Housing OptionsYour Lifestyle

and Your Choice of Housing

Different Life Situations

YoungSINGLE

Young COUPLEno children

Single PARENT

COUPLEwith children

RETIREDperson

Various Housing Options

Mobile Homes

Private Homes

Apartments/Condominiums

Townhomes

Advantages:Pride of ownershipPrivacy/freedomTax benefits

Mortgage interest property taxes

Disadvantages:Financial

commitmentLimited mobilityMaintenance /

repairs

Advantages:MobilityFewer

responsibilitiesLow initial cost

Disadvantages:Loss of incomeLifestyle restrictionsLess privacyNO tax benefits

Renting Owning

RentingLandlord / TenantLease agreementSecurity DepositBinding contract – 1

yr?Cost: size, amenitiesSublet Legal actionRenter’s insurance

OwnerDeedDown paymentDeed of ownershipCost: size, location,

zoning Foreclosure: damage

creditEscrow account

At closingTaxes, insurance

OwningGeneral Terms

Good CREDIT !!!

Buying: Obtaining FinancingQualify forThe Loan

Banking RecordsCredit Score of 620 +Steady income

Down Payment

Up to 20% required

FinanceRemainder

Types of Mortgages differ

Closing Costs Know the legal details

TYPES of Mortgage LoansFHA or VA Gov’t assistance

Lower down payment, interest rate

Conventional Fixed rate ORAdjustable rate: “cap” limits how much interest rate can rise

Home Equity Borrowing on what you have already paid toward your loan (the amount you own toward your home)

Buying & Selling

Do the advantages of “For Sale by Owner” outweigh using a Realtor?

Real Estate Agents (realtors)Representing Seller Representing BuyerHelp determine the fair

market priceEarn a commission

often pd by seller 5 – 7% of selling price

Attract buyers Establish trustHandle financial aspects

closing

Help negotiate a fair priceListing price vs. Selling

PriceCommission

Sometimes split between buyer and seller

Can show homes that they don’t actually contract

Establish relationshipHandle financial aspects

Closing, loans

Preparing to SEllZoning Laws

Regulations that limit how a property can be used

Home Inspections

RepairsMaintenance