Your First Home: The Smart Way to Get It and Keep It
Record Foreclosures. Mortgage Meltdown. Credit Crunch. The headlines are filled with doom and gloom about the housing market. Despite the bad news, millions of people in the United States still want to achieve the American Dream of homeownership - and millions more are trying desperately to hang on to homes they previously bought.Maybe you're one of them. Too bad nobody ever taught you how to become a smart homebuyer - or even told you the whole truth about whether you were really ready to...
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Record Foreclosures. Mortgage Meltdown. Credit Crunch. The headlines are filled with doom and gloom about the housing market. Despite the bad news, millions of people in the United States still want to achieve the American Dream of homeownership—and millions more are trying desperately to hang on to homes they previously bought. Maybe you're one of them. Too bad nobody ever taught you how to become a smart homebuyer—or even told you the whole truth about whether you were really ready to own a home at all. Until now. In Your First Home: The Smart Way to Get It and Keep It, Lynnette Khalfani-Cox, The Money Coach, offers a no-hype personal finance guide that will help you prepare for, find and finance the home of your dreams. For those worried about making the leap from renter to owner, Lynnette explains how to turn bad credit into perfect credit, in seven simple steps. Lynnette walks you step-by-step through the house-hunting and mortgage application process, saving you money and unnecessary frustration.
Acknowledgments 13Foreword 15Introduction 17The Joy (and Pain) of Owning My First Home 18Sick and Tired of Renting? 18The Financial Benefits of Homeownership 19How to Use This Book 20The ABCs of Finding and Financing Your First Home 20The Hard Part: Preparing for Homeownership 25Determine If You are Really Ready to Own 27Your Eureka Moment 27A Necessary Reality Check 28Get Emotionally and Financially Committed 29Some Words of Wisdom for Women 30Advice for Singles - And Couples 32Money Matters Minorities Must Know 33People Who Shouldn't Become Homeowners 33Improve Your Credit 37What is Your Current FICO Score? 38Why You Need All Three Credit Reports and FICO Scores 39How Your Credit Rating Stacks Up Against Others 40The Five Factors That Determine Your Credit Score 41Why Great Credit is Better Than Cash in the Bank 43How to Fix Credit Problems and Establish Perfect Credit 44Can You Piggyback off Another Person'sGood Credit? 52Building Credit With Limited or No Credit History 53Correcting Errors in Your Credit Report - In Just 48 Hours 54Save for a Down Payment and Closing Costs 57The Importance of Establishing a Cash Cushion 58How Big of a Down Payment Do You Really Need? 59How Much House Can You Truly Afford? 63Why Smart Buyers Factor in Contingencies 63How to Calculate Your Debt-to-Income Ratio 66Front-End and Back-End Ratios Explained 67Setting Realistic Expectations 69Budgeting 101: Mastering Some Financial Basics 70Two Easy Steps to Creating a Budget You Can Live With 74Tips for How and Where to Save Money 77Tips From a Single Mom Who Saved {dollar}50,000 in Two Years 81The Special Account That Triples Your Savings, Guaranteed 82Alternatives When You Have Little or No Money 84Using Your Retirement Savings 84Cash Gifts From Family or Friends 86The Insurance Solution 87How Your Employer Can Help 87Why Big Business Wants You to be a Homeowner 88New Federal Housing Tax Breaks May be on the Way 88Take Advantage of First-Time Homebuyer Programs 91Aid is Available to Overcome the Down Payment Dilemma 91How Move-Up or Repeat Buyers Can Benefit Too 93Federal/National Programs You Should Know 94State Initiatives to Help Renters Become Owners 99County Programs for First-Time Homebuyers 105Tapping Into Local and City Housing Resources 106The Latest From NY to the Windy City & Washington DC 107Popular Non-Profit and Community-Based Programs 110Federal Rules Impacting Down Payment Programs 117Will Government Grant Programs Replace Non-Profit Aid? 118Do Non-Profit Assistance Programs Really Help or Hurt? 121Build Sweat Equity in a Home With Habitat for Humanity 123Lender-Specific Programs for Which You Might Qualify 124Special Homeownership Programs Based on Your Job 127The Rise of Employer Assisted Housing Programs 128The Money is Out There - Just Go Get It! 129Make Yourself Attractive to a Lender 