Homebuyer's Kit Book

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