1. The Housing Decision: Factors and Finances
Chapter 9
The Housing Decision:
Factors and Finances

2. Advantages of Renting Mobility Fewer responsibilities
Lower initial costs

3. Disadvantages of Renting
Few financial benefits
Restricted lifestyle
Legal details

4. Costs of Renting Security deposit Monthly rent Utilities
Renter’s insurance

5. Advantages of Home Ownership
Pride of ownership
Financial benefits
Lifestyle flexibility

6. Disadvantages of Home Ownership
Financial uncertainty
Limited mobility
Higher living costs

7. Home-Buying Process Step 1-Determine home ownership needs
Evaluate owning your place of residence
Assess types of housing available
Single family dwellings
Multiunit dwellings
Condominiums
Cooperative housing
Calculate the amount you can afford

8. Home-Buying Process Step 2-Find and evaluate a property to purchase
Selecting a location
Using a real estate agent
Conducting a home inspection

9. Home-Buying Process Step 3-Price the Property
Determining the home price
Negotiating the purchase price

10. Home-Buying Process Step 4-Obtain Financing
Determine the amount of your down payment
Qualifying for a mortgage
Evaluating points
Application process

11. Types of Mortgages Fixed Rate/Fixed Payment
Adjustable Rate/Variable Payment
Buy-downs
Second mortgages
Reverse mortgages
Refinancing

12. Home-Buying Process Step 5-Close the Purchase Transaction
Closing costs (list on p. 298)
Escrow account

13. Selling Your Home Preparing your home for selling
Determining the selling price
Sale by owner
Listing with a real estate agent