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First Time Homebuyer Seminar Hosted by, Citibank and Credit Blueprint

Seminar Agenda • Overview of home buying process – Home Search to Keys in Hand

• Mortgage Questions & Answers – What are the fees – Interest rate trends – Closing costs and down payment

• How to improve credit scores and FAQ • Ask the experts – Open Q&A Session

Rent vs. Buy in Philly CNN Money - Philly is a city where it makes more sense to buy: Median home price: $187,300 Median rent : $1,300 Breakeven time: 3 years – Urban blight in some central city neighborhoods has kept a tight lid on home prices in Philadelphia and the surrounding towns. – That has helped to keep breakeven time for homebuyers within city limits to just 2.3 years, a little less than the metro area as a whole. – Buyers who venture out to the stronger housing markets in Philadelphia's wealthy suburbs will have to wait a little longer for their purchase to pay off. – In the fancy towns along the Main Line west of the city, such as Tredyffrin, it takes more than eight years to break even, while in the bucolic far suburbs in New Jersey, like Haddonfield it takes 11 years to break even, according to Zillow.

Rent vs. Buy – West Oak Lane • 1640 E Washington Ln – $1,300 month rent – 3 bd / 1.5 ba – 1 car garage

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$15,600 year rent 3 years = $46,800 5 years = $78,000 7 years = $109,200

• Move-in Cost - $3,900

• 6958 Forrest Avenue – – – –

$109,950 3 bd / 1.5 ba 1 car garage Recent Rehab

• 3% Down = $3,298.50 • Closing Costs – Typically 4% - Sellers Assist

• Monthly payment - $730 – Mortgage, Ins, Taxes – Interest rate of 4.5%

Tips for Home Buying Success 1.

Conviction You Want to Buy a Home 1. 2. 3.


Get Pre-Approved with a Lender 1. 2. 3.


You can’t get an offer accepted without one Understand how much home you can truly afford Submitting documents provided by your lender with your offer will give the seller confidence to accept your offer and close the deal

Work with a Realtor 1. 2.


Weigh out the pros and cons of buying vs. renting Plan to live in the area for at least the next 3-5 years – or plan to hold it as investment and rent it out It typically takes a few years to offset the upfront costs before you start to gain equity in the home

Realtors have the knowledge and the negotiation skills to help you find a home that fits your needs Plus, their fees are mostly paid for by the seller

Stay Connected Throughout The Entire Process 1. 2.

On average it take 3 to 4 offers on homes before you get one accepted Keep all financial statements handy, ready for lender when needed to start with application, and also for updates throughout the closing


The Home Search Online… • Consult with your Realtor, identify TOP 3 priorities for your new home • Review financial data – clarify mid and top range • Favorite neighborhoods • Online searches focused, and targeted to fit both financial and lifestyle goals

In Person… • Set aside time 3-4 days in advance with your Realtor • Drive by homes you like before scheduling – if you don’t like the block, you won’t want the house • Schedule 1-2 hours to view 3-5 homes, rate each one, and rank them

The Closing Executed Contract

Days 1-5; Finalize Loan Application, Initial Deposit

10 day inspection period 1. Accept “As Is” 2. Negotiate with Seller 3. Terminate / Cancel Contract (Deposit Refunded)

Settlement; Sign Docs, Final Funds

Mortgage Commitment: • Appraisal complete • Lender may need more documents from you

Underwriting Review: Updated documents for lender; pay stubs, bank statements, etc

Top 10 Things to NOT do… 1.

Change jobs – lenders look for consistent job history and will re-check employment before closing 2. Buy or lease a car. Wait until after settlement 3. Watch your spending – don’t add to balances on credit cards, or let accounts fall behind 4. Spend savings set aside for down payment and closing costs 5. Neglect or omit debts and liabilities on your loan application 6. Buy furniture or spend on your new home – BEFORE closing 7. Apply for new credit lines, or credit cards 8. Deposit large amounts of money into your bank accounts without checking with your loan officer 9. Change bank accounts 10. Co-sign a loan for anyone!

Glossary • Appraisal; – Professional valuation of home lenders use as basis for loan amount

• FHA Loan; – A type of loan backed by the Federal Housing Authority

• Conventional Loan; – 20 % down loan, traditionally required

• Conveyancing; – The process of clearing title and closing / settlement

• Point; – Essentially 1%; usually seen on loan fees

• Sellers Assist; – Credit towards buyers closing costs from seller proceeds

• Settlement; – Closing Date

Your Hosts - Susanna Kunkel, Realtor Certified Negotiation Expert Coldwell Banker Preferred 223-25 Market Street Philadelphia, PA 19106 Cell: (215) 920-2888

Lender Information Gabriel Gifoli Home Lending Officer Citibank, N.A. Ph: (215) 275-2008 NMLS Identifier: 12138

• Home Run Loan Program 3% down payment 1% borrower contribution No mortgage insurance 3% Sellers Assist allowed 640 FICO Minimum with 2 mo reserves – 700 FICO Minimum with 1 mo reserves – Owner occupied and cannot own other properties – – – – –

Credit BluePrint Who are we? •

Having spent 10 years in the mortgage industry helping thousands of A+ credit clients obtain mortgages, we decided to use our credit IQ to assist clients with unusable credit. Our number one priority is to increase your credit scores in the fastest time possible and educate you on how to maintain those good scores! We will personally review an individualized “credit blueprint” with you to maximize your results during your program.

Carl Scaramuzza, Owner • Co-host of "Real Estate Radio Philadelphia", 1180 AM WFYL, Saturdays 9-10AM. • Contact Info: King of Prussia: 610-768-8048 Philadelphia: 215-790-1099 Fax: 877-788-5969

Frequently Asked Questions Top 5 Lender Questions 1. How much are the closing costs? 2. What types of mortgages are available for me as a 1st time homebuyer? 3. What is the minimum down payment? 4. How long does the process take? 5. How do I know how much I am preapproved for?

Frequently Asked Questions Top credit questions.. • • • •

What scores do lenders typically look for in 2014 versus 2007? Credit scores range from 350850… what is a good credit score? What reliable outlets online can consumers check their credit profile? What is the difference between online credit scores and credit scores a lender would pull? If I’m shopping for a home is it ok to have my credit ran and what does that inquiry mean to my credit score?

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I have no established credit and pay everything in cash but I need a mortgage now. How can I establish good credit and how long will it take? Do credit cards impact my credit scores? Should I pay an old Verizon or Comcast collection bill from 2008 and will it help improve my credit? Why is Credit Blueprint different from other companies? Do we offer a money back guarantee? How can someone get in touch with you?

Thank you for attending! For more information, please visit for blog articles and market updates

First Time Homebuyer Seminar, hosted by Susanna Kunkel  

Consumers learn what to expect in the home buying process, as well as tips for improving credit and qualifying for a mortgage - handouts fro...