warm – up housing question monday, october 7, 2013 while creating your budget, what was most...
TRANSCRIPT
Warm – Up Housing Question
Monday, October 7, 2013
While creating your budget, what was most important to you have enough
money for?
Buying a Home
• There are six financial and legal matters to settle when buying a home.– Purchasing Agreement– Abstract Title– Survey– Mortgage– Appraisal – Closing cost
Purchase Agreement
• A contract that is signed when both the buyer and the seller have reached an agreement on the house purchase.
• This contract should include the description of the real estate, its location, the purchase price, and the possession date.
• It should have in writing all the conditions and terms of the sale.
Example
Abstract Title
• A title is the tight ownership of particular piece of property .
• An abstract title is a summary of the public records relating to the ownership of a particular piece of property.
• This document shows that the seller is the legal owner of the home.
Survey
• This document or map shows the measurements and boundaries of the property.
• It is often required by the lender before they will lend money for the real estate.
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Survey
• This document or map shows the measurements and boundaries of the property.
• It is often required by the lender before they will lend money for the real estate.
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Mortgage
• A loan for a home is called a mortgage. • Most people have to loan money from a
lender to purchase a home.• It is paid in monthly payment over a set of
several years.
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Appraisal
• An appraisal is the estimate of the value of the real estate.
• Most lenders will require it before getting a loan.
Closing Cost• These are fees that must be paid off before
the sale of the home is final.• Closing costs can include:– Abstract of title– Survey– Appraisal– Recording the mortgage– Recording the deed – Documentary stamps– Escrow fees– Attorney’s fees
How much will one pay in closing costs?
• Typically, home buyers will pay between about 2 and 5 percent of the purchase price of their home in closing costs.
• So, if the home cost $150,000, one might pay between $3,000 and $7,500 in closing costs.
• On average, buyers pay roughly $3,700 in closing costs.
Buying a Home
• Complete the Buying a Home worksheet– This must be handed in prior to dismissal