Eric Tyson - Home Buying Kit For Dummies

Home Buying Kit For Dummies®, 7th Edition

Published by: John Wiley & Sons, Inc.,111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2020 by Eric Tyson and Ray Brown

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Published simultaneously in Canada

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Library of Congress Control Number: 2020932608.

ISBN: 978-1-119-67479-5

ISBN 978-1-119-67481-8 (ebk); ISBN 978-1-119-67482-5 (ebk)

1 Cover

2 Introduction Introduction Welcome to Home Buying Kit For Dummies, 7th Edition! For about the cost of a couple of movie tickets or your monthly Netflix subscription, you can quickly and easily discover how to save thousands — perhaps even tens of thousands — of dollars the next time you buy a home. How can we make such a claim? Simple. Each of us has spent decades personally advising thousands of people like you about home purchases and other important financial decisions. We’ve seen how ignorance of basic concepts and practices translates into money-draining mistakes. And we know that many of these mistakes are both needless and avoidable. No one is born knowing how to buy a home. Everyone who’d like to buy a home must learn how to do it. Unfortunately, too many people get a crash course in the school of hard knocks — and learn by making costly mistakes at their own expense. We know you’re not a dummy. You’ve already demonstrated an interest in discovering more about home buying by selecting this book, which can help you make smart moves and avoid financial land mines. In the event that you’re still wondering whether to buy this book, consider that buying a home may well be the largest purchase that you ever make. Buying a home can send shock waves through your personal finances and may even cause a sleepless night or two. Purchasing a home is a major financial step and a life event for most people. It certainly was for us when we bought our first homes. You owe it to yourself to do things right. About This Book: The Eric Tyson/Ray Brown Difference About This Book: The Eric Tyson/Ray Brown Difference We know that many home-buying books are competing for your attention. Here are several other compelling reasons why this is the best book for you: It’s in plain English. Because we work with real people and answer real questions, our information is current, and we have a great deal of experience in explaining things. This experience can put you firmly in control of the home-buying process (rather than having it control you). It’s objective. We’re not trying to sell you an expensive newsletter, seminar, or some real estate product you don’t need. Our goal is to make you as knowledgeable as possible before you purchase a home. We even explain why you may not want to buy a home. We’re not here to be real estate cheerleaders. It’s holistic. When you purchase a home, that purchase affects your ability to save money and accomplish other important financial goals. We help you understand how best to fit your home acquisition into the rest of your personal-finance plan. It’s a reference. You can read this book from cover to cover if you want. However, we know you’re busy and you likely don’t desire to become a real estate expert, so each portion of the book stands on its own. You can read it piecemeal to address your specific questions and immediate concerns. Icons Used in This Book Icons Used in This Book Sprinkled throughout this book are cute little icons to help reinforce and draw attention to key points or to flag stuff that you can skip. This bull’s-eye notes key strategies that can improve your real estate deal and, in some cases, save you lots of moola. Think of these as helpful little paternalistic hints we would whisper in your ear if we were close enough to do so! Numerous land mines await novice as well as experienced home buyers. This explosive symbol marks those mines, and then we tell you how to sidestep them. Occasionally, we suggest that you do more research or homework. Don’t worry: We tell you exactly what you need to do. “If I’ve told you once, I’ve told you a thousand times… .” Remember good old Mom and Dad? From time to time, we tell you something quite important and perhaps repeat ourselves. Just so you don’t forget the point, this icon serves as a little nag to bring back those childhood memories. Some of you are curious and have time to spare. Others are busy and just want to know the essentials. This geeky icon points out tidbits and information that you don’t really have to know, but understanding this stuff can make you more self-confident and proud! Want to calculate your monthly expenses? Or have a handy-dandy list available when you interview Realtors and home inspectors? Wanna see what your bank may include on a mortgage application? These along with lots of other important stuff can be found online at www.dummies.com/go/homebuyingkit7e . Beyond the Book Where to Go from Here

3 Part 1: Getting Started with Buying a Home Chapter 1: Deciding Whether to Buy Weighing the Advantages of Owning versus Renting The Pitfalls of the Rent-versus-Buy Decision Chapter 2: Getting Your Financial House in Order Surveying Your Spending Reckoning Your Savings Requirements Protecting Yourself, Your Dependents, and Your Assets Invest in Yourself Chapter 3: What Can You Afford to Buy? Lenders Can’t Tell You What You Can Afford The Cost of Buying and Owning a Home Closing Costs Accumulating the Down Payment Chapter 4: Why Home Prices Rise and Fall What Drives Real Estate Markets and Prices? How to Get a Good Buy in Any Market