Buying a Home When You're Single , livre ebook

Buying a Home
When You re Single
Revised and Updated Edition
Donna G. Albrecht
Copyright 1990 and 2001 by Donna G. Albrecht. All rights reserved
Published by John Wiley Sons, Inc.
Design and production by Navta Associates, Inc.
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 Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744. Requests to the Publisher for permission should be addressed to the Permission Department, John Wiley Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008, e-mail: PERMREQ@WILEY.COM .
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional person should be sought.
This title is also available in print as ISBN 0-471-39241-3
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
This book is dedicated to my husband, Mike, and our daughter, Abby, for their incredible support and patience through the research and writing of this project.
Contents
Acknowledgments
Introduction
Farewell to Fear
Changes in Home Search Methods
Magnets for Singles
A Taxing Subject
1 A Home Isn t Always a House
Evaluate Your Personal Priorities
Location, Location, Location
Styles of Housing
Is Buying Really for You?
Lifestyle Choices Worksheet
2 Home, Home on the Web
Here and Now
Specialty Sites
Looking for Lenders
No Computer? No Problem
3 Association by Gilt
What Is a Community (or Home Owners ) Association?
What s in It for You?
Avoiding the Doghouse
Dollars and Sense
4 How Much Home Can You Afford?
Why You Should Prequalify or Get Preapproved for a Loan
How to Prequalify
How Much Are You Likely to Qualify For?
The Last Word in Fees: Closing Costs
Affordable Ways to Get Down
5 All Home Loans Are Not Created Equal
Kinds of Lenders
Kinds of Loans
Loan Guarantee Programs
Comparing Loans
Impounds Impact Your Budget
Lure of the Biweekly Mortgage Payment
6 Special Help for First-Timers
Mortgage Revenue Bonds
Sweat Equity and Down Payment Programs
Mortgage Credit Certificates
Local Programs Tackle Local Problems
7 Be a Star-Get an Agent
Why Get an Agent?
Kinds of Representation
How to Choose an Agent
What to Expect from Your Agent
8 Something New-or Tried and True?
Something New
Choosing a New Home
Check Out the Builder
Tried and True
Seduction of Curb Appeal
Buyer Beware
Look Before You Leap (Home Inspections)
Home Choice Checklist
9 Have I Got a Deal for You
Review Your Strategy
Win-Win Negotiations
Making an Initial Offer
Do It in Writing
The Face-off
10 An Escrow Is Not a Large Bird
How Long Will It Take?
Before You Close
You Can Tell a Home by Its Title
Cure for Seller s Remorse
If You Want to Back Out
What s in a Name? (Ways to Take Title)
11 After the Dance Is Over
Saving Your Paperwork
Don t Sweat the Small Stuff
A Taxing Subject
Basis for Your Basis
12 Congratulations, It s a Home!
Turning On Your New Home
Keeping in Touch-Current Contacts
Before Your Move
Helping Your Best Friend
Sometimes, Take Your Time
Improving Your Investment
Protect Your Investment
Finale!
Glossary
Appendix I Where To Find Special Buyer s Programs
Appendix II Amortization Tables
Index
Acknowledgments
One thing my many years of writing about real estate for consumers has given me is a deep respect for the generosity of many experts and organizations in the real estate industry.
Many have freely shared their expertise with me. Because of their generosity, I am able to give readers the best, most up-to-date information available. I would especially like to express my gratitude to the National Association of Realtors, National Council of State Housing Agencies, National Association of the Remodeling Industry, American Land Title Association, California Land Title Association, Community Associations Institute, National Association of Mortgage Brokers, Mortgage Bankers Association of America, American Society of Home Inspectors, REMODELING magazine, and New Orleans s Neighborhood Development Foundation.
I owe a debt of gratitude to some skilled professionals who were instrumental in providing their professional expertise, including Julian Block, Shari Steiner, Douglas L. Pitchford, Michael D. Barry, Sereta Churchill, and Greg Warner.
