12 Things Nobody Told me About Buying a House (As a First Time Homeowner)
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Oh man so much in this video isn’t really correct. I am a HUD certified housing counselor and teach this stuff to people through a non-profit.
1) Earnest money isn’t always as much as you were saying… this probably varies state to state. We just bought a house for $355k and our earnest money was $1000 (I live in GA). We wouldn’t forfeit the earnest money if we backed out for cause, like inspections weren’t good or whatever.
2) Closing Costs can be negotiated with the seller. During a sellers market, it’s typical that the buyer pays but when it’s a buyers market (lots of inventory and a seller wants to move their house) they usually pay as an incentive.
3) Escrow typically includes property taxes and property insurance and most of the time is required by the lender. There are variables here like type of loan, amt of down payment, etc. Your lender holds your escrow money, not an “escrow company” and yes they make money off of it.
4) Mortgage rate… oh boy, this is not smart info. You have an adjustable rate mortgage it sounds like and ARMs were a HUGE part of the reason for the housing crash in 2008. When the interest rate goes up, so does your payment. So if the interest doubles, your payment is going to be SIGNIFICANTLY more than you bargained for. It’s always a smarter move to lock in your interest rate and not hope that the market cools off at the exact moment that your internet rate is expected to adjust.
5) Refinancing - don’t ever ever enter into a mortgage with the NEED to refinance at a later date. There is no guarantee what your credit will look like in the future and refinancing is dependent on a good credit score. Also, if you do refinance, unless you absolutely need to, don’t pull your equity out. For instance, if your balance is $300k and the house appraises at $400k, you could refi to get a lower rate and have the option to take your mortgage to $400k and you’ll be given $100k in cash. This is basically starting over with your mortgage. Plus, if you’re not using that cash to further increase the value of the home and you’re using it to pay down other debt, you are essentially gambling your house (by increasing your mortgage payment) on something that is unsecured (has no collateral attached to it).
(Part 2 in a reply)
One other thing about refinancing: there are closing costs associated with refinancing but sometimes you can get a good deal where the lender has no closing costs. In that case, it might be good to lender shop some (just be careful about too many inquiries on your credit report).
6) Property Value - in GA, your property is reassessed every year and it does typically increase but it’s a very minimal increase so your taxes don’t go up by much. You can also appeal it in some jurisdictions as to why your taxes would go up if you haven’t made any improvements and a lot of times you can win that appeal fairly easily.
7) Homeowners Insurance: always shop around for insurance and NEVER accept it from the lender. Their coverage is super minimal and is really only concerned with protecting them as a lender and not the consumer as the homeowner. A lot of times it’s much more cost effective to get homeowners insurance through whoever you have car insurance with. A lot of times they offer multi-line discounts. You also need to insure things in your house. We send updates to our insurance company when we add new jewelry or things like that - to get paid for it, you have to prove you had it. And a lot of times any proof of purchase is destroyed along with your house so having that on file with your insurance company along with pics is always a good idea.
8) termites: it’s usually a requirement for the seller to have an active termite bond on the home and if they don’t, that’s negotiated as part of closing, whether the buyer gets one or the seller does. They can be expensive but because of the damage that termites cause, lenders go that extra step of requiring it.
For anyone reading this who wants more info, all of this is easily found in plain English on websites like bankrate.com and nerdwallet.com. Sometimes lenders can have info, just always remember that they think of you as an opportunity to make money off of, so if they can word something in an enticing way, they will. Never forget that to a lender, ALL lenders, you are a way of making money. They don’t care about you. They want you because of the amount of money they will make off of you. Never forget that. Real estate agents too. You have to be so careful to think critically through the home buying process and not get sucked into these people pretending to care about you.
I'm curious what happens at the end of 7 years? Do you have a huge amount due as a balloon payment or do you NEED to refinance because you have a 7 year ARM loan?
@@anjeekutz5262 either one is a possibility depending on how the loan is structured.
@@musicgirl713 9⁹
One good thing to know/consider is that the first 6 (+/-) years of a loan is mostly interest. If you have extra to pay towards principal each month you will GREATLY reduce the amount of interest you pay overall. :)
This! I was SHOCKED to see our amortization schedule. Almost all interest for several years.
