Buying A Home
50 Lessons Over Easy
1
FINANCIAL & LEGAL
MATTERS TO SETTLE WHEN
BUYING A HOME
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• Write “housing options” in the center of a piece
of paper. Add the following terms around the
edges: Condo, Single Family, Apartment,
Manufactured/Mobile home, Townhouse.
• Summarize what you know about each option, as
well as the advantages and disadvantages of each.
• Share answers in small groups.
3
Assignment: Site Zone
• Students will take the handout and use the
crayons, markers, and/or map pencils
Public Areas = Green
Private Areas = Blue
Service Areas = Yellow
4
Purchase Agreement
• A contract that is signed when both the buyer
and the seller have reached an agreement on the
house purchase.
• This contract should include the description of
the real estate, its location, the purchase price,
and the possession date.
5
Abstract Title
• A title is the tight ownership of a particular piece
of property.
• An abstract title is a summary of the public
records relating to the ownership of a particular
piece of property.
• This document shows that the seller is the legal
owner of the home.
6
Survey
• This document or map shows the
measurements and boundaries of the
property.
• It is often required by the lender
before they will lend money for the
real estate.
7
Mortgage
• A lone for a home is called a mortgage.
• Most people have to loan money from a
lender to purchase a home.
• It is paid in monthly payments over a set
of several years.
8
Appraisal
• An appraisal is the estimate of the
value of the real estate.
• Most lenders will require it before
getting a loan.
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Closing Cost
• These are fees that must be paid off before the
sale of the home is final.
• Closing costs can include: abstract of title,
survey, appraisal, recording the mortgage,
recording the deed, documentary stamps, escrow
fees and attorney’s fees.
10
If you were single, just graduating from
college, would you rent or buy? In both
cases, what are the requirements? If you
had a small family, would you choose to
rent or buy and why? Why might people
choose to rent a home their entire life?
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Video: HGTV.COM
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RM 5-1…Hunting for Housing
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Video: HGTV.COM
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Assignment:
Buying or Renting
Activity C…Buying or Renting
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Guest Speaker
• Real Estate Agent
• Activity D: Real Estate
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