How to Buy a House in the US
By wikihow
Many people dream of home ownership but it mandates homework, legwork and considerable effort on your part to ensure that the process goes as smoothly as possible, and you don't bite off more than you can chew. Here's how to make your dream become a reality. This article assumes you will be using a lender.
Steps
Buying a House in the US Strengthen your credit. The higher your FICO score, which ranges from 300 to 800, the better rate you'll qualify for. Get a free copy of your credit report so you can see what the lenders see on your credit history. Pay off credit cards and resolve any credit disputes or delinquencies. Determine how much house you can afford, and how much you'll likely be able to borrow.
You will be expected to put down 10-20% of the appraised value of a home.[1] (Note that the appraised value may be higher or lower than the selling price of the house.) If you have $30,000 saved for a down payment, for example, you can use it as a down payment for a home between $300k (10% down payment) or $150k (20% down payment). Putting down less often, but not always, requires you to pay private mortgage insurance (PMI), which increases your monthly housing cost but is tax deductible. Find out what ratios lenders are using to determine if you qualify for a loan. "28 and 36" is a commonly used ratio.[2] It means that 28% of your gross income (before you pay taxes) must cover your intended housing expenses (including principal and interest on the mortgage, as well as real estate taxes and insurance). Monthly payments on your outstanding debts, when combined with your housing expenses, must not exceed 36% of your gross income. Find each percentage for your monthly gross income (28% and 36% of $3750 = $1050 and $1350, respectively). Your monthly payments on outstanding debts cannot exceed the difference between the ($300) or else you will not be approved. Calculate your expected housing expenses. Estimate the annual real estate taxes and insurance costs in your area and add that to the average price of the home you'd like to buy. Also add how much you can expect to pay in closing costs. (These take in various charges that generally run between 3 to 6 percent of the money you're borrowing. Credit unions often offer lower closing costs to their members.) Put the total into a mortgage calculator (you can find them online or make your own in a spreadsheet. If the figure is above 28% of your gross income (or whatever the lower percentage used by lenders in your situation) then you will have a hard time getting a mortgage. Determine whether you need to sell your current home in order to afford a new one. If so, any offer to buy that you make will be contingent on that sale. Contingent offers are more risky and less desirable for the seller, since the sale can't be completed until the buyer's house is sold. You may want to put your current house on the market first.
Get pre-approved (not pre-qualified) to get the actual amount you can pay. Apply to several lenders within a two week period so that the inquiries do not damage your credit report. Do this before contacting a real estate agent so you have a firm idea of what you can afford, and you don't accidentally fall in love with a house that you cannot afford.
If you qualify, check out first-time buyers' programs, which often have much lower down payment requirements. These are offered by various states and local governments. You may also be able to access up to $10,000 from your 401(k) or Roth IRA without penalty. Ask your broker or employer's human resources department for specifics regarding borrowing against those assets. If you can't afford a 10%-20% downpayment on your home, but have good credit and steady income, a mortgage broker may assist you with a combination mortgage. In that, you're taking out a first mortgage up to 80% of the value of the home, and a second mortgage for the remaining amount. While the rate on the second mortgage will be slightly higher, the interest on it is tax-deductible and combined payments should still be lower than a first mortgage with PMI. If you're buying new, consider the Nehemiah Program to get assistance with your down-payment.
Go house shopping. Unless you're under the gun time-wise, look at as many homes as possible to get a sense of what's available. Don't rush into buying if you don't have to. Read more in How to Find Your Ideal House.