Congratulations 🎉 We moved from Cali in 2014 to Kentucky after living there all my life and living in our home for 30 yrs. Retired and purchased 10.5 acres and had a custom home built and living the life! Hope you enjoy your new home.
We had a house in California. One thing I'd suggest doing, which we did when we bought our house, was extending our home warranty each year. This saved us so much money! For us it cost I want to say $60 a month. But if ever something came up whether it was plumbing, appliance, HVAC, etc, we were covered. Each year it did end up paying for itself with how much we saved on repairs. It only cost us $75 for someone to come out and fix or replace whatever it was. This saved us a ton because the second year of owning a home our AC died. They were able to replace & install it and it only cost us $75, which quoted would have cost us around $7,000. Another year we had to get our fridge & garbage disposal break, and it again only cost $75 for a replacement. For us it was well worth the risk if we kept our warranty and didn't use it. We thought of it as just additional homeowners insurance.
So are you the only one who bought the house? I'm a little confused. How are you splitting this 3 ways? (You, Jordy, your parents)
Parents pay for downpayment, Michel and Jordy share the monthly mortgage payment.
One thing, your property taxes will increase year to year because of increases in the various taxes. You will also have periodic increases due to your home's value being reevaluated. You will get a form on what your valuation is and another on the taxes you have to pay. From there, you can figure out how much you have to set aside a month for property taxes.
We bought in California and a month later our AC stopped working. The warranty saved us so much in tech charges and parts. We also used it for our oven. We did have to pay a call out fee, but totally worth it.
I learned having a good inspector is key. Some are very surface level, and others more thourough. A good inspector will protect you and give you more room for negotiation if needed. Also realtors are a great resource for contractors to work with, but I found it was better to get a referral from other home buyers for the best lenders. I switched part way through to a new lender after I was not digging the person from my realtor and it was the best decision. Helped me lock in better rates and was more invested in my home buying experience. A good attorney is important too.
Wow this is so great to know!! Thank you for sharing Autumn!!🤍🥰
Refi - if you refi you can include the cost to refi into your loan
Also note if your property doesn’t increase in value you can’t refi without major upfront payoff of the loan because you’ll have negative equity. I wouldn’t have suggested doing the 7 year fixed. I did that when I first bought and the market collapsed and I couldn’t refi. Took me a very long time to be able refi. I live in central California so my experience is similar to what you’re doing
Also note property taxes for ca are due December and April
I’m a realtor in Oklahoma. Here your taxes and insurance are mandatory paid monthly with your payment if you don’t pay cash and use a lender. This ensures with the lender your home is properly covered. Also closing costs are less in California. Here in Oklahoma we still have abstracting which requires it being read by an abstracting attorney and held with an abstracting company. Every state is different when it comes to the different aspects of buying and selling real estate. When I have new buyers or sellers I sit them down and explain all aspects of the process. We also provide an estimated cost of buying or selling depending on who our client is. People think realtors make easy money. Far from it! So much goes into representing buyers or sellers. Negotiation back and forth require documentation and signatures. Thank god for electronic signatures, years ago you had to run documents everywhere for signatures then back to lender. Sounds like you got a good realtor to still work with you after a closing. Some will not. Congratulations!
So happy for you both! Can’t wait to see all the house/moving content. In NY (not sure in CA) but don’t be surprised if after a few months your “lender” will change. Apparently lenders will batch a bunch of mortgages and sell it to a bigger mortgage company. So of course you have to switch who/where you’re sending your payments. 😬
Yes, same thing happens in California!
This definitely happens in Florida and Alabama! Happened with the last two houses we bought…literally within a month or two of closing.
We bought a home in CA and we learned these same things. We decided as well to make our tax payments twice a year. The taxes in CA are due in November and April. It was easier for us to do that, than roll the payment into our monthly house payment. We also refinanced, and it was not that hard…we did it after two years of owing our home…we also stayed with the same lender and yes, the amount is less to put down when you stay with the same lender.
Once you apply for a Mortgage Loan, do not open any new credit or charge up balances on existing credit cards. Banks/Mortgage companies often check your credit within 10 days of closing. Do not go out and buy a house full of furniture, it could increase your monthly expenses enough to impact your loan approval.
