Download Home Buying for Dummies (ISBN - 0470453656) PDF

TitleHome Buying for Dummies (ISBN - 0470453656)
TagsFor Dummies
LanguageEnglish
File Size6.9 MB
Total Pages411
Table of Contents
                            Home Buying for Dummies
	Praise for Previous Editions of Home Buying For Dummies
	More Best-Selling For Dummies Titles by Eric Tyson
	About the Authors
	Dedications
	Authors’ Acknowledgments
	Contents at a Glance
	Table of Contents
	Introduction
		About This Book: The Eric Tyson/Ray Brown Difference
		Conventions Used in This Book
		How This Book Is Organized
		Icons Used in This Book
		Where to Go from Here
	Part I: Home Economics
		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
	Part II: 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
			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 Paperwork
			Overcoming Common Mortgage Problems
			Dealing with Appraisal Problems
			Those Darn Mortgage Forms
	Part III: 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?
			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
	Part IV: 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
	Part V: 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 VI: Appendixes
		Appendix A: Sample Real Estate Purchase Contract
		Appendix B: Example of a Good Inspection Report
	Glossary
	Index
                        
Document Text Contents
Page 1

Eric Tyson, MBA
Financial counselor and bestselling author

Ray Brown
Residential real estate consultant and
bestselling author

Learn to:
• Find the right home in today’s market

• Obtain a mortgage

• Negotiate your best deal

• Improve your credit score

Home Buying

4th EditionMaking Everythin
g Easier!



Open the book and find:

• Reasons why home prices rise
and fall

• Hands-on instruction for buying a
home in up or down markets

• How to pay the price you want

• The best mortgage options

• A sample home-buying contract

• Pros and cons of comparable
market analysis

• Tips for overcoming mortgage and
appraisal problems

• How to cope with buyer’s remorse

• The best real estate Web sites


“Invaluable information, especially for the first-time home buyer.”
— Fort Worth Star-Telegram

“A reference you’ll turn to time after time.”
— St. Petersburg Times

Eric Tyson, MBA, is a financial counselor and the author of bestselling For

Dummies books on personal finance, investing, and real estate investing.

Ray Brown, a real estate professional for more than 30 years, has hosted a

real estate radio show in San Francisco.

$21.99 US / $25.99 CN / £15.99 UK

ISBN 978-0-470-45365-0

Real Estate

Go to dummies.com®
for more!

Now updated — America’s #1
bestselling home-buying book!
Want to buy a house, but concerned about the market?
Have no fear — this trusted guide arms you with Eric
Tyson and Ray Brown’s time-tested advice and updated
strategies for buying a home in current market conditions.
You’ll discover how to find the right property, make smart
financial decisions, and understand the latest lending
requirements and tax implications.

• New to this edition — new and expanded coverage to help
homebuyers take advantage of low home prices, understand
the subprime mortgage crisis, obtain a mortgage, and improve
credit scores

• To buy or not to buy? — weigh the advantages of owning versus
renting, get your finances in order, and know how much house
you can safely afford

• Handle financing — understand your credit rating, navigate the
different types of mortgages, and complete all paperwork

• Play the real estate game — find the right location and property,
assemble an all-star real estate team, and make the most of the
Internet’s real estate resources

• Let’s make a deal — negotiate with finesse, make successful
offers, inspect and protect your new home, and cover all your
bases in escrow

H
o

m
e B

u
yin

g

Tyson
Brown

4th Edition

spine=.81”

Page 2

01_430620-ffirs.indd iv01_430620-ffirs.indd iv 4/1/09 10:08:29 PM4/1/09 10:08:29 PM

Page 205

183 Chapter 8: Where and What to Buy
Ideally, you should have the agreement drawn up well before you make an

offer to purchase. Why the rush? To make sure that you and your partner

understand precisely how the partnership operates and what your responsi-

bilities to each other are. The agreement should cover important issues such

as the following:

✓ Financial arrangements: This section of the agreement deals with the
economics of buying, maintaining, and selling the property. It also speci-

fies the tax deductibility of mortgage interest and property taxes for

each partner if the partnership involves unequal financial contributions.

What happens if, for example, your partner suddenly dies or goes bank-

rupt? How you take title in the property is critical. (We cover this impor-

tant issue in Chapter 14.) Should the partners in a live-in partnership

give each other first right of refusal to buy the partner’s share before

it can be sold to an outsider? Planning for the unexpected sure beats

reacting to a crisis. Your agreement must have equitable provisions for

terminating the partnership.

