Table of Contents
Introduction 8
Chapter 1 Are You Ready to Buy a Home? 10
Why buy a home? 11
What it means (and costs) to be a homeowner 15
Home buying readiness checklist 19
It's okay to keep renting 22
Chapter 2 Figuring Out the Down Payment 25
What's a down payment, and how much do you need to save up? 26
Saving for a down payment 29
Other down payment sources 35
Low- or no-down-payment mortgages and down payment assistance 39
Chapter 3 Readying Your Finances 43
How much home can you afford? 44
Evaluating your financial situation 47
Why your credit score matters, and how to find yours 50
How to improve your credit score 53
What is your debt-to-income ratio? 58
How to tackle your debt 61
Chapter 4 Understanding Mortgages 65
How do mortgages work? 66
Preapproval versus prequalification 70
What you'll need to apply for a mortgage 74
How rates impact your purchasing power 78
What are points? 81
What is PMI? 84
What are closing costs? 87
Comparing loan estimates to find the best mortgage 91
Why and when to lock in your interest rate 94
Chapter 5 Assembling Your Team 97
Who's on your side? 98
Working with a buyer's agent 101
Finding a good lender 105
Hiring a home inspector, insurance agent, and attorney 108
Meet the other team 113
Chapter 6 Location, Location, Location 116
Why location is the golden rule of real estate 117
Take a community-first approach in your home search 121
How to scout and research neighborhoods 125
Scouting from a distance 129
Chapter 7 The House Hunt 134
Determine your must-haves versus nice-to-haves 135
Single-family, condo, or multifamily? 139
Understanding condo documents and bylaws 145
New construction versus existing homes 149
How to search with intent-and intensity 154
Why you should tour fifty homes 159
Understanding major home systems 163
Things you can change, and things you can't 169
Chapter 8 Making an Offer 173
You love the house-now what? 174
How much should you offer? 178
Deposits and timing 181
What are contingencies? 184
Negotiation and counteroffers 187
Tips for navigating buyer's and seller's markets 192
Chapter 9 Your Offer is Accepted: The Countdown to Closing 199
The home inspection 200
The home appraisal 204
Purchasing home insurance 209
Title insurance, attorneys, and other odds and ends 213
The final walk-through 216
Closing time 220
Chapter 10 Moving, Renovations, and Homeownership 222
Tips for packing and hiring movers 223
Which renovations to do before you move in-and which can wait 229
General tips on home improvements 233
New homeowner checklist 239
Home maintenance schedule 243
Index 251