I always get SO excited when you post. It just makes me feel so cozy and happy snuggling on the couch 🛋️ I’m honestly so blessed and grateful that I found your channel about 4 months ago 🤍 Have you thought of starting a podcast?
Aweee this is so sweet!! I am so thankful you are here Maria!! I haven’t recently! But Jordy and I were just guest in one!! I’ll let y’all know when it goes live 🤍🤍🎉🥰
I know I do not you personally, I first found your channel by accident. It was when you was in your old bedroom and you was crying and you said you was getting divorced. Your heart was so broken and I knew what that felt like. I watched as much as I could because watching you made me so sad for you. I watched you go through some difficult times. You might not have realized this but you have grown in such a way that you have really kept inspiring me to move pass some challenges in my own life do to a ex. I got stuck and wasted so much time. I have to tell you watching you make new friends after moving to Austin, watching you find such an amazing guy. Now your getting married to him and you just bought your first house. You are amazing!!!! You have a beautiful family. I am very happy for you, lots of blessing!!!! Sorry about the book I wrote. Lol
That video you mentioned was also the first one I got to know her. I've followed her ever since. She's such a joy to watch.
This is a great video and so helpful! Something that happened to us was that The homeowners left a bunch of junk trash and furniture in the house when we did the finalwalk through the day before. The house was not clean at all. Our agent was able to get in contact with the former owner and he came back and got some of the stuff but didn't clean and still left a lot. I was 8 months pregnant with a six-year-old boy, and my husband had a back injury and had to wear a brace. We already had to move our own stuff in and do some repairs before the baby was born. We were literally panicking. There was nothing we could do to make him clean it out. Our buying agent was a saint. Out of her own pocket she paid to have cleaners come and told us that was a baby gift. We couldn't possibly pay her back but it was an answer to our prayers. I have recommended her to people so many times through the years and now she is a famous real estate agent in our area. It definitely is the best thing you can do to find a good real estate agent.
Wow this is so kind!! I am so sorry that happened to y’all that is horrible!!
@@MichelJanse Thank you! God bless you
Love this content! The big sister we all need, and it's so cool that you're able to make fun content, but also share the knowledge on all the important 'grown-up' things nobody warns you about. I also appreciate how engaging you are in your videos, with your speech, and how you explain things. No matter the subject, you keep people interested 😊
You are so sweet Ele!! Thank you so much this means a lot!!🥰
As a Realtor, I have to say you explained everything perfectly! Great video ~ very informative & so helpful for new buyers or even buyers that have been through this process but may need a refresher ❤
WOW THANK YOU!! 🤍🤍
Super happy for you guys, congratulations big time. And thank you for this insight, its super helpful to keep in the back of my mind. Also, have always loved these heads up videos you do - they have all been super helpful in some way, shape or form.
When we bought our house, also not a new build, the water heater was found to be leaking and needed replaced on the day we moved in. It fell under the warranty. Also, 11 months later the stove went kaput and that was covered as well. It was worth it to us to have the warranty. Congratulations on your new house. You're going to love it. I'm sure.
Another not often mention thing about buying/owning a home: Your mortgage lender can sell your mortgage to a different company at any time and only needs to notify you once it has sold. Your terms can't change, thankfully.
Most lenders do sell certain mortgages in blocks of 25 to 50 in Oklahoma.
Was going to mention this, too, because Michel mentioned that refinancing with the same lender could potentially mean a break in refi costs. But lenders selling mortgages is quite common. And, it can happen quite quickly. As you say, terms don’t change, but how/where payment is sent will. It can be a bit disconcerting the first time it happens, but the new lender is usually very clear and helpful about making sure their new client knows how to pay.
