The Unofficial Guide^TM to Buying a Home, 2nd Edition

by Alan Perlis; Beth Bradley

• ISBN13: 9780764542480
• ISBN10: 0764542486
• Edition: 2nd
• Format: Paperback
• Copyright: 2004-05-01
• Publisher: Wiley

Summary

The inside scoop . . .for when you want more than the official line No matter what your budget and taste, finding the perfect home is a daunting task. How do you even know where to start? Here you'll find the inside scoop on every step of the homebuying process-from calculating your budget to negotiating the deal and handling the closing. The Unofficial Guide to Buying a Home, Second Edition gives savvy consumers like you a foolproof appraisal of which homebuying strategies work and which don't. This updated edition is perfect for first-time homebuyers and includes new information on using the Internet to find your home, buying condos, and utilizing government funding programs. It walks you through the entire homebuying process: from searching for a home, to making an offer, through the inspection, and on to the closing, you can be confident that your investment is sound. The guide also offers expanded coverage of the monetary issues involved in purchasing a home, including new means of determining creditworthiness and new types of available loans, as well as helping you decide how much home you can-and should-purchase. Vital Information that other sources can't or won't reveal-from what really motivates sellers, brokers, loan officers, and other key players in the homebuying game, to how to work most effectively with your agent. Insider Secrets on how to make real estate law work in your favor. Money-Saving Techniques that show you how to take advantage of tax breaks and how to time your search to exploit seasonal variations in the market. Time-Saving Tips on streamlining the homebuying process so you find the home you want as quickly as possible. The Latest Trends in homebuying, including up-to-date tips on using the Internet to find your home, a realtor, or a mortgage. Handy Checklists and Charts to help you determine your budget and stick to it.

Author Biography

ALAN PERLIS is a Broker Associate with Oxford Realty Company in Birmingham, Alabama.

BETH BRADLEY is a graduate of Vanderbilt University, former teacher, and poet. Bradley and Perlis are married and the parents of three children.

