To Do: 1.Egg Babies due – get stamped! 2.Apartment Search due Tuesday! 3.Buying a Home Power Point – take notes for quiz Tuesday! 4.Bring budget WS Tuesday & find out spouse’s salary.

Buying a Home?

What should I do first? Do your research to see what is available and possible –Housing.com or realestatejournal.com Know how much you can afford –Take 40% of your monthly income before taxes –This is how much you can afford in mortgage payments, insurance, property taxes, and other daily expenses for your home –Most mortgages average $1500, not including insurance or assessments

What should I do first? Decide where you want to live and what you want –Condo, co-op, home, townhouse Look for different rates –A fixed is one interest rate for about 30 years –An adjustable is short term and the interest rate changes according to the market –Be sure to research fees –Get pre-approved before looking –Find a real estate agent you feel comfy with

Pros and Cons to Owning Pros: can choose repairs, free to decorate or fix, tax deductible, gain equity Cons: save money for upkeep, can’t move right away, have to pay property taxes, value can decrease

What questions should you ask? How old is the electrical system? –Anything older than 30 years can’t support modern electronics Check plumbing by flushing and running water for pressure Check drains –Water marks = flooding –Mold? Smells like soil = leaks

What questions should you ask? Appliances –New? Energy Star? Outlets –Makes sure they are every 6 feet Rules about moving for Condos? Storage? Plenty of Windows? –More natural light means you save more money

How do you close on a house? Always make an offer 10% less than what is being asked Check market value of other places in the same neighborhood Don’t back down If the home is listed longer, you should not settle for what they ask for

How do you close on a house? Don’t look too over-excited. Keep cool and calm Research closing costs and insurance plans Your agent will help you with paperwork Always do a final walk-through and inspection!!

How do I do a walk-through? Turn on and off every light fixture Run water and look under sink for leaks Test all appliances Check garage door openers Open and close all doors Flush toilets Inspect ceilings, walls, floors

How do I do a walk through? Run garbage disposal and exhaust fan Test heating and air conditioning Open and close windows Make sure all debris is removed from home

What about renovations? Splurge on flooring, central AC, and double-hung windows Improvements to kitchen and bathroom will add the most value Make eco-friendly improvements to save yourself money