Appreciation is one way that the the difference between the market value of property and the amount owed on it increases.

Size: px
Start display at page:

Download "Appreciation is one way that the the difference between the market value of property and the amount owed on it increases."

Transcription

1 Chapter 22 Buying a Home 22.1 Why Buy a Home? Vocab Market value appraised value assessed value Equity conventional loan FHA loan Trust deed escrow account discount points Loan origination fee closing costs Advantages of Home Ownership Value and Equity 1. the highest price that the property will bring on the market; what a ready buyer and seller would agree upon as the price. 2. examine the structure, size, features, and quality as compared to similar homes in the same area; the recent selling price of a similar home in your area is a good estimate of the current value of your home. 3. the county in which you live sets an assessed value for purposes of computing property taxes owed on your home; based on the cost to build, the cost of improvements, and the cost of similar properties. It is usually a percentage of market value. 4. Real estate agents also estimate the value of homes to help sellers establish a list price. They compare your house and its features to similar ones that have sold in your area, called comps, and it gives a general idea of a property s value. The value of most homes appreciates, or increases in market value, over time. Appreciation is one way that the the difference between the market value of property and the amount owed on it increases. Equity also increases because each loan payment you make decreases your debt. Equity turns into cash when you sell your home. Quality of Life Home ownership generally offers more, more space, and more personal not available to renters. In your own home, you can make the changes you choose to accommodate your own needs and personal style. Owning a home also provides a feeling of and. You also get a sense of stability and belonging to your community. are groups of homeowners in geographic areas that meet and work to set quality-of-life standards for the area, working with local government groups to be sure the area is being provided with needed services. Tax Savings The interest you pay on your home loan, along with the property taxes, is. These deductions the cost of home ownership. Because of these tax savings, owning real estate is a tax shelter.

2 Even though your equity in your home may be increasing each year, you do not pay tax on the equity until you sell your home. Costs and Responsibilities Down Payment Mortgage lenders usually require that borrowers pay a certain amount down toward the purchase price. They will then provide a loan for the. A conventional loan is a mortgage agreement that does not have government backing and that is offered through a or. This type of loan requires a down payment of %. An FHA loan is a government-sponsored loan that carries mortgage insurance; borrowers pay a monthly insurance premium and their loan payments are guaranteed through the Federal Housing Administration insurance program. Down payments for FHA loans can me as little as percent and are often available for,, and Mortgage Payments Mortgage is a loan to purchase real estate. A trust deed is similar to a mortgage, it is a debt security instrument that shows as a lien against property. Payments on a mortgage or trust deed are made over years. Monthly loan payments include and. If the borrower is required to have an escrow account, the payment includes property tax and insurance. An escrow account is a fun where money is held to pay amounts that will come due during the year. Mortgage lenders often allow borrowers to buy, which are used to lower the mortgage interest rate. Typically, equals of the loan amount. Points are essentially extra interest that borrowers must pay at closing. They increase the cost of the loan, but lenders usually offer lower interest rates in exchange for higher points. It depends on how long you keep your house for whether it is a good tradeoff. Points are often charged in addition to a loan origination fee, the amount charged by a bank or lender to process the loan papers. Closing Costs Closing costs are often also referred to as. They are the expenses incurred in transferring ownership from buyer to seller in a real estate transaction. Closing costs can add to the purchase price of your home. The buyer usually pays for the to make sure the seller is the legal owner and that no one else has a claim on the property. The buyer may also pay for a credit report, loan origination fee, loan assumption fee (to take over someone else s mortgage), closing fees, recording fee, and their share of taxes and interest owed on the property.

3 Property Taxes The real estate property tax is a major source of funding for. Homeowners pay property tax based on the of the property. A local taxing authority determines the assessed value, usually a percentage of the market value. Property taxes are. Property Insurance A homeowner must have property insurance covering the structure. This is usually a requirement of the loan agreement to protect the interests of the mortgage lender as well as the homeowner. Standard homeowners insurance includes both and protection. Utilities Because most homes are larger than apartments, the utility bills are usually higher. The homeowner pays for all utilities and garbage services, water and sewer charges, storm drain assessments, lighting fees, gas, electricity. They are responsible for costs to repairs to things like water and sewer lines that are on their property. CCRs Many housing subdivisions or planned unit developments have,, and that were agreed upon when the subdivision was built. They are rules to maintain property values and protect the interests of all property owners and include things like maintaining your lawn, specifying where cars can and can t be parked, controlling the kind of fences or storage buildings that can be built, types of roof that can be installed, etc. Zoning Laws You must obey all zoning laws and local ordinances, like obtaining a and when you add or modify your home, following setback requirements, adhering to restrictions regarding the kinds and types of buildings that can be constructed in the area. Maintenance and Repairs You will be responsible for maintenance and repairs inside and outside of your home. Before you buy, make sure you are willing to spend the time and money needed to keep your home in good condition. Ongoing maintenance includes painting, mowing, weeding, and fixing things that break. There will be occasional expensive repairs, like a new roof, furnace, water heater, appliances The Homebuying Process Vocab Earnest-money offer counteroffer fixed-rate mortgage Adjustable-rate mortgage title deed Lien title insurance Finding and Buying a Home Working With a Real Estate Agent Before selecting a home to buy, look at many houses. You can look by yourself or work with a. Agents know the market, can help you find the right home, and will assist you with the purchasing, financing, and closing processes.

