Home Buying Kit For Dummies E-Book

Eric Tyson

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 747

Veröffentlichungsjahr: 2025

Beschreibung

The top choice among home buyers in need of assistance

Home Buying Kit For Dummies is your one-stop guide to navigating the housing market and buying a home. This updated book helps you through the largest—and most complex—purchase you're likely to make, offering a map to navigating the occasionally choppy waters of home buying. Get insight on evaluating your financial readiness to buy a house, securing a mortgage, building a team of advisors, negotiating a deal, and getting your new home ready after you buy. A small investment in know-how will make a big difference, making every step of the home buying process smoother.

• Understand interest rates and determine your budget for buying a new home
• Learn how to get approved for a mortgage and recognize fair house prices
• Get a real estate agent and find the home that fits your needs
• Survive the inspection and appraisal stage, then seal the deal

This book is a perfect choice for first-time and inexperienced home buyers who need advice on the steps in buying a home.

Leseprobe

Home Buying Kit For Dummies®

To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Home Buying Kit For Dummies Cheat Sheet” in the Search box.

Table of Contents

Cover

Title Page

Copyright

Introduction

About This Book

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part 1: Getting Started with Buying a Home

Chapter 1: Deciding Whether to Buy

Weighing the Advantages of Owning versus Renting

The Pitfalls of the Rent-versus-Buy Decision

Chapter 2: Getting Your Financial House in Order

Surveying Your Spending

Reckoning Your Savings Requirements

Protecting Yourself, Your Dependents, and Your Assets

Invest in Yourself

Chapter 3: What Can You Afford to Buy?

Lenders Can’t Tell You What You Can Afford

The Cost of Buying and Owning a Home

Considering Closing Costs

Accumulating the Down Payment

Chapter 4: Why Home Prices Rise and Fall

What Drives Real Estate Markets and Prices?

How to Get a Good Buy in Any Market

Part 2: Financing 101

Chapter 5: Understanding and Improving Your Credit Score

The Record You Can’t Ignore: Your Credit Report

The Most Popular Kids on the Block: FICO Scores

Getting Hold of Your Report and Score

Chapter 6: Selecting a Mortgage

Getting a Grasp on Mortgage Basics

Fixed or Adjustable? That Is the Interest(ing) Question

Finding a Fixed-Rate Mortgage

Arriving at the Absolute Best Adjustable

Locating the Best, Lowest-Cost Lenders

Chapter 7: Mortgage Quandaries, Conundrums, and Forms

Overcoming Common Mortgage Problems

Dealing with Appraisal Problems

Those Darn Mortgage Forms

Part 3: Property, Players, and Prices

Chapter 8: Where and What to Buy

Location, Location, Value

Fundamental Principles for Selecting Your Home

Defining Home Sweet Home

Finding a Great Deal

Pooling Your Resources: Ad Hoc Partnerships

Chapter 9: Assembling an All-Star Real Estate Team

The Team Concept

Reeling in a Real Estate Agent

Bagging a Broker

Landing a Lender

Procuring Property Inspectors

Electing an Escrow Officer

Finding (or Forgoing) Financial and Tax Advisors

Looking for Lawyers

Chapter 10: What’s It Worth?

