Evening star., 1922-12-03
HOME-BUy|NC ADVICE
FOR D. c. PURCHASERS
Tips on Realty Deals Given to Pro.
tect inexperienced
Investors.

The making of satisfactory financial
arrangement in purchasing a home is
an important part OF the transaction,
/ real estate men declare. Here Is some
advice they hand out:
If a building and loan association or
! a bank lends you money it has a d.
rect financial interest in helping you
guard yourself on certain points, such
! as making sure that there are no old
mortgages. no unpaid taxes or bills
! for building materials, or other claims
against the property.
You should be sure the title is clear
or have 1t insured or guaranteed.
II you make a purchase offer with
a cash deposit include statement as
to whether window shades. stoves and
other movable property are included.
Risk by loss from fire or elements
should be assumed by the owner until
the title passes to you.
Your offer should be dependent upon
your obtaining satisfactory loan to
finance the proposition and the ability
of the owners to furnish papers to
show a good marketable title, free
from liens or membranes. In other
words. do not bind yourself TO the
purchase until you are sure OF what
finance it.
You must be prepared to pay taxes
on your property and special assess
Iments for installation Of water. sewer
age. electric light. gas or either pub
lie utilities. or street paving and side
already made and what additional
ones you may have to pay for.
In buying a house and lot you must
borrow what you cannot pay in cash.
1t is well to keep in mind that the
more financial risks you assume the
you for. Your promise to pay back
what you borrow will be secured by a
mortgage or trust on the property. A
first mortgage loan on not more than
one-half or two-thirds of the value
of the property is safe investment.
and the rates Of insurance should be
reasona BILE. The lender on a second
mortgage takes more risk and rates
Of interest and discount are higher.
/. If you agree to buy a home without
the seller takes less risk and you may
/ save money. Loans on first mort
gage can be obtained from building
and loan association, savings bank.
! trust companies state banks, individu-
/ ais and trustees for estates. Arrange
mentg can be made to make monthly
payments. both on principal and for
! interest.
! Obtaining money on a second mort
f! gage 10 usually not 30 easy. Remem-
A.; Der that when the owner OF a house
takes second mortgage in payment
f; he may plan to sell it for four -fifths
or less Of its face value and that he
probably charges you accordingly.
| II has been figured out by the di-
vision of building and housing Of the
, Department OF Commerce that a man
may own home worth one and one
; half to two and one-half times his
J annual income. Payments made dur
ing the first few years after purchas-
| ing should receive a great deal OF
attention. 1t is well to pay as much
as possible during that period. 30 as
to cut down the interest charges.
! Rent ordinarily requires from 10 to
! 25 per cent. or even more. Of a fam
| ily's annual income. In addition to
what you ordinarily pay for rent, you
! can devote your customary savings.
or more. to paying Oft the principal
! OF loans on your home.