Buying a Home
Buying Basics
Unless you’re already wealthy, you’ll need a mortgage to buy a place. Whey you apply for a mortgage, the bank will look at your credit rating to see what mortgage terms you qualify for. To make sure you pay your mortgage, the bank has a lien on the property you buy. The legal definition is a little complicated, but basically it means if you don’t pay the mortgage, the bank has the right to take your house. You are responsible for all maintenance costs and utilities bills.
Advantages of Buying
Ownership mean you can do what you want with your property. You can have all the pets you want, for example. If you have a fixed-rate mortgage, you’ll pay the same amount every month. There is no landlord raising the rent. Depending on the market, houses can increase in value or appreciate. When you sell your house, you might make a profit. To get a mortgage, you need to have quite a bit saved up and usually make a down payment at the beginning –a large sum of money you pay towards the property upfront.
Assignment
The objective of this assignment is to determine what a hypothetical budget may look like while owning a home. Also, you will understand how important it is to live within your means. Let's say you just graduated from college and you are ready to buy a house. You have always paid you bills on time, and you have a good credit score. You get a decent job making $50,000 a year. Below is an example of what your income and expenses might look like each month.
Unless you’re already wealthy, you’ll need a mortgage to buy a place. Whey you apply for a mortgage, the bank will look at your credit rating to see what mortgage terms you qualify for. To make sure you pay your mortgage, the bank has a lien on the property you buy. The legal definition is a little complicated, but basically it means if you don’t pay the mortgage, the bank has the right to take your house. You are responsible for all maintenance costs and utilities bills.
Advantages of Buying
Ownership mean you can do what you want with your property. You can have all the pets you want, for example. If you have a fixed-rate mortgage, you’ll pay the same amount every month. There is no landlord raising the rent. Depending on the market, houses can increase in value or appreciate. When you sell your house, you might make a profit. To get a mortgage, you need to have quite a bit saved up and usually make a down payment at the beginning –a large sum of money you pay towards the property upfront.
Assignment
The objective of this assignment is to determine what a hypothetical budget may look like while owning a home. Also, you will understand how important it is to live within your means. Let's say you just graduated from college and you are ready to buy a house. You have always paid you bills on time, and you have a good credit score. You get a decent job making $50,000 a year. Below is an example of what your income and expenses might look like each month.
Income (monthly)
$2,000 (after taxes)
|
Expenses (monthly)
$400 - College loans
$50 - Cell phone $200 - Car loan $75 - Car Insurance |
After running a credit check, the loan officer has decided you qualify for a home loan of $120,00. It is now time to find a house. Please visit www.iowarealty.com to begin your search. Once you've chosen a home, use the below PowerPoint to design a presentation. We will discuss in class. Effort and creativity will be considered as part of your grade.
home_powerpoint.pptx | |
File Size: | 78 kb |
File Type: | pptx |
Submit your final presentation below.