There are fluctuations in the cost of homeowners ins as well as lenders. First time homebuyer programs help a lot. It's also nice to check out the traffic around the home you're interested in a different times of the day and even weekdays vs weekends. And if you're going to be commuting to work it would be a good idea to actually take the commute during your workday so that you know what it'll be like.🥰
Yay I’m glad it worked! Such helpful tips 🤍🤍
@@MichelJanse thank you.🤓 I don't know what was happening but maybe because I had typed it as a list TH-cam thought it was spam? Lol 😂
Also don’t be scared if the company your mortgage payments go through changes! I was informed it would happen for the first time, but we’ve owned our house for 4 years now and it has changed 3 times total- completely normal and exact same payments, just who it goes through changed. Congratulations, and I’m so happy for you guys!!! ❤️
So this is YOUR house alone? That is, you are the title holder? I would never advise unmarried people to buy a house together. Especially if one person is paying for it or most of it.
Risky.
It’s in her and her parent’s names. This is like a 1.5M home.
@@SanduskoJordy is very blessed. lol
Lots of great info for first time homebuyers! I’m currently selling my house in Washington state and buying in Texas and there are a couple things I would add: Property tax - In WA the amount a home sold for is public record and the county uses this data when they are assigning a tax assessed value to your home. In TX this data is private and the county does not know how much you paid for your house. They will ask you but it’s voluntary to provide this info. There are also exemptions you can take that will reduce your bill. And in both states you can dispute the value they assessed your home at. So if they want to tax you at $1M but you don’t think your home is worth that much you can dispute it. For insurance, I highly recommend shopping around for the best coverage and rates. Educate yourself on the difference between replacement cost and actual cash value coverage. There is a big difference. And ask your agent about discounts. There are many to be had and they can help you find them.
Usually, escrow companies require that they handle property taxes and insurance until you have at least 20% equity in the home! It's usually not optional if you're putting down less than that
We just bought a home as well, and there is a wealth of information that no one told us. This is super helpful for people looking to buy! I thought the earnest money was a big one no one told us about as well!
For anyone buying in NY, its a whole different beast. Biggest thing that's different from most states (I think) is you don't get a closing date when your offered is accepted. And you typically won't close for 6-9 months....
I'm very glad my partner is a veteran. We get to use his VA loan one day when we can actually afford a house.
My older sister got super lucky buying her house this year. She only had to put down $1,000 in earnest money and the lender she used was offering a grant during June (the month she bought her home) for national homeowners month or something like that to first time home buyers which completely covered closing costs and actually she ended up getting some money back at closing. Her realtor said this was the first time she could remember someone being paid to buy a house. She then used the $$ that she had set aside for closing costs to paint & furnish the house
I’m so surprised you never mentioned an attorney. I’m a paralegal for a real estate attorney. So very important to have an attorney during this process. They do everything.., including deed and real estate transfer return and guidance through the whole process including closing.
Interesting, I've never had a real estate attorney and I don't know anyone else who has either. I didn't realize that was commonplace
A closing attorney’s office is usually a part of the “team” of people when purchasing a home. At least it is in GA. The real estate agent usually uses their preferred closing attorney to make sure there is clear title. If you’re selling on your own, you can find your own title agency to make sure that title is clear.
Bought Multiple homes, over many many years, and our Agent took care of everything. NEVER needed an attorney.
I worked for a mortgage company based in California but we did a lot of business for Georgia clients. We did use a attorney's office for Georgia, but In california we use Escrow companies which is the third party that is unbiased to either side. They require a different license and work with title, insurance, and organize all of the paperwork between both parties.
Adding an attorney as a supposed necessity on top of all the other nonsense that is actually law is just crazy… Lol the red tape to buy a home now, just so a bunch of random people can make money and make it harder for the average person to own is ridiculous and disturbing.
In New Zealand we have to put down a 10% deposit when we first make a conditional offer on a home - average cost of a home c.$1m. Standard conditions include subject to a builders report or finance being approved. You generally have 7-10 days to complete the conditions & confirm you are good to go unconditional. Settlement is then in 6-weeks time.
No girl, no. The taxes DO NOT stay on what you originally paid for the home. We bought ours in 2003, I WISH we were paying the same amount now!!! Our property value has more than doubled and so have our taxes!! Please talk to more people not just agents. Every time you refinance they reasses your property value!!
I was going to say the same thing. Just because her house may not have an official assessment, the area will still be assessed and taxes will increase. Plus if any bonds get approved by voters that is added to the property taxes too. Luckily we did se our escrow company for our taxes and they informed us whenever there was an increase so we knew to put more aside each year so there were no surprises.
