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  Buying Your First Home

Presented in person at George Mason University's
Arlington campus, as well as virtually in 2022.

This analytical talk covers the entire buying process tailored for first-time buyers in today's hot market. David will share 3 decades of experience and provide important how-to information. Unique ideas will debunk popular myths and include . . .

Learn what to expect at every stage, with details you will hear nowhere else. Information is power; get it months ahead of others.

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Here is GMU's entire Money Smart Day program.
Click here for a link to all David's GMU talks.
Click to read David's Buying a Home book free online NOW.
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The course outline below has active links to additional information.

Buying a Home as a First-Time Buyer

INFORMATION is POWER

ASSUMPTIONS

Price of home                  $400,000
Down payment (20%)                  $80,000
Mortgage amount                  $320,000
Monthly payment                  $1,968
    » Principal        $461          
    » Interest        $1,067          
    » Tax (real estate)        $400          
    » Insurance        $40          
Income tax deductions                  $1,467

A 30-year loan at 4% interest is assumed.
There can be monthly homeowners or condo fees.
One-time “closing costs” are estimated at $12,000.

RESULTING BENEFITS

Income tax deductions                  $1,467
Your income tax bracket                  27.5%
    » Federal (marginal)        22%          
    » Virginia (marginal)        5.5%          
Monthly payment                  $1,968
Less monthly benefits                  $864
    » Tax savings (note 2*)        $403          
    » Mortgage reduction $461        $461          
Net monthly cost to buy                  $1,104

Notes:
1-The $461 is out-of-pocket.
2*-The above will apply to those who itemize their deductions
but not to those who take the standard deduction.
3-All figures are estimates.

PLANNING

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FINANCING

Figures do not include mortgage insurance which is usually
required for loans with less than 20% down.

FINANCING

FINANCING — Calculation I

MONTHLY
Gross income                  $6,000
Maximum payment                  $2,400
    » Real estate tax        $488          
    » Fire insurance        $49          
Principal & interest                  $1,863
Max 30-year loan at 4%                  $488,000

Monthly homeowners or condo fees can affect the calculations above.
Figures do not include mortgage insurance which is usually required
for loans with less than 20% down.

FINANCING — Calculation II

MONTHLY
Gross income                  $6,000
Maximum payment                  $2,400
    » Real estate tax        $447          
    » Fire insurance        $45          
    » All other debts (car?)        $200          
Principal & interest                  $1,707
Max 30-year loan at 4%                  $447,000

Monthly homeowners or condo fees can affect the calculations above.
Figures do not include mortgage insurance which is usually required
for loans with less than 20% down.

YOUR SPECIFICATIONS

ON THE ROAD

MAKING THE CHOICE

THE NEGOTIATION PROCESS

THE NEGOTIATION PROCESS

NEGOTIATING TACTICS

SUPPLY AND DEMAND

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A MARKET INDICATOR

            The NEW normal year!
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The market changed in 2008.
What does SOLD mean?
The data for these charts is based on contracts entered in order to be timely. Closings are old news and tracking them will put you a at least a month or two out of synch, maybe 3 or 4!

EVEN MORE NEGOTIATING TACTICS

ON TO CLOSING

THE MARKET INDEX

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NORTHERN VIRGINIA

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TMI ???

BUYING A HOME — The End

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YFiRE
Your Friend in Real Estate, LLC
Licensed broker in Virginia and Florida

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* Copyright © David Rathgeber *
* * All rights reserved. * *