To Do:

1. Egg Babies due – get stamped!

2. Apartment Search due Tuesday!

3. Buying a Home Power Point – take notes for quiz Tuesday!

4. Bring budget WS Tuesday & find out spouse’s salary.

Buying a Home?

What should I do first?• Do your research to see what is available

and possible– Housing.com or realestatejournal.com

• Know how much you can afford – Take 40% of your monthly income before

taxes – This is how much you can afford in mortgage

payments, insurance, property taxes, and other daily expenses for your home

– Most mortgages average $1500, not including insurance or assessments

What should I do first?• Decide where you want to live and what

you want– Condo, co-op, home, townhouse

• Look for different rates– A fixed is one interest rate for about 30 years– An adjustable is short term and the interest

rate changes according to the market– Be sure to research fees – Get pre-approved before looking– Find a real estate agent you feel comfy with

Pros and Cons to Owning

Pros: can choose repairs, free to decorate or fix, tax deductible, gain equity

Cons: save money for upkeep, can’t move right away, have to pay property taxes, value can decrease

What questions should you ask?• How old is the electrical system?

– Anything older than 30 years can’t support modern electronics

• Check plumbing by flushing and running water for pressure

• Check drains– Water marks = flooding– Mold? Smells like soil = leaks

What questions should you ask?• Appliances

– New? Energy Star?

• Outlets– Makes sure they are every 6 feet

• Rules about moving for Condos?

• Storage?

• Plenty of Windows?– More natural light means you save more

money

How do you close on a house?

• Always make an offer 10% less than what is being asked

• Check market value of other places in the same neighborhood

• Don’t back down

• If the home is listed longer, you should not settle for what they ask for

How do you close on a house?

• Don’t look too over-excited. Keep cool and calm

• Research closing costs and insurance plans

• Your agent will help you with paperwork

• Always do a final walk-through and inspection!!

How do I do a walk-through?

• Turn on and off every light fixture

• Run water and look under sink for leaks

• Test all appliances

• Check garage door openers

• Open and close all doors

• Flush toilets

• Inspect ceilings, walls, floors

How do I do a walk through?

• Run garbage disposal and exhaust fan

• Test heating and air conditioning

• Open and close windows

• Make sure all debris is removed from home

What about renovations?

• Splurge on flooring, central AC, and double-hung windows

• Improvements to kitchen and bathroom will add the most value

• Make eco-friendly improvements to save yourself money