thumbnail of A Place to Call Home; No. 3; Home at Last
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<v announcer>A place to call home is made possible by a grant from G.E. <v announcer>Capital Mortgage Corporation. <v Speaker>[wedding march plays] <v actor: minister>We are gathered here today to join this couple in a holy union, do you? <v actor: minister>Michael and Jennifer promise to love, honor and maintain your exteriors? <v actor: minister>Do you promise to stay together through sickness, health and dry rot through <v actor: minister>foul weather and fair? Will you protect the foundation of this marriage and promise <v actor: minister>to build additions and multiply. <v actor: minister>Remember, there is no shame in seeking comfort and information from knowledgeable <v actor: minister>exterminators in times of infestation. <v actor: minister>Michael and Jennifer, will you be good neighbors, curb your dog <v actor: minister>and attend all block party celebrations? <v actor: Michael and Jennifer>We will. <v actor: minister>If no loan officer objects to this union. <v actor: minister>I now pronounce you homeowners. <v actor: minister>You may now mow the lawn. Congratulations.
<v actor: Jennifer>Oh thank you. <v actor: Michael>Thank you very much. <v Speaker>[intro music plays] <v Linda Benzel>Buying a home is a major personal and financial commitment, but for most of us, the <v Linda Benzel>benefits far outweigh any drawbacks. <v Linda Benzel>Hello, I'm Linda Benzal. Last time we met some real estate professionals and <v Linda Benzel>went house shopping with their three families. <v Linda Benzel>We also learned about some low interest loan programs for first time homebuyers. <v Linda Benzel>Well, on this, our final edition of A Place to Call Home, we'll make the leap to <v Linda Benzel>homeownership. We will go on a home inspection and appraisal.
<v Linda Benzel>Then sit in on a closing. We'll also learn about life after homeownership. <v Linda Benzel>But first, our friends, the Baxters. <v Linda Benzel>They found a home they like in the South Chicago neighborhood where they both grew up. <v Linda Benzel>Like most first time homebuyers, the leap to homeownership is a financial stretch <v Linda Benzel>for them. Costly, unexpected house repairs could mean financial trouble down the road. <v Linda Benzel>So the Baxters made an appointment with Robin Lawson, a local home inspector, to help <v Linda Benzel>them uncover any hidden surprises before they make an offer. <v Robin Lawson>Good, good, John. How you been, young man? <v John Baxter>Very well <v Robin Lawson>Great. Lisa, how are you? <v Lisa Baxter>Fine, fine. <v Robin Lawson>Great. <v Lisa Baxter>How long you been here? <v Robin Lawson>Been here about 15 minutes. Been doing a little writing, did a walk around the exterior. <v Robin Lawson>All right. Walked on the roof. Roof looks great. <v Robin Lawson>Don't worry about it- <v Lisa Baxter>That's good to know. <v Robin Lawson>-at all. <v Lisa Baxter>OK. <v Robin Lawson>OK. Noticed several little other things that I'm going to show you and point out to <v Robin Lawson>you a little bit of lintle damage on this corner of the house. <v John Baxter>Lintel? <v Robin Lawson>The lintel above the window. I'll show it to you when we get over there. <v Robin Lawson>It's minor. Don't worry about it. Sometime down the road in the future.