4 One of the first things an agent will have you do is go to a mortgage lender and for a real estate loan. You fill out an application to see how much money you would be qualified to borrow. This will help you find houses in your price range. Real estate agents earn income. The commission is a percentage of the home sale price, usually 5 and 7 percent. The seller pays the commission, and the agents working for the buyer and seller split it. As the purchaser, you do not pay the agents commission. If you are buying directly from an owner without the assistance of an agent, you might be able to negotiate a lower price because the seller would not have to pay this fee. However, you should still seek advice from a professional, such as a lawyer, to be sure your interests are protected. You can find homes for sale online or in the newspaper. The is a real estate marketing service in which agents from many agencies pool their home listings and agree to share commissions on their sales. Sellers gain wide exposure for their properties this way. After you have narrowed your choices to a small number of homes in your price range, you should visit them with your agent. Making an Offer To let the homeowner know of your interest in buying the home and the price you are willing to pay, you will sign an agreement called an. An offer is a serious intent to be bound to an agreement. When you make an offer it is called an earnest-money offer. It is accompanied by a deposit called, which is held in escrow until the transaction is completed. This protects the seller in case you fail to meet the terms of the agreement. If you and the seller agree to terms, they will until the deal is completed. During that time, the house cannot be sold to anyone else. If you later back out of the deal, you will likely forfeit your earnest money to the seller. One way to avoid losing that money is to make your offer (dependent) on obtaining financing and the property passing an inspection. So if you don t qualify for a mortgage, you have not violated the contract and can get your money back. The seller may not accept your initial offer. When they agree to it, you have an. If the seller wants to change any part of the offer, they will make a a rejection of the original offer with a listing of what would be acceptable, and they offer a new offer. The buyer and seller will negotiate until an agreement is made or decide not to complete the transaction. Down Payment Sources The most common sources of down payment money are and from parents or relatives. Most lending institutions mortgage applicants to formally borrow their down payment.

5 In other words, you must invest a substantial amount of your own cash in the property. Qualifying for a Mortgage To qualify for a mortgage, you must complete an extensive loan application. The financial institution will check your credit history, employment, and references. They will look for evidence that you can meet your current bills and look at the type and amount of your current debts, the amount and source of your income, and your creditworthiness. Types of Mortgages There are two types of mortgages: -- is a mortgage on which the interest rate does not change during the term of the loan. An is a mortgage for which the interest rate changes in response to the movement of interest rates in the economy as a whole. The rate for an ARM usually starts lower than the current rates for a fixed-rate mortgage. The lender than adjusts the ARM rate based on the ups and downs of the economy, but rates usually go up. Taking Title to Property After you and the seller reach an agreement and you have arranged your financing, the next step is to prepare for the closing. An is an independent person who gathers and verifies information. The closer also prepares the closing statement that lists what you owe and what credits will be applied to you. You will meet with the closer to sign documents and pay the balance you owe. Once the sellers receive their money, the escrow closer makes sure that title passes to you. is legally established ownership. A is the legal document that transfers title of real property from one party to another. Before you take ownership, you will want to make sure that the title is free of any liens, which is a financial claim against the property. To ensure that the property has a clear title, the escrow closer orders a, which is the search of public records to check for ownership and claims to a piece of property. When the title insurance company confirms that title is clear and all is represented, it will issue a policy that protects the buyer from any claims arising from a defective title. Before the closing, the lending institution prepares the loan papers and sends them to the escrow closer. If any problems arise, the closer or the lender will notify the buyer and seller. When all procedures are complete, they will be notified of the closing date. In this meeting, you and the seller sign the papers and pay all related closing costs and the ownership is transferred from the seller to the buyer.

First Time Home Buyer Glossary

First Time Home Buyer Glossary First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make

More information

Preparing for homeownership

Preparing for homeownership Preparing for homeownership What we ll cover 1. Getting ready for homeownership 2. Mortgage basics 3. What you need to buy a home 4. Finding the right home 5. Resources 2 Getting ready for homeownership

More information

Adjustment Date - The date on which the interest rate changes for an adjustable-rate mortgage (ARM).

Adjustment Date - The date on which the interest rate changes for an adjustable-rate mortgage (ARM). Glossary A Adjustable Rate Mortgage - An adjustable rate mortgage, commonly referred to as an ARM, is a loan type that allows the lender to adjust the interest rate during the term of the loan. Generally,

More information

HOME BUYING101. 701.255.0042 www.capcu.org i

HOME BUYING101. 701.255.0042 www.capcu.org i HOME BUYING101 701.255.0042 www.capcu.org i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended,

More information

You Can Buy a Home The keys to Homeownership

You Can Buy a Home The keys to Homeownership You Can Buy a Home The keys to Homeownership The keys to homeownership Buying a home is one of the most important purchases you ll ever make. Owning your own home helps you build wealth, save on taxes

More information

HOME BUYING MADE EASY. Live the dream of owning your own home.

