First Time Home Buyer Seminar Booklet

Ready To Buy?
Don’t Know Where To Start?

This Is Your Guide To

ANDREA DURAN ALLEN
BROKER
Berkshire Hathaway HomeServices Chicago
[email protected] | 312.343.2050

Berkshire Hathaway HomeServices Chicago



Table of Contents

4 REASONS TO BUY NOW .................................................................... 1

• Home values continue to increase
• Interest rates forecasted to go up
• Either way, you are paying a mortgage
• Building equity and generational wealth

STEPS FOR HOME BUYING ................................................................. 2

• Step #1 Develop a Plan
• Step #2 I Love this Home
• Step #3 My Offer is Accepted
• Step #4 My Loan is Approved
• Step #5 Closing Day

Q&A ............................................................................................................. 8
MEET THE TEAM ..................................................................................... 9
NOTES ....................................................................................................... 10

01.11.22

4 Reasons to Buy Now

1. HOME VALUES CONTINUE TO INCREASE

• The Case-Shiller home price index for the Chicago area increased 11% in the
first three quarters of 2021.

• The National Association of Realtors(r) forecasts that home prices will rise
5.7% in 2022.

2. INTEREST RATES ARE FORECASTED TO GO UP

• This will increase your monthly mortgage payment.

3. EITHER WAY YOU ARE PAYING A MORTGAGE

• You either pay your own mortgage or your landlord’s — take your pick!
Average Rent: $2,100 x 12 months = $25,200
x 3 yrs.
$75,600

4. BUILDING EQUITY AND GENERATIONAL WEALTH

• The cost of a home is determined by the price and current mortgage rate -
both are on the rise!

• According to the Federal Reserve Survey of Consumer Finances, the
median net worth of homeowners is 40X higher than the median net
worth of renters.

1

I Want to Buy a HomeHOME SEARCH

STARTING THE PROCESS
• One-hour meeting with your real estate agent.
• Discuss the home buying process.
• Develop an action plan.

TOTAL REPRESENTATION
• Receive exclusive representation.
• Important to understand the various agent representation/relations:

BUYER’S AGENT: represents only the home buyer’s best interest throughout
the home buying process.

SELLER’S/LISTING AGENT: represents only the home seller’s best interest
through the home selling process.

DUAL AGENT: represents both the buyer and seller ethically and honestly,
safeguarding the confidentiality of both clients.

FREE TOOLS & RESOURCES

• HomeSnap • MLS • Pocket Listing
• Prosperity App • Market Reports • HomeMap
• InTouch • Realist • PLN

2

Step 1: Develop a Plan

MEET WITH YOUR PROSPERITY HOME MORTGAGE CONSULTANT

INFORMATION COVERED DURING THE PRE-APPROVAL PROCESS
• Range of purchase price/down payment.
• Income verification, credit history and asset information.
• Determine a monthly payment comfort level.
• Budgeting for closing costs.

Start gathering documentation: XLR8
• Online Account Authorization
Traditional
• 1–2 month(s) of pay stubs
• 2 years of W2s/1099s/K1s
• 2 years of 1040s (tax returns)
• 2 months of broker/bank statements

(checking, savings, 401K, etc.)

Shop with Confidence!

DETERMINE YOUR NEEDS
• Set maximum home buying price, location and criteria.

PROPERTY SEARCH
• Search the database for homes that meet your needs, including

new construction.
• Outline the “pros” and “cons” of each property to narrow your search.

3

Michael Giganti 1800 N Clybourn 2nd Floor
Mortgage Consultant Chicago, IL 60614
NMLS#: 657501
Office: 312-475-4193
Cell: 773-456-3750
[email protected]
michaelgiganti.phmloans.com

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify.Licensed by the
Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Licensed by the Delaware State Bank Commissioner. Massachusetts Mortgage Lender License ML75164. Licensed
by the NJ Department of Banking and Insurance. Also licensed in AK, AL, AR, AZ, CO, CT, DC, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NE, NC, ND, NH, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA,
WI, WV and WY. NMLS #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2022 Prosperity Home Mortgage, LLC. All Rights Reserved.

