How do I get a collection agency to stop harassing me? If I work 50 hours a week shouldn't I be getting overtime? My new car is a lemon -- what can I do? Like it or not, the law affects practically every aspect of our lives, and legal questions come up daily. Nolo's Encyclopedia of Everyday Law, a handy, information-packed resource, has the answers. Written by Nolo's expert team of attorneys, it brings together answers to hundreds of the most frequently asked legal questions on issues you face every day, including: credit and debt workplace rights wills divorce bankruptcy social security tenants' rights child custody and visitation adoption and much more Completely updated to reflect the latest in the law, the 6th edition includes all-new topics, including homeowner's insurance, satellite and cable access for tenants, and finding and working with a lawyer.

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A. Buying a House Before you look for a house, it's essential to determine how much you can afford to pay and what your financing options are. You'll also need to decide whether you want to work with a real estate agent or broker, and finally, even if you think you've found your dream home, you'll need to master the ins and outs of house inspections. This section will help you find your way through the house-buying maze -- and to your new front door. I'm a first-time home buyer. Is there any easy way to determine how much house I can afford? As a broad generalization, most people can afford to purchase a house worth about three times their total (gross) annual income, assuming a 20% down payment and a moderate amount of other long-term debts, such as car or student loan payments. With no other debts, you can probably afford a house worth up to four or even five times your annual income. The most accurate way to determine whether you can afford a particular house is to total up the estimated monthly principal and interest payments plus one-twelfth of the yearly bill for property and homeowner's insurance. Now compare that to your gross monthly income. Lenders normally want you to make all monthly housing payments with 28%-38% of your monthly income -- the percentage depends on the amount of your down payment, the interest rate on the type of mortgage you want, your credit history, the level of your long-term debts and other factors. A bank or other lender can help you determine how much house you can afford. Or you can run the numbers yourself, using an online mortgage calculator such as those on the websites listed at the end of this chapter. Once you've done the basic calculations, you can ask a lender or loan broker for a prequalification letter saying that loan approval for a specified amount is likely based on your income and credit history. Prequali-fying lets you determine exactly how much you'll be able to borrow and how much you'll need for a down payment and closing costs. Unless you're in a very slow market, with lots more sellers than buyers, you will want to do more than prequalify for a loan -- you will want to be guaranteed for a specific loan amount. This means that the lender actually evaluates your financial situation, runs a credit check and preap-proves you for a loan -- rather than giving a general prequalification based on your own statement about your income and debts. Having lender preapproval for a loan makes you more attractive financially to sellers than simple loan prequalification and is crucial in competitive markets. Without it, you stand very little chance of your offer being accepted. How important is my credit history in getting loan approval? Your credit history has an important effect on the type and amount of loan lenders offer you. When reviewing loan applications and making financing decisions, lenders typically request your credit risk score from the credit bureaus. This score is a statistical summary of the information in your credit report and includes: your history of paying bills on time the level of your outstanding debts how long you've had credit your credit limit the number of inquiries for your credit report (too many can lower your score), and the types of credit you have. The higher your credit score, the easier it will be to get a loan. If you routinely pay your bills late, you can expect a lower score, in which case a lender may either reject your loan application altogether or insist on a very large down payment or high interest rate to lower the lender's risk.

 

About This Book 1. Houses 2. Neighbors 3. Landlords and Tenants 4. Workplace Rights 5. Small Businesses 6. Patents 7. Copyrights 8. Trademarks 9. Your Money 10. Cars and Driving 11. Wills and Estate Planning 12. Healthcare Directives and Powers of Attorney 13. Older Americans 14. Spouses and Partners 15. Parents and Children 16. Courts and Mediation 17. Criminal Law and Procedure Appendix: Legal Research Glossary Index

Nolo’s Everyday Law Book uses a question-and-answer format to cover a wide range of everyday legal issues.

 

Practical examples, explanations of legal principles, and useful tips...

 

Ms. Irving has been a Nolo author and editor since 1994, specializing in estate planning and family law issues. She has written or co-written both books and software, including Prenuptial Agreements: How to Write a Fair and Lasting Contract, Medical Directives and Powers of Attorney for California, and Nolo’s Quicken WillMaker Plus. She is the managing editor of WillMaker and also edits many of Nolo’s estate planning books, among them The Executor’s Guide, Plan Your Estate, and Estate Planning Basics. Ms. Irving graduated from Boalt Hall School of Law at the University of California, Berkeley and briefly practiced law at a large San Francisco firm before joining Nolo's editorial staff.