ARM MORTGAGE. many people in 2008 got an arm and ended up foreclosing due to not being able to make payments. It's a calculated risk. Ensure you do your research.
It's crazy how different things are! My earnest money was hundreds, and even that wasnt required at all. I think the realtor gave us a range and I just agreed, then it only ended up being maybe $200? Also here it's pretty common for the seller to pay closing costs, but it's definitely not a hot market. Insurance and taxes go into escrow, just lumped into the monthly payment, and that's the default. Taxes would be twice a year if we didn't have a mortgage.
As someone who has bought several homes you did a great job explaining the process . The only problem I have had with a home warranty is they send a contractor on a list and not all are reputable ❤
Currently running my business, 32 weeks pregnant and setting up to take off for maternity leave. Suddenly our dream home (right next door to my parents) goes on the market. 7 days later we’re in escrow !!! Wow am I overwhelmed. This isssss so exciting but there’s so many moving pieces. It’s insane to have to live your regular life and go through escrow. Haha. So I appreciate this video 🎉 congrats on your home!
It sounds like a crazy process, but everything coming together nicely for you Michel!
Chalk it all up to gaining knowledge and experience, and that is what you have after all of this! 😃
The time to moving into your new home, is getting closer and closer! I’m getting excited for you! ❤️
Depending on the state, escrow of property tax and house insurance is required if you don't have 20% down and/or paid on the property. Was this way in my previous state of residence.
I’m in Texas, my Taxes are due in Jan, March,May, and July. In 4 equal payments. Very simple and easy to handle. We are Seniors (65)and have Homestead exemption. So our Taxes do no change. Don’t forget, Flood insurance is separate from homeowners. Warranty is worth it. We lost our AC during the heat wave, thank God for our warranty! We have used it at least 2-3 times a year since purchasing it. Everything from the Toilets to the garbage disposal. Best decision ever!
Definitely make sure home owners insurance also covers flood. In many states, Texas included, flood is separate from home owners. Also windstorm is separate. Although, some companies now have a combined home owners/wind but you still have to make sure you’re getting a combined policy.
Also, in California, earth quake insurance is separate.
This is SOOOO HELPFUL!! Thank you for sharing!!🥰
California property taxes are due in December and April ❤ it was smart to choose a step mortgage ❤ refinancing will work out for you ❤ I’m an insurance broker in California (CPCU 36 years) rates are nuts right now Oceanside rates are going 100% guaranteed to change. In your area my guess you were able to get Farmers. The cost to rebuild in your area is 450 per square foot don’t underinsure you risk co-insurance penalties xo
Ooo this is great to know thank you for sharing your knowledge friend!!🤍🤍
Yes, please make sure you’re not underinsured. $1,000 yearly insurance premium seems EXTREMELY low.
Fun fact: rates tend to drop during presidential election season (that’s when we refinanced in 2021 to a 15 yr with a 2.3% rate). Keep your eyes peeled the closer you draw near to that date AND shop around with different companies…but to your point your lender usually wants to keep you and will tend to give better incentives to refi with them (which was true in our case too)!
Way to be savvy 👍🏼
Our fam are big Dave Ramsey ppl 💁🏻♀️👌🏼
Homeowners insurance does not cover flood, it is specifically excluded as is earthquake. If you want flood or earthquake you have to buy separate policies. If you live in a flood zone the lender will force you to buy flood ins. Certain water damage may be covered under homeowners, ie burst pipes, but typically whether water damage is covered is always questionable.
Unfortunately in California it isn’t a given that your property taxes will be the same… Just because YOU haven’t decided to have your home appraised… You can simply be required to have your home appraised (which they will also tell you to pay for yourself) just so you can then be charged more in property taxes… At any time and in no way within your control. That happened to my parents just this year (71 and 82 years old) who have had their home paid off for quite some time and were depending on a low rate of taxes since they do not have school aged children, barely drive etc.
