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Buying a Home.


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22. Buying a Home. 21.1 Why Buy a Home? 21.2 The Home-Buying Process. Lesson 22.1 Why Buy a Home?. GOALS Discuss the advantages of home ownership. Describe the costs and responsibilities of buying and owning a home. Advantages of Home Ownership. Value and equity Quality of life
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22 Buying a Home 21.1 Why Buy a Home? 21.2 The Home-Buying Process

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Lesson 22.1 Why Buy a Home? Objectives Discuss the benefits of home possession. Portray the expenses and obligations of purchasing and owning a home. Section 22

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Advantages of Home Ownership Value and value Quality of life Tax funds Chapter 22

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Value and Equity Market Value The business sector estimation of a house is the most noteworthy value that the property will bring available. It for the most part means what a prepared and willing purchaser and a prepared and willing vender would concur upon as the cost. Part 22

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(proceeded with) Value and Equity Appraised Value Real home appraisers can set up an evaluated esteem by inspecting the structure, size, components, and quality when contrasted with comparative homes in the same geographic zone. The late offering cost of a comparative home in your general vicinity is a decent gauge of the present estimation of your home. Part 22

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(proceeded with) Value and Equity Assessed Value For motivations behind processing property charges owed against your home, the city or province in which you live sets a surveyed esteem . It is regularly figured in view of the expense to manufacture, the expense of upgrades, and the expense of comparative properties. It is typically a rate of business sector esteem. Part 22

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(proceeded with) Value and Equity Estimated Value Real home specialists likewise evaluate the estimation of homes to help dealers build up a rundown cost. They contrast your home and its components with those of practically identical properties that have as of late sold in a nearby geographic territory. Utilizing these tantamount properties, or comps, gives a general thought of a property's estimation. Part 22

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(proceeded with) Value and Equity The estimation of most homes acknowledges, or increments in business sector esteem, after some time. Gratefulness is one way that the value in your home increments. Value is the contrast between the business sector estimation of property and the sum owed on it. Value likewise increments in light of the fact that every advance installment you make diminishes your obligation. Part 22

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Quality of Life Privacy, space, and individual opportunity Security and freedom Community Chapter 22

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Tax Savings The interest you pay on your home credit, alongside the property expenses, is assessment deductible. These findings bring down the expense of home possession. On account of these assessment investment funds, owning land is an expense cover. Despite the fact that your value in your home might build every year, you don't pay charge on it until you offer your home. That being said, you might have the capacity to lawfully maintain a strategic distance from charges on the additions from the deal if the property was your main living place. Part 22

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Costs and Responsibilities Home possession conveys noteworthy expenses and obligations. Before choosing to purchase a home, you should ensure that you can monetarily handle the expenses and that you are by and by prepared to acknowledge the duties. Part 22

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Down Payment Mortgage banks as a rule require that borrowers pay a specific sum down toward the price tag. At that point they will give an advance to the equalization of the cost. Section 22

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Conventional Loan A typical mortgage is a home loan understanding that does not have government backing and that is offered through a business bank or home loan specialist. This kind of credit regularly requires a 10 to 30 percent up front installment. For some individuals, sufficiently sparing cash for the up front installment takes various years. Part 22

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FHA Loan A FHA credit is a legislature supported advance that conveys contract protection. Borrowers pay a month to month protection premium and their advance installments are ensured through the Federal Housing Administration (FHA) protection program. FHA advances may require up front installments of as meager as 3 percent. Government-supported loaning projects are frequently accessible for first-time home purchasers, veterans, and low-pay purchasers. Part 22

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Mortgage Payments An advance to buy land is known as a home loan. A trust deed is like a home loan; it is an obligation security instrument that shows as a lien against property. Installments on a home loan or trust deed are made over a broadened period, for example, 15 or 30 years. Month to month credit installments incorporate vital and interest. Part 22

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(proceeded with) Mortgage Payments If the borrower is required to have an escrow account, then the regularly scheduled installment will likewise incorporate property protection and property charges. An escrow account , likewise called a store record, is an asset where cash is held to pay sums that will come due amid the year. Part 22