<v Robin Lawson>You'll want to take care of it. <v Lisa Baxter>OK. <v Robin Lawson>OK. <v Lisa Baxter>That sounds good. <v Robin Lawson>Really, any other major points of concern? <v Robin Lawson>Any worries at all about anything you've seen when you've been through the house? <v Lisa Baxter>No, I just want to make sure that the plumbing is OK and that the heat and the air <v Lisa Baxter>conditioning is fine. <v Robin Lawson>All of the systems are basically functioning as they should function. <v Lisa Baxter>Right, right. <v John Baxter>That's good to know. <v Robin Lawson>OK? <v Lisa Baxter>OK. <v Robin Lawson>OK, let's take a little walk. I want to show you several little minor things-. <v Robin Lawson>A nonbiased opinion I think is the best thing that you could have. <v Robin Lawson>Absolutely. And a home inspector, he's seen it all. <v Everett Prewitt>In older homes, a lot of times you might have hidden defects, but older <v Everett Prewitt>homes, again, are very popular now, especially in some of the areas I've been familiar <v Everett Prewitt>with, because there's so much latitude to do so many things with them. <v Everett Prewitt>And a lot of times you do get a good bargain. <v Robin Lawson>saying, the masonry looks fantastic. <v Robin Lawson>No mortering to be done whatsoever. <v Robin Lawson>Pull's bib probably needs a washer. <v Robin Lawson>Simple fix. <v Lisa Baxter>OK. <v Robin Lawson>OK. <v Lisa Baxter>That's good <v Robin Lawson>com-ed really ought to be notified about the meter. <v Robin Lawson>OK. The seal's been broke. <v Lisa Baxter>yea... <v Robin Lawson>A little bit of a safety concern there. Ok?
<v Lisa Baxter>OK. All right. <v Robin Lawson>Let them know about it. <v Lisa Baxter>Definitely. <v John Baxter>You find anything else Robin? <v Robin Lawson> Little other safety concern here on the corner. <v Robin Lawson>John got a receptacle cover missing. <v Robin Lawson>You have live wiring in there. Again, a safety concern. <v Lisa Baxter>Ah! OK. <v Robin Lawson>Ok? Minor fix. Safety concern. <v Lisa Baxter>What about the air conditioning unit? <v Robin Lawson>Central air condenser unit. About 15 to 17 years old. <v Lisa Baxter>What's the average age on those? <v Robin Lawson>Average age is at least about 15 to 17 years. <v Lisa Baxter>So we're gonna need to replace this then? <v Robin Lawson>You may need to replace it within five years. <v Robin Lawson>Yeah. That's a distinct possibility. <v Robin Lawson>One thing I see you may be able to do is rewrap the refrigerant line here. <v Robin Lawson>OK. So just make it just a little bit more efficient for you. <v Robin Lawson>May make this thing live just a little bit longer, too. <v John Baxter>You mentioned that we might have to replace this in five years. <v John Baxter>How much is that going cost for the whole unit? <v Robin Lawson>Ballpark figure. John and Lisa, you're looking at about twelve hundred dollars. <v John Baxter>12 hundred dollars-. <v Linda Benzel>The cost of a home inspection varies from region to region, but normally runs from <v Linda Benzel>between 150 to 300 dollars. <v Linda Benzel>It's money well spent. It may keep you from buying a home that needs costly repairs.
<v Linda Benzel>And of course, you should keep the cost of any repairs in mind when negotiating the sales <v Linda Benzel>price. <v Robin Lawson>A lot of heavy duty things going on in here. <v Robin Lawson>OK, Main Foundation Wall looks great. <v Robin Lawson>OK, masonry walls. <v Robin Lawson>I see a little chalky material coming through. <v Robin Lawson>Not a lot. That's a little bit of moisture migrating through the wall. <v Robin Lawson>OK. Don't worry too much about that. <v Robin Lawson>What I do see that you may want to worry about a little bit is <v Robin Lawson>we do have an old led supply line coming in. <v Robin Lawson>This is your water main coming in from the street. <v Robin Lawson>All of your water is coming in from here. <v John Baxter>You said lead? <v Lisa Baxter>Lead? <v Robin Lawson>Lead pipe. OK. <v Robin Lawson>What you may want to do is have the city do a water test on this thing <v Robin Lawson>just to see if there is any lead leaching out into that water. <v John Baxter>Robin, how much would it be to change the entire piping system for that? <v Robin Lawson>John and Lisa, you're looking at replacing this line from the street to the home <v Robin Lawson>and a tune of about twenty five hundred to three thousand dollars. <v Lisa Baxter>It'll be worth it to me honey. <v Robin Lawson>OK. OK. This water does flow over into your water heater.