HOME BUYING MADE EASY. Live the dream of owning your own home. HOME BUYING MADE EASY Live the dream of owning your own home. HOME buying Made Easy PNC, PNC AgentView and Home Insight are registered service marks of The PNC Financial Services Group, Inc. ( PNC ). PNC

More information

HOME BUYING MADE EASY. Know what you need to get it right.

HOME BUYING MADE EASY. Know what you need to get it right. HOME BUYING MADE EASY Know what you need to get it right. HOME BUYING MADE EASY PNC, PNC AgentView and Home Insight are registered service marks of The PNC Financial Services Group, Inc. ( PNC ). PNC has

More information

WHAT IS TITLE INSURANCE?

WHAT IS TITLE INSURANCE? WHAT IS TITLE INSURANCE? A title is the collective ownership records of a piece of real estate, including the transfer of any property rights and any loans using the property as collateral. A clear line

More information

Standard 10: The student will explain and compare the responsibilities of renting versus buying a home.

Standard 10: The student will explain and compare the responsibilities of renting versus buying a home. TEACHER GUIDE 10.3 RENTING VERSUS BUYING PAGE 1 Standard 10: The student will explain and compare the responsibilities of renting versus buying a home. Buying a House Priority Academic Student Skills Personal

More information

Real estate terms and definitions

Real estate terms and definitions Real estate terms and definitions Annual Percentage Rate (APR): The total yearly cost of a mortgage as expressed by the actual rate of interest paid. The APR includes the base interest rate, points and

More information

HOME BUYING MADE EASY. Live the dream of owning your own home.

HOME BUYING MADE EASY. Live the dream of owning your own home. HOME BUYING MADE EASY Live the dream of owning your own home. sm Getting started For most of us, buying our first home is a dream come true. It s also a lengthy process where potential and sometimes very

More information

Getting Prepared to Purchase Your Home

Getting Prepared to Purchase Your Home Thank you for taking the time to download our Homebuyer s Kit. TJC Mortgage knows that you have options when choosing a mortgage company to assist with your home purchase and we want you to know that we

More information

Standard 10: The student will explain and compare the responsibilities of renting versus buying a home.

Standard 10: The student will explain and compare the responsibilities of renting versus buying a home. STUDENT MODULE 10.3 RENTING VERSUS BUYING PAGE 1 Standard 10: The student will explain and compare the responsibilities of renting versus buying a home. Buying a House Hank and Peggy decide it is finally

More information

GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422

GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 TYPES OF HOMES Buying a house will be one of the biggest investments one will ever

More information

HOME BUYING101 TM %*'9 [[[ EPXEREJGY SVK i

HOME BUYING101 TM %*'9 [[[ EPXEREJGY SVK i HOME BUYING101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,

More information

Shopping for your home loan. Settlement cost booklet

Shopping for your home loan. Settlement cost booklet Shopping for your home loan Settlement cost booklet January 2014 This booklet was initially prepared by the U.S. Department of Housing and Urban Development. The Consumer Financial Protection Bureau (CFPB)

More information

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another. MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default

More information

Homebuyers Information Guidebook

Homebuyers Information Guidebook Homebuyers Information Guidebook Comparing Buying and Renting Getting Your Financial Picture In Focus Developing a Budget Determining Your Housing Needs and Wants Finding and Choosing a Real Estate Agent

More information

We ll help you open the door.

We ll help you open the door. We ll help you open the door. The Citizens Guide to Home Financing Lori Customer Table of Contents Before you look 4 The costs of purchasing a home 4 Getting a head start: Pre-approval 6 Choosing a mortgage

More information

Homebuyer Education: What You Need to Know

Homebuyer Education: What You Need to Know Homebuyer Education: What You Need to Know Today s Objectives Prepare your finances for home ownership Steps to mortgage prequalification Shopping for a home- who are the major players? Choosing the correct

More information

Table of Contents Introduction Purchasing Time-line II. Before You Buy

Table of Contents Introduction Purchasing Time-line II. Before You Buy Table of Contents I. Introduction Purchasing Time-line II. Before You Buy Are You Ready to be a Homeowner? III. Determining What You Can Afford IV. Shopping for a House Role of the Real Estate Broker Selecting

More information

Mortgage- and Lender-Related Settlement Costs. Charges for Establishing and Transferring Ownership. Amounts Paid to State and Local Governments

Mortgage- and Lender-Related Settlement Costs. Charges for Establishing and Transferring Ownership. Amounts Paid to State and Local Governments Mortgage- and Lender-Related Settlement Costs Charges for Establishing and Transferring Ownership Amounts Paid to State and Local Governments "All-in-One" Pricing of Settlement Costs Estimates of Settlement

