Buyers Presentation FULL Demonstration

[Applause] [Music] [Applause] [Music] how you doing Andrew I'm doing good good to see ya I'm glad we finally got a chance to get together yeah how's your day been it's been good um yeah you know I'm glad we're here at Starbucks I'm really thirsty yeah yeah well how about this how about I go ahead and grab your drink what do you like a venti pipe with cream venti pikelet cream yeah okay here you go thank you so much I like my third cup of coffee is it yeah okay I drink coffee like all day but I'm trying not to drink any right now okay it's all good okay cool okay well so yeah so I got your information from Cheryl inch and she said that you may be interested in buying a house so I'm glad that we got a chance to get together because what I want to do today is just kind of go over the home buying process and you know what goes on really kind of see where you're at your thoughts and everything so that you can actually plan to purchase a home so that's kind of why we're here does that sound okay uh yeah I think so perfect well I won't take up too much of your time we'll probably just be 15 minutes or so okay pretty quick yeah I have a nice little presentation here for you yeah well you know I know some people are like visual people so instead of just talking to you but let me just warn you it is gonna be a little bit of information that we go over and you may not remember it all okay um so one cool thing about me is I have like videos for every step of the process and so videos a long way sweet but the first thing that I want to get into is to buy or not to buy really because I like to get a sense of kind of where your head is you know why do you want to purchase a home right now or why are you thinking about it right now kind of kind of what's going on in your situation well I've been renting for you know pretty much quite some time now and I've been in Dallas um and I rent so high is it yeah well you know I'm in a one bedroom in my rent per month like 1850 oh and Dallas right breathe baby you know I'm in Uptown oh I see well no no I love oh yeah no I live there as well yeah you can get kind of pricey yeah dude all right red in Uptown are you a um I met the gables okay yeah you know exactly where that yeah yeah how long you been there about two years now two years okay yeah I mean they've built so much around there you know it's very nice though it's really good but I mean I wanted to buy a house because I saw something online mm-hmm the difference between like buying and renting right right um and I thought gosh if I'm paying this much in rent what does it look like and that and that's really why I wanted to meet just to see kind of like how the process is but also how much it cost me for sure for sure yeah well the money is important but I mean the fact that you are renting and that you're thinking about buying it it tells a lot about you you know this is definitely a smart investment and to take you out of paying someone else's mortgage because that's essentially what you're doing you know depending on what product you want it could be a little bit more it could be less but it's gonna be yours at the end of the day yeah and that's what really matters because you're gonna start building equity and really building that financial freedom for the future so funny you say that again of the money Oh our first step is getting you pre-approved so what a pre-approval is a pre-approval tells you me the lender other agents the homeowners basically what you can afford in a home so what's going to happen is you're gonna fill out an application and you're gonna work with the mortgage lender that is going to pull your application they're gonna run your credit they're going to take a look at your finances gonna take a look at all of your debts and everything like that and they're going to give us a number they're gonna say based on this and you're of course gonna have a discussion with them and based on how much you want to pay and how much money you have this is what you can comfortably afford to keep you at a certain monthly amount and that's the number that you want because obviously quick question yeah that's is that okay yeah of course what's us so I mean do I just need to call chase I got you I got you on all that now okay so that's that's working you know this where do all my checking savings yeah they keep telling me to have low rates right all right you know do I go with them or what would you recommend so is this is the first home you've ever purchased yeah yeah so you know I wouldn't be too concerned about all that flashy stuff right now because I would want to put you with somebody that can really sit down with you and make sure that you understand how this process goes we tend to work better with more local lenders and there's a reason why you know you get you get a certain level of service then I feel like you especially living in Uptown and I know the kind of stories are probably used to it you're gonna you're gonna want more personalized in the end specialized service so I have I have somebody that I can definitely recommend to you and you know they're just gonna sit down with you they're going to or y'all can do it over phone whatever works for y'all and explain to you the process when it comes to the money side now I don't like to get too much into the money because that's not my job yeah no problem it's okay we're good yeah okay I don't like to get too much into the money stuff because that's why we have lenders and that's their job but I will tell you this is going to be our first step in the in the whole process okay okay gotcha now are they you mentioned credit mmm-hmm when they do that is it gonna affect my scores or anything like that that's going to be a I mean it is a full on credit application but how it's gonna affect you that's gonna be a question that I would want you to talk to him about and so anything related to the money now and even during the process I'm gonna refer you over to the lender and the reason why I do that is because I specialized in the real estate side so I specialize in finding you the home facilitating this transaction and our mortgage lenders and we work very closely with them they specialize in the money and the credit and all that type of stuff so I don't want to put you in the wrong direction