<v Robin Lawson>It's about 15 years old. <v Robin Lawson>And one of these days it may start leaking, you're looking at a replacement figure of <v Robin Lawson>about five hundred dollars. Should it ever start leaking, there is a valve <v Robin Lawson>up here that you would turn that water off that's flowing into the tank. <v Robin Lawson>OK. If you ever see it leaking, just shut that valve off. <v Lisa Baxter>And then replace it. <v Robin Lawson>And then replace the water. OK. Right. <v Robin Lawson>Furnace is over here. Let's take a look at the furnace. <v Lisa Baxter>OK. <v Robin Lawson>Your heating plant for the building is a Forestier furnace, and <v Robin Lawson>this unit is approximately 15 to 17 years of age. <v Robin Lawson>It looks great. <v Lisa Baxter>It looks really clean. <v Robin Lawson>I'm going to take a mirror and a flashlight and I'm going to look at a little bit closer. <v Robin Lawson>But with maintenance, you should get about 20 to 30 years on this unit. <v Lisa Baxter>So we could use this twice as long. <v Robin Lawson>You you should probably get some more lifetime usage out of this, without a doubt. <v Robin Lawson>Yeah. <v Lisa Baxter>What about the insulation in the attic? <v Robin Lawson>Insulation in the attic, you're going to need about R30. <v Robin Lawson>You're a little short as of now, probably about two to three hundred dollars,
<v Robin Lawson>you know, for the insulation retrofit up there. <v John Baxter>Robin, did you find anything else going on in the house that needs to be done? <v Robin Lawson>By and large. <v Robin Lawson>The role of the home inspector is testing to determine the <v Robin Lawson>condition of a home the day of the home inspection. <v Robin Lawson>And one has to realize that a lot of things can change between <v Robin Lawson>the first time that you do a home inspection. <v Robin Lawson>And by the time you close or you have your final walkthrough. <v Linda Benzel>If the home inspection uncovers major structural problems, the lender may require <v Linda Benzel>that they be fixed before purchasing the house. <v Linda Benzel>There are several ways to pay for these improvements. <v Linda Benzel>You can pay cash or negotiate with the seller to help pay for certain improvements before <v Linda Benzel>closing on the house. Many lenders offer programs that combine your mortgage and rehab <v Linda Benzel>into one loan. These programs are often targeted to First-Time Homebuyers, <v Linda Benzel>but they aren't available everywhere. So check with your lender. <v Linda Benzel>At the Baxter's perspective home, the inspector uncovered a few costly repairs,
<v Linda Benzel>but the house is structurally sound. <v Linda Benzel>Now it's time for the tough decision. Should they make an offer? <v Lisa Baxter>So you think the House on Prairie is the one? <v John Baxter>Yeah, I mean, we can afford it to some degree, but there's a lot of work that needs to be <v John Baxter>done on that house. Lisa, you're talking about six thousand dollars with repairs. <v Lisa Baxter>Its not all repairs. I mean, you're incorporating the paneling and the carpeting and the <v Lisa Baxter>fireplace-. <v John Baxter>Marble fireplace, yes <v Lisa Baxter>Marbling and all that's decorative stuff. <v John Baxter>It had a lot of work to do, though Lisa. We've got to take care of the lead pipe. <v Lisa Baxter>Now the lead pipe from the street worries. Yeah, that does worry me. <v John Baxter>It's going to be a lot of money. And I don't want to drown. I don't want to be in debt <v John Baxter>for the rest of our lives because we want this house. <v Lisa Baxter>Think about the neighborhood. Honey, we grew up there. <v Lisa Baxter>That was one of our criteria. We said we wanted to be in the neighborhood where we grew <v Lisa Baxter>up. <v John Baxter>I just don't want us to be over our heads. <v Lisa Baxter>The university is nearby. <v John Baxter>I don't want us to be over our heads. <v Lisa Baxter>we can send our children to the programs over there, it's four blocks away. <v John Baxter>I don't know babe. It's like if we do this.