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(proceeded with) Mortgage Payments Mortgage loan specialists regularly permit borrowers to purchase markdown focuses , which are utilized to bring down the home loan financing cost. Ordinarily, one point rises to 1 percent of the advance sum. Focuses are basically additional interest that borrowers must pay at shutting (time of procurement). They increment the expense of the credit. In any case, banks generally offer lower financing costs in return for higher focuses. Part 22

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(proceeded with) Mortgage Payments An advance beginning expense , likewise called a home loan credit expense, is the sum charged by a bank or other moneylender to handle the advance papers. This charge remunerates the credit officer or representative for the time spent in qualifying purchasers, planning printed material, and working with advance guarantors. Part 22

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Closing Costs Closing expenses , additionally alluded to as settlement expenses, are the costs caused in exchanging possession from purchaser to vender in a land exchange. The purchaser typically pays for a title inquiry to ensure the merchant is the legitimate proprietor and that nobody else has a case on the property. The purchaser may likewise pay for a credit report, different expenses, and an offer of charges and intrigue at present owed on the property. Section 22

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Property Taxes The land property expense is a noteworthy wellspring of subsidizing for nearby governments. Mortgage holders pay property charges taking into account the evaluated estimation of area and structures. A nearby exhausting power decides the surveyed estimation of property. Property expenses are duty deductible. Section 22

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Property Insurance A mortgage holder must have property protection covering the structure. This is generally a necessity of the advance consent to secure the interests of the home loan moneylender and additionally the mortgage holder. Standard property holder's protection incorporates both flame and obligation security. Part 22

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Utilities The mortgage holder pays for all utilities and rubbish administrations, while a tenant may pay for a few however not these administrations. Utilities may incorporate water and sewer charges, storm channel evaluations, lighting expenses, gas, and power. Also, when repairs are expected to water or sewer lines on the property, the mortgage holder is completely in charge of the expenses. Part 22

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CCRs Many subdivisions or arranged unit advancements have contracts, conditions, and necessities (CCRs) that were settled upon when the subdivision was constructed. CCRs are principles intended to keep up property estimations and ensure the interests of all property proprietors. CCRs incorporate things, for example, Requiring that mortgage holders keep up their yards Specifying where autos and RVs can and can't be stopped Controlling the sorts of wall that can and can't be fabricated Specifying the kind of rooftop that can and can't be introduced Chapter 22

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Zoning Laws As a property holder, you should comply with all zoning laws and neighborhood mandates. These are laws passed by neighborhood governments to protect the personal satisfaction for all individuals in the group. They incorporate guidelines, for example, Obtaining a building grant when you add to or adjust your home Following difficulty necessities that power structures and enhancements to be set back a base number of feet from lanes and different properties Adhering to limitations in regards to the sorts and sorts of structures that can be built in the region. Part 22

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Maintenance and Repairs As a mortgage holder, you will be in charge of support and repairs of your home. Progressing support incorporates such undertakings as painting, cutting, weeding, and settling things that break or destroy from ordinary use. Every so often you will need to make extremely costly repairs or enhancements to your home. The heater, water radiator, stove, and different apparatuses may likewise should be supplanted. There are various different costs that accompany owning a home. Part 22

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Lesson 22.2 The Home-Buying Process GOALS Describe the means in the home-purchasing process. Talk about how to fit the bill for land credits and how to take title to property. Section 22

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Finding and Buying a Home Consider these variables to when purchasing a home: Location Accessibility Nearness to business Type and nature of development Cost and exertion of upkeep Personal likes and abhorrences Make a rundown of the components you need. Recognize the value range you can bear. Part 22

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Working with a Real Estate Agent Before selecting a home to purchase, take a gander at numerous houses. You can look without anyone else or work with a land specialist. Land specialists know the business sector, can help you locate the comfortable, will help you with the buying, financing, and shutting forms. Section 22

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(kept) Working with a Real Estate Agent Prequalifying for an advance One of the primary things an operator will have you do is go to a home loan bank and prequalify for a land credit. As it were, you round out an application to perceive the amount of cash you would be qualified to acquire. This will control you and your land operator to search for houses in your value range. Section 22

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(kept) Working with a Real Estate Agent Commission Real home operators procure a commission wage. The commission is a rate of the home deal cost, as a rule somewhere around 5 and 7 percent. The dealer pays the commission, and the operators working for the purchaser and merchant split it. As the