Sign up for an MLS (Multiple Listing Service) alert service to search on properties in your area so you can get a feeling for what is on the market in your price range. (If you sign up through a real estate agent, it is poor form to call the listing agent directly to see a house. Don't ask an agent to do things for you unless you're planning to have them represent you--they don't get paid until a client buys a house and it's not fair to ask them to work for free, knowing that you're not going to use them to buy your home!) Find a good real estate agent to represent you in the search and negotiation process. The real estate agent should be: amiable, open, interested, relaxed, confident, and qualified. Learn the agent's rates, methods, experience, and training. Go into exhaustive detail when describing what you want in a home: number of bathrooms and bedrooms, attached garage, land and anything else that may be important, like good light or a big enough yard for the kids. Read more in How to Select a Realtor. Define the area you'd like to live in. Scout out what's available in the vicinity. Look at prices, home design, proximity to shopping, schools and other amenities. Read the town paper, if there is one, and chat with the locals. Look beyond the home to the neighborhood and the condition of nearby homes to make sure you aren't buying the only gem in sight. The area in which your home is located is sometimes a bigger consideration than the home itself, since it has a major impact on your home's resale value. Buying a fixer-upper in the right neighborhood can be a great investment, and being able to identify up-and-coming communities--where more people want to live--can lead you to a bargain property that will only appreciate in value. Visit a few open houses to gauge what's on the market and see firsthand what you want, such as overall layout, number of bedrooms and bathrooms, kitchen amenities, and storage. Visit properties you're seriously interested in at various times of the day to check traffic and congestion, available parking, noise levels and general activities. What may seem like a peaceful neighborhood at lunch can become a loud shortcut during rush hour, and you'd never know it if you drove by only once. If you are unsure about the price, have the home appraised by a local appraiser. Never buy the most expensive house in the neighborhood! When appraising a home, appraisers will look for "comparables" or "comps", homes in the area which have similar features, size, etc. If your home is more expensive than the comps, or the appraiser has to find comps in a different subdivision or more than 1/2 mile away, beware! Your bank may balk at financing the home, and you probably won't see your home appreciate in value very much. If you can, buy the least expensive home in a neighborhood -- as homes around you sell for more money than you paid, your home's value increases.
Make an offer.
Include earnest money with your offer.--usually $1,000 to $5,000. Once you sign an offer, you are officially in escrow, which means you are committed to buy the house or lose your deposit, unless you do not get final mortgage approval. During escrow (typically 30 to 90 days), your lender arranges for purchase financing and finalizes your mortgage. Make sure final acceptance is predicated on a suitable home inspection. Request the following surveys and reports: inspection, pests, dry rot, radon, hazardous materials, landslides, flood plains, earthquake faults and crime statistics. (You will generally have 7-10 days to complete inspections--be sure that your agent explains this fully to you when signing the purchase and sales contract.) A home inspection costs between $150 and $500, depending on the area, but it can prevent a $100,000 mistake. This is especially true with older homes, as you want to avoid financial landmines such as lead-paint, asbestos insulation and mold.
Close escrow. This is usually conducted in a title office and involves signing documents related to the property and your mortgage arrangements. The packet of papers includes the deed, proving you now own the house, and the title, which shows that no one else has any claim to it or lien against it. If any issues remain, money may be set aside in escrow until they are resolved, which acts as an incentive for the seller to quickly remedy any problem areas in order to receive all that is owed.
Consider using a real-estate lawyer to review closing documents and represent you at closing. Realtors are unable to give you legal advice. Lawyers may charge $200-$400 for the few minutes they're actually there, but they're paid to look out for you.
How can I become a u.s. citizen?
In order to become a u.s citizen , you must
(1) have been admitted to lawful permanent residence for five years (three years if Green Card obtained through marriage to U.S. citizen);
(2) you must be 18 years old;
(3) you must be maintain continuous residence for five years (three years if Green Card obtained through marriage to U.S. citizen);
(4) you must be physically present in the U.S. for at least half of the 5 years (or half of the 3 years if you obtained a Green Card through a U.S. citizen spouse);
(5) you must be a person of good moral character for the 5 years (or 3 years if the alien obtained a Green Card through a U.S. citizen spouse);
(6) you must demonstrate an elementary level of English (reading, writing, understanding); and,
(7) you must have knowledge and understanding of the fundamentals of history and government of the U.S.
Special exceptions to some of the general requirements are available for the disabled, members of the military, veterans, spouses married to U.S. citizens living overseas, and Legal Permanent Residents who work for certain organizations that promote U.S. interests abroad. Similarly exemptions from the English language requirements are available for those over 55 years who and have lived in the United States as a Legal Permanent Resident for 15 years, or are over 50 years old and have lived in the United States as a Legal Permanent Resident for 20 years.
Check out the INS website for more information.
Civics (History and Government) Questions for the Redesigned (New) Naturalization Test
The 100 civics (history and government) questions and answers for the redesigned (new) naturalization test are listed below. Applicants who filed the Application for Naturalization, Form N-400, on or after October 1, 2008, should study this list. The civics test is an oral test and the USCIS Officer will ask the applicant up to 10 of the 100 civics questions. An applicant must answer 6 out of 10 questions correctly to pass the civics portion of the naturalization test.
Although USCIS is aware that there may be additional correct answers to the 100 civics questions, applicants are encouraged to respond to the civics questions using the answers provided below.
