Warm – Up Housing Question Monday, October 7, 2013 While creating your budget, what was most important to you have enough money for?

Buying a Home There are six financial and legal matters to settle when buying a home. – Purchasing Agreement – Abstract Title – Survey – Mortgage – Appraisal – Closing cost

Purchase Agreement A contract that is signed when both the buyer and the seller have reached an agreement on the house purchase. This contract should include the description of the real estate, its location, the purchase price, and the possession date. It should have in writing all the conditions and terms of the sale.

Example

Abstract Title A title is the tight ownership of particular piece of property. An abstract title is a summary of the public records relating to the ownership of a particular piece of property. This document shows that the seller is the legal owner of the home.

Survey This document or map shows the measurements and boundaries of the property. It is often required by the lender before they will lend money for the real estate. Click

How to Surveying a House

Survey This document or map shows the measurements and boundaries of the property. It is often required by the lender before they will lend money for the real estate. Click

Mortgage A loan for a home is called a mortgage. Most people have to loan money from a lender to purchase a home. It is paid in monthly payment over a set of several years. Click

Appraisal An appraisal is the estimate of the value of the real estate. Most lenders will require it before getting a loan.

Closing Cost These are fees that must be paid off before the sale of the home is final. Closing costs can include: – Abstract of title – Survey – Appraisal – Recording the mortgage – Recording the deed – Documentary stamps – Escrow fees – Attorney’s fees

How much will one pay in closing costs? Typically, home buyers will pay between about 2 and 5 percent of the purchase price of their home in closing costs. So, if the home cost $150,000, one might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing costs.

Buying a Home Complete the Buying a Home worksheet – This must be handed in prior to dismissal