Preparing to Tour an Endless Parade of Homes

Noting the Three Elusive Components of Worth

Seeking Fair Market Value

Determining Fair Market Value: Comparative Market Analysis

Getting a Second Opinion: Appraisals versus CMAs

Figuring Why Buyers and Sellers Often Start Far Apart

Chapter 11: Tapping the Internet’s Best Resources

Finding Useful Information

Doing Some Preliminary Shopping

The Drawbacks of Searching for Houses in Cyberspace

Part 4: Making the Deal

Chapter 12: Negotiating Your Best Deal

Understanding and Coping with Your Emotions

The Art of Negotiating

The Negotiating Process

The Finer Points of Negotiating

Chapter 13: Inspecting and Protecting Your Home

Conducting Thorough Inspections

Insuring Your Home

Chapter 14: It Ain’t Over till the Escrow Officer Says So

An Escrow Is a Good Thing

How You Take Title Is Vital

Getting Possessive

Coping with Buyer’s Remorse

Part 5: The Part of Tens

Chapter 15: Ten Financial “To Dos” After You Buy

Stay on Top of Your Spending and Saving

Consider Electronic Mortgage Payments

Rebuild Your Emergency Reserve

Ignore Solicitations for Mortgage Insurance

Disregard Solicitations for Faster Payoff

Consider Appealing Your Tax Assessment

Refinance if Interest Rates Fall

Keep Receipts for All Improvements

Ignore Solicitations to Homestead

Take Time to Smell the Roses

Chapter 16: Ten Things to Know When Investing in Real Estate

Real Estate Is a Solid Long-Term Investment

Real Estate Investing Isn’t for Everyone

REITs Are Good if You Loathe Being a Landlord

Don’t Invest in Limited Partnerships

Avoid Timeshare Condos and Vacation Homes

Residential Properties Are Your Best Investment Option

Consider Fixer-Upper Income Property

Consider Converting Small Apartment Buildings to Condos

Consider the Property’s Cash Flow

Your Rental Losses Are Limited for Tax Purposes

Chapter 17: Nearly Ten Things to Consider When Selling Your House

Why Are You Selling?

Can You Afford to Buy the Next Home?

What’s It Worth?

Have You Done Your Homework to Find a Good Real Estate Agent?

Do You Have the Skills to Sell the House Yourself?

Have You Properly Prepared the House for Sale?

Do You Understand the House’s Hot Buttons?

What Are the Financial Ramifications of Selling?

Do You Know the Rules for Capital-Gains Taxes on the Sale?

Part 6: Appendixes

Appendix A: Example of a Good Inspection Report

Appendix B: Glossary

Index

About the Authors

Connect with Dummies

End User License Agreement

List of Tables

Chapter 1

TABLE 1-1 Figuring Future Rent

Chapter 2

TABLE 2-1 Your Spending, Now and After Purchasing a Home

Chapter 3

TABLE 3-1 Monthly Mortgage Payment Calculator

TABLE 3-2 2025 Federal Income Tax Brackets and Rates

Chapter 10

TABLE 10-1 Sample CMA — “Recent Sales” Section

TABLE 10-2 Sample CMA — “Currently for Sale” Section

List of Illustrations

Chapter 1

FIGURE 1-1: The skyrocketing cost of renting.

Chapter 3

FIGURE 3-1: It takes many years into a mortgage to begin making real progress a...

FIGURE 3-2: Itemize mortgage interest and property tax deductions on Schedule A...

Chapter 4

FIGURE 4-1: Median home sale prices in the United States since 1963.

Chapter 5

FIGURE 5-1: How a credit score breaks down.

Chapter 7

FIGURE 7-1: These documents may be waiting for you in the lender’s loan papers ...

FIGURE 7-2: This type of form grants permission to your mortgage lender or brok...

FIGURE 7-3: Here’s an estimated closing costs worksheet.

FIGURE 7-4: The first part of Section I summarizes your personal information.

FIGURE 7-5: The middle part of Section I details your employment.

FIGURE 7-6: The last part of Section I details your other (nonemployment) incom...

FIGURE 7-7: Section II asks for what you have and what you owe.

FIGURE 7-8: Section III has you list real estate you already own.

FIGURE 7-9: Section IV details the purpose of your loan and how you plan on usi...

FIGURE 7-10: Declare yourself in Section V; watch out for the red flags.

FIGURE 7-11: Honesty counts in Section VI.

FIGURE 7-12: Section VIII is used to track discrimination.

FIGURE 7-13: Exercise your right to your property’s appraisal — ask for a copy.

Chapter 10

FIGURE 10-1: How buyers and sellers approach fair market value.

Chapter 13

FIGURE 13-1: An example of the type of superficial inspection report that you d...

Chapter 14

FIGURE 14-1: TRID Loan Estimate. When your escrow closes, you will get a TRID C...