More information

Words to Know When Buying a Home

Words to Know When Buying a Home Words to Know When Buying a Home Adjustable mortgage interest rate: With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions. Amortization: Length of time

More information

INTERACT WITH CAPITOL FEDERAL

INTERACT WITH CAPITOL FEDERAL TALK with an Associate in Capitol Federal s Customer Service Center 888-8CAPFED. EMAIL your questions to Capitol Federal securely online at capfed.com/contact. VISIT any one of Capitol Federal s convenient

More information

Information & Instructions: HUD 1 Settlement closing statement PREVIEW

Information & Instructions: HUD 1 Settlement closing statement PREVIEW Information & Instructions: HUD 1 Settlement closing statement 1. Section 5 of the Real Estate Settlement Procedures Act of 1974 (Public Law 93-533), effective on June 30, 1976 (RESPA), requires certain

More information

Home Buyer s. Helpful Information to Find and Finance Your Next Home. www.colonialnationalmortgage.com 1-800-937-6001

Home Buyer s. Helpful Information to Find and Finance Your Next Home. www.colonialnationalmortgage.com 1-800-937-6001 Home Buyer s H A N D B O O K Helpful Information to Find and Finance Your Next Home www.colonialnationalmortgage.com 1-800-937-6001 The information herein is subject to change and is not an offer to extend

More information

Summary of Borrower s Transaction Gross amount due from borrower 101. Contact Sales Price- The full purchase price as stated in the contract.

Summary of Borrower s Transaction Gross amount due from borrower 101. Contact Sales Price- The full purchase price as stated in the contract. 1 Your Guide to the Settlement Statement A real estate transaction involves a series of exchanges, not only between the buyer and seller, but also with the lenders, brokers, and state and local governments.

More information

Your Step-by-Step Mortgage Guide. From Application to Closing

Your Step-by-Step Mortgage Guide. From Application to Closing Your Step-by-Step Mortgage Guide From Application to Closing Table of Contents In this guide, you will learn about one of the most important steps in the homebuying process obtaining a mortgage. The materials

More information

MORTGAGE PURCHASE PROGRAM DISCLOSURE OF INFORMATION

MORTGAGE PURCHASE PROGRAM DISCLOSURE OF INFORMATION Mortgage Finance Division Single Family Office 10400 Detrick Avenue, Kensington, Md 20895-2484 (240) 627-9798 Phone // (301) 942-3817 Fax MORTGAGE PURCHASE PROGRAM DISCLOSURE OF INFORMATION APPLICATION

More information

HOMEPATH BUYERS GUIDE WWW.HOMEPATH.COM

HOMEPATH BUYERS GUIDE WWW.HOMEPATH.COM HOMEPATH BUYERS GUIDE WWW.HOMEPATH.COM Buyers Guide Buyers Guide For a Fannie Mae-owned Home Whether you re buying your first home or your fifth, the experience can be exciting, confusing, overwhelming

More information

21 EXTRA COSTS TO BE AWARE OF BEFORE BUYING A HOME IN GEORGIA

21 EXTRA COSTS TO BE AWARE OF BEFORE BUYING A HOME IN GEORGIA 21 EXTRA COSTS TO BE AWARE OF BEFORE BUYING A HOME IN GEORGIA Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you

More information

Homebuyers Dictionary

Homebuyers Dictionary 2935 Breezewood Avenue Suite 100 Fayetteville, NC 28303 www.fayhba.org Homebuyers Dictionary ARM? GPM? PITI? You d have to be a cryptologist to figure out some of the terms buyers encounter during the

More information

Buying your first home.

Buying your first home. Financial Milestones: Buying your first home. What you should know to make the process easier and more rewarding. Everything you wanted to know about buying your first home Buying your first home can be

More information

Home Buyer Education. Are you ready? Getting Ready to Buy a Home. Member FDIC. Homebuyer Training Guide

Home Buyer Education. Are you ready? Getting Ready to Buy a Home. Member FDIC. Homebuyer Training Guide Home Buyer Education Getting Ready to Buy a Home. Are you ready? Member FDIC 1 Topics We ll Cover Today Getting ready to buy Budgeting Buying your home Getting a mortgage loan The mortgage loan process

More information

UMB Mortgage Solutions. Home Buying 101

UMB Mortgage Solutions. Home Buying 101 UMB Mortgage Solutions Home Buying 101 1 Agenda Are You Ready to Buy a Home? Selecting a Lender Mortgage Loans Getting Started Home Checklist Purchase Contract Questions 2 Home buying Terms Mortgage Lender

More information

CONTRACT FOR SALE OF REAL ESTATE

CONTRACT FOR SALE OF REAL ESTATE CONTRACT FOR SALE OF REAL ESTATE This Contract for Sale is made on 20 BETWEEN whose address is, AND referred to as the Seller, whose address is, The words "Buyer" and "Seller" include all buyers and all