I don't want to say something to you about that and they tell you something different but I do want to put you with somebody that I trust that I know is gonna give you all the right information and answer every one of your questions so I'll give you that today before you leave so that way you can you can hop right on the phone with them and also give them your information ok oh ok ok perfectly so once we get that pre-approval what we're gonna do after that is we're gonna actually start shopping for the home because we have our number and you know hunters gonna tell me how much I'm exactly yeah ok yeah so the lender is gonna give you that that that dollar amount okay and they're gonna provide us with it as well so that way I know what to find you kinda I'm gonna take what you want your your criteria and all that kind of stuff and I'm gonna find the properties that closely you know that best matched as closely as possible now I'm gonna tell you there's not a perfect property out here all right but my job is to get you as close to what you want as possible unless you want to build a custom home from the ground up then we can do your perfect property so all right you know so you do have that option but we're gonna go out and shop for a home and we'll shop based on your schedule you know whatever is convenient for you the great thing about us is we are a team and so there's multiple agents that can help you if I'm not available to show you something at any point in time I can make sure that it can get shown to you so that's just one thing that sends us apart and if you guys are not available am I able to do it on my own go look at a property will be available ok yep ok cool Oh perfect yep all right after that after we find that home you know one that you can see yourself in we're gonna make an offer now most people think and offer is simply sales price but there's so much more when it comes to an offer that we really want to take into consideration even when we talk about sales price so the big obvious one is sales price and I'm sure you've seen like a lot of shows where they'll say oh this home is going for five hundred thousand let's offer for seventy five well and I'm on Zillow all the time yeah yeah I mean are those act are those accurate numbers cuz I mean I wouldn't rely on that site no I'm gonna I want to give what is that I'm gonna give you a link that's better okay that's that's linked directly to our MLS is updates every 15 minutes oh and it's gonna give you the most accurate information okay okay but you know I know everybody likes to search on Zillow so but they they do have some inaccuracies so sales price is one of those things where we're going to run some comps to determine you know what a good sales price is and what a good offer prices after that we are going to also negotiate out a policy title policy is something that we typically get the sellers to pay but it's negotiable and I'll talk about title in just a minute then there's closing costs so closing costs that's another number you've probably heard that before if you've watched any real estate TV shows where they say oh we want our closing costs paid so that's what that is it's basically the additional money that you have to bring to the table outside of your down payment to keep the transaction closed how much is that typically it's gonna vary per property okay um typically between two and three percent but it just depends on your property of this sales price okay yep and then there's home warranty so something that a lot of people get a little nervous about when buying a home is I'm scared something's gonna break you know especially for first-time homebuyers yeah so what a home warranty does is it kind of covers you on some of those major things in the home that lobby it's like French it's it's kind of like an insurance policy okay it's a it's a warranty policy for things that are inside of the home so we're talking your hot water heater maybe your appliances so stoves refrigerators a/c things like that it's gonna cover that stuff so I'm gonna definitely try to negotiate you a home warranty but something about us and I'm going to tell you in just a look in just a minute we're gonna always make sure that you have a home warranty okay what just I just like my clients to have that that makes me feel good absolutely in the option time and I'm going to talk about option time in just a minute and then closing date so you know people like competitive closing dates and that can set us apart from another offer if our closing date is not too long okay so those are all the things that go into an actual offer but we're going to actually work with your lender and work with you just to make sure that everything that we're putting in an offer can actually work and you know we're not biting off more than we can chew okay after we make that offer and we get our offer accepted then we're going to open up title which I'm going to get into in just a second when you get your offer accepted there are some expenses that you're gonna have to come out with up front and I like to tell everybody this because a lot of people they don't know this so a few things that you're gonna have to pay for is one is gonna be your earnest money your earnest money is your good-faith money and it's typically 1 percent of the sales price so this tells the sellers that hey you're a real buyer you can afford this you you're you were taking this thing seriously ok this money sticks with the title company and when you purchase the home it gets credited back to you ok ok next is gonna be your option money so there's something called option period which I'm gonna go deeper into option period but there is a cost associated with your option period and this goes directly to the sellers typically this is anywhere between 100 to 250 dollars but it's one of those things that is best negotiable kind of the more money that you're putting down for option it may help you stand out against I mean other contracts okay okay NYX is gonna be your inspection now an inspection it's not mandatory but I definitely encourage you to get an inspection on a property and you are gonna have to pay for your own inspection you can use any inspection company that you want and I can definitely provide you with recommendations but that is an out-of-pocket cost to you and this