<v John Baxter>We've got to make sure we got enough money in the bank for after moving into <v John Baxter>the house. We want to buy furniture. You want to make sure we got the room for the <v John Baxter>nursery. <v Lisa Baxter>I mean, you make a lot of good points, honey. <v Lisa Baxter>Realistically, our rent is higher than a mortgage would be. <v John Baxter>That's true. <v Lisa Baxter>Our insurance would go down. I don't know. <v John Baxter>We can offer a bit. <v John Baxter>It's not gonna hurt to offer a bit. <v Lisa Baxter>Well, I mean, what if they accept it? <v John Baxter>We'll figure something out. Well, we'll just do it. <v John Baxter>[exhasperated sigh] I don't <v John Baxter>know. <v Lisa Baxter>That's crazy isn't it? <v John Baxter>Yeah. <v Linda Benzel>Once the Baxters and the seller have negotiated a price, it's time to apply for the loan. <v Linda Benzel>But before the loan amount can be finalized, your lender will require a professional <v Linda Benzel>appraisal of the property. An appraisal ensures that you are paying a fair price for <v Linda Benzel>the house. And it also protects the lender. <v Linda Benzel>You see, if you stop making payments, the lender has the right to take possession of your
<v Linda Benzel>home and sell it to pay off the loan. <v Linda Benzel>This is known as foreclosure. <v Linda Benzel>The value of the property is the lender's best assurance of recovering his money. <v Linda Benzel>If the appraisal comes in too low, the lender may elect not to grant the loan. <v Linda Benzel>The cost of the appraisal will be included in your closing costs. <v Linda Benzel>The appraiser looks at several factors to determine the value of your prospective home. <v Linda Benzel>First, he compares it to other homes sold in the area. <v Linda Benzel>He may also inquire about the condition and features of these homes. <v Linda Benzel>Next, he'll visit the house and assess the neighborhood. <v Everett Prewitt>We pay a lot of attention to things such as the dynamics of the neighborhood <v Everett Prewitt>and the desirability of certain areas based on what the market <v Everett Prewitt>feels that that area provides.
<v Linda Benzel>He notes the proximity of the house to shopping, schools, and parks. <v Linda Benzel>He looks at the desirability of the neighborhood and how well your prospective home <v Linda Benzel>blends in. He'll also look out for features that detract from the value of <v Linda Benzel>the house. <v Everett Prewitt>Maybe there is an airport and the sound of that particular airport may have some <v Everett Prewitt>negative influence on the value and it may be across from a factory. <v Everett Prewitt>We look at things that might impact on the value of the property that is substantial. <v Everett Prewitt>Nothing that may be a 50 or 100 dollar type of item. <v Everett Prewitt>But we look at things that maybe five hundred a thousand dollars in excess of <v Everett Prewitt>that that might have some impact on the value. <v Everett Prewitt>Also functional things, floor plans. <v Everett Prewitt>How large are the rooms? How well are the utility fixtures <v Everett Prewitt>supply the room- supply the property. <v Everett Prewitt>Is it well heated? Is plumbing supplying water adequately and things of that sort. <v Everett Prewitt>Then of course, we look at physical things such as the condition of the property. <v Everett Prewitt>Age is not a factor so much as the condition of the property itself.