Special thanks to my agent, Elizabeth Pomada, and my editors, Tom Miller and Kimberly Monroe, for all your hard work in making this revised edition possible.
Finally, my thanks to all the single home buyers who talked with me about their special concerns and needs. Many of their stories (although some have fictionalized names) are included in this book.
Introduction
If you are still waiting for Prince or Princess Charming to gallop up on a white horse before you buy a home of your own, wake up! It s time to take control of your life.
Now, imagine yourself owning your own home. Someplace where you, not a landlord, have control.
Whether you eagerly look forward to abandoning stark white-painted walls for soothing colors or hunger for the opportunity to design your kitchen to meet your culinary skills, you are reading this book because you believe you are ready to take control of the environment you live in. And you can.
Whether you are never married, divorced, or widowed, you are a part of the fastest-growing segment of the home-buying public.
According to figures from the National Association of Realtors, 43 percent of first-time buyers in 1997 (the latest figures available) were single males or females with or without dependents, and unmarried couples. This is a dramatic rise from the 29 percent reported in the 1986-1987 study. Statistics indicate that among repeat buyers (a group that tends to include more families moving up to bigger homes), singles were still a force to be reckoned with, purchasing 29 percent of the homes.
Farewell to Fear
Yet, too often, fear keeps singles from getting the homes they want and deserve. Nancy Godfrey knows that fear. She wanted the security of owning her own home, but the worry that she might have problems making her payments (even though she has a secure job as travel manager for a major oil company) was overwhelming.
The idea of buying a condo was an enormous commitment for Godfrey. Since childhood, she had internalized societal messages telling her that women do not deserve a home of their own unless they are married and that good people do not have financial debts. She candidly admits that not having a partner to lean on if a problem occurs was a constant factor in her considerations.
At the same time, she realized that she was not living the lifestyle she really wanted. Godfrey loves diversity. One of her great joys is living in San Francisco where diversity is not only tolerated, it is celebrated.
However, the apartment she was renting was in the Marina neighborhood, which was desirable but not very diverse. Worse, home prices were escalating at a frightening pace; if she did not take a chance and buy now, she might be priced out of the market forever.
Summoning her courage, Godfrey stepped out of her safe habitat, paid off her credit cards to reduce the stress caused by debt, and found a homey condominium in the ethnically and socially diverse Haight/Ashbury neighborhood.
But she didn t stop there. Godfrey owned that condo for a few years and then moved up to a bigger town house. She advises others that if something is keeping them too frightened to buy a home-whether that something is social, attitudinal, or financial-they should tackle it head on. There is something very wonderful about being in your own home, Godfrey says contentedly.
Changes in Home Search Methods
Singles today are likely to be more sophisticated and computer-savvy than ever before. These traits are reflected in everything they do-including searching for a home. According to a study done by the California Association of Realtors, 31 percent of the people who search the Internet for a home are single, and women are slightly more likely to initiate and investigate the home-buying process on the Internet than men.
If you choose, you can go online to look at properties (many sites have photos to help you see exactly how the property looks), find a Realtor, and qualify for a mortgage. For singles whose lives are already full and busy, the ability to do some or all of these steps on a computer-any time of the day or night-can be an incredible convenience.
The book contains a brand-new chapter on surfing the Web for real estate information; in addition, organizations and programs with Web sites have their uniform resource locators (URLs) listed, usually after the first mention of their name. If you are interested in more information on any of these organizations, their Web sites will give you the information and contacts you want. You may also find links to other organizations and programs that will be helpful.
Magnets for Singles
San Francisco is one of several major metropolitan areas that tend to attract singles who are likely to buy a home of their own. According to the 24th Annual Survey of Recent Home Buyers done by Chicago Title Corporation, San Francisco takes the lead with 63.9 percent of home buyers there in 1999 being single.
At the same time, strong sales to singles were r