cost varies based on the actual property because most inspectors go by square footage of the home so I mean the larger their house typically the higher the inspection cost is going to be okay okay you have a question I do so I see appraisal right below that and I'm sure you're about to talk about it but yeah what's the difference between the inspection and appraisal and how much did both of those cost I'm gonna talk about it okay so Nick you can see here the appraisal so an appraisal is something that's ordered by the lender so so they are a third party appraisal company that goes out and checks the true value of the home because the lender is not going to lend you out more than the home is actually worth so what an appraiser is gonna do they're gonna go out there they're gonna check the home they're gonna look at the comps and they're gonna make sure what you're under contract for is actually what that home is worth again they don't want you paying any more for that home than it's actually worth so they're gonna order an appraisal and that's something that you're gonna pay for it as well now inspections and appraisals two different costs they do two different things the inspectors are not going to determine the value of the home they're not going to be looking at cops or anything they're just looking at the things that are inside of the home kind of they're also gonna check your roof they may go underground they're gonna look at all that Casta it's more so a condition thing now inspections again they vary by the square footage of the home you can be anywhere from like 350 and up but it's just gonna go by the size of the home or the condo whatever we end up getting envy envy appraisals typically you should be under 504 that the lender will be able to let you know how much that appraisers gonna cost though are we sure he'll they'll let me know yeah yeah they're gonna they're gonna talk to you about appraisals - how long does it typically take for the appraisal to come back that's something that lenders going to be able to answer for you okay it just depends on you know they're gonna they're gonna set a date for it but it just depends on how many appraisals they have and how many the appraiser has and all that kind of okay I'll definitely let them know that that's a concern of yours sure so I did great that way I'll make sure that they speak with you about that all right we're gonna be opening up title on that or opening escrow you may have heard that term before but we work with title companies here in Texas and what title companies are they are the third parties that kind of facilitate the legal transaction so they don't really work for us and they don't really work for the sellers but they're the ones in the middle that makes sure that the home that you're purchasing you're you're gonna own it free and clear you know sometimes things can come up with these homes like people can pop up with purchase agreements that nobody knew existed or somebody might have willed a home to somebody on a napkin there may be liens on something sort of topic okay you're gonna check all that type of stuff to make sure that the home that you're moving into and is actually free and clear all of that this may be a dumb question what's up what Selene Elaine is basically let's just say that you get some yard work done and you don't pay the the people who do the yard work and so they put a lien on your property that basically says you can't sell it or anything like that until they get paid okay yeah but there's different types of liens but that's the most simplest one I mean there's tax liens there's all kinds of stuff out there but it doesn't need to be a concern of yours because that's why we use title companies to make sure that you're not getting yourself a message and one more question if I can yep do we decide who the tar company is who look who decides who this third party is yeah it's it's whoever to be honest with you I mean sellers have a preference if you have a preference if we can definitely put that on the contract okay um I have recommendations for companies that I've done a lot of deals with that I know work very well especially with first-time homebuyers oh but it's but it's one of those things that's negotiable perfect yep all right so during our option period that's that that's that period of time that I told you that you get right after we go into contract this is typically we like to negotiate seven to ten days for this just to give you enough time to do everything that needs to be done but this is your due diligence period so it's gonna be the time that you can really decide whether you want to get this home and you can base that on the inspections you can base that on your family opinions on just what you feel about the home whatever but you have the option during this period to back out if you want to free and clear oh all right well do I get that earnest money that I you get your earnest money back you're not gonna get that option money back okay how much is that typically between one to five hundred dollars it's negotiable let's not bad yeah yeah we don't we don't typically like to put a big dollar amount on that because you do have that option to back out and if you do back out you lose that option money but essentially you're just paying the seller to take the home off the market and make it available to you to let you do all of these so during this option period we have to handle your inspections if anything comes up that we want to ask the sellers to repair or anything like that we have to negotiate this stuff during the option okay okay after option period that's when things get really serious okay not to scare you though I'm sorry no no don't be scared but but this time is really the time that you want to really decide whether you want the house or not okay sensually okay so I'm on the hook at this at this point yeah kind of pretty ouch kind of yeah okay after option after option period we move into something called pending during pending you're gonna work more so with the lender okay I'll still be here I'll still be facilitating everything but you're gonna notice that you're gonna be working more so with the lender they're gonna ask you to verify things they're gonna actually define things all that kind of stuff the biggest piece of advice for this pending period