Table of Contents

About the Authors	xiv
Introduction	xv
I Money Issues	1	(46)
1 Ready...Set...Finance!	3	(26)
You're ready to look at houses-now what?	4	(5)
The new loan: a basic anatomy lesson	5	(1)
Shopping for the best	6	(2)
If you assume	8	(1)
Cash now. But what about later?	9	(1)
How do you make your money?	9	(3)
Like most people (the 1040 employee)?	10	(1)
Are you a self-starter (the 1099 taxpayer)?	10	(1)
Are you a mixed bag (the non-employed)?	11	(1)
Show me the money- what are your choices?	12	(3)
When you have more cash than you need, should you leverage?	13	(1)
The gift and the co-signer	14	(1)
A shopping List of loans	15	(10)
A loan most ordinary-the conventional loan	16	(4)
The cheapest-the FHA loan	20	(2)
No money down! The VA loan	22	(1)
The Community Home Buyer loan	23	(1)
For doctors or lawyers only	23	(2)
Amortization and you	25	(3)
A long time coming	25	(1)
Mind-bending boxes	26	(2)
Just the facts	28	(1)
2 Cleaning Up Your Credit	29	(18)
You mean they're watching me?	31	(3)
I didn't only use them; I abused them	32	(1)
They seem to know me better than I know myself	33	(1)
What a credit bureau does	34	(9)
Reading consumer disclosures	34	(3)
How your lender handles the confusion	37	(1)
How to clean up bad credit	38	(3)
What works and what doesn't	41	(2)
The credit counseling rip-off	43	(3)
So who do you rely on?	44	(1)
Get tough; get honest; get direct	45	(1)
Just the facts	46	(1)
II Doing Your Homework, Getting Prepared	47	(76)
3 Getting Your Act Together	49	(28)
Physical and mental preparation	49	(6)
The physical toll	50	(1)
Establishing communications	51	(2)
Active listening	53	(1)
Emotional bumps in the road	53	(2)
Taking control and setting limits	55	(4)
Your relationship with your real estate agent	56	(2)
Your relationship with your lender	58	(1)
Children, schools, and the home-buying process	59	(3)
The role of children in home buying	59	(1)
School choices	60	(1)
It's a matter of priorities	61	(1)
A primer on home design	62	(4)
Trapped inside the box	63	(1)
Thinking outside the box	64	(2)
Pig's ears, silk purses	66	(1)
Old versus new versus dirt	67	(4)
This old home	68	(1)
Fresh and new	69	(1)
Starting from scratch	69	(2)
An integrated, holistic approach to home buying	71	(1)
Over-extending	71	(4)
Working within your limits	72	(3)
Just the facts	75	(2)
4 Getting a Grip on the Market	77	(30)
Can you afford it-how do you know?	78	(9)
Don't forget insurance and taxes	79	(1)
Get out your calculator!	80	(2)
What's your interest in this?	82	(3)
Tax advantages-really!	85	(2)
Finding out what's out there	87	(4)
Newspaper ads	88	(1)
Monthly publications for agent sales	89	(1)
Phone home-using yard signs	90	(1)
Surfing the net	91	(2)
For couch potatoes only	91	(1)
Shopping without an agent	92	(1)
Do you have to sell before you buy?	93	(4)
The bridge loan	94	(1)
How leasing can make you money	94	(1)
Advantages of leasing	95	(2)
Disadvantages of leasing	97	(1)
Location, location, Location	97	(6)
Finding the best part of town for you	98	(2)
Checking out a subdivision or neighborhood	100	(1)
Neighborhoods in transition and urban gentrification	101	(1)
A word about new subdivisions	102	(1)
The cost of commuting	103	(1)
"Timing is everything"	103	(2)
Just the facts	105	(2)
5 Home Shopping on the Internet	107	(16)
A marketing tool for the agent and a resource for you	108	(1)
What? Me surf?	109	(4)
What is the Internet?	110	(1)
Okay...I'm in Memphis. Now what?	111	(2)
Have I found the right agent on the Internet? Here's what to look for	113	(5)
Okay, I want to know more	117	(1)
Cranking out the e-mail	117	(1)
How far should I go?	118	(4)
The don'ts	119	(2)
The do's	121	(1)
Just the facts	122	(1)
III Preliminary Choices	123	(70)
6 Home Buying As an Investment	125	(18)
Parting is not such sweet sorrow, anymore	126	(4)
Throw away the rocking chair!	127	(2)
Who lives here, anyway?	129	(1)
Developing a strategy	130	(10)
The short-term mortgage loan	131	(2)
How can the ARM help you today?	133	(2)
The one-year ARM	135	(1)
The three-year ARM	136	(1)
The five-year ARM	137	(1)
The seven-year ARM	138	(2)
The Taxpayer Relief Act of 1997	140	(2)
The current homeowner's relief	140	(1)
A new opportunity for first-time buyers	141	(1)
Just the facts	142	(1)
7 The Truth About New Construction	143	(28)
Spec houses versus custom houses	144	(2)
The pros and cons of a tailor-made home	146	(12)
Grudgingly pleased (but $16,500 poorer)	148	(3)
The contractor from hell	151	(4)
The happy young man	155	(3)
How to get it right (the first time)	158	(5)
Doing your research and seeking good advice	158	(1)
Another smart move-permanent financing	159	(1)
Ways to get it wrong	160	(1)
Ways to get it right	161	(2)
How are you going to pay for it? (The straight scoop on new construction financing)	163	(7)
The personal construction loan	163	(3)
Better luck with the builder loan	166	(1)
The construction perm loan your best bet?	167	(2)
Making the choice that's right for you	169	(1)
Just the facts	170	(1)
8 The Lowdown on Real Estate Agents	171	(22)
What is a real estate agent, anyway?	173	(7)
Exactly who do they represent?	173	(2)
Ahem! Who's picking up their tab?	175	(2)
Whoops! The seller isn't offering a commission	177	(1)
What about the "For Sale By Owner"?	178	(2)
Choices, choices, choices	180	(4)
Prequalifying your choice of an agent	181	(1)
Should you use a friend?	182	(1)
Deciding whether to use an agent	183	(1)
Choosing the type that's right	184	(3)
The all-purpose agent	184	(1)
The location specialist	185	(1)
The on-site specialist	185	(1)
The relocation specialist	186	(1)
What to expect of your agent	187	(1)
Plugging into the information highway	188	(1)
What your agent can do for you	188	(1)
