Introduction

Now that we have explored the different processes involved in purchasing a home, it is time to put that learning to use. You will go through the process of finding a home and finding an appropriate mortgage. There are several factors to consider, most of which we have dealt with in class. Happy House Hunting!

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Task

Working in pairs, you will find a home to purchase in your community and find a way to finance the mortgage within your budget. You will then present your home and financing to the rest of the class using a PowerPoint presentation (or other similar presentation software - Make sure you let Mr. Throndson know of your needs at least 48 hours in advance so he can arrange to have the necessary components available to you at your site).

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Process

1. You will be assigned to a pair at your own site. If for some reason there are an odd number of students at a site, a group of three (or a single) will be permitted with Mr. Throndson's permission.
2. You will need to find a suitable location to search for a home (you can use internet sites, newspapers, flyers, etc. to locate a home). Remember the factors we talked about in class that affect where you need to live (including: where your employment is located, schools, shopping, price of homes in the neighborhood, etc.). If possible, take a tour of the home you have chosen (open houses work well for this, I understand that this is not always possible, so it is NOT a requirement), and perhaps even get a few pictures to include in your presentation.
3. Once you have found a suitable home (or have your choices narrowed to only two or three homes), you need to find a mortgage. Contact any of a list of lenders to get real rates and terms (make sure you let the lenders know this is part of your class and you are NOT actually in need of the loan). This is a good time to look at any additional costs associated with purchasing a house (moving expenses, closing costs, mortgage insurance, property taxes, etc.).
4. Now it is time to put all of this information into a presentation. You presentation MUST include: location of your house, description of your house (square footage, style, etc.), why you located there, the terms of your mortgage (interest rate, term, monthly payment, total paid, total interest paid, etc.), and an overview of your household budget (according to your jobs and income levels already chosen in class). Anything other than that is a bonus to your presentation.
5. On next Monday, you (and your partner) will be giving this presentation to the whole class. You will have between 5 and 8 minutes.

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Resources

• You will need the free Adobe Acrobat Reader (if you do not already have it) to print the rubric
• Iowa Realty
• Skogman Realty
• Mortgage Loan Calculator
• You will need to contact your local lending institution (you may want to start at your bank)

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Evaluation

We will be using the following rubric for evaluation: (click here for a printable PDF file of the rubric)

 

	Exemplary (5)	Accomplished (3)	Beginning (1)	Score
Location of Home	The location of the home has been well-thought out and fits the needs of the people purchasing the home.  Something “extra” has been included in the decision to purchase this home.	The location of the home has been well-thought out and fits the needs of the people purchasing the home.	The location of the home was chosen with little or no attention to the needs of the people purchasing the home.
Description of the Home	The home’s “statistics” are given. Pictures are included to give the audience a good feel for what the house really looks like both inside and outside.	The home’s “statistics” are given. A picture is given to show what the house looks like on the outside.	The home’s “statistics” are given.
Terms of the Mortgage	The mortgage terms are given including interest rate, length of loan, monthly payments, total amount repaid, total interest repaid. It is also shown to fit in the borrower’s budget. Additional costs have been considered and dealt with inside the budget.	The mortgage terms are given including interest rate, length of loan, monthly payments, total amount repaid, total interest repaid. It is also shown to fit in the borrower’s budget.	The mortgage terms are given including interest rate, length of loan, monthly payments, total amount repaid, total interest repaid.
Effectiveness of the Presentation	The presentation engaged the audience and conveyed the appropriate message (why we chose this home). It also includes some additional information about the process you went through to find this house and mortgage.	The presentation conveyed the information required by the webquest. It also includes some additional information on the process you went through to find this house and mortgage.	This presentation conveyed the information required by the webquest.

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Conclusion

As we have discussed in class, there are a lot of things to consider when looking to buy a home. This webquest should give you a good idea of what you need to do before actually buying a house. Together with the videoconferences with the Real Estate Agent and the Loan Officer, this project should give you some idea of the considerations you need to make when it is time to go out and purchase a house of your very own (for real next time).

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