More information

Table of Contents. I. Introduction. Purchasing Time-line. Before You Buy

Table of Contents. I. Introduction. Purchasing Time-line. Before You Buy Table of Contents I. Introduction II. III. IV. Before You Buy Purchasing Time-line Are You Ready to be a Homeowner? Determining What You Can Afford Shopping for a House Role of the Real Estate Broker Role

More information

Homebuyer s Guide. Brought to you by:

Homebuyer s Guide. Brought to you by: Homebuyer s Guide Brought to you by: AmeriSouth Mortgage Company NMLS ID: 67050 Phone: (704) 845-9400 info@amerisouth.com www.amerisouth.com The basics What is a mortgage? A mortgage is a loan secured

More information

How To Buy A Home At Wright-Patt Credit Union

How To Buy A Home At Wright-Patt Credit Union How To Live The American Dream Your guide to buying a home. Wright-Patt Believes: Helping member-owners achieve the American Dream of homeownership is one of our most important roles Homeownership is the

More information

An Easy Guide to Buying a Home

An Easy Guide to Buying a Home An Easy Guide to Buying a Home Dear Future Homeowner, You have just taken the first step on the road to realizing the American dream. Choosing your home loan is one of the most important decisions you

More information

HOME BUYING GUIDE Step 1. Pre-Approval/ Mortgage Options

HOME BUYING GUIDE Step 1. Pre-Approval/ Mortgage Options HOME BUYING GUIDE Buying a home will be one of the biggest decisions of your life. We believe that education and a general understanding of the process keeps our clients more informed and confident about

More information

Settlement. Coming to Grips With. What to Know before Your Closing. The Event. What Is Closing?

Settlement. Coming to Grips With. What to Know before Your Closing. The Event. What Is Closing? Coming to Grips With Settlement What to Know before Your Closing The closing, or settlement, is the last step in getting your mortgage and actually becoming the owner of your new home. You ll probably

More information

SHOPPING FOR A MORTGAGE

SHOPPING FOR A MORTGAGE SHOPPING FOR A MORTGAGE The Traditional Fixed-Rate Mortgage Key characteristics: Level payments, fixed interest rate, fixed term. This mortgage is the one which most of us know, and it is still the loan

More information

How To Close A House On A Mortgage

How To Close A House On A Mortgage Coming to Grips With Settlement Coming to Grips With Settlement What to Know Before Your Closing The closing, also known as the settlement, is the last step in getting your mortgage and actually becoming

More information

Lesson 15: Closing Real Estate Transactions

Lesson 15: Closing Real Estate Transactions 1 Real Estate Principles of Georgia Lesson 15: Closing Real Estate Transactions 2 Closing Closing: Final stage in real estate transaction. Also called settlement. Buyer pays seller; seller transfers title

More information

EASY KEYS FOR GUIDING THE FIRST-TIME HOME BUYER

EASY KEYS FOR GUIDING THE FIRST-TIME HOME BUYER EASY KEYS FOR GUIDING THE FIRST-TIME HOME BUYER EASY KEYS FOR GUIDING THE FIRST-TIME HOME BUYER Purchasing your first home can be an exciting process but it can also be scary and a bit overwhelming. Buying

More information

Buying a Home. Do you know of any serious physical defects in the property? If so, how can you protect yourself against such defects?

Buying a Home. Do you know of any serious physical defects in the property? If so, how can you protect yourself against such defects? Buying a Home What should I consider when buying a home? Document last updated 12/23/2014. For most people, a home purchase is the biggest single investment of their lives. It is, therefore, extremely

More information

Affordable, fixed rate mortgages

Affordable, fixed rate mortgages First Home Program Affordable, fixed rate mortgages Dear Future Homeowner, MaineHousing s First Home Program makes it easier and more affordable to buy a home of your own. There are many reasons to consider

More information

Appraiser: a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.

Appraiser: a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate. Mortgage Glossary 203(b): FHA program which provides mortgage insurance to protect lenders from default; used to finance the purchase of new or existing one- to four family housing; characterized by low

More information

Renting vs. Owning a Home

Renting vs. Owning a Home 1.9.3.L1 Note taking guide Renting vs. Owning a Home Total Points Earned 30 Total Points Possible Percentage Name Date Class Housing is the largest personal expenditure Approximately of a person s income

More information

A CONSUMER'S GUIDE TO TITLE INSURANCE. from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE

A CONSUMER'S GUIDE TO TITLE INSURANCE. from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE A CONSUMER'S GUIDE TO from YOUR North Carolina Department of Insurance CONSUMER'SGUIDE A MESSAGE FROM YOUR INSURANCE COMMISSIONER Greetings, The North Carolina Department of Insurance recognizes that insurance

More information

Actions to Take Before Buying a Home Today

Actions to Take Before Buying a Home Today Actions to Take Before Buying a Home Today As the housing downturn has shown, homeownership is about more than buying a home you have to make sure you can keep the home over the long term. If you re thinking

More information

Home Mortgage Interest Deduction

Home Mortgage Interest Deduction Department of the Treasury Internal Revenue Service Publication 936 Cat.. 10426G Home Mortgage Interest Deduction For use in preparing 1998 Returns Contents Introduction... 1 Part I: Home Mortgage Interest...