Guide

Cover

Table of Contents

Title Page

Copyright

Begin Reading

Index

About the Author

Pages

i

ii

iii

vii

viii

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

161

162

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

200

201

202

203

204

205

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

232

233

234

235

236

237

239

240

241

242

243

244

245

246

247

248

249

250

251

252

253

254

255

256

257

258

259

261

262

263

264

265

266

267

268

269

270

271

272

273

274

275

276

277

278

279

280

281

282

283

284

285

286

287

288

289

290

291

292

293

294

295

296

297

298

299

300

301

302

303

304

305

306

307

308

309

310

311

312

313

314

315

316

317

318

319

320

321

322

323

324

325

326

327

328

329

330

331

332

333

334

335

336

337

338

339

340

341

342

343

344

345

346

347

348

349

351

352

353

354

355

356

357

359

360

361

362

363

364

365

367

368

369

370

371

372

373

374

375

376

377

378

379

380

381

382

383

384

385

386

387

388

389

390

391

392

393

394

395

396

397

398

399

400

401

402

403

404

405

407

408

409

410

411

412

413

414

415

416

417

418

419

420

421

422

423

425

426

427

428

429

430

Praise for Previous Editions of Home Buying For Dummies

“It is absolutely practical. They cover the basics in straightforward language and go into enough detail to make them the only books you’ll need.”

— Eric Antonow, president and CEO, Katabat Corp.

“As a first-time home buyer, I found this book to be a quick read and immensely helpful in knowing what to ask my agent, what to look for on walk-throughs, what to expect in terms of offers and counteroffers, as well as the entire timeline and process from open house to moving in. This book really is invaluable to anyone purchasing a home, even if you’re not a first-time home buyer.”

— Travis A. Wise, San Jose, CA

“Because I bought this book, I was able to carry on intelligent conversations with my agent and lender when I recently purchased a home. Even better, I felt prepared for those conversations and much more in control of the situation than I would have had I not read this book. Thanks to the authors for doing such a great job!”

— Jeff C. Benson, Lake Zurich, IL

“I never bought real estate in my life. I never shopped for a mortgage in my life. But after reading this book, I am extremely well prepared when I call them and when they walk through the door to meet with me.”

— Ben Milano, Lindenhurst, NY

“If you are considering buying a home, don’t fail to read this excellent new book. The book is full of profitable ‘insider tips’ which most real estate writers either don’t know or are afraid to reveal. The advice is so good I wish I had written it … on my scale of 1 to 10, this outstanding book rates a 12.”

— Robert J. Bruss, Tribune Media Services

“ … Home Buying For Dummies immediately earned a prominent spot on my reference bookshelf … takes a holistic approach to home buying.”

— Broderick Perkins, San Jose Mercury News

“ … invaluable information, especially for the first-time home buyer …”

— Carol Nuckols, Fort Worth Star-Telegram

Here’s what critics have said about Eric Tyson and his previous national bestselling personal finance guides:

“Personal Finance For Dummies is the perfect book for people who feel guilty about inadequately managing their money but are intimidated by all of the publications out there. It’s a painless way to learn how to take control. My college-aged daughters even enjoyed reading it!”

— Karen Tofte, producer, National Public Radio’s Sound Money

“Among my favorite financial guides are … Eric Tyson’s Personal Finance For Dummies.”

— Jonathan Clements, The Wall Street Journal

“Smart advice for dummies … skip the tomes … and buy Personal Finance For Dummies, which rewards your candor with advice and comfort.”

— Temma Ehrenfeld, Newsweek

“Eric Tyson is doing something important — namely, helping people at all income levels to take control of their financial futures. This book is a natural outgrowth of Tyson’s vision that he has nurtured for years. Like Henry Ford, he wants to make something that was previously accessible only to the wealthy accessible to middle-income Americans.”

— James C. Collins, co-author of the national bestseller Built to Last; lecturer, Stanford Graduate School of Business

“Eric Tyson … seems the perfect writer for a … For Dummies book. He doesn’t tell you what to do or consider doing without explaining the why’s and how’s — and the booby traps to avoid — in plain English… . It will lead you through the thickets of your own finances as painlessly as I can imagine.”

— Clarence Peterson, Chicago Tribune

“Personal Finance For Dummies is, by far, the best book I have read on financial planning. It is a simplified volume of information that provides tremendous insight and guidance into the world of investing and other money issues.”