AMERICAN GOVERNMENT
A: Principles of American Democracy
1. What is the supreme law of the land?
▪ the Constitution
2. What does the Constitution do?
▪ sets up the government
▪ defines the government
▪ protects basic rights of Americans
3. The idea of self-government is in the first three words of the Constitution. What are these words?
▪ We the People
4. What is an amendment?
▪ a change (to the Constitution)
▪ an addition (to the Constitution)
5. What do we call the first ten amendments to the Constitution?
▪ the Bill of Rights
6. What is one right or freedom from the First Amendment?*
▪ speech
▪ religion
▪ assembly
▪ press
▪ petition the government
7. How many amendments does the Constitution have?
▪ twenty-seven (27)
8. What did the Declaration of Independence do?
▪ announced our independence (from Great Britain)
▪ declared our independence (from Great Britain)
▪ said that the United States is free (from Great Britain)
9. What are two rights in the Declaration of Independence?
▪ life
▪ liberty
▪ pursuit of happiness
10. What is freedom of religion?
▪ You can practice any religion, or not practice a religion.
11. What is the economic system in the United States?*
▪ capitalist economy
▪ market economy
12. What is the "rule of law"?
▪ Everyone must follow the law.
▪ Leaders must obey the law.
▪ Government must obey the law.
▪ No one is above the law.
B: System of Government
13. Name one branch or part of the government.*
▪ Congress
▪ legislative
▪ President
▪ executive
▪ the courts
▪ judicial
14. What stops one branch of government from becoming too powerful?
▪ checks and balances
▪ separation of powers
15. Who is in charge of the executive branch?
▪ the President
16. Who makes federal laws?
▪ Congress
▪ Senate and House (of Representatives)
▪ (U.S. or national) legislature
17. What are the two parts of the U.S. Congress?*
▪ the Senate and House (of Representatives)
18. How many U.S. Senators are there?
▪ one hundred (100)
19. We elect a U.S. Senator for how many years?
▪ six (6)
20. Who is one of your state’s U.S. Senators now?*
▪ Answers will vary. [District of Columbia residents and residents of U.S. territories should answer that D.C. (or the territory where the applicant lives) has no U.S. Senators.]
21. The House of Representatives has how many voting members?
▪ four hundred thirty-five (435)
22. We elect a U.S. Representative for how many years?
▪ two (2)
23. Name your U.S. Representative.
▪ Answers will vary. [Residents of territories with nonvoting Delegates or Resident Commissioners may provide the name of that Delegate or Commissioner. Also acceptable is any statement that the territory has no (voting) Representatives in Congress.]
24. Who does a U.S. Senator represent?
▪ all people of the state
25. Why do some states have more Representatives than other states?
▪ (because of) the state’s population
▪ (because) they have more people
▪ (because) some states have more people
26. We elect a President for how many years?
▪ four (4)
27. In what month do we vote for President?*
▪ November
28. What is the name of the President of the United States now?*
▪ George W. Bush
▪ George Bush
▪ Bush
29. What is the name of the Vice President of the United States now?
▪ Richard Cheney
▪ Dick Cheney
▪ Cheney
30. If the President can no longer serve, who becomes President?
▪ the Vice President
31. If both the President and the Vice President can no longer serve, who becomes President?
▪ the Speaker of the House
32. Who is the Commander in Chief of the military?
the President
33. Who signs bills to become laws?
▪ the President
34. Who vetoes bills?
▪ the President
35. What does the President’s Cabinet do?
▪ advises the President
36. What are two Cabinet-level positions?
▪ Secretary of Agriculture
▪ Secretary of Commerce
▪ Secretary of Defense
▪ Secretary of Education
▪ Secretary of Energy
▪ Secretary of Health and Human Services
▪ Secretary of Homeland Security
▪ Secretary of Housing and Urban Development
▪ Secretary of the Interior
▪ Secretary of Labor
▪ Secretary of State
▪ Secretary of Transportation
▪ Secretary of the Treasury
▪ Secretary of Veterans Affairs
▪ Attorney General
▪ Vice President
37. What does the judicial branch do?
▪ reviews laws
▪ explains laws
▪ resolves disputes (disagreements)
▪ decides if a law goes against the Constitution
38. What is the highest court in the United States?
▪ the Supreme Court
39. How many justices are on the Supreme Court?
▪ nine (9)
40. Who is the Chief Justice of the United States now?
▪ John Roberts (John G. Roberts, Jr.)
