Table of Contents
The Missing Credits vii
Introduction 1
Part 1 Preparing for Home Ownership 11
Chapter 1 The Benefits and Drawbacks of Home Ownership 11
The Pluses of Owning a Home 12
The Minuses of Owning a Home 18
Chapter 2 How Much Home Can You Afford? 25
How Much Can You Invest in a Home? 26
Get Prequalified or Preapproved 34
What Lenders Look For 36
Improve Your Chances of Getting a Loan 48
Part 2 Finding Your Home
Chapter 3 Choose Your Style of Home and Neighborhood 51
Your Lifestyle—Now and Down the Road 52
Your Style of Home 52
The Condition of Your Home 65
Find Your Neighborhood 72
Create a Wish List 77
Chapter 4 Assemble Your Real Estate Team 79
Real Estate Agents 80
Your Mortgage Provider 96
Your Real Estate Attorney 99
Your Home Inspector 102
Other Real Estate Professionals 104
Chapter 5 Shop for Your Home 107
Select Homes to Tour 108
Bargain Hunting 121
What to Look for on the Tour 132
Evaluate the Neighborhood 141
Compare Homes 142
Part 3 Financing Your Home
Chapter 6 Finance Your Down Payment 143
Why a Down Payment? 144
Calculate Your Down Payment 144
Alternatives to Paying 20 Percent Down 148
Chapter 7 Compare Mortgages and Other Financing Options 151
Mortgage Basics 152
The Mortgage Process 161
Types of Mortgages 163
Choose the Term of Your Mortgage 176
Government Financing Programs 180
Creative Financing Options 186
Chapter 8 Choose and Apply for a Mortgage 193
Find the Right Lender 194
Get the Best Mortgage 197
Gather Documents and Information 206
Do the Paperwork 207
Chapter 9 Know Your Closing Costs 225
Kinds of Closing Costs 226
Add It All Up 233
How Much Will You Pay? 234
Reduce Your Closing Costs 236
Part 4 Negotiating and Closing the Deal
Chapter 10 Make an Offer 239
Figure Out What the Home Is Worth 240
What Goes Into an Offer 49
Negotiating: The Art of the Deal 256
Chapter 11 Prepare for the Closing 261
Check Off Contingencies 262
All About Titles and Deeds 267
Survey the Property 273
Homeowner's Insurance 273
Get a Home Warranty 279
Prepare to Move 282
Take the Final Walkthrough 286
Chapter 12 Inspect the Property 291
What a Home Inspector Does 292
Find a Good Home Inspector 292
What Happens at an Inspection 293
Understand Your Home Inspection Report 302
Specialized Inspections 304
If Problems Turn Up 310
Chapter 13 Close the Deal 313
Countdown to Closing: 24 Hours to Go 314
What If the Closing Gets Delayed? 317
What Happens at a Closing 319
A Mountain of Paperwork: What It All Means 322
Your HUD-1 Form 325
What If Something Goes Wrong? 330
After the Closing 331
Index 335
