Outline: Home of Your Own Guide

Table of Contents for: Home of Your Own Guide


Acknowledgments	1

Preface	2

Introduction	5

Chapter One: Preparing For Homeownership	9

Overview	9

Is Homeownership Right for You?	9
Advantages	9
Disadvantages	12
Chart of advantages and disadvantages of homeownership	15

What Will it Take for You to Buy a House?	16
Initial planning	16
Looking at current and future income and expenses	17
The cost of purchasing a home	18

What Types of Assistance Are Available?	23
Down payment and closing cost assistance	23
Renovation and rehabilitation assistance	23
Types of assistance that may be available	24

How Large a Mortgage Will You Qualify For?	25
Your income	25
Your expenses	25
Budget worksheets	26
Examples of Joe’s worksheets	32
Your credit record	35

How Can You Increase Your Borrowing Power?	38
Identifying need	38
Getting pre-qualified by a lender	38
Blending resources	39
Chart of resources Joe used to purchase his home	40
Trusts	41
Resources others have used	41
Alternative financing mortgages	44

Are You Ready For Homeownership?	47
Questions	47
Checklist	47

Summary	48


Chapter Two: Planning	49

Overview	49

A Person-Centered Approach	50
What is a person-centered approach?	50

Stage 1: Laying the Groundwork	51
Choosing a facilitator	51
Choosing a housing counselor/education provider	52
Deciding who will help	52
Creating personal profiles	53

Stage 2: Meeting People Who Provide Assistance	59
The initial gathering	59
Subsequent meetings	59

Stage 3: Determining Your Wants and Needs	59
Creating a wish list	59

Stage 4: Turning Thoughts to Actions	67
Opportunities and obstacles	67
Action planning	68
Checklist	71

Summary	71


Chapter Three: Hitting the Streets	72

Overview	72

Continuing on the Journey Toward Homeownership	72

Finding a Home	73
How a real estate sales professional can help	74
Comparison shopping	76

Negotiating the Purchase	79
Deciding how much to offer	79
Submitting the offer	82
Terms of the contract	82
The home inspection	84

Negotiating the Final Purchase Price	88
Accessibility issues	88
Reviewing the action plan	89
Checklist	90

Summary	90


Chapter Four: Obtaining a Mortgage	91

Overview	91

Shopping for a Loan	91
Understanding the language	93

Applying for a Loan	96
The loan application	96
The interview	97
Loan processing	99
Long-range planning	102
Taking advantage of others’ experiences	104
Using your team members	104
If your loan application is rejected	105
Report suspected discrimination	106
Have I used all my resources to find the right loan?	107

Summary	107
Action plan	107
Checklist	108


Chapter Five: Closing	109

Overview	109

Final Review Before Setting the Closing Date	109
Pre-closing meeting	110
Select a settlement agent	110
Complete the title search	111
Purchase title insurance	111
Meet the conditions of the loan approval	111
Obtain a property survey	112
Obtain a termite certificate	112
Establish an escrow for long-term maintenance	112
Secure probate approval	112
Obtain accounting reports from representative payee	113
Complete state certifications	113
Commitment letters for funds and assistance services	113
Document PITI reserves	113
Review your long-term assistance plan	113

Set the Closing Date	114
Purchase property insurance	114
Decide whether to have automatic payment for PITI	115
Considering a homeowner's warrant	115
Conduct a final house check	116
Conduct a house tour with the seller	116
Obtain a final estimate of closing costs	117

HUD-1 Settlement Statement	117
Allocation of closing costs	120

Closing: The Big Day!	122
What to expect at the meeting	122
Who can I bring to the closing meeting?	123
Explanation and signing of documents	123
Recording the documents	125
Getting the keys to your new home	125
Questions	125
The media	126
Action plan	126

Summary	126
Checklist	126


Chapter Six: Life as a Homeowner	128

Overview	128

A Homeowner at Last	129
Settling in	129
Defining roles	133

Meeting Your Obligations as a Borrower	135
Understanding the terms of your loan	135
Transfer of servicing	137
Avoiding foreclosure	137

Maintaining Your Home	140
Seasonal inspection checklist	140
Keeping your energy bills at a minimum	140
Do-it-yourself repairs	141
Major repairs and home improvements	142

Household Budgeting	144
Creating a budget	145
Checklist	151

Summary	151


Additional Resources	152

Glossary	180

Worksheets (These worksheets are currently unavailable electronically.)	191