chap 10 Valuation of a Home

chap 10 Valuation of a Home - Serves as collateral Lower...

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Valuation of a Home Effects on business activity and zoning laws Business activity nearby increases demand for housing in an area Zoning laws may affect desirability Obtaining a second opinion on your valuation Remember that brokers represent sellers! Valuation of a Home (cont’d) Valuation of a Home (cont’d) Negotiating a price Most sellers will accept less than their asking price Seller may accept your offer, reject it, or suggest a revision A contract will stipulate the agreed upon price and any other conditions Transaction Costs of Purchasing a Home Down payment Usually 10 to 20 percent
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Unformatted text preview: Serves as collateral Lower down payment may be required for government backed loans Federal Housing Administration (FHA) Veterans Administration (VA) Maintenance of an escrow account required Transaction Costs of Purchasing a Home (contd) Closing costs Loan application feefrom $100$500 Points: a fee charged by the lender when a mortgage loan is provided; stated as a percentage of the mortgage loan amount Loan origination feeabout 1% of the mortgage amount Appraisal feefrom $200$500 Title search and insurance...
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This note was uploaded on 02/22/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.

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