Welcome to...

Companion PowerPoint Presentation for

the Introduction to Housing textbook
Homeownership
Quick Facts
Homeownership has both advantages
disadvantages. It is not alwa!s the best
choice at a given time.
"u!ing !our first home re#uires planning
saving.
Prepare a checklist to help !ou shop for a
home.
Pre#ualif! for a mortgage to see how much
home !ou can afford.
$here are several government programs
for first%time low% to moderate%income
home bu!ers.
Homeownership:
Abhinandan Promoters
"u!ing a home is one of the most
important decisions a famil! can
make.
It has serious financial emotional
implications and is a ma&or part of the
dream.
Advantages

Forced savings plan because !our

mortgage principal pa!ments are
retained as e#uit! in the home

'suall! a good long%term investment(

value will most likel! increase over
time

)educt propert! taxes interest

pa!ments from income tax

*ver time mortgage pa!ments

become cheaper in +real+ rupees.
,s e#uit! builds- !ou can step up to a
larger home or borrow against !our
home .home e#uit! loan/ to finance
large purchases
Homeownership can enhance a
famil!0s sense of control over their
lives environment- as well as
promote stronger communit! ties
1ou can customi2e the
home to suit special
needs tastes
Disadvantages

3onthl! pa!ments .principal- interest-

taxes insurance/ ma! be higher
than rent pa!ments

1ou must pa! for regular

maintenance periodic repairs

*wning is less flexible than renting4

most first%time home bu!ers live in a
home for 5 !ears

6ike an! investment- there is no

guarantee that value will increase
Features Important to ,ll 7 8roups
6arge- open kitchens to prepare food
entertain guests4 the! are the 9new
living room:
;itchen islands no wider than <=:
Qualit! kitchen cabinets
High #ualit!- high%performance
appliances
>eparate tub
shower
Prepare for Homeownership

"u!ing !our first home involves

planning saving?attend a home
bu!er education class to help !ou
prepare for homeownership
Possible obstacles@
High Cost

Axplore alternatives to the

conventional single%famil! detached
house@ condo- manufactured home- or
older home .generall! can afford a
house B.C times gross annual income/
Closing Costs
Dight of ownership passes from
seller to bu!er at the closing
Can reach several thousands of
dollars
>ome of the programs that help with
downpa!ments can also help with
closing costs
Initial >election of Homes
*nce !ou are financiall! read! to purchase
a home- locate one that meets !our values-
needs- wants budget
Where to lookE
%%Deal estate section of the local
newspaper
%%Deal estate shopper guides
%%Deal estate Web sites
%%)riving- biking walking through
neighborhoods
%%>top at modelFopen houses
>elect a Deal Astate ,gent

>elect a real estate agent to help

narrow !our choices

,gents are a valuable source of

information because the! are
knowledgeable about homes for sale
in a specific area
Criteria for selecting an agent@
%%trust
%%rapport
%%track record
%%level of commitment to first%time
home bu!ers
,s !ou consider different homes-
evaluate each based on values-
needs- wants financial issues
"e flexible- realistic responsible?
1our first home will most likel! not be
!our dream home
)evelop a checklist@
Can !ou !our famil! be happ!
living in this homeE
House Hunting Checklist
(Ideas of what to include, but our list must be personali!ed
based on our needs"

Is the neighborhood safeE

,re the homes in the neighborhood

maintainedE

)oes the house have enough

bedrooms bathroomsE

Is there ade#uate storage spaceE

,re there high #ualit! schools in the

areaE
Is the location of the house and
neighborhood convenientE
Is there a homeowners associationE
Is the area #uietE
)oes the floor plan suit !our lifest!leE
Is the house energ! efficientE
Is the !ard eas! to care forE
What communit! services are
availableE
,re the appliances fixtures
ade#uateE
What are the average maintenance
costs for the houseE
How high are local propert! taxesE
#oan Approval

*btain actual financing for home

6ender will ask about !our income-

expenses- credit histor!- emplo!ment-
the terms of purchase offer

1ou complete application form pa!

an application fee- pa! for a credit
report appraisal- receive an
estimate of closing costs truth%in%
lending statement

6oan processing occurs

$hank %ou&&&&