Commissions

Dividends

Social Security

Income

Pension

Lenders consider your gross income, as long as it is steady & verifiable.

AssetsAssets

Savings and Checking Accounts

Investments

Equity in Your Current Home

Gifts/Grants

DebtsDebts

Installment Loans

Credit Cards

Lines of Credit

Other Mortgages

Other Kinds of Debt (Auto Loans)

Lenders Will Consider All Your Debts Since They Affect Your Ability to Make Your Mortgage Payments

Credit HistoryCredit HistoryA Credit Rating May Include:

Fixed Loan Balances and Payment History

Revolving Credit Balances and Payment History

Judgments/Bankruptcy/Foreclosure

Delinquencies/Collection Accounts

Suits/Repossessions

Number of New Inquiries

Credit Available vs. How Much is Used

No Credit History?No Credit History?

12 Months Utility Bills (electric, gas)

Rent Receipts

Telephone and Cable Bills

Layaways

Alimony Payment History, if

applicable

Any Recurring Monthly Obligation

PropertyProperty

Appraisal Factors:

Property Condition

Age of Property

Comparable Sales of Properties Nearby

The Value of the Home You Are Financing Will Be Determined Through an Appraisal

PropertyProperty

Loan to Value (LTV)

$125,000 = Loan Amount$131,580 = Value of Home 95% = Loan to Value

Note: If the LTV is greater than 80%, lenders may require mortgage insurance and the interest rate may be slightly higher.

Primerica’s H.O.M.E. Loan Primerica’s H.O.M.E. Loan Program Financing OptionsProgram Financing Options

Through CitiMortgage’s Standard Home Financing Options

Expanded Lending Programs

Get Off To A Sure StartGet Off To A Sure StartWith SureStart on your side, you’ll be more confident as you begin shopping for your home, because you’ll be pre-approved for a specific loan amount. Plus, home sellers will know that you’re a serious buyer, because you’ll have a commitment in hand.

Why rent when you can own?

Benefits of Home Benefits of Home OwnershipOwnership

RENTING No Potential Tax

Deductions

No Return on Money

Potential Landlord/ Tenant Issues

Potential Lease/Rental Agreement Hassles

OWNING You Get To Select

An Area of Your Choice

Equity Builds Up

Tax Deductions*

It’s YOUR Home! Pride of Ownership

*Your total deduction may be limited. You should consult your tax advisor.

CitiMortgage’s CitiMortgage’s ExpandedExpanded

Lending ProgramsLending Programs More Flexible Qualifying

Guidelines

Programs Specifically Designed for Self-Employed Borrowers

MortgagesMortgages

“Stated” Income Programs for Self-Employed Borrowers

Expanded Approval With Timely Payment Rewards

Conventional Loan Programs Including Jumbo Mortgages

Qualifying GuidelinesQualifying Guidelines

Monthly Housing Costs: – mortgage payments – property taxes– insurance – monthly maintenance fees– PMI

1. As a percentage of gross income (Housing or Front End Debt Ratio)

2. Plus other long term debt as a percentage of gross income (Total or Back End Debt Ratio)

.Qualifying or underwriting guidelines determine how much of your income is available to pay your housing

expenses.

Now Is The Time To ActNow Is The Time To Act

Affordable Mortgage Rates +

Primerica H.O.M.E.Loan Program

Equals….

Your New Home!Your New Home!

Process RecapProcess RecapGuest Information Card

Name_______________________________________ Phone#(___)_______________

Address_________________________________________________________________

City______________________ State______________ Zip Code___________________

Are you interested in:

_______ Buying a principal residence or vacation property in the next 90 days?

Do you have any money set aside for the purchase of this property? yes_____no_____

Are you willing to commit a minimum of $150 to the process as a non-refundable deposit?*

yes_______ no_______

Is it ok to call you at work? yes_____ no_____ Phone #(____)_____-_______________

*Applied toward closing costs upon closing

Process RecapProcess Recap Complete The Guest Information Card

Get With Your Primerica Representative And Set Up An Appointment

Complete The Primerica H.O.M.E. Loan Borrower Information Kit

A CitiMortgage Consultant Will Call You Within 24 Hours