buying a house. vocabulary market value: the highest price that the property will bring on the...
Post on 24-Dec-2015
216 Views
Preview:
TRANSCRIPT
Vocabulary
Market value: the highest price that the property will bring on the market
Equity: difference between the market value and amount owed
Appraisal: when a real estate agent estimates the market value of your home by comparing it to similar homes that have sold recently
Vocabulary
Real estate agent: person trained to analyze the market, help you find the right home, and help you with the purchase, financing, and closing
Title: a legal document that establishes ownership
Mortgage: home loan
Steps to Buying a Home
1. Decide: Do you really want to buy?2. Decide: How much can you afford?3. Determine wants and needs4. Get pre-qualified5. House hunt!6. Purchase7. Responsibility!
1. Decide: Do you really want to buy?
Pros Pride of
ownership Tax benefits Build equity
Cons Expensive Higher living
expenses Limited mobility Repairs/
maintenance
2. Decide: How much can you afford?
Additional Costs… Mortgage Taxes Insurance Utilities
Water/Sewer Heat Electricity Cable/Internet
Up-front (hidden) costs Down payment Closing costs Taxes
3. Determine wants and needs Location
Work School City/country
Neighbors Yard Buy or build? # of bedrooms & bathrooms Type of home (condo, twinhome, duplex, single family) Garage Etc, etc, etc
4. Get pre-qualified
Banks look at: Likelihood of repayment Income Job stability Assets Down payment Debt Credit history/score Possible loan programs?
Determines interest rate and term
6. Purchase
Offer: formal document that expresses interest in entering a contract with someone else Explains the terms of the purchase, price,
down payment, mortgage amount, dates when you will close & take possession
Counter-offer: offer in response to another offer
Acceptance: formal agreement to the terms of the offer Forms contract between parties
7. Responsibilities
Make payments Purchase insurance Pay taxes Perform maintenance Be a good neighbor Community involvement
Check for Understanding
1. ________ is the highest price a property will bring on the market.
2. Name a place people commonly search for homes that are currently for sale.
3. Name one advantage of owning your own home compared to renting.
4. Name one disadvantage of owning your own home compared to renting.
5. Ben still owes $100,000 to the bank for his mortgage. He decides to sell his house. If the home sells for $120,000, how much equity does he have into the home?
top related