Home Buying Kit For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book: The Eric Tyson/Ray Brown Difference
	Icons Used in This Book
	Beyond the Book
	Where to Go from Here
Part 1 Getting Started with Buying a Home
	Chapter 1 Deciding Whether to Buy
		Weighing the Advantages of Owning versus Renting
			Ownership advantages
			Renting advantages
		The Pitfalls of the Rent-versus-Buy Decision
			Renting because it seems cheaper
			Fretting too much over job security
			Buying when you expect to move soon
			Succumbing to pushy salespeople
			Ignoring logistics
			Overbuying
			Underbuying
			Buying because it’s a grown-up thing to do
			Buying because you’re afraid that escalating prices will lock you out
			Misunderstanding what you can afford
	Chapter 2 Getting Your Financial House in Order
		Surveying Your Spending
			Gathering the data
			Analyzing your spending numbers
		Reckoning Your Savings Requirements
			Setting some goals
			Retirement-savings accounts and a dilemma
			Other reasons to save
		Protecting Yourself, Your Dependents, and Your Assets
			Insuring yourself
			Insuring 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
			Mortgage payments
			Property taxes
			Insurance
			Maintenance and other costs
			The tax benefits of homeownership
		Closing Costs
		Accumulating the Down Payment
			The 20 percent solution
			Ways to buy with less money down
			Where to invest the down payment
	Chapter 4 Why Home Prices Rise and Fall
		What Drives Real Estate Markets and Prices?
			Jobs, glorious jobs
			Available housing
			Inventory of homes for sale and actual sales
			The rental market
			Tax rules and changes
		How to Get a Good Buy in Any Market
			Seek hidden opportunities to add value
			Buy when others are scared to buy
			Find a motivated seller
			Buy during slow periods
			Become a great negotiator
			Buy in a good neighborhood
Part 2 Financing 101
	Chapter 5 Understanding and Improving Your Credit Score
		The Record You Can’t Ignore: Your Credit Report
			What your credit history comprises
			What goes into your credit report
			Why you should check your credit report
		The Most Popular Kid on the Block: FICO Scores
			How scores work — the short version
			How a FICO score assesses your credit history — the long version
			What FICO scores ignore
			Why your score is what it is
		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
			Distinguishing fixed-rate mortgages from adjustables
			Looking at hybrid loans
			Starting out risky: Interest-only mortgages
			Making the fixed/adjustable decision
			Deciding on your loan’s life: 15 years or 30?
		Finding a Fixed-Rate Mortgage
			The all-important interest rate
			The finer points of points
			Other lender fees
		Arriving at the Absolute Best Adjustable
			Where an ARM’s interest rate comes from
			How often does the interest rate adjust?
			Limits on interest-rate adjustments
		Locating the Best, Lowest-Cost Lenders
			Shopping on your own
			Working with a mortgage broker
	Chapter 7 Mortgage Quandaries, Conundrums, and Forms
		Overcoming Common Mortgage Problems
			Insufficient income
			Debt and credit problems
		Dealing with Appraisal Problems
			You’ve overpaid
			The appraiser doesn’t know your area
			The appraiser/lender is sandbagging you
		Those Darn Mortgage Forms
			The laundry list of required documents
			Permissions to inspect your finances
			The Uniform Residential Loan Application
			I. Borrower information
			II. Financial information — Assets and liabilities
			III. Financial information — Real estate
			IV. Loan and property information
			V. Declarations
			VI. Acknowledgments and agreements
			VII. Demographic information
			Other typical documents
Part 3 Property, Players, and Prices
	Chapter 8 Where and What to Buy
		Location, Location, Value
			Characteristics of good neighborhoods
			Selecting your best neighborhood
		Fundamental Principles for Selecting Your Home
			The principle of progression: Why to buy one of the cheaper homes on the block
			The principle of regression: Why not to buy the most expensive house on the block
			The principle of conformity: Why unusual is usually costly
		Defining Home Sweet Home
			Detached residences
			Attached residences
		Finding a Great Deal
			Finding a fixer-upper
			Taking over a foreclosure
			Seeking a short sale
		Pooling Your Resources: Ad Hoc Partnerships
			Types of residential co-ownership
			Structuring a successful co-ownership
	Chapter 9 Assembling an All-Star Real Estate Team
		The Team Concept
			Lining up the players
			Avoiding gratuitous advice
		Reeling in a Real Estate Agent
			Types of agent relationships
			How agents get paid
			Characteristics of good agents
			Selecting your agent
			Getting the most from your agent
		Bagging a Broker
		Landing a Lender
		Procuring Property Inspectors
		Electing an Escrow Officer
		Finding (or Forgoing) Financial and Tax Advisors
		Looking for Lawyers
			Selecting your lawyer
			Getting the most out of a lawyer
	Chapter 10 What’s It Worth?
		Preparing to Tour an Endless Parade of Homes
		The Three Elusive Components of Worth
			Value is a moving target
			Cost is yesterday
			Price is what it’s worth today
		Fair Market Value
			When fair market value isn’t fair — need-based pricing
			Median home prices versus fair market value
		Determining Fair Market Value: Comparable Market Analysis
			The basics of a helpful CMA
			The flaws of CMAs
		Getting a Second Opinion: Appraisals versus CMAs
		Why Buyers and Sellers Often Start Far Apart
			Inept agents
			Unrealistic sellers
	Chapter 11 Tapping the Internet’s Best Resources
		Finding Useful Information
			Get your feet wet at Realtor.com
			Discover more at these sites
		Doing Some Preliminary Shopping
			Surveying homes for sale
			Watching out for sites promoting foreclosures
			Sifting through school information
			Perusing “best places” to live
			Familiarizing yourself with financing options
		The Drawbacks of Searching for Houses in Cyberspace
			Conflicts of interest
			Bankruptcies
			Misleading home-valuation tools
			Untrustworthy mortgage calculators
Part 4 Making the Deal
	Chapter 12 Negotiating Your Best Deal
		Understanding and Coping with Your Emotions
			Examining the violent forces at work
			Controlling yourself
		The Art of Negotiating
			Being realistic
			Examining your negotiating style
			Negotiating with finesse
		The Negotiating Process
			Making an offer to purchase
			Leaving an escape hatch: Contingencies
			Getting a counteroffer
		The Finer Points of Negotiating
			Negotiating when the playing field isn’t level
			Spotting fake sellers
			Lowballing
			Negotiating credits in escrow
	Chapter 13 Inspecting and Protecting Your Home
		Conducting Thorough Inspections
			All properties should be inspected
			The two types of defects: Patent and latent
			Patent defect red flags
			Types of property inspections
			Inspecting inspectors
		Insuring Your Home
			Homeowners insurance
			Title insurance
	Chapter 14 It Ain’t Over till the Weight-Challenged Escrow Officer Sings
		An Escrow Is a Good Thing
			Know thy escrow officer
			Cover all the bases
			’Tis the season: December escrows
			Follow through
		How You Take Title Is Vital
			Joint tenancy
			Community property
			Tenants-in-common
			Getting help drafting an agreement
		Getting Possessive
			Moving day
			Final verification of condition
		Coping with Buyer’s Remorse
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?
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
Index
EULA