✓ Dispute resolution: What if you and your partner come to blows on a
critically important issue like whether to plant daisies or roses along the

side of the house? If only two partners are involved, how do you break

tie votes? Anticipate disputes. Even the best of friends occasionally

disagree — that’s a fact of life. Provide a method (such as mediation or

arbitration) to resolve the problems you can’t work out between your-

selves.

✓ Game plan: If you and your partner intend to improve the property you
purchase by, for example, remodeling the kitchen or converting a pair

of flats to condominiums, your partnership agreement should be as spe-

cific as possible regarding the intended scope of work, project timing,

cost, and so on. Plan now to prevent arguments later.

Never rush into a partnership — the economic consequences of a mistake

may be devastating. Carefully weigh the pros and cons. Then get everything in

writing with help from a lawyer experienced in covering all the “what if” situa-

tions just in case everything doesn’t turn out as wonderfully as you hope.

14_453650-ch08.indd 18314_453650-ch08.indd 183 3/30/09 8:26:45 PM3/30/09 8:26:45 PM

Page 206

184 Par t III: Property, Players, and Prices

14_453650-ch08.indd 18414_453650-ch08.indd 184 3/30/09 8:26:45 PM3/30/09 8:26:45 PM

Page 410

GRAPHICS, DESIGN & WEB DEVELOPMENT

NETWORKING AND PROGRAMMING

INTERNET & DIGITAL MEDIA

AdWords For Dummies
978-0-470-15252-2

Blogging For Dummies, 2nd Edition
978-0-470-23017-6

Digital Photography All-in-One
Desk Reference For Dummies, 3rd Edition
978-0-470-03743-0

Digital Photography For Dummies, 5th Edition
978-0-7645-9802-9

Digital SLR Cameras & Photography
For Dummies, 2nd Edition
978-0-470-14927-0

eBay Business All-in-One Desk Reference
For Dummies
978-0-7645-8438-1

eBay For Dummies, 5th Edition*
978-0-470-04529-9

eBay Listings That Sell For Dummies
978-0-471-78912-3

Facebook For Dummies
978-0-470-26273-3

The Internet For Dummies, 11th Edition
978-0-470-12174-0

Investing Online For Dummies, 5th Edition
978-0-7645-8456-5

iPod & iTunes For Dummies, 5th Edition
978-0-470-17474-6

MySpace For Dummies
978-0-470-09529-4

Podcasting For Dummies
978-0-471-74898-4

Search Engine Optimization
For Dummies, 2nd Edition
978-0-471-97998-2

Second Life For Dummies
978-0-470-18025-9

Starting an eBay Business For Dummies,
3rd Edition†
978-0-470-14924-9

Adobe Creative Suite 3 Design Premium
All-in-One Desk Reference For Dummies
978-0-470-11724-8

Adobe Web Suite CS3 All-in-One Desk
Reference For Dummies
978-0-470-12099-6

AutoCAD 2008 For Dummies
978-0-470-11650-0

Building a Web Site For Dummies,
3rd Edition
978-0-470-14928-7

Creating Web Pages All-in-One Desk
Reference For Dummies, 3rd Edition
978-0-470-09629-1

