4. First things first:
Is it the right time to buy?
Renting vs owning
Length of ownership
Lifestyle priorities
Personal finances
Consider:
5. Your housing payment
should not exceed 35%
of your income.
Have your income and
monthly spending info handy
25% is recommended
Use our free online calculator
to get an estimate of your
monthly payment
REDFIN ADVANTAGE
Use our Home Affordability Calculator to
help determine your budget.
redfin.com/how-much-house-can-i-afford
%
6. Accessibility and
response time are key
when finding a lender.
Lender reviews
Big banks vs. local lenders
Direct lender vs. brokerage
Referrals
Also consider:
REDFIN ADVANTAGE
Redfin Agents can recommend
a preferred lender in your area.
8. James V. Espana
Sr. Mortgage Loan Officer
925-586-3671
James.Espana@ubank.com
Learn more about becoming
a homeowner
9. Today we’ll address:
• Preparing to
buy your
home
• Credit basics
• Home
financing
basics
10. How much could I
borrow?
For illustrative purposes only
Debt-to-income ratio
36%
or less
Monthly income
before taxes
28%
or less
The percentage of
your gross monthly
income that is
spent on monthly
housing payments and
all other debts
11. How much could I borrow?
● Mortgage, insurance, and taxes
● Other monthly obligations
• Savings, debts, or loans
• Groceries and household supplies
• Childcare / Daycare
• Clothing, shoes, and accessories
• Transportation
• Gifts and charitable donations
• Internet, cable, phone
• Travel and entertainment
● Other home costs
• Utilities
• Maintenance
• Repairs
12. What do lenders consider?
Do I have a source
of income to make
monthly payments?
Do I pay my bills,
loans, credit cards
and other debt
on time?
What’s my credit
history?
My credit score?
Do I have a lot of
other outstanding
debt?
Do I have enough
funds for a down
payment and closing
costs?
What’s the market
value of the property
I want to purchase?
36%
Current debts and
Credit history
The propertyIncome Assets and
available funds
13. What are the benefits of a
preapproval?
Having a preapproval
letter gives you an
estimate of how much
you may be able to
borrow and lets your
Realtor know the
approximate price range
to search within for you.
Preapproval may allow
for a faster closing,
because some of the
loan work is already
started.
Preapproval lets
sellers know you have
a lender willing to
proceed with the
mortgage application
process.
Close soonerAssure the sellerKnow your estimated price
range and shop confidently
Keep in mind that a preapproval is a preliminary review of information you provide, and
is not a commitment to lend.
15. Components of a mortgage
payment
Principal
Interest
Taxes
Insurance
For illustrative purposes only
16. Loan Application Process
• Determine a loan
amount and
understand your
home loan options
• Complete your loan
application
• Receive initial
disclosures, including
a Loan Estimate
• Indicate intent to
proceed with the loan
• Pay any applicable
fees
• Credit report,
appraisal and title
search ordered
• Verification of
employment and
financial information
provided in the
application
• Receive and review
appraisal and title
• Provide requested
financial documents
for lender review
(underwriting)
• If application is
approved, receive an
initial commitment
letter with list of
what’s required
before closing
• Schedule closing
date
• Receive & review
your Closing
Disclosure
• Verify amount of
money needed at
closing
• Meet with your
closing agent
• Receive and sign
your final closing
documents
Meet with your Home Mortgage
Consultant
Financial and
property review
Preparing to close Attend your closing
17. What should I do during the loan
process?
Provide accurate information
Return calls promptly
Get homeowners insurance quotes
and a home inspection
Maintain your credit
19. Understanding your
market can help you
make a winning
offer.
Your local market
trends
Median sale price
# of homes for sale
Days on market
Our market data is updated
every 5 minutes! A local Redfin
Agent can meet with you to
discuss current market trends.
REDFIN ADVANTAGE
20. Easily compare
neighborhoods on
Redfin.com.
Decide what's most important to you.
Walkability
Commute
School ratings
REDFIN ADVANTAGE
View tour and offer insights from Redfin
Agents for each listing and neighborhood.
21. The Redfin Estimate
Same-day tours
The Redfin Refund
See home values with
the Redfin Estimate.
The most accurate estimate available
for homes on the market.
Save $2,000 on average at closing.
We contribute part of our commission
to your closing costs.
Request a tour instantly and see homes
on your schedule.
22. Same-day tours
The Redfin Refund
Get inside fast:
book same-day tours.
The Redfin Estimate
The most accurate estimate available
for homes on the market.
Save $2,000 on average at closing.
We contribute part of our commission
to your closing costs.
Request a tour instantly and see homes
on your schedule.
23. The Redfin Refund
Save $2,000 on
average when you
buy with Redfin.
The Redfin Estimate
The most accurate estimate available
of homes on the market.
Save $2,000 on average at closing. We
contribute part of our commission to
your closing costs.
Same-day tours
Request a tour instantly and see homes
on your schedule.
24. See homes in person
and know what to look for.
Open houses
Home tours
Tour checklist
Location & noise level
Level floors & layout
Daylight
Storage space
25. Ask these important
questions to find the
right agent:
How many clients have
you helped this year?
How quickly can you get
me into a home?
How many sales have you
handled in my search area?
Can I see reviews from your
past clients?
Read client reviews of all Redfin
Agents on Redfin.com.
REDFIN ADVANTAGE
27. You found a home
you love. It’s time to
make an offer!
Your Redfin Agent will:
Set a price strategy
Discuss bidding war
situations
Review contingencies
28. Common Contingencies
The buyer must get approved for
a mortgage loan to be able to buy
the home.
Financing Contingency Inspection Contingency
This allows the buyer to get the home
inspected and negotiate further if there
are repair issues. The inspection usually
happens 5–7 business days after mutual
acceptance.
Sale Contingency
The success of the offer depends on
the sale of the buyer's current home.
Appraisal Contingency
The success of the offer depends on
an appraisal confirming a value for
the home that is equal to or greater
than the buyer's offer amount.
The success of the offer depends
on whether the home's title, which
documents the history of
ownership, is clear of any liens.
Title Contingency
29. The Closing Process
Deposit Earnest Money
Funds must be transferred within
two days after going mutual.
Mutual Acceptance
The seller has accepted your offer.
Now the closing process begins!
Execute Contingencies
Any contingencies written into
your offer will be completed
during this time.
Professional Appraisal
This is the bank’s proof that the home
is worth the purchase price and loan.
Final Loan Approval
Your finances have been
processed and approved!
Closing Costs
2%-5% of purchase price; includes lender fees,
title insurance, appraisal, inspection, etc.
Closing Day!
Get your keys, attend the closing,
and celebrate!
Typically takes 30 days
30. What’s next?
Fill out a strategy session card
to talk to a Redfin Agent about
your home search.
● Email or call directly –
take a business card
● Download our app and
start touring with Redfin
