I live in Bettendorf

My current career is an accountant

My current salary is $58,252

BUYING A HOME
Step 1: Figure out how much you can afford.
Go to www.financialcalculators.com. Find the Mortgage Calculators section. Choose the How
Much Home Can I Afford? Calculator.
Scroll down to the link: How much home can you afford. Input the necessary numbers from
your given situation.
What is the total
you can spend on a
home?

Assume you need to have 20% of

that price to put downhow
much do you need?

$202,557

$40,511.4

Closing costs are fees you

have to pay to get a loan.
They are 2-5% of the price of
the home. How much do you
need?
$182.30

How much will you save (or not) by buying the home over the years you will live there?
Rent: $233,297
Own: $36,589

Step 2: Know Your Rights.

All borrowers have rights when getting a home loan. You should ask questions about the loan,
and realize that you can shop around for a home loan. Do a Google search to find the current
APR for:
30 year fixed mortgage? 3.75%
15 year fixed mortgage? 2.99%
What website did you use?
https://www.freerateupdate.com/landing_v5/index.php?
utm_source=bingads&utm_medium=search&utm_campaign=15yrSearch

Step 3: Shop for a Loan

Go to www.hud.gov/buying. Click on the Looking for the best mortgage: shop, compare, negotiate
link. Open the PDF and look through the materials (and especially the glossary) to answer the questions
below:
Which type of loan is better: Fixed-rate or Adjustable-rate loans? Why?
Fixed loans are better because you know what you will be paying every month and it will
not change.
What is PMI and when is it required?
PMI is to protect the lender in case the home buyer fails to pay. This is generally required
when a 20 percent down payment is not made.
The Basics:
1. What part of town (or country) do you want to live in? Bettendorf
2. What price range? $130,000-$200,000 No less than? $130,000 But no more than?
$200,000
3. Are schools a factor and, if so, what do you need to take into consideration (e.g. want
specific school system, want kids to be able to walk to school, etc)?
Want to have a bus stop near my house, In Bettendorf School District or
somewhere close so we can open and roll if needed
4. Do you want an older home or newer home (less than 5 years old)? Newer
5. What kind of houses would you be willing to see? Mark all that apply.
One Story
2 story
Split Foyer
Split level

I live in Bettendorf

My current career is an accountant

My current salary is $58,252

Townhouse/condo
Mobile home
6. What style of house appeals to you most?
Contemporary
Traditional Southwestern
Colonial No Preference
7. How much renovation would you be willing to do? A lot
A little
None
8. Do you have to be close to public transportation?
Yes
No
9. Do you have any physical needs that must be met, such as wheelchair access? NO
10. Do you have any animals that will require special facilities? If so, what? NO
11.
The lot
Must Have
Would Like to have
Larger than 1 acre
Yes
Smaller than 1 acre
No
Fenced-in yard
No
Garage
Yes
Carport
No
Patio/deck
Yes
Pool
Yes
Hot Tub/Spa
No
Extra Parking
Yes
Outbuildings
No
Special view
No
The Interior
12. How many bedrooms must you have? 2
13. How many bathrooms do you want? 2
14. How big would you like your house to be (square feet) No less than: 6,000 Not more
than: 9,000
15. What features do you want to have in your house?
Must Have Would like to have
Air Conditioning
X
Carpet
X
Ceramic tile
X
Hardwood floors
X
Eat-in Kitchen
X
Formal Dining Room
X
Family Room
Great room
X
Den or library
X
Basement
X
Laundry Room
X
Fireplace
X
Workshop
X
No Interior Steps
In-law apartment
X
Spa in bathroom
X
Lots of windows
X
16. Are there any other special features or needs that you must consider when youre
looking for a home?
Would like to have a garage or some place to park

Find the top 3 homes that meet as many of your wish list items as possible AND are
close to your Max Sales Price. Then fill out the following table:
1949 W 53RD Street, Davenport $200,000
6738 BROOKVIEW Lane, Davenport $199,900
6142 N ELMWOOD Avenue, Davenport $199,500

I live in Bettendorf

My current career is an accountant

My current salary is $58,252

Location (address)