41. Under our Constitution, some powers belong to the federal government. What is one power of the federal government?
▪ to print money
▪ to declare war
▪ to create an army
▪ to make treaties
42. Under our Constitution, some powers belong to the states. What is one power of the states?
▪ provide schooling and education
▪ provide protection (police)
▪ provide safety (fire departments)
▪ give a driver’s license
▪ approve zoning and land use
43. Who is the Governor of your state now?
▪ Answers will vary. [District of Columbia residents should answer that D.C. does not have a Governor.]
44. What is the capital of your state?*
▪ Answers will vary. [District of Columbia residents should answer that D.C. is not a state and does not have a capital. Residents of U.S. territories should name the capital of the territory.]
45. What are the two major political parties in the United States?*
▪ Democratic and Republican
46. What is the political party of the President now?
▪ Republican (Party)
47. What is the name of the Speaker of the House of Representatives now?
▪ (Nancy) Pelosi
C: Rights and Responsibilities
48. There are four amendments to the Constitution about who can vote. Describe one of them.
▪ Citizens eighteen (18) and older (can vote).
▪ You don’t have to pay (a poll tax) to vote.
▪ Any citizen can vote. (Women and men can vote.)
▪ A male citizen of any race (can vote).
49. What is one responsibility that is only for United States citizens?*
▪ serve on a jury
▪ vote in a federal election
50. Name one right only for United States citizens.
▪ vote in a federal election
▪ run for federal office
51. What are two rights of everyone living in the United States?
▪ freedom of expression
▪ freedom of speech
▪ freedom of assembly
▪ freedom to petition the government
▪ freedom of worship
▪ the right to bear arms
52. What do we show loyalty to when we say the Pledge of Allegiance?
▪ the United States
▪ the flag
53. What is one promise you make when you become a United States citizen?
▪ give up loyalty to other countries
▪ defend the Constitution and laws of the United States
▪ obey the laws of the United States
▪ serve in the U.S. military (if needed)
▪ serve (do important work for) the nation (if needed)
▪ be loyal to the United States
54. How old do citizens have to be to vote for President?*
▪ eighteen (18) and older
55. What are two ways that Americans can participate in their democracy?
▪ vote
▪ join a political party
▪ help with a campaign
▪ join a civic group
▪ join a community group
▪ give an elected official your opinion on an issue
▪ call Senators and Representatives
▪ publicly support or oppose an issue or policy
▪ run for office
▪ write to a newspaper
56. When is the last day you can send in federal income tax forms?*
▪ April 15
57. When must all men register for the Selective Service?
▪ at age eighteen (18)
▪ between eighteen (18) and twenty-six (26)
AMERICAN HISTORY
A: Colonial Period and Independence
58. What is one reason colonists came to America?
▪ freedom
▪ political liberty
▪ religious freedom
▪ economic opportunity
▪ practice their religion
▪ escape persecution
59. Who lived in America before the Europeans arrived?
▪ American Indians
▪ Native Americans
60. What group of people was taken to America and sold as slaves?
▪ Africans
▪ people from Africa
61. Why did the colonists fight the British?
▪ because of high taxes (taxation without representation)
▪ because the British army stayed in their houses (boarding, quartering)
▪ because they didn’t have self-government
62. Who wrote the Declaration of Independence?
▪ (Thomas) Jefferson
63. When was the Declaration of Independence adopted?
▪ July 4, 1776
64. There were 13 original states. Name three.
▪ New Hampshire
▪ Massachusetts
▪ Rhode Island
▪ Connecticut
▪ New York
▪ New Jersey
▪ Pennsylvania
▪ Delaware
▪ Maryland
▪ Virginia
▪ North Carolina
▪ South Carolina
▪ Georgia
65. What happened at the Constitutional Convention?
▪ The Constitution was written.
▪ The Founding Fathers wrote the Constitution.