131The Importance of Cash, Credit, and Character 131Why and How Banks Assess Your Character 132The Character Trait That Can Bolster Your Application 133Tipping the Scales in Your Favor 136Turning a "No" into a "Yes" With Compensating Factors 137How to Get a Loan With {dollar}1 a Month in Income 137How Computers Help Grade Your Loan Application 138Insider Tips From an Underwriter 139Let Non-traditional Assets Boost Your Qualifications 140Intangibles Can't Hurt 141Red Flags Bankers Don't Like 144Looking Good on Paper 144Get Pre-Approved for a Mortgage 147The Difference Between Pre-Qualified and Pre-Approved 147What to Expect During the Pre-approval Process 148The Benefits of Getting Your Loan Pre-Approved 148A Pre-Approval Letter Saves Time, Money, and Effort 149The Limitations of Pre-Approval Letters 150What to Do if You Don't Get Pre-Approved 151The Fun Part: Becoming an Active House-Hunter 155Find Your Dream Home 157Enlist the Assistance of a Good Real Estate Agent 157Should You Use a Buyer's Agent? 162A Few Final Words About Agents 164Getting the Most out of the MLS Database 166Using the Internet for Your Search 167Leveraging "For Sale By Owner" Networks 170Do's and Don'ts When You Attend an Open House 171The Importance of Cruising the Neighborhood 175Five Reasons to Hire a Competent Home Inspector 177Questions to Ask Before Choosing an Inspector 180Lining Up the Best Lawyer for You 182Negotiate the Best Possible Deal From a Seller 183Tips to Secure the Right Price From a Seller 183Strategies for Buying in a Seller's Market 184Strategies for Buying in a Buyer's Market 187Knowing When to Walk Away 191Select the Right Mortgage and a Good Lender 193The ABCs of How Mortgages Work 193Pros and Cons of Fixed-Rate Mortgages 195Adjustable Rate Mortgages: Are They Right for You? 195What Flavor is Your Mortgage: Plain Vanilla or Exotic? 197Interest Only Loans: A Buyer's Dream or Nightmare? 198Some Thoughts About Subprime Mortgages 199Choosing the Optimal Loan for Your Situation 201Private Mortgage Insurance Vs. "Piggyback" Loans 202Advice for Selecting a Reputable Lender 204Can You Benefit From Using a Mortgage Broker? 205Advantages of Using Direct Lenders 209Smart Questions You Must Ask About Your Mortgage 209Recognizing "Junk" Loan Fees from Reasonable Ones 212How to Decipher Your Good Faith Estimate 214Protect Yourself from Excessive Loan Charges 217Get an Objective, Professional Evaluation of Your Loan 218Common Mortgage and Home Buying Scams to Avoid 220Sail Through the Closing Process 223What to Expect During This Process 223Knowing All the Players Involved in Your Closing 224Preparing for Problems That Could Occur at Settlement 225Typical Closing Costs 225How to Know What You're Paying for 227Dealing With Buyer's Remorse 228You've Got the Keys, Now What? 230The Future Part: Determining Your Own Destiny 231Manage and Preserve Your Biggest Asset 233Being a Responsible Homeowner 234Your Home as an Asset 234What Makes a Home a Unique Investment? 236Turning Your Net Worth and Property Into a Legacy 237Five Tax Tips for Homebuyers 238Estate Planning Tips for Homeowners 239Follow the Path to Sustainable Homeownership 243The Seven Commandments of Successful Homeowners 244Always Pay Your Mortgage on Time 244Keep Up With All Required Property Taxes 247Make Sure Your Home is Consistently and Adequately Insured 249Maintain Your Home in the Best Possible Condition 251Properly Manage the Equity in Your House 253What Nobody Tells You About Home Equity Loans 255Do's and Don't's When Refinancing Your Home 258Increase the Rate of Appreciation on Your Property 260Home Improvements That Pay off 260Avoid Foreclosure and Other Pitfalls 263What to Do if You Face Financial Difficulties 264Foreclosure Myths and Realities 265Strategies and Alternatives to Ward off Foreclosure 267Beware of These Foreclosure Scams 269Reputable Homeownership Preservation Groups to Know 271State and Federal Efforts to Prevent Foreclosure 274Unexpected Sources That Will Pay Your Past Due Mortgage 275Last Ditch Efforts if Foreclosure is Inevitable 277How to Bounce Back if Foreclosure Does Occur 278Epilogue: Enjoy the Ride - And Strategize to Buy Your Second Home 281The True Cost of Homeownership 283State Websites for First Time Homeowner Programs 284Mortgage Pre-Approval Checklist 289Lender Comparison Chart and 10 Questions to Ask 291Recommended Reading for Renters and Owners 292Homebuyer Resources Available Online 293Index 297
