The Homebuyer's Kit

by Lank, Edith; Amoruso, Dena

• ISBN13: 9780793144389
• ISBN10: 0793144388
• Edition: 5th
• Format: Paperback
• Copyright: 2001-04-01
• Publisher: Kaplan Test Prep

Summary

The Homebuyer's Kit, now in it's 5th edition and completely updated for today's national real estate market, is a comprehensive guide for experienced and first-time buyers alike. Packed with tips, checklists, and worksheets, the book makes clear for readers the complex language of escrows and equity. Edith Lank and Dena Amoruso offer expert guidance on choosing an appropriate real estate agenda; deciding how much to spend; applying for and comparing mortgages; managing the negotiation and closing the sale.

Table of Contents

Preface	ix
Starting Your Homebuying	1	(8)
What Must You Have in Order to Buy?	2	(1)
Shelter Two Ways: Income Tax	2	(1)
How Equity Builds	3	(3)
If You Wait	6	(3)
You and the Broker	9	(12)
Law of Agency	10	(1)
So Where Do You Stand?	11	(1)
How to Protect Yourself	12	(1)
Buyers' Brokers	13	(1)
Buying a New Home	14	(2)
Discount and FSBO Brokers	16	(1)
Pure For Sale by Owner Properties	17	(2)
Yet Other Arrangements	19	(2)
Choosing an Agent	21	(10)
Tests to Apply	22	(2)
Using a Lawyer	24	(1)
Escrow and Title Companies	25	(1)
What the Agent Does for You	26	(5)
What Can You Spend for Your Home?	31	(10)
First List Your Income	32	(1)
Qualifying Ratios	32	(4)
How Much Will This Carry?	36	(5)
Costs of Home Ownership	41	(8)
Escrowing Taxes and Insurance	41	(1)
About Insurance	42	(1)
Replacement versus Depreciated Value	43	(1)
About Taxes	44	(1)
Other Costs	45	(1)
Repairs versus Improvements	45	(2)
Risk of Overimproving	47	(2)
What Sort of Home?	49	(16)
Keeping a Marriage Together through It All	50	(1)
Consider Traffic Patterns	50	(6)
A Brand-New House	56	(3)
Owning a Co-op, Condomium, or Town House	59	(2)
Manufactured Housing	61	(4)
Financing Your Home Purchase	65	(30)
Broker Plans Strategy	65	(1)
Buying for All Cash	65	(4)
Buying with Nothing Down	69	(1)
Picking a Mortgage	70	(1)
Mortgagor and Mortgagee	71	(1)
Portfolio Loans	71	(1)
The Secondary Market	72	(1)
Other Lenders	72	(2)
So What Are Points?	74	(1)
Annual Percentage Rate	75	(2)
Conventional Mortgages	77	(1)
Understanding Adjustable-Rate Mortgages	77	(5)
30 or 15 Years	82	(1)
Biweekly Mortgages	83	(1)
FHA Mortgages	83	(2)
VA Is for Veterans	85	(2)
Farmers Home Administration (FmHA)	87	(1)
Assumable Mortgages	87	(2)
Private Mortgages	89	(1)
Land Contracts and Lease Options	89	(1)
Balloon Mortgages	90	(1)
Building Your Own Home	91	(1)
In-House and Preferred Builder Mortgage Companies	91	(1)
A Note on Mortgage Preapproval	92	(3)
House Hunting	95	(20)
Where Are the Bargains?	98	(1)
More Bargain Situations	99	(2)
Location, Location, Location	101	(1)
Choosing a Neighborhood	102	(1)
Using the Internet	103	(1)
Looking Over an Older Home	103	(7)
Building Inspection Engineers	110	(1)
Check Taxes	110	(1)
What Else?	111	(1)
Open Houses	111	(1)
Stay in Touch with Your Agent	112	(1)
Looking at New Homes	112	(3)
Buying Investment Property	115	(8)
Getting Started	116	(2)
How Leverage Works	118	(1)
Analyzing Your First Investment	118	(2)
Financing Investment Property	120	(1)
Risk and Decision	121	(2)
Arriving at a Contract	123	(18)
The Written Offer	124	(1)
First Decision: Purchase Price	125	(1)
Look for Comparables	126	(1)
Allow for Contingencies	127	(2)
Personal Property versus Real Estate	129	(1)
What Else in Your Offer?	130	(2)
Earnest Money	132	(1)
Ligal Provisions	133	(1)
Final Jitters	133	(1)
Negotiation--The Tennis Game	133	(2)
Buyer's Remorse	135	(6)
Your Mortgage Application	141	(8)
Assets	144	(1)
Income to Qualify	144	(1)
Debts	145	(1)
Credit History	146	(1)
After the Application	147	(2)
Buying Your Home at Last	149	(16)
Forms of Joint Ownership	150	(1)
That Clod of Earth--The Deed	150	(3)
What to Do before Closing	153	(1)
Closing a New Home Purchase	154	(2)
What Happens at Closing?	156	(1)
Long Distance Closings	156	(1)
Holding Proceeds in Escrow	157	(1)
Adjustments and Prorations	157	(1)
A Word about the Power of the Cyber World	158	(1)
Passing Papers	158	(7)
Appendix A: Monthly Payment Tables	165	(16)
Appendix B: Remaining Principal Balance	181	(16)
Appendix C: EPA Lead Paint Disclosure Brochure	197	(16)
Appendix D: Helpful Web Sites for Homebuyers	213	(2)
Glossary	215	(8)
Index	223