How to Buy a House home
Learn the basics
1.	The Basics
2.	How much home can you afford?
3.	The Down Payment
4.	The Loan
-	Assuming a Loan
-	Owner Financing
5.	Qualifying for a loan
6.	Understand Closing Costs
Do the groundwork
7.	Get your finances in order
8.	Check Your Credit Report
-	Repair bad credit
-	Establish Credit if you don't have any
The Process
10.	Find a Lender
11.	Evaluate the bank's offer
12.	Start looking at houses
13.	Get the Disclosure
14.	Make an offer / Sign a Contract
15.	Have the House Inspected
16.	Problems on the Inspection?
17.	Renegotiate the terms
18.	Appraisal, Survey, & Insurance
19.	Appraisal went through?
20.	Closing!

After the purchase

Avoding scams

More about Mortgages

How much loan can you get?

Figuring your monthly pmt.

15- vs. 30-year loans

Prepaying your mortgage

How to figure mortgage interest

Private Mortgage Insurance

Paying Points

If you won't live long enough to pay off the mortgage

Other Topics

Renting vs. Buying: Which is better?

Homebuyer Tax Credit

Buying is an investment

Appreciation

Paying cash vs. getting a loan

The Debt Ratio

Tax breaks are actually welfare for the rich

Other

Links to helpful sites

Fan Mail

Michael Bluejay's home page

Email Me

Have the house inspected

Get the inspection report

« Back: Make an offer / sign a contract « » Next: Problems on the inspection? » After you've signed the contract and paid the earnest money, you'll hire a professional inspection company to thoroughly examine all the house's structural systems and give you a written report detailing any problems found. This will cost $300+ depending on the size of the home, and you'll pay up front. (Ask friends or your realtor for references, or look in the yellow pages or on the Internet. If you're energy-conscious, try to find an inspector which does thermal imaging, like Aardvark Inspections in Austin.) The inspection takes at least an hour, and you should attend so the inspector can show and explain problems to you that might be harder to understand if the only info you got was from the written report. You'll also pay a pest control company to do a termite inspection ($75+), although the compay handling your general inspection might also be licensed to do a termite inspection. (Ask.) Besides the fact that a termite inspection is a good idea, your lender requires it -- they don't want to lend money on a home that's rotting away. If termites are found, don't freak out about it -- they're easy to get rid of, though the treatment is pricey: $700+. The only thing will be to decide who will pay for it (you or the seller), and what methods to use. Fortunately modern termiticides like Termidor and Premise aren't nearly as toxic to people and waterways as the older ones used through the 90's were. (The MSDS for Premise [PDF] says amount required to kill animals is so high it's "practically non-toxic".) Still, many people understandably still want to avoid chemicals or at least choose companies that will apply the minimum amount necessary, rather than just coming in and spraying willy-nilly. In California, try Ecola Services, and in Austin try Term-Trol Exterminating (512-836-3309) whom I've used on a couple of houses. I advise against Chem-Free Organic in Austin, since despite their eco-sounding name, they're really just ABC Pest Control with another set of letterhead and another Yellow Pages listing. You call ChemFree, and the ABC Pest Control truck shows up, and the methods and chemicals are no different than if you'd called ABC's number, as I found out when I called "Chem-Free". .

Amount spent so far.   Red items apply towards the purchase. Amounts are typical, not exact. $40 Credit Check To the Lender $150 Option Fee Paid to the Seller. Might apply towards purchase, depending on contract. Allows you to walk away for any reason. $1000 Earnest Money Held in Escrow, probably by the Title company $400 Inspection To private inspection company to find physical problems with house $100 Termite inspection To private company; required by your lender ($700) Termite treament (If necessary) $1690 - $2390 Total

« Back: Make an offer / sign a contract « » Next: Problems on the inspection? »