66. When was the Constitution written?
▪ 1787
67. The Federalist Papers supported the passage of the U.S. Constitution. Name one of the writers.
▪ (James) Madison
▪ (Alexander) Hamilton
▪ (John) Jay
▪ Publius
68. What is one thing Benjamin Franklin is famous for?
▪ U.S. diplomat
▪ oldest member of the Constitutional Convention
▪ first Postmaster General of the United States
▪ writer of "Poor Richard’s Almanac"
▪ started the first free libraries
69. Who is the "Father of Our Country"?
▪ (George) Washington
70. Who was the first President?*
▪ (George) Washington
B: 1800s
71. What territory did the United States buy from France in 1803?
▪ the Louisiana Territory
▪ Louisiana
72. Name one war fought by the United States in the 1800s.
▪ War of 1812
▪ Mexican-American War
▪ Civil War
▪ Spanish-American War
73. Name the U.S. war between the North and the South.
▪ the Civil War
▪ the War between the States
74. Name one problem that led to the Civil War.
▪ slavery
▪ economic reasons
▪ states’ rights
75. What was one important thing that Abraham Lincoln did?*
▪ freed the slaves (Emancipation Proclamation)
▪ saved (or preserved) the Union
▪ led the United States during the Civil War
76. What did the Emancipation Proclamation do?
▪ freed the slaves
▪ freed slaves in the Confederacy
▪ freed slaves in the Confederate states
▪ freed slaves in most Southern states
77. What did Susan B. Anthony do?
▪ fought for women’s rights
▪ fought for civil rights
C: Recent American History and Other Important Historical Information
78. Name one war fought by the United States in the 1900s.*
▪ World War I
▪ World War II
▪ Korean War
▪ Vietnam War
▪ (Persian) Gulf War
79. Who was President during World War I?
▪ (Woodrow) Wilson
80. Who was President during the Great Depression and World War II?
▪ (Franklin) Roosevelt
81. Who did the United States fight in World War II?
▪ Japan, Germany, and Italy
82. Before he was President, Eisenhower was a general. What war was he in?
▪ World War II
83. During the Cold War, what was the main concern of the United States?
▪ Communism
84. What movement tried to end racial discrimination?
▪ civil rights (movement)
85. What did Martin Luther King, Jr. do?*
▪ fought for civil rights
▪ worked for equality for all Americans
86. What major event happened on September 11, 2001, in the United States?
▪ Terrorists attacked the United States.
87. Name one American Indian tribe in the United States.
[USCIS Officers will be supplied with a list of federally recognized American Indian tribes.]
▪ Cherokee
▪ Navajo
▪ Sioux
▪ Chippewa
▪ Choctaw
▪ Pueblo
▪ Apache
▪ Iroquois
▪ Creek
▪ Blackfeet
▪ Seminole
▪ Cheyenne
▪ Arawak
▪ Shawnee
▪ Mohegan
▪ Huron
▪ Oneida
▪ Lakota
▪ Crow
▪ Teton
▪ Hopi
▪ Inuit
A: Geography
88. Name one of the two longest rivers in the United States.
▪ Missouri (River)
▪ Mississippi (River)
89. What ocean is on the West Coast of the United States?
▪ Pacific (Ocean)
90. What ocean is on the East Coast of the United States?
▪ Atlantic (Ocean)
91. Name one U.S. territory.
▪ Puerto Rico
▪ U.S. Virgin Islands
▪ American Samoa
▪ Northern Mariana Islands
▪ Guam
92. Name one state that borders Canada.
▪ Maine
▪ New Hampshire
▪ Vermont
▪ New York
▪ Pennsylvania
▪ Ohio
▪ Michigan
▪ Minnesota
▪ North Dakota
▪ Montana
▪ Idaho
▪ Washington
▪ Alaska
93. Name one state that borders Mexico.
▪ California
▪ Arizona
▪ New Mexico
▪ Texas
94. What is the capital of the United States?*
▪ Washington, D.C.
95. Where is the Statue of Liberty?*
▪ New York (Harbor)
▪ Liberty Island
[Also acceptable are New Jersey, near New York City, and on the Hudson (River).]
B: Symbols
96. Why does the flag have 13 stripes?
▪ because there were 13 original colonies
▪ because the stripes represent the original colonies
97. Why does the flag have 50 stars?*
▪ because there is one star for each state
▪ because each star represents a state
▪ because there are 50 states
98. What is the name of the national anthem?
▪ The Star-Spangled Banner
C: Holidays
99. When do we celebrate Independence Day?*
▪ July 4
100. Name two national U.S. holidays.
▪ New Year’s Day
▪ Martin Luther King, Jr. Day
▪ Presidents’ Day
▪ Memorial Day
▪ Independence Day
▪ Labor Day
▪ Columbus Day
▪ Veterans Day
▪ Thanksgiving
▪ Christmas
* If you are 65 years old or older and have been a legal permanent resident of the United States for 20 or more years, you may study just the questions that have been marked with an asterisk. www.uscis.gov
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