Michael Giganti 1800 N Clybourn 2nd Floor
Mortgage Consultant Chicago, IL 60614
NMLS#: 657501
Office: 312-475-4193
Cell: 773-456-3750
[email protected]
michaelgiganti.phmloans.com

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify.Licensed by the
Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Licensed by the Delaware State Bank Commissioner. Massachusetts Mortgage Lender License ML75164. Licensed
by the NJ Department of Banking and Insurance. Also licensed in AK, AL, AR, AZ, CO, CT, DC, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NE, NC, ND, NH, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA,
WI, WV and WY. NMLS #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2022 Prosperity Home Mortgage, LLC. All Rights Reserved.

Michael Giganti 1800 N Clybourn 2nd Floor
Mortgage Consultant Chicago, IL 60614
NMLS#: 657501
Office: 312-475-4193
Cell: 773-456-3750
[email protected]
michaelgiganti.phmloans.com

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify.Licensed by the
Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Licensed by the Delaware State Bank Commissioner. Massachusetts Mortgage Lender License ML75164. Licensed
by the NJ Department of Banking and Insurance. Also licensed in AK, AL, AR, AZ, CO, CT, DC, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NE, NC, ND, NH, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA,
WI, WV and WY. NMLS #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2022 Prosperity Home Mortgage, LLC. All Rights Reserved.

Michael Giganti 1800 N Clybourn 2nd Floor
Mortgage Consultant Chicago, IL 60614
NMLS#: 657501
Office: 312-475-4193
Cell: 773-456-3750
[email protected]
michaelgiganti.phmloans.com

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify.Licensed by the
Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Licensed by the Delaware State Bank Commissioner. Massachusetts Mortgage Lender License ML75164. Licensed
by the NJ Department of Banking and Insurance. Also licensed in AK, AL, AR, AZ, CO, CT, DC, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NE, NC, ND, NH, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA,
WI, WV and WY. NMLS #75164 (NMLS Consumer Access at http://www.nmlsconsumeraccess.org/) ©2022 Prosperity Home Mortgage, LLC. All Rights Reserved.

Step 2: I Love This Home

YOU FOUND A HOME
• Consider making an offer.
• Ask your agent to pull recent comparable sales information.
• Determine the fair market value of the home.
PRESENTING THE OFFER
• Once an offer is created, your agent will present to the seller.
• If the offer isn’t accepted, discuss seller’s counter offer with your agent.
• Repeat until an accepted offer is reached.

4

Step 3: My Offer is Accepted

HOME INSPECTION — CONTINGENCY #1

FIVE AREAS TO CONSIDER WHEN CHOOSING A HOME INSPECTOR
1. Qualifications — determine what’s included in your inspection and if it

warrants specific certifications/specialties.
2. Sample Reports — request a sample to determine their style.
3. References — request contact information from past clients.
4. Memberships — not all inspectors belong to national/state associations,

but memberships often mean additional education.
5. Errors & Omission Insurance — determine what the liability of the

inspector or company is once the inspection is over.

HOME INSPECTION TIPS & STEPS
• Talk with your inspector about also attending the home inspection.
• You will receive a detailed inspection report.
• This report will be forwarded to your attorney. They will notify the seller

attorney of deficiencies and will request to repair or credit.

ATTORNEY REVIEW — CONTINGENCY #2
• Attorney will review the accepted sales contract and handle legal

notifications of inspection issues.
• Attorney may attend closing to review all documents with you.

MORTGAGE CONTINGENCY — CONTINGENCY #3
• Complete mortgage application
• Provide mortgage commitment letter (final loan approval).
• Provide evidence of a written mortgage commitment letter (clear to close).

5

Step 4: My Loan is Approved

AFTER LOAN APPROVAL

• Once you receive your final loan approval from lender, the attorney will
schedule closing with seller attorney.

• You will receive a Closing Disclosure from lender at least 3 days prior to
closing, reflecting the actual terms of your loan transaction, as well as the final
amount due (closing costs).

CLOSING COSTS: Also known as settlement fees, closing costs are fees
charged by the people representing your purchase — lender and other third
parties. These fees are typically between 2-5% of your purchase price.