is try to get them whatever they need as soon as possible because we're on kind of a put on one minute Luis sorry we're on kind of a timeline here and so we want to make sure that we're not dropping the ball on things so anything the lender actually to provide definitely try to get that to them as soon as possible if you have questions about it accident the questions do what you need to do but we we must make sure that we're keeping the ball rolling all right I'm gonna bring up appraisal again because like I discussed previously an appraisal is going to get done and it typically gets done during this pending period so the lender just to refresh you they're gonna send somebody out there to check on the value and determine the true value of the home all right now a couple things can can happen the value can come in above the price that we're under contract for it or it can come in below if it comes in above you're essentially moving into a house with equity already yeah I know it would be nice if it comes in below who then then we have to figure out something so one of four things can happen it comes in below alright the sellers they can come down on their sales price to the appraised value all right you as the buyer you can put up the additional cash to meet the sellers at the sales price all right we could negotiate to where maybe we're both meeting in the middle to where you're bringing some cash in the sellers coming down or and we don't like this to happen but the whole deal can can kind of fall apart okay but that's what happens at the appraisal all right and it's just something that I like you to know about ahead of time because again the lender is not going to lend out any more than the property's worth I have a question yep so let's say this happens after option period mm-hmm if I if it's after option and we decided to kill the deal will do I'll lose my earnest money - you'll get your earnest money back well we we have another period called financing period okay and the lender is probably going to tell you a little bit more about that as well okay but it's it's something that we try to make sure this gets done more sooner rather than later so we're not getting in too deep so when do they order the appraisal they can order the appraisal right when we go into contract if you if you want oh but okay so it's pretty quick there's there's there's options for I got you okay after that we're going to kind of prep for closing more so something that you're gonna notice I'm going to be seeing you Rick recommendations for insurance agents home warranty getting your utilities set up all that kind of stuff is basically just prepping you to actually move into the home so just look out for that if you if you have these people are already so if you have an insurance agent that you use you're more than welcome to let them run quotes for you I have a few recommendations that can help you out but we're gonna take care of all those things at this point all right and then after that we're gonna do a final walkthrough so any repairs that we negotiated we want to make sure that they actually got done and so we're gonna do that we're gonna do that shortly before closing 24 to 48 hours at the max because I don't want you signing documents for a home with things that aren't committed that I'm not cool with it exactly yeah all right so we're gonna take care of that and then we move on to closing so closing is where the magic happens all right Disney fans it looks kind of magic where we talk about but is where it all goes down okay at closing you're gonna sign all the documentation that's needed so all the legal forms that's going to basically put a house in your name okay at closing you're also gonna pay your down payment and closing costs so this is when the big money is gonna get paid you're gonna get these values ahead of time though so you're gonna know what you're going to be looking at out-of-pocket the the lender is gonna provide but I'm gonna know that before you're gonna know that okay okay cool um so but this is where it all goes down so you're gonna sign the sellers are gonna sign and after everything is all done and after the money has been exchanged you're gonna have the keys to your new house and it's all done okay so well actually yeah what's up when do I make my first payment so you're gonna make your first payment typically like 45 days or it can even be two months it could be one month I'll let the lender know that that's something that you want to know is cool again and in and I know I'm referring you over to the lender for a for a lot of things but like I said in the beginning we want to go to them for anything concerning money mortgage all that kind of stuff because that's what they do all right so I'm gonna I'm gonna definitely let them know that you have these questions ahead of time so that they could be prepped for them but that's that's going to be another one money questions okay sorry interrupt then you know no you're good what's a new no for sorry to interrupt for that other question okay yeah okay nervous sorry no see yeah and I mean all this can be nerve-racking and like I said at the beginning this is a lot of information and so my job is to guide you through this whole process to make sure that there's no mistakes being made to make sure that everything stays on track and to essentially make sure that you're getting the right house for you you know one that you are actually going to like and I want to help you get that so that's my job everything that I do I mean I've been doing it for a while so I know this stuff in and out and and my duty is to take care of you I'm not gonna lie to you it's gonna be stressful you're gonna you're gonna have moments this is a big decision okay but when you have these moments you call me and we'll talk it out okay or we can go to lunch or go to brunch or something you know and we'll and we'll get it get it done but you know there's a lot of moving parts and it is a big deal but once it's all over and done you're gonna be so happy and we're gonna throw you a party and you have a wedding you're gonna love your new house okay right all right so you're ready to get started I think I am okay let's go ahead and do it we tried to take care of a little bit of paperwork and being we will be on our way all right all right perfect you