Buying a House

1
Buying a House

• A Guide for the First-Time Buyer
• Presented by
• Mid-Town Realtors

2
Buying Versus Renting

• When should you buy?
• When should you rent?
• What is equity?
• You do not earn equity while renting
• How is a home an investment?

3
Saving for a Down Payment

• How does this payment affect the purchase?
• How much down payment is needed?
• How can you save for a down payment?
• What are the best down payment strategies?
• What are your estimated closing costs?
• Know how much cash you will need at closing

4
Estimating Closing Costs

• What are closing costs?
• Who pays these costs?
• Can you negotiate?
• What fees must be paid?
• Loan, title, escrow
• What are points?

5
Knowing Your Limits

• What is debt-to-income ratio?
• 34 - 38 percent
• What is your maximum purchase price?
• 2 - 3 times your annual income