— Althea Thompson, producer, PBS Nightly Business Report

More Bestselling For Dummies Titles by Eric Tyson

Investing For Dummies®

A Wall Street Journal bestseller, this book walks you through how to build wealth in stocks, real estate, and small business as well as other investments. Also check out the recently released Investing in Your 20s and 30s For Dummies.

Mutual Funds For Dummies®

This best-selling guide is now updated to include current fund and portfolio recommendations. Using the practical tips and techniques, you’ll design a mutual fund investment plan suited to your income, lifestyle, and risk preferences.

Personal Finance For Dummies®

Discover the best way to establish and achieve your financial goals, reduce your spending and taxes, and make wise personal financial decisions. Wall Street Journal bestseller with more than 1.5 million copies sold in all editions, and winner of the Benjamin Franklin business book award.

Personal Finance in Your 20s For Dummies®

This hands-on, friendly guide provides you with the targeted financial advice you need to establish firm financial footing in your 20s and to secure your finances for years to come. When it comes to protecting your financial future, starting sooner rather than later is the smartest thing you can do.

Real Estate Investing For Dummies®

Real estate is a proven wealth-building investment, but many people don’t know how to go about making and managing rental property investments. Real-estate and property management expert Robert Griswold and Eric Tyson cover the gamut of property investment options, strategies, and techniques.

Small Business For Dummies®

This practical, no-nonsense guide gives expert advice on everything from generating ideas and locating start-up money to hiring the right people, balancing the books, and planning for growth. You’ll get plenty of help ramping up your management skills, developing a marketing strategy, keeping your customers loyal, and much more. And, find out to use the latest technology to improve your business’s performance at every level. Also available from co-authors Eric Tyson and Jim Schell, Small Business Taxes For Dummies.

Home Buying Kit For Dummies®, 8th Edition

Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

Copyright © 2025 by Eric Tyson and Ray Brown. All rights reserved, including rights for text and data mining and training of artificial technologies or similar technologies.

Media and software compilation copyright © 2025 by John Wiley & Sons, Inc. All rights reserved, including rights for text and data mining and training of artificial technologies or similar technologies.

Published simultaneously in Canada

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Trademarks: Wiley, For Dummies, the Dummies Man logo, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc. is not associated with any product or vendor mentioned in this book.

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ.

For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax [phone]. For technical support, please visit https://hub.wiley.com/community/support/dummies.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in ebooks or in print-on-demand. If this book refers to media that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Control Number: 2025931615

ISBN 978-1-394-29080-2 (pbk); ISBN 978-1-394-29082-6 (ebk); ISBN 978-1-394-29081-9 (ebk)

Introduction

Welcome to Home Buying Kit For Dummies, 8th Edition!

For about the cost of a couple of movie tickets or your monthly Netflix subscription, you can quickly and easily discover how to save thousands — perhaps even tens of thousands — of dollars the next time you buy a home.

How can we make such a claim? Simple. Each of us has spent decades personally advising thousands of people like you about home purchases and other important financial decisions. We’ve seen how ignorance of basic concepts and practices translates into money-draining mistakes. And we know that many of these mistakes are both needless and avoidable.

No one is born knowing how to buy a home. Everyone who’d like to buy a home must learn how to do it. Unfortunately, too many people get a crash course in the school of hard knocks — and learn by making costly mistakes at their own expense.

We know you’re not a dummy. You’ve already demonstrated an interest in discovering more about home buying by selecting this book, which can help you make smart moves and avoid financial land mines.

In the event that you’re still wondering whether to buy this book, consider that buying a home may well be the largest purchase that you ever make. Buying a home can send shockwaves through your personal finances and may even cause a sleepless night or two. Purchasing a home is a major financial step and a life event for most people. It certainly was for us when we bought our first homes. You owe it to yourself to do things right.

About This Book

We know that many home-buying books are competing for your attention. Here are several other compelling reasons why this is the best book for you:

It’s in plain English.

Because we work with real people and answer real questions, our information is current, and we have a great deal of experience in explaining things. This experience can put you firmly in control of the home-buying process (rather than having it control you).

It’s objective.

