Don't Rent Buy! A Step-by-Step Guide to Buying Your First Home

by Fadel, Eddie

• ISBN13: 9780981912806
• ISBN10: 098191280X
• Edition: 1st
• Format: Paperback
• Copyright: 2012-09-04
• Publisher: Don't Rent, Inc

Summary

Move Confidently from Renter to Homeowner With expert guidance, suggestions and how-to examples from an acknowledged real estate professional.

Author Biography

Eddie Fadel, active as a managing broker in the real estate industry, began his real estate career as a loan officer in 1997 and formed his own mortgage company in 2004. He has developed a special interest and expertise in guiding first-time homebuyers through the complex and sometimes mystifying process essential to home ownership.

Table of Contents

Preface	p. xiii
Acknowledgments	p. xix
Foreword	p. xxi
Introduction to Homeownership	p. 1
Personal and Financial Advantages	p. 1
Fixed Mortgage Payments	p. 3
House Value Increases	p. 4
Tax Benefits	p. 4
Your House as your Savings Account	p. 4
Other Advantages	p. 5
Ready or Not?	p. 6
Are you Financially Ready?	p. 6
Create a Budget	p. 6
Track Non-Housing Expenses	p. 7
Track Monthly Expenses	p. 8
Monthly Expense Tracking Worksheet	p. 9
Analyze your Monthly Income	p. 10
Monthly Income Worksheet	p. 11
What Does it Cost to Buy a Home?	p. 15
Where will all that money come from?	p. 15
Financing Options	p. 16
Upfront Costs	p. 16
The Down Payment	p. 16
Low Down Payment Mortgage Solutions	p. 17
Government Agencies	p. 18
HUD/FHA	p. 18
Ginnie Mae	p. 19
Department Of Veterans Affairs	p. 19
Closing Costs	p. 21
Settling-In Costs	p. 21
Ongoing Costs	p. 22
Ready or Not?	p. 22
It's Time to Get Pre-Approved	p. 25
What do I do now?	p. 25
Pre-approve or Pre-qualify?	p. 26
Lending Professionals	p. 27
Lender	p. 27
Mortgage Broker	p. 27
Internet Banking	p. 28
Qualifying Guidelines	p. 28
What Lenders Look For	p. 29
Income	p. 29
Employment History	p. 30
Interest Rates/Terms	p. 33
Debt	p. 34
Credit History	p. 36
Your Credit Report Can Be Decisive!	p. 37
If Your Credit Report Is Favorable	p. 38
If Your Credit Report Is Unfavorable	p. 38
If Your Credit Report Is Wrong	p. 39
More Credit Information is Available	p. 39
Non-Traditional Credit History	p. 39
Savings Accounts	p. 40
What's Next?	p. 41
Pre-Approval Checklist	p. 42
What Do You Want In a Home?	p. 43
Decisions… Decisions…	p. 43
Do You Know What You're Looking For?	p. 44
Lifestyle Features	p. 45
New House or Old?	p. 45
Location	p. 46
Size	p. 47
Types of Homes	p. 48
Single-Family Detached	p. 48
Condominium	p. 49
Townhouse	p. 50
Co-op	p. 50
Duplex	p. 51
Style, Construction Material, and More	p. 52
Develop a Wish List	p. 52
New Home Wish List	p. 53
How to Find an Agent	p. 55
I need a Real Estate Professional!	p. 55
Experience Counts	p. 56
Qualities of a Good Agent	p. 57
Who Pays Your Agent?	p. 58
Types of Agents	p. 59
Broker/Salesperson	p. 59
Agents	p. 59
Realtor	p. 60
Part/Full Time Agents	p. 60
Commit to your Agent	p. 60
Looking For a Home	p. 63
Expect to Make Compromises	p. 63
Locating Homes For Sale	p. 65
Classified Ads	p. 65
Word of Mouth	p. 66
For Sale Signs	p. 66
New Construction	p. 68
Record Keeping	p. 69
Gift Programs	p. 71
Negotiating the Purchase	p. 73
Decision Making Factors	p. 73
Considerations	p. 74
Local Market Value	p. 74
Condition of the Property	p. 76
Sellers Circumstances	p. 77
Price You Can Afford	p. 78
Seller's Contribution	p. 78
Strategize your Negotiation	p. 79
Local Market Conditions	p. 80
Condition of the Property	p. 80
Sellers Circumstances	p. 80
Price you can Afford	p. 81
How much is your down payment?	p. 81
Is this Property Affordable?	p. 81
Negotiating the Purchase Offer	p. 83
Pricing the Offer	p. 84
Submitting the Offer	p. 85
The Purchase and Sale Agreement	p. 86
Legal Description	p. 86
Earnest Money	p. 87
Offer Price	p. 87
Down Payment	p. 88
Financing Terms	p. 88
Personal Property	p. 88
Closing and Occupancy Dates	p. 88
Expiration Date of the Offer	p. 89
Contingency Requirements	p. 89
Financing Contingency	p. 89
Inspection Contingencies	p. 90
Appraisal Contingency	p. 91
Clear Title	p. 91
Other Provisions	p. 91
Repair Work	p. 91
Walk-through Inspection	p. 92
Negotiating the Counteroffer	p. 92
You Have a Deal	p. 93
Disclosure and Home Inspections	p. 95
The Real Estate Transfer Disclosure Statement	p. 95
When State Law does not require Disclosure	p. 96
Disclosure and Government Loans	p. 96
The Disclosure Form	p. 96
The Home Inspection	p. 97
The Preliminary Home Inspection	p. 98
Step 1 û Interview	p. 98
Step 2 û Examine	p. 99
Step 3 û Analyze	p. 100
The Professional Home Inspection	p. 101
Choosing your Inspector	p. 102
Scope of the Inspection	p. 103
Insurance Coverage	p. 103
Your Role	p. 104
Outcome of the Home Inspection	p. 104
Obtain a Mortgage	p. 107
Shopping, Comparing and Negotiating	p. 107
Mortgage Lender or a Mortgage Broker?	p. 109
Mortgage Banker	p. 112
Mortgage Broker	p. 112
Fixed Rate or Adjustable Rate Mortgage?	p. 113
Discount Points	p. 115
Loan Origination Fees	p. 115
Interest rate	p. 115
Transaction, Settlement or Closing Costs	p. 116
Mortgage Insurance	p. 116
Private Mortgage Insurance	p. 117
Mortgage Insurance Premiums	p. 117
The "1003" Application	p. 122
Disclosures	p. 123
Title Search and Title Insurance	p. 125
Property Insurance	p. 125
Underwriting	p. 125
Close the Deal	p. 127
The Real Estate Settlement Process	p. 127
Itemized Settlement Costs	p. 130
How to Contact Credit Reporting Agencies	p. 137
Federal Programs	p. 147
Good Faith Estimate Settlement Statement	p. 153
Residential Sales Contract	p. 161
State Housing Finance Agencies	p. 175
Key Internet Information Resources	p. 181
Glossary	p. 183
Index	p. 219
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