Home Buying Workshop Recap

by Shea Homes Northern California on September 18, 2012

Perhaps you didn’t get a chance to visit us at Montage in Livermore for our Home Buying Workshop last Saturday, but that doesn’t mean you shouldn’t have access to the valuable knowledge. We understand that buying a new home is daunting and, at times, intimidating. We are attempting to unravel some of the mysteries of mortgages, loan options, credit issues, etc. that come with buying. Not to mention, in this economy, we’re hoping to help you answer the “Is it the right time to buy?” question that’s looming over your head.

At the seminar we covered some really in-depth topics and we’re going to highlight some of them here.

Scott Pocock, SVP Sales and Marketing at Shea Homes, shared with us some of the benefits of owning a home. He provided us with the example of building home equity:

  • Looking at a $400,000 home if you were able to put 5% down ($20,000) then your principle reduction at a rate of 7 years would be + $53,000 and your appreciation after 7 years could be around + $93,000 with a total equity of $166,000.

But we’re going to focus on Mortgage Frequently Used Terms:

    • LTV – Total Loan Amount/Total Value of Home

    • Mortgage Insurance – Insures the investor against default and is not required with a down payment greater than 20%.

    • DTI Ratio – Debt to Income Ratio

    • Earnest Money – Up front deposit given to seller or builder

    • Desktop Underwriter – Loan Analysis program

    • Conventional Loans – Standard loans sold to Wall Street Investors

    • FHA Loans – Government backed loans sold to Wall Street Investors

    • VA Loans – Government backed loans sold to Wall Street Investors

If you didn’t get a chance to attend the event in Livermore there are several others happening nationwide you can attend. View the dates here.

If you’d prefer a more detailed study please leave us a comment and we’ll send you more information!

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