Chapter 13 Flashcards
5 types of closing costs
Title search fee
Title insurance
Attorney’s fee
Appraisal fee
Credit report
5 things to consider when purchasing home
Location
Price
Job opportunities
Neighborhood
Safety
2 quality of life advantages of owning a home
Privacy
Personal freedom
2 sources for a down payment
Savings or relatives/parents
2 tax deductions are:
Property tax and interest on mortgage
2 benefits of real estate agent
Knows market
Helps close sale
Renting or owning real estate is a type of tax shelter
False
Most common source for down payment money is a bank
False
A lien is a right or privilege one person has to use the land of another person
False
Most lenders require that the borrower buy title insurance
True
Home ownership offers:
Financial advantage
Quality of life advantages
Tax savings
Cost of home ownership is lowered through:
Tax deductions
Who conducts a title search and issues a report?
Title insurance company
Real estate agents use comps to get a general idea of a property’s ____ value, which helps sellers establish a list price for their home
Estimated
Appraised value
Comparing the value of your home with homes in the same area
Assessed value
Home value set annually by city/county to compute property tax
Estimated value
Used to help sellers establish a list price by comparing recently sold homes in area
Escrow account
A find where money is held to pay amounts that will be due that year
Origination fee
Amount charged to process loan papers
Closing costs
Settlement costs to transfer ownership from seller to buyer
Property insurance
Must have to cover building and contents
CC&Rs
Rules to maintain property values and protect property owners
Zoning laws
Building permits for modifying property
Contingencies
Conditions that limit buyer’s liability
Inspection report
Details of existing conditions of the house
Escrow closer
Person who gathers and verifies info, prepares closing statement, makes sure title passes to buyer
Closing statement
Lists what buyer owes and what credits will be applied
Clear title
No liens or judgements
Title search
Check for ownership and claims to property
