What Is Home Buying 101?


Quick Answer

"Home Buying 101" is a catchphrase used by many real estate companies and mortgage lenders to convey fundamental information that prospective first-time home buyers need to understand, so they can make their first real estate purchases. The phrase is based on the standard "101" course number often used for introductory courses in college.

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As HowStuffWorks makes clear, information included in typical "Home Buying 101" presentations includes how a prospective home buyer can determine what he can afford, how to secure a loan, how to choose a home, how to find listings, and how and when to make an offer, including what kind of earnest money to offer. In addition "Home Buying 101" guidelines usually include information on price negotiations, offers and counteroffers, inspections, appraisals and an overview of how escrow works. They also describe what happens at the closing of escrow.

Home-buying guides are offered in printed versions as well as online. Guides offered by mortgage companies often focus on what is involved in applying and qualifying for a mortgage, including instructions for how to get preapproval for a loan and a description of typical closing costs. Often these guides also include glossaries that explain standard real estate terms and abbreviations as well as specific terminology applying to mortgages.

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