Yayyyy! I have been waiting for this haha your videos are one of my only forms of entertainment right now😂
Aweee this is very kind Natalia!!🤍🤍🥰
Some mortgage companies require the property taxes to be part of the monthly payment and held in escrow until the taxes are due each year. This protects them from having to pay any unpaid taxes if a homeowner defaults on their mortgage.
California Property taxes - that isn’t correct. Your payment does go up but very slowly
That is true. Thank you for catching that. I don't think I comprehended the percentage. 🙂@@perthfanny3017
Oh my gosh, thank you for this information. We're looking at buying currently in Houston, so this really helps us!!!
Fantastic! Where was TH-cam when we purchased our home in 2000??? I agree that an agent is incredibly helpful. Do not let the agent push you into a house they think is “perfect” for you (because you’ve been looking for over 6 months) & when you find the one you think is right, don’t let them make you second-guess yourself. Loved the clips of the new home!! YAY!!!!
You shared these expenses between the two of you didn’t you ? And where did your parents come in with the mortgage expenses ?
Maybe it was just her and her parents purchasing the house??
Jordy is not on the title or deed.
@atresearch will he be once they are married? Some states require spouses to be if even if they aren't on the loan. Seems like jordy got a pretty good deal
@@anjeekutz5262he hit the Janse jackpot for sure 😅
@@anjeekutz5262 I don’t know. California is a community property state, but if they have a prenup, it may continue to be an asset shared with her parents without him. It would be foolish not to have a prenup, because he would definitely get a sweet deal otherwise.
Love your content. I am 67 and have owned homes in NJ and Naples FL. In NJ it is the same that your taxes are based on assessed value at time of purchase but a few things to keep in mind. If you make upgrades that require permits that may trigger a reassessment. Also your property taxes can go up up even if your assessed value remains unchanged. Go in to the towns tax collector site and see what makes up you property tax rate. It will typically be 3 or 4 items. So those items can go up year after year. Not sure about CA but it in NJ my property taxes have gone up every year while my assessed value has remained stable. Also see if there is a cap in your town/county on how much your rate can be increased in a year. About refinancing there is sometimes a no cost option where the lender will simply do a revised amortization schedule for you if you see interest rates go down. Basically the length of your loan does not change but your monthly payment is reduced. See if your lender offers that. Might save you the $4k. Also make sure your lender does not have a penalty for paying off your mortgage early. Not sure that still exists but it used to be a thing. P. S. Having the escrow company handle your property taxes is the biggest scam going. Smart move to do it yourself.
That's one thing that's similar with the UK, I was surprised how little home insurance you pay monthly. So little for something so massive! Maybe it's me, but my home is priceless because it's sentimental and full of memories 😅
Aren’t you having a joint mortgage with Jordy?
I’m so glad I live in the UK 😊🇬🇧
My thoughts exactly, I thought our mortgages were confusing but this has blown my mind 😂❤
No, it’s her and her parents.
There are many reasons a homebuyer can back out of a sale and not lose their earnest money. It's not specifically tied to inspections. If you have a lender, you may not have a choice about paying the taxes on your own. Some lenders require taxes and insurance to be included in your mortgage payment. The lender puts it in escrow, not the actual escrow company. They will collect the amount due up front for the lender. Once escrow is closed, the escrow company isn't involved anymore. Oh my, you have a lot of misinformation. Not all homes are covered under Prop 13. Your taxes can indeed be raised.
Getting into the home owning process is quite the nerve-racking experience!! Thank goodness you have your mom and dad to help walk you through the process...after all, they are going to be there as well!!!
Home warranty is rarely worth while. Having a single year of warranty for a home you’ll live in for 10-100 years is kind of silly, and in most cases (unless you’re buying some place in rough condition) you’re not going to need it the first year. It’s also like dealing with any insurance or warranty, you have to ask them first who you can use that is covered, maybe wait a week for a reply and then maybe argue over the cost. Meanwhile you’re maybe without a washing machine for a couple weeks. The inconvenience factor of saving money usually isn’t there. For example, the repair is $350, and with warranty it will only cost you $100 but you’re also without a washing machine or a refrigerator for 3 weeks. In that case you might be better off paying the extra $250 and having the repair don’t immediately.
I guess it’s person to person. Home warranty has come In handy for us a few times.
