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

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If problems were found on the inspection...

« Back: Have the house inspected « » Next: Negotiate new terms » What do you do if the inspection turned up significant physical problems with the house? That depends on the contract, and whether you paid an Option Fee. If you put down an Option Fee when you signed the contract, you have three choices: (1) You can back out now and forfeit the Option Fee. (2) Or, you can negotiate with the owner to see which items the owner is willing to remedy. Or see if the owner is willing to drop the price of the house a bit. (We'll cover these kinds of negotiations on the next page.) (3) Or, you could accept the house as-is if the problems found on the inspection were minor, or if you enjoy fixing things yourself. If you didn't put down an Option Fee, and you wrote into the contract that the seller has to fix problems that were found: The seller has to fix the problems found in the inspection that the contract requires him/her to fix, and then you'll have to buy the house. (You can have the house re-inspected if you wish to make sure that the inspector agrees that the owner remedied the problems properly. A re-inspection costs a fraction of the original inspection.) If you didn't put down an Option Fee, and you didn't write into the contract that the seller has to fix anything: Now you have to buy the house no matter what problems were found. (Your only out is if the contract says you can walk if lender-required repairs exceed 5% of the purchase price.) You could ask the seller to fix the problems, or to drop the price of the house, but they're under absolutely no obligation to do so, and if they so no, there's nothing you can do. Don't get yourself into this position. Either pay an Option Fee when you sign the contract, or write into the contract that the seller will make any and all individual repairs which exceed $500 or so. Note that if there are significant problems with the house (e.g., foundation, plumbing) your bank might not be willing to go through with the loan unless someone (you or the seller) puts the repair money into escrow to ensure that the repairs will be performed. .

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

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