In this lesson students gain a basic understanding of the process and costs involved with home buying.
- Compare benefits and drawbacks of renting vs. buying a home
- Develop a knowledge of the home-buying process
- Understand steps involved in applying for a mortgage
- Understand and compare various types of mortgages
- Identify actions to take when selling a home
Suggested Grade Level
7th Grade – 12th Grade
For many, buying a home is the single most important financial decision they will make in their lifetime. However, the process of becoming a first-time homebuyer can be overwhelming, and requires a foundation for basic home-buying knowledge.
This lesson will provide students with information on buying a home and where and how to begin the process. After comparing the differences between renting and buying, students will be introduced to a five-step process for home buying. This framework provides an overview for the activities involved with selecting and purchasing a home.
“What type of mortgage should I select?” This common question will be covered, as well as what lenders look for when qualifying an applicant for a home loan. Next, the costs associated with finalizing a real estate purchase, or “closing costs,” are discussed. Finally, students are put on the other side of the real estate transaction—as a seller. Several
suggestions are offered for selling a home.