@@dhall75608It may also depend where you buy/live. We have purchased primarily in California. But I’m also someone that gets additional inspections (roof inspection, pool equipment inspection, electrical inspection) so I know where the areas of concern are likely to be. With all the free warranties we’ve had, I have never successfully had one cover something in a timely manner.
I agree. Very simply those that sell the warranty have to factor in sales costs, profit and will include that in determining how much to charge for a warranty. If its a new home, the developer should offer a warranty at N/C. (usually 1 year). On non-new construction. if at all possible, just be self insured against the guaranteed to occur home maintenance costs. Most of the warranty products are not worth it.
Totally agree!
Could you explain why you went with such a quick close, 10 days is really tight! I have done a 30 day close both buying and selling and it still felt like a lot to get done in that time on both sides.
It can give you the edge if there is competition buying. If sellers are already in escrow on their next home, the home is vacant, or they just need to sell as quickly as possible. If that seller gets many offers for the same price and one is offering a short close, that may be the deciding factor. Yes, most escrow are going to be 30-45 days, but it’s also not uncommon to do 10-14 days.
Insurance doesn't cover everything. Flooding for example may not be covered. You would have to buy supplemental insurance.
Good morning Michel happy Tuesday morning and I loved your vlogs and you all amazing Supporter
As a homeowner in texas we have to purchase a separate flood insurane because we are in houston. Our homeowners will not cover flood damage. I have found that a home warranty is worth the cost. But you must maintain the items covered by the warranty. Our ac went out and I had to pay the full amount of repair but we were lucky it wasnt too expensive
Don’t forget about getting flood insurance ! Even if you area doesn’t flood you never know and it’s better to be prepared :)
It's easy to assume all the first time home buyer benefits are just a part of buying a home and not to realize the next time you buy it is going to be a lot more expensive. Most people don't stay in their first homes for the rest of their lives so know that the next time there will be other things you need to know! The cleaning thing is real. Make sure it's written in the contract that the sellers will have the house professionally cleaned before closing.
I love California! Looking to buy a home in the bay area in the next few years
Having sold several houses now - you pay the fee for the buyers agent. I sold one by owner and I came off the asking fee when I set the price. I had a couple agents ask me if i would work with them, my answer was I want X dollar amount and if you can talk the buyer into paying 3% more then I will work with you. The house i sold through an agent I increased the asking price by 6% and did not budge/negotiate that.
Also if you make one additional payment per year it will take on average 7 years off your mortgage. You can have your mortgage debited by-weekly and since there will be 26 payments per year that gets your extra payment made. If you plan on staying in the same house for a while it makes sense.
Wow thank you for sharing!!
I’ve purchased two homes and my earnest money was only $250 non refundable for each. (Which was actually part of a larger $2500 we put down but was otherwise refundable if we pulled out. And I went under contract on a third but they (builder) refunded everything when we backed out.) And I’ve had two buyers for a home I sold (one fell through) and both of those were only $600. Earnest money is typically mostly refundable as long as contracts are followed and don’t forget you can negotiate this.
Thanks! Those are handy little things to know!
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As you if would’ve listened and made decisions accordingly. 😂
God bless you, thank you so much for sharing all this valuable information!❤😊
Michigan is 2x a year as well and I rolled it into my mortgage payment / insurance/ and everything else in my mortgage.
By and far building/selling a house and closing on both the same day was the most stressful thing I've ever done. Ran into a snafu three days prior to closing because the individual purchasing our house and five acress of land committment was expiring. I thought I was going to die! Thank God that the attorney's office rushed everything along and we successfully closed. Another thing that "bugged" me was a termite treatment we were not told about on bare land! What the heck!
You do know that the home purchasing process is state, even locality specific. For example in MA, the sale process consists of 3 phases. An offer, a P&S and a closing. Title company, search titles, not handle closings. In other states its a two phase process, where you go directly to a P&S agreement, and title companies handle the closings. (More like a lawyer). So when you make a video about your experience you should caveat it with what you went through. BTW, almost kno one is holding a mortgage to term. Some move, some refinance. some pay it off early. I would wager you will not be in the home you just purchased in much more than 5 years. And whomever told you int rates wi9ll go down in 2 years is just guessing. Make sure if you get a variable, you understand its terms, and you can pay the loan, even if the rates go up.