<v Everett Prewitt>So all those things go on to the analysis and by comparing that property <v Everett Prewitt>with other properties that are similar coming up with a value. <v Linda Benzel>Well, the Valdez's have applied for their loan and they're anxiously awaiting a response. <v Linda Benzel>But the lender has just called and asked them to come in to clarify a few items on their <v Linda Benzel>credit report. <v Lender>We need a few letters of explanation on some situations. <v Lender>First one would be your mother and her mattress money? <v Maggie Valdez>Right? Yeah, well, we finally talked her into putting that into a bank account. <v Lender>Great. Tell you what, if you could just have her write a little letter that basically <v Lender>mentions she really never used a bank and that she's saved this over the years. <v Lender>The reason we need that is to just ease the underwriter's so they'll <v Lender>know that there are no outstanding debts that we didn't pick up on. <v Lender>OK. And then if she could also write another letter that <v Lender>says that that was a gift to you to help you with your down payment, and then we'll need <v Lender>a letter from you on the those late payments. <v Lender>A couple of them you had a long time ago at that department store.
<v Jeff Valdez>Yeah. We don't understand that. We always pay our bills on time. <v Jeff Valdez>And, you know, we don't know what happened with that, but we've paid it since then. <v Maggie Valdez>We think it was when we between addresses, we are moving. <v Maggie Valdez>It must have gotten lost. <v Lender>All right, great. If you could just write that, that'll be great. <v Lender>And then as far as the medical bills, you had a couple of outstanding collection items <v Lender>there. <v Jeff Valdez>That's another thing. You know, we thought the insurance was taken care of it and the <v Jeff Valdez>hospital never billed it. And, you know, when we when we finally got the bill, we paid it <v Jeff Valdez>right away. <v Lender>Why don't you just write that and we'll get an updated credit reports and those have been <v Lender>paid. Oh, OK. And then it should be okay with that. <v Lender>So with those letters, your ratios look good. <v Lender>We should have a decision real soon. <v Jeff Valdez>Great. <v Maggie Valdez>Ok Great, thank you very much. <v Linda Benzel>After your loan is approved, the lender will set a closing date. <v Linda Benzel>The culmination of your home buying efforts. <v Linda Benzel>For some, the paperwork can be confusing and intimidating. <v Linda Benzel>So it's important to find out what you'll be signing before you close.
<v Richard Raymer>I think a purchaser should in preparing for a closing. <v Richard Raymer>Number one ask for a copy of the closing documents 24 hours in advance. <v Richard Raymer>They are entitled to that as a matter of law. <v Richard Raymer>The Real Estate Settlement Procedures Act allows a purchaser to have the documents one <v Richard Raymer>day in advance. And it's important, I think, to do that in your own home or to take <v Richard Raymer>it to someone who can help you with those documents, because it's not something you do <v Richard Raymer>every day and you can't possibly read all this material. <v Richard Raymer>At the closing and understand it. <v Richard Raymer>Secondly, it would be nice to know how much money you're going to need before you get <v Richard Raymer>there. And if you've got the closing statement ahead, you can look at all those figures <v Richard Raymer>and you're going to have to have a cashier's check for that amount in virtually every <v Richard Raymer>place in the United States to close. <v Linda Benzel>A little preparation will mean peace of mind at the closing. <v Linda Benzel>Now, let's sit in on a closing with a couple who didn't prepare and a lender <v Linda Benzel>who had other things on his mind. <v actor: Lender>So that's when I made the move into real estate. <v actor: Lender>Yes, as a hedge. So my long term investments are taken care of.
<v actor: Lender>And then in the short term, I can speculate more. <v actor 1>Excuse me. <v actor: Lender>That's right. Excuse me, Joe. <v actor 1>I hate to bother you, but what is this? <v actor: Lender>Oh, that that's the part that you sign. <v actor 1>Well, I know that. But what am I signing? <v actor: Lender>Oh, that's my fault. You should understand everything about this transaction because <v actor: Lender>buying your first home is the most important investment you'll make in your lifetime. <v actor 1>But you still haven't told me what I'm signing. <v actor: Lender>I didn't? Oh. Sorry that's my fault. <v actor: Lender>I should explain these things to you because buying your first home is the most... <v Actor 2>Most important investment you can make in your life. Yes, you've said that and we've <v Actor 2>heard it. But what what are we signing? <v actor: Lender>Oh, these. Yes, these are the important forms. <v actor: Lender>They're so important, in fact, that I need you to sign this form as well. <v actor: Lender>This verifies that I've explained the importance of the important forms. <v actor: Lender>Just sign in triplicate in the bottom and then initial. <v actor: Lender>Unless, of course, you use your initials as your signature, in which case I'm going to <v actor: Lender>need a thumbprint on the stamp pad and illiterate on the tissue. <v actor: Lender>Thank you. Eh Joe oh it's nothing.
