SEARCHING FOR YOUR DREAM HOME

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SEARCHING FOR YOUR DREAM HOME
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Step 1 Determine what price home, and what
monthly payment you can afford.
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Step 2 Shop around.

• May need to get help from a realtor
• Newspaper ads
• Internet www.realtor.com www.owners.com

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Step 3 Make an offer

• Offer less than asked price
• Get something in writing

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Step 4 Pay earnest money.

• Shows your serious
• Will forfeit EM if you back out

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Step 5 Shop for a Mortgage

• Conventional mortgageborrower and lender
• A. Fixed rate mortgage
• B. Adjustable rate mortgage (ARM)yearly cap,
  lifetime cap, base rate
  
• Federal Housing Authority (FHA)
  mortgageborrower, lender, and FHA
  
• FHA insures mortgage.
• Veterans Administration (VA) mortgageborrower,
  lender, and VA.
  
• VA guarantees mortgage

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Advantages of FHA and VA Mortgages

• Low or no down payment
• APR may be lower

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Disadvantages of FHA and VA Mortgages

• Low down payment more interest paid
• Home and borrower must meet certain qualifications

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Amortizing a Mortgage

• Monthly payment covers interest and loan
  principal

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Step 6 Make sure you have clear title to the
property.

• Have abstract reviewed
• Buy title insurance

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Step 7 Pay closing costs.

• Costs paid at time purchase is finalized
• Pages 260-261 lists common closing costs
• Closing costs will likely be 50 to 70 of down
  payment 5 to 7 of the price of the home