We’re not trying to sell you an expensive newsletter, seminar, or some real estate product you don’t need. Our goal is to make you as knowledgeable as possible before you purchase a home. We even explain why you may

not

want to buy a home. We’re not here to be real estate cheerleaders.

It’s holistic.

When you purchase a home, that purchase affects your ability to save money and accomplish other important financial goals. We help you understand how best to fit your home acquisition into the rest of your personal-finance plan.

It’s a reference.

You can read this book from cover to cover if you want. However, we know you’re busy and you likely don’t desire to become a real estate expert, so each portion of the book stands on its own. You can read it piecemeal to address your specific questions and immediate concerns.

Icons Used in This Book

Sprinkled throughout this book are cute little icons to help reinforce and draw attention to key points or to flag stuff that you can skip.

This bull’s-eye notes key strategies that can improve your real estate deal and, in some cases, save you lots of moola. Think of these as helpful little hints we would whisper in your ear if we were close enough to do so!

Numerous land mines await novice as well as experienced home buyers. This explosive symbol marks those mines, and then we tell you how to sidestep them.

Occasionally, we suggest that you do more research or homework. Don’t worry: We tell you exactly what you need to do.

“If I’ve told you once, I’ve told you a thousand times… .” Remember good old Mom and Dad? From time to time, we tell you something quite important and perhaps repeat ourselves. Just so you don’t forget the point, this icon serves as a little nag to bring back those childhood memories.

Some of you are curious and have time to spare. Others are busy and just want to know the essentials. This geeky icon points out tidbits and information that you don’t really have to know, but understanding this stuff can make you more self-confident and proud!

Want to calculate your monthly expenses? Or have a handy-dandy list available when you interview Realtors and home inspectors? Wanna see what your bank may include on a mortgage application? These along with lots of other important stuff can be found online at www.dummies.com/go/homebuyingkitfd8e.

Beyond the Book

In addition to the material in the print or ebook you’re reading right now, this product also comes with some access-anywhere goodies on the web. Check out the free Cheat Sheet by typing “Home Buying Kit Cheat Sheet” in the search box at www.dummies.com for 20 home-buying tips and a monthly mortgage payment calculator.

Also, go online to www.dummies.com/go/homebuyingkitfd8e to access the “kit” part of this book. You’ll find a variety of useful forms, including many of the lists and applications that we show in the book. You can print out the application forms and fill them in, just to ensure you have all the information you need. And you can also print out the lists of questions for potential Realtors and property inspectors so you’re prepared when interviewing them.

Here’s a list of what you’ll find at www.dummies.com/go/homebuyingkitfd8e:

Table 1-1

Figuring future rent

Table 2-1

Your spending, now and after purchasing a home

Table 3-1

Monthly mortgage payment calculator

Chapter 3

Estimated homeownership expenses

Chapter 3

1040 Schedule A

Chapter 7

Request for Copy of Tax Return (Form 4506)

Chapter 7

Tax Information Authorization (Form 8821)

Chapter 7

Release of Authorization grants permission to your mortgage lender or broker to verify and document the financial facts of your life

Chapter 7

Good faith estimate form

Chapter 7

The Uniform Residential Loan Application

Chapter 7

Right to receive appraisal form

Chapter 9

Agent activity list

Chapter 9

Interviewing agents

Chapter 9

Agent references

Chapter 13

Interviewing property inspectors

Chapter 14

TRID Loan Estimate

Appendix A

Sample Inspection Report

Where to Go from Here

Odds are you’re not quite ready to bolt over to the nearest bank and take out a mortgage — and we don’t suggest that you blindly call the first Realtor you find online. It’s up to you where you go from here, but if you’re just beginning to think about buying your first home, we recommend that you read this book straight through, cover to cover, to maximize your home-buying savvy. But the A-to-Z approach isn’t necessary — if you feel pretty confident in your knowledge of certain areas, pick other ones that you’re most interested in by either skimming this book’s table of contents or by relying on the well-crafted index at the back of the book.

Part 1

Getting Started with Buying a Home

IN THIS PART …

Compare the pros and cons as well as the economics of renting versus buying and owning your own home.

Get your personal finances in order before buying.

Determine how much you can afford to spend on a home.

Understand the drivers of home prices in your local market.