<v actor: Lender>Just clients. Yeah. <v actor: Lender>Yeah. They're that way, aren't they? <v actor: Lender>Certainly I'd love to hear that. <v actor: Lender>A 64 get out of here. <v actor: Lender>I thought he was the caddy. <v actor: Lender>Yes. Yes. I've got to get back to them now. <v actor: Lender>Thanks for calling, Joe. Bye. <v actor: Lender>Now, now, now. That wasn't too bad, was it? <v actor: Lender>Told you can get through that stuff. Now, you two lovebirds enjoy your little love nest. <v actor: Lender>Thanks for coming in. Enjoy your lives. <v Actor 2>What have we done? <v actor 1>According to this, we just bought a Ford Pinto. <v Actor 2>I signed the Declaration of Independence. <v actor 1>I signed a petition to annex Canada. <v Actor 2>The Magna Carta. <v actor 1>For Canada. <v Linda Benzel>Now, the closing doesn't need to be scary or confusing. <v Linda Benzel>It's simply the formal process of transferring the property title from the seller to you.
<v Linda Benzel>The processing of the loan and transferring of the title costs money, of course. <v Linda Benzel>And as the buyer, you'll be obligated to pay a variety of fees at the closing. <v Linda Benzel>They include origination fees charged by the lender to cover the administrative <v Linda Benzel>cost of processing the loan, escrow payments, which include <v Linda Benzel>hazard and mortgage insurance premiums when necessary, and real estate taxes paid <v Linda Benzel>in advance for the year. <v Linda Benzel>And title Charges. The title shows that you own the property. <v Linda Benzel>Fees for legal examination of the title, as well as insurance against future claims on <v Linda Benzel>your property, are included in the title insurance costs. <v Linda Benzel>In addition, you'll pay recording and transfer charges which make the ownership of your <v Linda Benzel>home a matter of public record. <v Linda Benzel>And you'll pay an attorneys fee, a payment to the closing attorney for preparing <v Linda Benzel>and reviewing the documents needed to close the loan. <v Linda Benzel>Now, not all closing costs are paid at the closing your credit report and appraisal <v Linda Benzel>fees, for example, must be paid when you apply for the loan. <v Linda Benzel>Closing costs can run into the thousands of dollars.
