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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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