Buying A Home 50 Lessons Over Easy 1

FINANCIAL & LEGAL MATTERS TO SETTLE WHEN BUYING A HOME 2

Write “housing options” in the center of a piece of paper. Add the following terms around the edges: Condo, Single Family, Apartment, Manufactured/Mobile home, Townhouse. Summarize what you know about each option, as well as the advantages and disadvantages of each. Share answers in small groups. 3

Assignment: Site Zone Students will take the handout and use the crayons, markers, and/or map pencils Public Areas = Green Private Areas = Blue Service Areas = Yellow 4

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. 5

Abstract Title A title is the tight ownership of a 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. 6

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. 7

Mortgage A lone 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 payments over a set of several years. 8

Appraisal An appraisal is the estimate of the value of the real estate. Most lenders will require it before getting a loan. 9

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 and attorney’s fees. 10

If you were single, just graduating from college, would you rent or buy? In both cases, what are the requirements? If you had a small family, would you choose to rent or buy and why? Why might people choose to rent a home their entire life? 11

Video: HGTV.COM 12

RM 5-1…Hunting for Housing 13

Video: HGTV.COM 14

Assignment: Buying or Renting Activity C…Buying or Renting 15

Guest Speaker Real Estate Agent Activity D: Real Estate 16