Now...what are you supposed to do?	189	(2)
Just the facts	191	(2)
IV The Process Begins: Looking for and Getting the Home You Want	193	(50)
9 The Search Is On: Looking at Houses with Your Agent	195	(22)
Expect the best-reject the rest	196	(10)
Keeping you tuned in to the market	197	(1)
The agent from hell	197	(4)
Let your agent make relocating easy	201	(1)
If you find yourself on your own	201	(1)
When you're ready to deal	202	(3)
The matchbox and the mansion	205	(1)
Ask not what your agent can do for you, but	206	(3)
Be prompt for appointments	207	(1)
If possible, leave the kids behind	207	(1)
Be frank with your agent	208	(1)
What can you do for yourself?	209	(4)
Try to remain calm (and realistic)	211	(1)
Don't overdo the visits to your future home	212	(1)
Overcome your shyness	212	(1)
Other things you should find out	213	(2)
I've chosen a house-but did I look at enough?	215	(1)
Just the facts	215	(2)
10 Removing the Barriers: The Art of Negotiating	217	(26)
Playing with the players	218	(7)
The spectral seller	219	(1)
Judge and jury: The loan officer	220	(1)
Investigation day: The home inspector	221	(1)
What's it really worth? The appraiser	222	(1)
Sitting pretty: The survey	223	(1)
Entitled to what? Title insurance	224	(1)
Lawyers, lawyers everywhere	225	(1)
Terms of confusion	225	(5)
Things you shouldn't do	227	(1)
Key questions you should ask	228	(2)
The fine art of negotiating	230	(5)
"I've gotta have it!"	230	(1)
"Look at all the For Sale signs!"	231	(2)
"Oh, dear, I'm just not sure..."	233	(2)
Getting your contract to a lender	235	(4)
Goodbye to fear and trembling	236	(1)
Meeting with your loan officer	237	(2)
The inspection	239	(1)
The last hurdle (hang in there!)	240	(1)
Just the facts	241	(2)
V Wrapping Up	243	(54)
11 The Inspection	245	(18)
What are my inspection options?	246	(6)
The "as is" option	247	(1)
The middle ground	248	(1)
The most protective option	249	(2)
What's in clause three for me?	251	(1)
Who needs an inspection?	252	(6)
Don't give safety short shrift	253	(1)
Inspect your new home, too	254	(1)
What to expect from your inspection?	255	(3)
Who you gonna call?	258	(4)
The inspection report	260	(1)
The repair addendum	261	(1)
The walk-through...or is it time to walk?	261	(1)
Just the facts	262	(1)
12 Before Coming to the Closing Table	263	(18)
Just what is title insurance?	264	(9)
Entitled to what?	265	(4)
Who conveys the title?	269	(1)
Who underwrites the title?	270	(1)
Title policy protection after the closing	271	(2)
The truth about homeowner's insurance	273	(4)
The cost	275	(1)
The coverage	275	(2)
The great mudslide	277	(3)
There's water in the basement!	278	(2)
Just the facts	280	(1)
13 The Closing	281	(16)
What is a closing?	282	(6)
Everyone loves surprises, but	283	(4)
The seller does the heavy lifting	287	(1)
What exactly happens at the closing?	288	(4)
If you're paying with cash	289	(1)
If you're taking out a new loan	289	(3)
Tying up loose ends	292	(3)
Just the facts	295	(2)
VI Taking It a Step Further	297	(60)
14 Moving Into and Living in Your New Home	299	(18)
Getting ready to move in	300	(2)
Choosing an interstate mover	300	(1)
Using local movers	301	(1)
Moving in, at last!	302	(7)
Making sure everything works	304	(1)
Your neighbors and your new lifestyle	305	(1)
The character of your neighborhood	306	(1)
Knowing your neighborhood services	307	(2)
Looking for potential: a very brief homeowner's guide	309	(5)
Improving the quality of life in your new home	310	(1)
Checklists for change!	311	(3)
A parting thought	314	(1)
Just the facts	314	(3)
15 Nobody Knows the Trouble I've Seen-A Real Estate Law Primer	317	(30)
Caveat emptor, let the buyer beware!	317	(2)
The statute of frauds	319	(11)
Financing	320	(1)
Inspections	321	(1)
Wood infestation reports	322	(1)
Federal Residential Lead-Based Paint Hazard Reduction Act of 1995	322	(1)
Survey and appraisal	323	(2)
Title exceptions	325	(3)
Vacant lots for new construction	328	(2)
"Time is of the essence"	330	(4)
Possession dates	334	(1)
Conveyances and title assurance	335	(2)
New construction and warranties of fitness	337	(4)
The dosing	341	(1)
Sue the bastards	342	(4)
Just the facts	346	(1)
16 The Art of Relocation	347	(10)
The burgeoning industry called relocation	347	(2)
Using the experts	349	(2)
The relocation director	350	(1)
The relocation specialist	350	(1)
The real estate agent	350	(1)
Moving companies	351	(1)
Other professionals	351	(1)
The psychology of relocation	351	(1)
Arranging a school transfer for children	351	(1)
Leaving old friends/making new friends	352	(1)
Dotting the i's, crossing the t's	352	(3)
Making a moving calendar	353	(2)
Keeping records of your move	355	(1)
Just the facts	355	(2)
VII Appendices	357	(84)
A The Nine Most Popular Home Styles	359	(4)
B Important Statistics	363	(24)
Fixed Rate Monthly P&I Factors	364	(1)
Loan Amortization Schedule A	365	(11)
Loan Amortization Schedule B	376	(11)
C Important Documents	387	(34)
Real Estate Brokerage Services Disclosure	388	(1)
Limited New Home Warranty	389	(3)
Sample Note	392	(3)
Sample Mortgage	395	(7)
Sample Home Inspection Report	402	(3)
Pre Move-In Inspection Form: Older Home	405	(1)
Pre Move-In Inspection Form: New Home	406	(2)
Buyer Exclusive Agency Agreement (BEAA)	408	(2)
Consensual Dual Agency Addendum	410	(2)
Federal Truth-In-Lending Disclosure Statement	412	(1)
Estimated Cash Required to Purchase	413	(1)
Commitment for Title Insurance	414	(7)
D Glossary of Terms	421	(12)
E Bibliography	433	(2)
F Resource Guide	435	(6)
Information on Appraisals	435	(1)
Credit Counseling	436	(1)
Credit Reporting Agencies	436	(1)
Government and Government-Affiliated Agencies	437	(2)
Home Inspections	439	(2)
Index	441