Eric Tyson - Home Buying Kit For Dummies

4 Part 2: Financing 101 Chapter 5: Understanding and Improving Your Credit Score The Record You Can’t Ignore: Your Credit Report The Most Popular Kid on the Block: FICO Scores Getting Hold of Your Report and Score Chapter 6: Selecting a Mortgage Getting a Grasp on Mortgage Basics Fixed or Adjustable? That Is the Interest(ing) Question Finding a Fixed-Rate Mortgage Arriving at the Absolute Best Adjustable Locating the Best, Lowest-Cost Lenders Chapter 7: Mortgage Quandaries, Conundrums, and Forms Overcoming Common Mortgage Problems Dealing with Appraisal Problems Those Darn Mortgage Forms

5 Part 3: Property, Players, and Prices Chapter 8: Where and What to Buy Location, Location, Value Fundamental Principles for Selecting Your Home Defining Home Sweet Home Finding a Great Deal Pooling Your Resources: Ad Hoc Partnerships Chapter 9: Assembling an All-Star Real Estate Team The Team Concept Reeling in a Real Estate Agent Bagging a Broker Landing a Lender Procuring Property Inspectors Electing an Escrow Officer Finding (or Forgoing) Financial and Tax Advisors Looking for Lawyers Chapter 10: What’s It Worth? Preparing to Tour an Endless Parade of Homes The Three Elusive Components of Worth Fair Market Value Determining Fair Market Value: Comparable Market Analysis Getting a Second Opinion: Appraisals versus CMAs Why Buyers and Sellers Often Start Far Apart Chapter 11: Tapping the Internet’s Best Resources Finding Useful Information Doing Some Preliminary Shopping The Drawbacks of Searching for Houses in Cyberspace

6 Part 4: Making the Deal Chapter 12: Negotiating Your Best Deal Understanding and Coping with Your Emotions The Art of Negotiating The Negotiating Process The Finer Points of Negotiating Chapter 13: Inspecting and Protecting Your Home Conducting Thorough Inspections Insuring Your Home Chapter 14: It Ain’t Over till the Weight-Challenged Escrow Officer Sings An Escrow Is a Good Thing How You Take Title Is Vital Getting Possessive Coping with Buyer’s Remorse

7 Part 5: The Part of Tens Chapter 15: Ten Financial “To Do’s” After You Buy Stay on Top of Your Spending and Saving Consider Electronic Mortgage Payments Rebuild Your Emergency Reserve Ignore Solicitations for Mortgage Insurance Ignore Solicitations for Faster Payoff Consider Protesting Your Tax Assessment Refinance if Interest Rates Fall Keep Receipts for All Improvements Ignore Solicitations to Homestead Take Time to Smell the Roses Chapter 16: Ten Things to Know When Investing in Real Estate Real Estate Is a Solid Long-Term Investment Real Estate Investing Isn’t for Everyone REITs Are Good if You Loathe Being a Landlord Don’t Invest in Limited Partnerships Avoid Timeshare Condos and Vacation Homes Residential Properties Are Your Best Investment Option Consider Fixer-Upper Income Property Consider Converting Small Apartment Buildings to Condos Consider the Property’s Cash Flow Your Rental Losses Are Limited for Tax Purposes Chapter 17: Ten Things to Consider When Selling Your House Why Are You Selling? Can You Afford to Buy the Next Home? What’s It Worth? Have You Done Your Homework to Find a Good Real Estate Agent? Do You Have the Skills to Sell the House Yourself? Have You Properly Prepared the House for Sale? Do You Understand the House’s Hot Buttons? What Are the Financial Ramifications of Selling? Do You Know the Rules for Capital-Gains Taxes on the Sale of a House?

8 Part 6: Appendixes Appendix A: Sample Real Estate Purchase Contract Appendix B: Sample Short-Sale Addendum plus Short-Sale Information and Advisory Appendix C: Example of a Good Inspection Report Appendix D: Glossary

9 Index

10 About the Authors

11 Advertisement Page

12 Connect with Dummies

13 End User License Agreement

1 Chapter 1 TABLE 1-1 Figuring Future Rent

2 Chapter 2 TABLE 2-1 Your Spending, Now and After Purchasing a Home

3 Chapter 3 TABLE 3-1 Monthly Mortgage Payment Calculator TABLE 3-2 2020 Federal Income Tax Brackets and Rates

4 Chapter 10TABLE 10-1 Sample CMA — “Recent Sales” SectionTABLE 10-2 Sample CMA — “Currently for Sale” Section

1 Chapter 1FIGURE 1-1: The skyrocketing cost of renting.

2 Chapter 3FIGURE 3-1: It takes many years into a mortgage to begin making real progress a...FIGURE 3-2: Itemize mortgage interest and property tax deductions on Schedule A...

3 Chapter 4FIGURE 4-1: Median existing home sale prices in the United States since 1975.

4 Chapter 5FIGURE 5-1: How a credit score breaks down.

5 Chapter 7FIGURE 7-1: These documents may be waiting for you in the lender’s loan papers ...FIGURE 7-2: This type of form grants permission to your mortgage lender or brok...FIGURE 7-3: Here’s an estimated closing costs worksheet.FIGURE 7-4: The first part of Section I summarizes your personal information.FIGURE 7-5: The middle part of Section I details your employment.FIGURE 7-6: The last part of Section I details your other (nonemployment) incom...FIGURE 7-7: Section II asks for what you have and what you owe.FIGURE 7-8: Section III has you list real estate you already own.FIGURE 7-9: Section IV details the purpose of your loan and how you plan on usi...FIGURE 7-10: Declare yourself in Section V; watch out for the red flags.FIGURE 7-11: Honesty counts in Section VI.FIGURE 7-12: Section VII is used to track discrimination.FIGURE 7-13: Exercise your right to your property’s appraisal — ask for a copy.

6 Chapter 10FIGURE 10-1: How buyers and sellers approach fair market value.

7 Chapter 12FIGURE 12-1: A typical buyer counteroffer form.

8 Chapter 13FIGURE 13-1: An example of the type of superficial inspection report that you d...

9 Chapter 14FIGURE 14-1: TRID Loan Estimate. When your escrow closes, you will get a TRID C...

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2 Table of Contents

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