More information

SUCCESSFUL HOMEBUYING HANDBOOK. A Guide For Your Successful Home Purchase

SUCCESSFUL HOMEBUYING HANDBOOK. A Guide For Your Successful Home Purchase SUCCESSFUL HOMEBUYING HANDBOOK A Guide For Your Successful Home Purchase INTRODUCTION Buying a home is one of the most important purchases most of us make during our lifetimes. To make certain you are

More information

How To Buy A Home

How To Buy A Home HOME BUYER S H A N D B O O K Helpful Information To Find and Finance Your Next Home Buying a home is one of the most important financial decisions you'll ever make. A home can be an excellent investment

More information

BUYING A HOME. Looking for the Best Mortgage. Obtain Information from Several Lenders

BUYING A HOME. Looking for the Best Mortgage. Obtain Information from Several Lenders OFFICE OF THE STAFF JUDGE ADVOCATE 48 TH FIGHTER WING, RAF LAKENHEATH, UK Looking for the Best Mortgage BUYING A HOME Shopping around for a home loan or mortgage will help you to get the best financing

More information

Bokern Realty serving St. Louis since 1901. Home Buying Educational Seminar The WU Employer Assisted Housing Program

Bokern Realty serving St. Louis since 1901. Home Buying Educational Seminar The WU Employer Assisted Housing Program Home Buying Educational Seminar The WU Employer Assisted Housing Program Agenda WU Employer Assisted Housing Program Program highlights Neighborhoods Home Financing Benefits of homeownership Preparation

More information

Buyer s Guide BASIC INFORMATION:

Buyer s Guide BASIC INFORMATION: Buyer s Guide Buying an apartment in NYC can be overwhelming. Our Buyer s Guide provides useful information that can help you familiarize yourself with the process. BASIC INFORMATION: Financing: Find out

More information

Mortgages and other money matters

Mortgages and other money matters Mortgages and other money matters 2 Buying a Home What about the money? The first thing most people think about when they want to buy a home is how much will it cost and where will I find the money for

More information

GLOSSARY COMMONLY USED REAL ESTATE TERMS

GLOSSARY COMMONLY USED REAL ESTATE TERMS GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These

More information

The Knowledge Resource. First-Time Home Buyers FOR. Your Agent Is the Best Guide Save Time, Money, and Frustration

The Knowledge Resource. First-Time Home Buyers FOR. Your Agent Is the Best Guide Save Time, Money, and Frustration K N O W L E D G E I S P O W E R The Knowledge Resource FOR First-Time Home Buyers Your Agent Is the Best Guide Save Time, Money, and Frustration The Keys to Homeownership Unlock the American Dream Is Buying

More information

EXPLANATION OF THE HUD-1 Settlement Statement

EXPLANATION OF THE HUD-1 Settlement Statement EXPLANATION OF THE HUD-1 Settlement Statement The Settlement Statement is the financial picture of the closing. All money deposited into the escrow account and the disbursals out of the escrow account

More information

BUYING A HOME. Do your homework. Gather all the basic information about your income, existing debts and credit history.

BUYING A HOME. Do your homework. Gather all the basic information about your income, existing debts and credit history. BUYING A HOME Buying a home is a big step. Whether you are buying your first home or buying a newer home, there are many issues that you need to think about to make sure that you are ready to make such

More information

FIRST TIME HOME BUYING

FIRST TIME HOME BUYING We re here to help first time homebuyers sift through the myths and the truths about buying your first home. Realtor.com wants you to be a smart homebuyer and will inform you about the whole process at

More information

Questions to Ask Yourself When Buying a New Home

Questions to Ask Yourself When Buying a New Home Questions to Ask Yourself When Buying a New Home When I start visiting homes, what should I be looking for the first time through? The house you ultimately choose to call home will play a major role in

More information

800.550.9435 www.pwsb.com

800.550.9435 www.pwsb.com 800.550.9435 www.pwsb.com Thinking of buying your first home? Bet you re pretty nervous, huh? Maybe even cold sweats nervous. How in the world are you going to afford it? Where do you start? All these

More information

Section 184 Indian Home Loan Guarantee Program FOR HOMEBUYERS

Section 184 Indian Home Loan Guarantee Program FOR HOMEBUYERS Section 184 Indian Home Loan Guarantee Program FOR HOMEBUYERS Q&As About Purchasing a Home with a Section 184 Guaranteed Loan 1. WHAT IS THE PURPOSE OF THE 184 LOAN GUARANTEE PROGRAM? A home is more than

More information

Purchasing and Financing a Home

Purchasing and Financing a Home Purchasing and Financing a Home C H A P T E R 9 degree, the Stockwells discovered that both of them could pursue their careers right where they were. For the first year, their rent was $550 per month.