<v Linda Benzel>It varies across the country, but ranges from as low as two to three percent of the loan <v Linda Benzel>amount to as high as four to six percent. <v Linda Benzel>You may wish to negotiate with the seller to contribute to these costs. <v Linda Benzel>You might also negotiate something called a temporary buy down, where the seller <v Linda Benzel>contributes to the temporary reduction of the interest rate to make your loan payments <v Linda Benzel>more affordable. During the first couple of years. <v Linda Benzel>Well, for the Baxters, the big day has finally arrived. <v Linda Benzel>Let's sit in as the Baxters close on their new home. <v Mike Lapore>The bad news is at the end of all this, you might have writer's cramp. <v Mike Lapore>The good news is at the end of all this, you will be homeowners. <v Linda Benzel>At the closing are John and Lisa, realtist Barb Johnson. <v Linda Benzel>And the closing attorney, Mike Lapore. <v Linda Benzel>The sellers also typically attend. <v Linda Benzel>But in this case, were unable to. <v Linda Benzel>So they signed the appropriate papers in advance. <v Linda Benzel>One of the first papers you'll sign is the truth and Lending Form. <v Linda Benzel>Lenders are required to provide a full disclosure of all costs associated with
<v Linda Benzel>the mortgage. This includes the annual interest rate on the loan, including all <v Linda Benzel>points and application fees. <v Linda Benzel>The finance charges and total loan cost over the life of the loan. <v Linda Benzel>The amount financed and the total number of years you will pay on the loan. <v Mike Lapore>And another important item is the late charge provision. <v Mike Lapore>You Will note that you do get a 15 day grace period every month in which to make <v Mike Lapore>your payments. However, if you go beyond the 15th day, they may assess <v Mike Lapore>you a five percent late charge penalty that's five percent of this principal <v Mike Lapore>and interest amount. <v Linda Benzel> next, you'll sign the mortgage loan commitment, which summarizes the lender's loan <v Linda Benzel>commitment to you, including the amount of the loan origination fees and interest <v Linda Benzel>rate information. <v Lisa Baxter>Would we be locked into this or will we have the option to refinance at some later day? <v Mike Lapore>That's a good question, Lisa. No, you would not be locked into this. <v Mike Lapore>There is no prepayment penalty associated with this loan. <v Linda Benzel>One of the most important papers you'll sign is the note. <v Linda Benzel>It's the legal agreement to repay the amount you've borrowed from the lender.
<v Linda Benzel>It contains the loan amount and interest rate, property address, your promise <v Linda Benzel>to repay the loan as well as your first payment due date. <v Mike Lapore>Review the back. Just said that you are both obligated under the snow equally jointly. <v Mike Lapore>And I need your signatures on the bottom. <v Linda Benzel>Next, you'll sign the mortgage. This document gives the lender a security interest <v Linda Benzel>in your property, obligating you to the payments. <v Linda Benzel>It contains your name. The loan amount. <v Linda Benzel>The property address and legal description. <v Linda Benzel>And a listing of any covenants or restrictions on the property. <v Mike Lapore>One thing that isn't here that I will point out to you that you not allowed to transfer <v Mike Lapore>the title to the house. No transfer title can occur unless you get their permission. <v Mike Lapore>Now, that goes along with the fact that this is not an assumable mortgage. <v Linda Benzel>You will also need to review the title insurance, which ensures that the property is free <v Linda Benzel>of any liens or encumbrances that could keep the present owner from transferring the <v Linda Benzel>title to you. Also, the deed, which transfers the seller's legal interest
<v Linda Benzel>in the property to you. The deed is your proof that the house is yours. <v Linda Benzel>The bill of sale transfers other personal property like the refrigerator washer <v Linda Benzel>and dryer from the seller to you after signing these and other papers. <v Linda Benzel>The Baxters then give the closing attorney a cashier's check to cover the remainder <v Linda Benzel>of their down payment and the agreed upon closing costs. <v Linda Benzel>They must also show proof of hazard insurance, which ensures the house against fire and <v Linda Benzel>water damage. The closing should take around an hour to complete. <v Linda Benzel>One of the last orders of business is the disbursement of fees to the seller and <v Linda Benzel>real estate agent. Finally, the house is yours. <v Barbara Johnson>Lisa and John, I'm so happy for you. Congratulations. <v Barbara Johnson>Here are your keys. <v John Baxter>Oh wow. hey that wasn't so bad. Thank you, Barbara. <v Linda Benzel>Well, now that you're a homeowner, there is no landlord to fix things when they break. <v Linda Benzel>So you'll have to do it yourself. <v Linda Benzel>A good home fix-it book will be indispensable. <v Linda Benzel>It can show you how to install a light fixture, change your furnace filter or patch the
<v Linda Benzel>drywall. To do the job right you'll need the right tools. <v Linda Benzel>So count on buying some. You can also expect to invest in a lawnmower, garden supplies <v Linda Benzel>and other equipment to keep your investment in good shape. <v Linda Benzel>It's all part of the cost and fun of home ownership. <v Linda Benzel>Budgeting for supplies and repairs will prevent financial surprises down the road. <v Linda Benzel>And there'll be other monthly expenses, like the utility bill. <v Linda Benzel>You can ask the seller to supply a summary of utility expenses for the past year to <v Linda Benzel>help with your budget planning. Now, the most important monthly bill you pay is the <v Linda Benzel>mortgage. It should be paid promptly every month. <v Linda Benzel>If you find yourself with additional cash and can afford, say, an extra 50 to 100 <v Linda Benzel>dollars a month, you can make a supplemental payment that's applied directly to your loan <v Linda Benzel>principal. It's a great way to build equity in your home quickly. <v Linda Benzel>So what if the worst happens, what if even after careful planning and budgeting, you lose <v Linda Benzel>your job or become financially strapped?
