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l How to identify somesuggestions to followbefore signing acontract to buy ahousel How to describedifferent types ofmortgagesl How to compare thetypes of co-ownershipof real propertyl How to discuss thevarious deeds incommon usel How to explain waysthat title to propertycan be lostThe Home BuyingProcessContracting to Buy a HouseWhen you have found a house you like that is within your pricerange, the next step is to enter into a purchase and sale agreement withthe seller (see Figure 34.4). The agreement should be subject to yourgetting a mortgage to purchase the property. To obtain the best legalprotection, have a lawyer review the agreement before signing it.Applying for a MortgageLenders need security, a way of getting their money back in casethe borrower does not pay. Satisfying this need is the purpose of a mortgage.If the buyer, or mortgagor, pays the money back as agreed, thenthe mortgage is discharged, and the homeowner owns the propertyFigure 34.4Average Sales Prices of New Single-Family Homes$300,000$250,000Knowing about the homebuyingprocess will makethe experience easier foryou when that timecomes.$200,000$150,000$100,000$50,000l tenancy in commonl joint tenancyl tenancy by the entiretyl deedl easementl zoning lawsl eminent domainl adverse possession$01970 1975 1980 1985 1990 1995 2000NortheastSouthMidwestWestSELLING PRICEThe average selling price of homes in the United States has risen steadily since1970. Which region of the country experienced the greatest gain? the lowest?736 Unit 7: Planning for the Future