Homebuying and Renting: A Comprehensive Guide, Slides of Fundamentals of E-Commerce

Download Homebuying and Renting: A Comprehensive Guide and more Slides Fundamentals of E-Commerce in PDF only on Docsity! Determining What’s Affordable: Other Factors • Accumulation of a down payment – Down payment sources and “gift letters” – FHA, VA, and FmHA federally-backed loans require a lower downpayment – Private mortgage insurance (PMI) – IRA loan of up to $10,000 for first-time homebuyer Docsity.com Housing Step 2: Selection • The search process – use a traditional real estate agent – use an independent or exclusive buyer-broker – use the Internet to learn about buying a home • The inspection process – structural – mechanical Docsity.com Negotiating a Sales Price • Always haggle on the actual purchase price and counteroffers • Include all contingencies • Consider closing costs • Offer earnest money • Note: You may never see the seller because often the real estate agents carry the offers between parties Docsity.com Signing the Sales Contract • Always have a fixed price • Do a title search • Perform a pest or other inspection • Make the contract contingent on receiving the proper financing Docsity.com Signing the Contract (cont’d) • Divide the utilities, insurance, taxes, and interest equitably with the seller • Stipulate the condition of the dwelling upon transfer • Include all other contingencies that may interfere with a satisfactory purchase Docsity.com Conventional Or Government- Backed? • Conventional • Veteran’s Administration (VA) mortgages • Federal Housing Administration (FHA) mortgages Docsity.com Government-Backed Mortgages • Advantages – Lower interest – Smaller down payment requirement – Less strict lending standards • Disadvantages – More paperwork to qualify – Higher closing costs – Maximum lending limits Docsity.com