PREPARING FOR YOUR CLOSING DAY

DO DON’T

1. Do tell your mortgage loan 1. Don’t authorize any inquiries into your
officer or loan originator about all credit (that is, don’t apply for any new
debts or liabilities. financing including credit cards, furniture,
appliances, vehicles, boats,
2. Do continue to make all your cell phones, cable, alarm companies, etc.)
payments on time.
2. Don’t incur any additional debts, including
3. Do contact your mortgage loan increases in credit card balances and co-
officer before changing your signing for others.
jobs, quitting your job, becoming
self-employed or any changes to 3. Don’t close any open accounts.
your income.
4. Don’t sign-up with any credit repair or
“consolidation” company.

5. Don’t spend money you have set aside
for closing.

6

Step 5: Closing Day

SET-UP A FINAL WALK THROUGH
• Preferably arrange walk through 72-hours in advance.
• However, can be arranged as soon as 24-hours.
CLOSING DAY

WHAT YOU NEED ON CLOSING DAY
• A valid driver’s license, proof of insurance and the required funds

needed for closing.
• When buying in Illinois, any amount greater than $50,000 must come

by wire. Always confirm with the title company before wiring any
amount of money!
• Your agent and your Mortgage Consultant will NEVER send wire
instructions by email.

7

Wire Fraud Disclosure

WIRE FRAUD WARNING TO CONSUMERS

We provide you with this disclosure to alert you to a serious nationwide threat of fraud
in real estate transactions.
EMAILS ATTEMPTING TO INDUCE FRAUDULENT WIRE TRANSFERS OF YOUR
FUNDS ARE COMMON AND MAY APPEAR TO COME FROM A TRUSTED SOURCE.
Such requests, even if they seem legitimate, may be part of a scheme to defraud you.
Electronic communications, such as email, text messages and social media messaging,
are neither secure nor confidential. While Berkshire Hathaway HomeServices Chicago
(“BHHS Chicago”) has adopted policies and procedures to aid in avoiding fraud, even
the best security protections can still be bypassed by unauthorized parties. Therefore,
by this Disclosure, BHHS Chicago is providing you with information on what to do if
you receive instructions to transfer funds.
NEVER TRANSFER FUNDS BASED ON EMAILED WIRE INSTRUCTIONS WITHOUT
VERIFYING THE INSTRUCTIONS BY PHONE AS SPECIFIED BELOW.
If you receive any electronic communication providing wire instructions for the
transfer of funds, EVEN IF THE COMMUNICATION APPEARS TO BE FROM BHHS
Chicago OR YOUR REAL ESTATE AGENT, do not respond unless you have verified
the information as follows:
• To verify instructions related to wiring earnest money, call the BHHS Chicago

Accounting Department at 847- 853-4030.
• T o verify instructions related to wiring closing funds to Fort Dearborn Title, call the

Fort Dearborn Title at 847-853-6050.
• To verify instructions related to wiring closing funds to any other title company, call

that company using a phone number you look up yourself, not a phone number in
the email.However, can be arranged as soon as 24-hours.

8

M

Meet the Team

ANDREA DURAN ALLEN REAL ESTATE BROKER

Berkshire Hathaway HomeServices Chicago
1800 N Clybourn Avenue | 2nd Floor | Chicago, IL 60614
Cell 312.343.2050
[email protected]

MICHAEL GIGANTI MORTGAGE CONSULTANT

NMLSR ID: 657501
Prosperity Home Mortgage, LLC
1800 N Clybourn Avenue | 2nd Floor | Chicago, IL 60614
Office 312.475.4193
[email protected]

9

Notes

10

Notes

11

Notes

12

Berkshire Hathaway HomeServices Chicago

All first mortgage products are provided by Prosperity Home Mortgage, LLC. (877) 275-1762. Prosperity
Home Mortgage, LLC products may not be available in all areas. Not all borrowers will qualify. Licensed by
the NJ Department of Banking and Insurance. Licensed by the Delaware State Bank Commissioner. Also
licensed in AL, AR, AZ, CA, CO, CT, DC, FL, GA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, ND,
NE, NH, NM, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV and WY. NMLS ID #75164 (NMLS
Consumer Access at http://www.nmlsconsumeraccess.org/)
©2022 BHH affiliates, LLC. An independently owned and operated franchisee of BHH Affiliates,
LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are
registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Equal
Housing Opportunity.