More information

lesson three buying a home overheads

lesson three buying a home overheads lesson three buying a home overheads the home-buying process phase 1: determine home ownership needs What type of housing should I (we) buy? How much can I (we) afford to spend? phase 2: locate and evaluate

More information

Mortgage Terms Glossary

Mortgage Terms Glossary Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see

More information

Reverse Mortgage Information Guide

Reverse Mortgage Information Guide Reverse Mortgage Information Guide Table of Contents FHA Reverse Mortgages 3 Common Misconceptions about Reverse Mortgages 4 How the Program Works 4 Benefits of a HECM loan 4 HECM vs. Traditional Mortgage

More information

NON-RESIDENTS PURCHASING REAL PROPERTY IN THE U.S.

NON-RESIDENTS PURCHASING REAL PROPERTY IN THE U.S. NON-RESIDENTS PURCHASING REAL PROPERTY IN THE U.S. A. The Attorneys Role in the Purchase of Real Estate The purchase of real estate in the U.S. without the proper assistance can become a complex transaction.

More information

HUD Home-Buying Guide

HUD Home-Buying Guide HUD Home-Buying Guide The following home-buying guide comes from the U.S. Department of Housing and Urban Development page 1 INTRODUCTION Congratulations! You have decided to buy a new home. This booklet

More information

Glossary of Foreclosure Fairness Mediation Terminology

Glossary of Foreclosure Fairness Mediation Terminology Glossary of Foreclosure Fairness Mediation Terminology Adjustable-Rate Mortgage (ARM) Mortgage repaid at the rate of interest that increases or decreases over the life of the loan based on market conditions.

More information

The Guide to Single Family Home Mortgage Insurance

The Guide to Single Family Home Mortgage Insurance U.S. Department of Housing and Urban Development Office of Housing Office of Single Family Housing The Guide to Single Family Home Mortgage Insurance www.hud.gov espanol.hud.gov Becoming a Homeowner Many

More information

Home Buying Seminar. A presentation by The Summit Federal Credit Union

Home Buying Seminar. A presentation by The Summit Federal Credit Union Summit Branches are located in Rochester (7), Seneca Falls (1), Buffalo (3), Syracuse (5) and Cortland (2) Home Buying Seminar A presentation by The Summit Federal Credit Union What We Will Cover Today

More information

Fifth Third Home Buying Guide. A Guide to Residential Home Buying.

Fifth Third Home Buying Guide. A Guide to Residential Home Buying. Fifth Third Home Buying Guide A Guide to Residential Home Buying. Important Contacts and Numbers. Use this page to record important information as you move through the homebuying process. Realtor/Builder

More information

Page One of Settlement Statement A. U.S. Department of Housing B. Type of Loan and Urban Development 1. [ ] FHA 2. [ ] FMHA 3. [ ] Conv. Unins.

Page One of Settlement Statement A. U.S. Department of Housing B. Type of Loan and Urban Development 1. [ ] FHA 2. [ ] FMHA 3. [ ] Conv. Unins. Page One of Settlement Statement A. U.S. Department of Housing B. Type of Loan and Urban Development 1. [ ] FHA 2. [ ] FMHA 3. [ ] Conv. Unins. 4. [ ] VA 5. [ ] Conv. Ins. 6. File Number 7. Loan Number

More information

Questions & Answers About Buying A New Home

Questions & Answers About Buying A New Home Kim O Leary Prudential RealtyCenter.com 7522 E Brainerd Road Chattanooga, TN 37419 Questions & Answers About Buying A New Home Dear Future Homeowner: A home is a financial asset and more: it's a place

More information

Maggie O'Connell Reverse Mortgage Store 800-489-0986

Maggie O'Connell Reverse Mortgage Store 800-489-0986 The Essentials: Reverse Mortgages For many homeowners age 62 and over, a reverse mortgage could be an important tool for financial flexibility. It can provide a way to access part of your home equity to

More information

Your Home Buyer Handbook

Your Home Buyer Handbook Your Home Buyer Handbook Steve Mun, e-pro & QSC Steve Mun Group Keller Williams Cupertino Your Silicon Valley Realtor Providing Quality Service You Deserve Your Home Buyer Handbook Dear Home Buyer, You

More information

2013 BUYERS GUIDE. KW Market Navigator

2013 BUYERS GUIDE. KW Market Navigator KW Market Navigator 2013 BUYERS GUIDE Am I ready to buy? How much can I afford? Where do I find homes? Why buy now? How s the market? Is there a right time to buy? What is this home worth in today s market?

More information

Paragon 5. Financial Calculators User Guide

Paragon 5. Financial Calculators User Guide Paragon 5 Financial Calculators User Guide Table of Contents Financial Calculators... 3 Use of Calculators... 3 Mortgage Calculators... 4 15 Yr vs. 30 Year... 4 Adjustable Rate Amortizer... 4 Affordability...