Creating Web Pages For Dummies,
8th Edition
978-0-470-08030-6

Dreamweaver CS3 For Dummies
978-0-470-11490-2

Flash CS3 For Dummies
978-0-470-12100-9

Google SketchUp For Dummies
978-0-470-13744-4

InDesign CS3 For Dummies
978-0-470-11865-8

Photoshop CS3 All-in-One
Desk Reference For Dummies
978-0-470-11195-6

Photoshop CS3 For Dummies
978-0-470-11193-2

Photoshop Elements 5 For Dummies
978-0-470-09810-3

SolidWorks For Dummies
978-0-7645-9555-4

Visio 2007 For Dummies
978-0-470-08983-5

Web Design For Dummies, 2nd Edition
978-0-471-78117-2

Web Sites Do-It-Yourself For Dummies
978-0-470-16903-2

Web Stores Do-It-Yourself For Dummies
978-0-470-17443-2

LANGUAGES, RELIGION & SPIRITUALITY

Arabic For Dummies
978-0-471-77270-5

Chinese For Dummies, Audio Set
978-0-470-12766-7

French For Dummies
978-0-7645-5193-2

German For Dummies
978-0-7645-5195-6

Hebrew For Dummies
978-0-7645-5489-6

Ingles Para Dummies
978-0-7645-5427-8

Italian For Dummies, Audio Set
978-0-470-09586-7

Italian Verbs For Dummies
978-0-471-77389-4

Japanese For Dummies
978-0-7645-5429-2

Latin For Dummies
978-0-7645-5431-5

Portuguese For Dummies
978-0-471-78738-9

Russian For Dummies
978-0-471-78001-4

Spanish Phrases For Dummies
978-0-7645-7204-3

Spanish For Dummies
978-0-7645-5194-9

Spanish For Dummies, Audio Set
978-0-470-09585-0

The Bible For Dummies
978-0-7645-5296-0

Catholicism For Dummies
978-0-7645-5391-2

The Historical Jesus For Dummies
978-0-470-16785-4

Islam For Dummies
978-0-7645-5503-9

Spirituality For Dummies,
2nd Edition
978-0-470-19142-2

ASP.NET 3.5 For Dummies
978-0-470-19592-5

C# 2008 For Dummies
978-0-470-19109-5

Hacking For Dummies, 2nd Edition
978-0-470-05235-8

Home Networking For Dummies, 4th Edition
978-0-470-11806-1

Java For Dummies, 4th Edition
978-0-470-08716-9

Microsoft® SQL Server™ 2008 All-in-One
Desk Reference For Dummies
978-0-470-17954-3

Networking All-in-One Desk Reference
For Dummies, 2nd Edition
978-0-7645-9939-2

Networking For Dummies,
8th Edition
978-0-470-05620-2

SharePoint 2007 For Dummies
978-0-470-09941-4

Wireless Home Networking
For Dummies, 2nd Edition
978-0-471-74940-0

31_453650-badvert01.indd 38831_453650-badvert01.indd 388 3/30/09 8:58:58 PM3/30/09 8:58:58 PM

Page 411

Eric Tyson, MBA
Financial counselor and bestselling author

Ray Brown
Residential real estate consultant and
bestselling author

Learn to:
• Find the right home in today’s market

• Obtain a mortgage

• Negotiate your best deal

• Improve your credit score

Home Buying

4th EditionMaking Everythin
g Easier!



Open the book and find:

• Reasons why home prices rise
and fall

• Hands-on instruction for buying a
home in up or down markets

• How to pay the price you want

• The best mortgage options

• A sample home-buying contract

• Pros and cons of comparable
market analysis

• Tips for overcoming mortgage and
appraisal problems

• How to cope with buyer’s remorse

• The best real estate Web sites


“Invaluable information, especially for the first-time home buyer.”
— Fort Worth Star-Telegram

“A reference you’ll turn to time after time.”
— St. Petersburg Times

Eric Tyson, MBA, is a financial counselor and the author of bestselling For

Dummies books on personal finance, investing, and real estate investing.

Ray Brown, a real estate professional for more than 30 years, has hosted a

real estate radio show in San Francisco.

$21.99 US / $25.99 CN / £15.99 UK

ISBN 978-0-470-45365-0

Real Estate

Go to dummies.com®
for more!

Now updated — America’s #1
bestselling home-buying book!
Want to buy a house, but concerned about the market?
Have no fear — this trusted guide arms you with Eric
Tyson and Ray Brown’s time-tested advice and updated
strategies for buying a home in current market conditions.
You’ll discover how to find the right property, make smart
financial decisions, and understand the latest lending
requirements and tax implications.

• New to this edition — new and expanded coverage to help
homebuyers take advantage of low home prices, understand
the subprime mortgage crisis, obtain a mortgage, and improve
credit scores

• To buy or not to buy? — weigh the advantages of owning versus
renting, get your finances in order, and know how much house
you can safely afford

• Handle financing — understand your credit rating, navigate the
different types of mortgages, and complete all paperwork

• Play the real estate game — find the right location and property,
assemble an all-star real estate team, and make the most of the
Internet’s real estate resources

• Let’s make a deal — negotiate with finesse, make successful
offers, inspect and protect your new home, and cover all your
bases in escrow

H
o

m
e B

u
yin

g

Tyson
Brown

4th Edition

spine=.81”

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