House 1
6142 N Elmwood Avenue

House 2
1949 W 53rd Street

House 3
6738 Brookview Lane

List Price $
Year Built
Style of home:
# of bedrooms
# of full baths
# of baths
# of half baths
Total Finished Square Footage
Lot size (either SF or acres)
Garage (stalls? attached?)
Foundation Composition
Exterior composition
Driveway
# of fireplaces
Heat
Air Conditioner
Gross Taxes
School district
Other selling points of interest:

$199,500
1999
4-level
4
1
2
0
2,100 sqft
8,000 sqft
2 stalls attached
Vinyl
Brick
yes
1
yes
yes
$3,708
Davenport
Nice Neighborhood

$199,900
2007
4-level
4
1
1
1
1,568 sqft
7,000 sqft
2 stalls attached
Vinyl
Brick
yes
1
yes
yes
$3,558
Davenport
Nice Neighborhood

Map the home using Google

Maps and tell about
positives/negatives of location
(ex: on busy street, close to
grocery store, etc.)

School .5 mile away

$200,000
2005
4-level
3
2
0
1
1,446 sqft
7,500 sqft
2 stalls attached
Other
Brick
yes
1
yes
yes
$3,300
Davenport
Nice Neighborhood
Projection Screen/
Movie room
Far Back From the
Street - Very Quiet
School 1-2 miles
away

Not near any busy

streets

Assessed value of home from

Polk County Assessors page
(or iowaassessors.com)
Last date and price of home
sale from Assessors page
Use www.zillow.com to find a
nearby home that has sold
recently, is a comparable
home, and tell me how MUCH
it sold for

$174,780

$185,740

$171,890

7/8/2008
$184,200
2 neighbors, one with a
pool and both with a lot
less land. The one with
the pool has

4/28/2010
$198,500
Same amount of
land, one sold for
$145,000 and
another sold for
$200,000

9/7/2007
$189,900
2 houses across the
street sold for
$200,000

Not near any busy

streets

School .5-1.5 miles

away

Choose the house from above that meets most of your wishes and is close to your Max Price. Which
one did you choose? Why? I choose the house on 53rd Street. I think it is the most updated and it is
the closest to my max price

Step 6: Make an offer.

This is the part where you decide how much you should offer. You would try to determine the fair market
value of the home by looking at the comparable homes in the area, the assessed value, and the last
sales price. Write your offer here: $160,000

Step 7: Get a home inspection

Lets assume your offer was accepted. But before you buy a house, you should always pay to have it
inspected. Go back to www.hud.gov/buying website. Under Step 7, Click on the link For Your
Protection Get a Home Inspection.

I live in Bettendorf

My current career is an accountant

My current salary is $58,252

Why should you get a home inspection?

Gives the buyer more detailed information than an appraisal--information you need to make a
wise decision
How much does a typical home inspection cost?
$300-$400

Step 8: Shop for Homeowners Insurance

Go back to hud.gov/buying. Click on the link 12 Ways to Lower Your Homeowners Insurance.
Shop Around:
Look at all different insurance companies to try and find the cheapest one
Raise Your Deductible:
The higher your deductible, the more money you can save on your premiums.
When youre buying a home, consider the cost of homeowners insurance:
Living by a fire hydrant or have heating or plumbing systems less than 10 years old it is cheaper.
If someone is trying to pay less, it is important to research the cheapest option

Step 9: Sign papers

Go back to the first webpage to find this info: This is called the Closing or settlement. This is
when you actually become the owner of the house. Oh, and you have to sign a TON of paperwork!

Home Ownership
Use the mortgage calculator online at www.financialcalculators.com to figure up your monthly payments.
Assume your offer was accepted.
Take your offer minus your down payment (on page 1) to figure out the loan amount.
You are getting 5% interest on your loan.
Assume you are paying it off over 30 years with yearly amortization.
YES, Have the calculator estimate the taxes, insurance, and private mortgage insurance.
WHAT IS YOUR TOTAL MONTHLY PAYMENT, including taxes, insurance, & PMI?
$390.81
Now, take your Yearly Gross Income (given on card at beginning of this activitiy) and multiply it by .75
(this is assuming 25% is taken out for taxes). Now divide that number by 12 months to find out your
monthly net income.
$3,640.75
What percentage is your payment of your monthly net income?
10.7%