More information

Save and Invest Owning Versus Renting

Save and Invest Owning Versus Renting Lesson 4 Save and Invest Owning Versus Renting Lesson Description In this lesson, students will compare buying and renting a place to live. Beginning with a brainstorming activity, students will explore

More information

Good Faith Estimate (GFE)

Good Faith Estimate (GFE) OMB Approval No. 2502-0265 Good Faith Estimate (GFE) Name of Originator Originator Address Borrower Property Address Originator Phone Number Originator Email Date of GFE Purpose Shopping for your loan

More information

City of Miramar. Neighborhood Stabilization Program (NSP)

City of Miramar. Neighborhood Stabilization Program (NSP) City of Miramar Neighborhood Stabilization Program (NSP) Q. What type of assistance is available? HOME BUYERS Frequently Asked Questions The City will assist with the purchase and qualified repairs of

More information

Easy Home Purchase Scheme

Easy Home Purchase Scheme Easy Home Purchase Scheme Information for tenants What is the Easy Home Purchase Scheme (EHPS)? The EHPS is only available to Lewisham Social Housing Tenants who wish to buy a home in the private sector.

More information

HOMEBUYER S MORTGAGE GUIDE

HOMEBUYER S MORTGAGE GUIDE WWW.WINTRUSTMORTGAGE.COM WINTRUST.COM/MYHOME HOMEBUYER S MORTGAGE GUIDE HELPFUL INFORMATION ABOUT THE MORTGAGE PROCESS TO GUIDE YOU AS YOU PURCHASE YOUR NEW HOME. www.wintrust.com/myhome WHY WINTRUST?

More information

Title Insurance Glossary

Title Insurance Glossary Title Insurance Glossary Abstract of Title A condensed history or summary of all transactions affecting a particular tract of land. Adjustable Rate Mortgages Mortgages with an interest rate that may change

More information

Chapter 15 Questions Real Estate Financing: Practice

Chapter 15 Questions Real Estate Financing: Practice Chapter 15 Questions Real Estate Financing: Practice 1. Kahlid has been making periodic payments of principal and interest on a loan, but the final payment will be larger than the others. This is a(n)

More information

FIRST-TIME HOME BUYERS SEMINAR

FIRST-TIME HOME BUYERS SEMINAR FIRST-TIME HOME BUYERS SEMINAR Everything you need to know to make buying your first home easy and affordable. Presented by: ERA Woody Hogg & Associates Logan S. Ryan, REALTOR WHY BUY? Tax deductions Stable

More information

Glossary of Title Insurance Terms

Glossary of Title Insurance Terms Glossary of Title Insurance Terms abstract of title The condensed history of the title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances

More information

RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE

RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE Whether you are buying a house or refinancing an existing mortgage, this information can help you decide what type of mortgage is right for you. You

More information

Mortgage Loan Application Package

Mortgage Loan Application Package Mortgage Loan Application Package PURCHASE LOANS OF 1-4 FAMILY RESIDENTIAL ONLY Section 1: Application documents For loans to purchase a residential property, the following is required to be obtained with

More information

Home Buyers. from application to closing. Derek Haley, Senior Loan Officer SunTrust Mortgage, Inc. 919.426.5023 Derek.Haley@SunTrust.

Home Buyers. from application to closing. Derek Haley, Senior Loan Officer SunTrust Mortgage, Inc. 919.426.5023 Derek.Haley@SunTrust. Information for First-time Home Buyers An overview of the mortgage process, from application to closing. Derek Haley, Senior Loan Officer SunTrust Mortgage, Inc. 919.426.5023 Derek.Haley@SunTrust.com NMLSR#

More information

Computing the Mortgage Loan Amount

Computing the Mortgage Loan Amount 10-1 Computing the Mortgage Loan Amount To purchase a new home you need to make a down payment, which can range from 5 to 40 percent of the selling price. Next, you need to find a lender to provide you

More information

A. Confirm Buyer has been pre-qualified by a lender (If not, Buyer Agent will introduce lender) 2. How much was the buyer pre-qualified for?

A. Confirm Buyer has been pre-qualified by a lender (If not, Buyer Agent will introduce lender) 2. How much was the buyer pre-qualified for? Home Buying Process I. Interview A. Confirm Buyer has been pre-qualified by a lender (If not, Buyer Agent will introduce lender) 1. When was the buyer pre-qualified? 2. How much was the buyer pre-qualified

More information

HUD.GOV/HUDHomes U.S. Department of Housing and Urban Development

HUD.GOV/HUDHomes U.S. Department of Housing and Urban Development HUD.GOV/HUDHomes U.S. Department of Housing and Urban Development HUD Listing and Bidding Procedures Disclosures HUD Homes are sold "As Is" without warranty. Irregularities in bids: HUD reserves the right

More information

Community Legal Information Association of Prince Edward Island, Inc.

Community Legal Information Association of Prince Edward Island, Inc. Community Legal Information Association of Prince Edward Island, Inc. Buying Property in Prince Edward Island Many people in Prince Edward Island will buy a home or land at some point in their life. This

More information

Your Home Buying Checklist. Presented by:

Your Home Buying Checklist. Presented by: Your Home Buying Checklist Presented by: Are you ready to buy a house? Before you start getting click-happy with pictures and scheduling house showings, get prepared for the home buying process. Too many

More information