One final point. If you are a buyer, especially if this is a first RE purchase. . Get yourself a lawyer. Even if you have to pay the bank lawyers fee as you usually will. Remember that lawyer is NOT representing you. They protect the bank's interest. A good RE lawyer will guide you through this process. Remember you are buying something that is generally worth more than !00K. AND you are buying it by borrowing a lot of money. (There are lots of horror stories out there of people buying thinking the title is free and clear, and ending up with a clouded title, and a big loan.) In the long run its well worth it. (and no I am NOT a lawyer.)
Thank you Smart lady! Your a great teacher.
I'm loving the wedding and house content. Learning so much with videos like these too!
Yay I am so glad!!🤍🥰
You talk with " I" mostly are you buying the house by yourself?
Her and her parents
Here in Ontario, 🇨🇦, many things are similar. However, a couple different things are both buyer and seller pay the agent. However, you can negotiate the rate.
The other thing is you must write subject to inspection in offer and any of the chattel ( appliance, TV's ECT you want included in the purchase.
We also only put a few thousand down on offer depending on the price of home.
In California, you can split your payments to be paid 2x a year or pay all of it once a year. If it’s easier for your keep track of once a year and you have the cash, I’d recommend doing that. It also helped with keeping track for your taxes because the two payment deadlines fail in two different years (end of the first year and beginning of the second year).
Apply for a homeowners exemption on your property taxes also it lowers the value of your home for property tax purposes by $7000.00 in our county.
Or a home equity loan deal with low refinancing pop up once on awhile
In NY we pay property and school tax as well as home owners insurance yearly. In VA they pay what is called personal tax every 6 months. This covers cars, recreation vehicles, boats, campers, trailers, ect.
When you posted that video about keeping yourself distracted/de-stressed, my first thought was “there’s no way she’s not buying a house.” There’s no stress like first time home buyer stress 😅😅😅 it was a ROUGH six week rollercoaster for me!
I don't know about ins. anywhere else, but her in calif. flood is covered only in the home such as a pipe breaking or a dishwasher leaking etc. Flood waters on the outside coming inside IS NOT COVERED.
Thsnks for all your info. I'm probably older than your parents but didnt know some of this!!😄
This is such an interesting video! I don't live in the US, so I imagine it to be extremely different from my experience, but it's still fascinating to learn about 😊
I went through this process in May in California. We learned SO much too haha.
This was very informative! Can't wait to see more! :)
Through all of this don't forget to enjoy your home! ❤
(In Michigan) our earnest deposit was $1000. It varies from house to house/ realtor here.
So glad 😀 you did this .. awesome to know since I’m in the Market for a Place .. ty ❤😊
Didn’t you buy and live in California??
Here in South Africa we pay property taxes every month. Thank you for uploading. I love your videos
This was fascinating. Thank you!!
A surprise is just how much fake fraudulent mail you get after the sale to your new address saying pay this to get your title etc. partly made me glad we chose to do the escrow because don’t have to worry about deciphering real financial bills from crap like that in the beginning.
That’s so odd in regards to the escrow. The bank that handles our mortgage handles our escrow: we definitely didn’t have to pay it up front like that. What we pay for taxes is included in our monthly note and they set the amt aside and when it’s time to pay them in, they send a check. This also includes our home owners insurance.
I thought this was odd, too, as the first installment isn't due until 12/10 - plenty of time to impound taxes, as their first year's taxes will be based on the previous owners' assessed value (and then they will later receive a supplemental tax bill for the difference).
Such an informative video. Great information!!!
Thank you soooo much for this video
My mom is a real estate agent and it’s like the mafia behind closed door to get a deal set
Michel I am always always looking forward to your vlogs so so so much and I never missed any one of your vlogs you are my inspiration and I will support you till end💖💫🤗
You are always so so sweet! Thank you friend!! I hope you and your sister are doing well!!🤍🤍🥰
Love all your content!! ❤❤❤I always walk away in a better mood 🤗
That homeowners insurance does not include earthquake damage, so keep that in mind.