<v Linda Benzel>Well, the first thing to do is to talk to your creditors. <v Linda Benzel>Honesty and good communication are key to maintaining good credit. <v Linda Benzel>If your financial problem is short term, your lender may extend payment terms until <v Linda Benzel>you're on your feet again. If your debts are more serious, your best option might <v Linda Benzel>be to work with your lender to sell the house and avoid foreclosure. <v Linda Benzel>You can also seek professional help. <v Linda Benzel>The Consumer Credit Counseling Service is a nationwide nonprofit group that offers <v Linda Benzel>inexpensive financial counseling. <v Jeff Valdez>Good it's your turn, too. OK. <v Linda Benzel>Well, the Valdez's Johnson's and Baxter's have had their ups and downs, but they've <v Linda Benzel>finally become homeowners, though the process felt slow and painful at times. <v Linda Benzel>The results were worth it. There's a special pride in home ownership that's hard <v Linda Benzel>to describe, though. It comes with risks and responsibilities. <v Linda Benzel>It's an opportunity to make your own personal statement, to set roots in the community, <v Linda Benzel>to raise a family in a very personal environment.
<v Linda Benzel>For most of us, there's nothing quite like a place to call home.
A Place to Call Home
Episode Number
No. 3
Home at Last
Producing Organization
KRMA-TV (Television station : Denver, Colo.)
Contributing Organization
Rocky Mountain PBS (Denver, Colorado)
The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia (Athens, Georgia)
If you have more information about this item than what is given here, or if you have concerns about this record, we want to know! Contact us, indicating the AAPB ID (cpb-aacip-52-13zs7jkw).
Episode Description
This is Episode 3, Home at Last. It deals with understanding inspections and appraisals, surviving the closing, and life after home ownership.
Series Description
"This 3-part television series will help guide viewers through the realities of the home-buying process. It follows three families as they search for a home. Along the way they learn about credit history, home appraisal, and inspection, qualifying for a loan, closing costs, and more. The Second City Comedy Troupe is also on hand to look at the lighter side of home ownership."--VHS container.
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Producing Organization: KRMA-TV (Television station : Denver, Colo.)
AAPB Contributor Holdings
Rocky Mountain PBS (KRMA)
Identifier: cpb-aacip-3c74316134e (Filename)
Format: 1 inch videotape
Generation: Dub
The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia
Identifier: cpb-aacip-27d01728476 (Filename)
Format: U-matic
Duration: 0:26:00
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Chicago: “A Place to Call Home; No. 3; Home at Last,” 1993, Rocky Mountain PBS, The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC, accessed June 26, 2022,
MLA: “A Place to Call Home; No. 3; Home at Last.” 1993. Rocky Mountain PBS, The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC. Web. June 26, 2022. <>.
APA: A Place to Call Home; No. 3; Home at Last. Boston, MA: Rocky Mountain PBS, The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC. Retrieved from