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Chapter 22

Chapter 22. Buying A Home. Advantages of Home Ownership. Value and Equity Market Value – Appraised Value – Assessed Value – Estimated Value – . Value and Equity. The value of most homes ___________ over time (market value increases). Equity – Equity increases 2 ways:.

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Chapter 22

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  1. Chapter 22 Buying A Home

  2. Advantages of Home Ownership • Value and Equity • Market Value – • Appraised Value – • Assessed Value – • Estimated Value –

  3. Value and Equity • The value of most homes ___________ over time (market value increases). • Equity – • Equity increases 2 ways:

  4. Advantages of Home Ownership • Quality of Life • More ______ and _______ _________ • More space • Feelings of _______ and _____________ • Stability • _____________ ____________ – Groups of homeowners that meet and work to set quality-of-life standards for the area. • Tax Savings

  5. Costs and Responsibilities • Down Payment • ___________________ • No Government Backing • Offered by Commercial Bank/Mortgage Broker • _________ Down Payment • ________________________________ • Government Sponsored – Less Risky • Pay a Monthly Insurance Premium • As little as _____ Down Payment • Available for 1st time homebuyers, veterans, low-income buyers

  6. Costs and Responsibilities • Mortgage – • Payments over an extended period of time • Monthly loan payments include _______ and _______ • __________________ • __________ account • Money put aside for property _______ and ________ • ___________________ • Used to lower mortgage __________ ______ • 1 point equals 1 percent of loan amount • ______________________________ • Mortgage loan fee charged by bank • Filing loan papers • Loan Officer/Broker Compensation

  7. Costs and Responsibilities • Closing Costs – • $3000-$5000 • Title Search – • Credit Report • Loan Origination Fee – • Loan Assumption Fee – • Closing Fees – • Recording Fees – • Escrow Account Proration –

  8. Costs and Responsibilities • Property Taxes • Property Insurance • Utilities

  9. Responsibilities • __________ (Covenants, Conditions, and Requirements) • Housing Subdivision Laws • Homeowners Association • ___________________ • Local Government Laws • Building Permits • ____________________________ • Short Term – Painting, mowing, landscaping, fixing things • Long Term – Roofs, siding, major appliances

  10. Finding and Buying a Home • Factors to consider: • __________ the list to determine your most important features

  11. Finding and Buying a Home • Working with a Real Estate Agent • Agents know the Market • Get ____________by a Mortgage Company • Agents earn __________________ • Agents have access to the __________ __________ ____________ • Can take “virtual tours” online of homes • Narrow your choices to a small number

  12. Finding and Buying a Home • Making an Offer • Sign an Offer – • Earnest Money Offer – • ________ _______ protects the seller in case you fail to meet the terms of the agreement • May be non-refundable

  13. The Offer • Make a ______________(dependent) offer • Pass inspection first • Additional changes to the property • Seller may give you an ______________ • A formal agreement to the terms of the offer • Now a binding contract • Seller may give you a _______________ • A rejection of the original offer • New terms that would be acceptable

  14. Real Estate Loans and Title • Down Payment Sources • Qualifying for a Mortgage

  15. Real Estate Loans and Title • Types of Mortgages • Taking Title to Property • Meet with the closer

  16. Vocabulary • Title – • Deed – • Lien – • Title Search– • Title Insurance–

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