I went through this earlier this year as well. This was a good breakdown of everything leading up to the closing. Maybe one thing to add is a category for any immediate repairs or improvements you’ll need. Of course that depends on the house, and sometimes you can get the seller to knock those costs off the closing price, but still there always seems to be a surprise just after moving in (AC goes out, leaky toilets or faucets, etc).
Yes!! So far my husband and I have been lucky and haven't had to do anything (fingers crossed, knock on wood, all the things), but my brother immediately had a busted washer/dryer, leaking water, and had to replace alllll the flooring downstairs in addition to replacing the water heater. In their first MONTH. Can you imagine?!?! Eesh!! Seems like we could never have big enough emergency funds or home repair funds!! 🌻 Hannah
Also decorating! Curtains/blinds, towels, rugs, knick knacks, pillows, there's always something and it can add up fast that first month or two if you're not watching.
Great suggestion, it's just hard to put a firm number on these things. We have a manufactured home and are saving home expenses/repairs for our current domicile, so at least we should have some to transfer over to the new home. But I figure I'll want to do some remodeling of the new place. That adds up fast. I feel like no amount will ever be enough so we'll just have to make do with whatever we've saved up by then...
Thank you! I am no where near ready to even look for a home yet, but I have no idea how this all works so I'm doing research ahead of time :) Your explanation is great!
YES!! Brilliant! 👏🏻 Learning ahead of time will allow you to move so much quicker when the time actually arrives! We learned it all as we went, and I felt like I was just nodding my head in blind faith at everything every step of the way 😂 🌻 Hannah
Wow. Here I was thinking we had our 20% down payment and were almost ready to go. Nope. It's going to cost up to $30,000 more than I thought. This video was super helpful and now I've got it all straightened out and categorized in YNAB. What peace of mind this brings! Hopefully we can buy a house in 2-3 years.
With so many of these being pretty variable, we just had one big category while we saved up. Once we had enough to start seriously looking and putting in offers, we began splitting the different fees out. Find a good mortgage broker that will communicate with you and check in with them once every couple of weeks while you are putting in offers. There are so many variables that can change your mortgage, you always want to know what you are able to offer. For example, we added a couple thousand dollars to our down payment, which lowered our PMI rate and our interest rate slightly, which raised the amount of house we could purchase at the same monthly payment by almost $10,000.
While I wish I had YNAB when I was in the process of purchasing my first home, I'm so glad I have it now as a homeowner. Tracking my sinking funds for improvements and renovations while saving for other important life events gives me so much peace of mind now that I use YNAB.
Amen amen and aaaamennnn. YNAB is a MUST have for the home owner. We have so many home related categories, it's ridiculous-home improvement, outdoor expenses, new fridge, new pergola, tree pruning, pest control, household items, and that's ON TOP of our mortgage payment, utilities, and "one extra mortgage payment a year" categories. Seriously, we wouldn't be able to keep track of (or remember to do any of these things) without YNAB. 🌻 Hannah
Super excited to see this video! Your buying your first car video helped me plan out buying my car a few years ago (yikes, time flies!) and now I'm in the process of saving for a house. For better or worse my research lined up with the expenses that you mentioned. I did miss the mail forwarding expense though... I'll be sure to add that in. 😊I've missed your videos!!
Wow 🥺 That is so special and touching to hear. We must be on the same wavelength!! BEST OF LUCK in buying that first house! We have LOVED having our own space and a place to truly call home. I hope you find yours soon!! 🌻 Hannah
YAY!! That was my hope!! We knew liiiiterally nothing about the home buying process when we went into it, so I'm ALL about helping people get a fulllll view of the actual home buying experience. 🌻 Hannah
Here's a tip, do a bi-weekly payment. So if your monthly payment is $1000.00, then pay $500.00 every two weeks. By doing bi-weekly, you make 13 payments in a year instead of 12 monthly payments. I've read or heard somewhere, that by doing it this way, you will pay off your mortgage 6-7 years sooner.
Yes!! Our realtor told us we could also just make one additional payment each year (which we just did last month! And WHEW. That was a lotta money out the door 😂🥵) and she said it takes 8 years off your loan payback time. We try to make our monthly payment PLUS any extra we can scrap up from the "end of the month" budget leftovers, and that's been a good feeling to know we're lowering that interest accumulation jusssst slightly more than if we didn't do that. 🌻 Hannah
We did it in 11 years on a low income by being pretty frugal. We took in lodgers (foreign students) for the spare room and every penny went towards the mortgage. I used a free mortgage calculator think it was called “Karl Jeacle “ and you could put in the mortgage amount and interest rate and time frame and add in lump sums or extra monthly amounts to see the difference it would make to the time frame. I also used to look at mortgage free discussion groups (there’s a uk one on moneysavingexpert) and debt free discussions to get extra tips. I know many finance experts suggest investing over doing this but I wanted the security first. The feeling of owning every brick in the house is amazing. Go for it, you can do it!
Check your loan site. Mine let's me play around with how extra money will affect the loan and payback time. I can add a flat one time payment, an extra amount yearly, monthly, or whatever. And since they have all the numbers, it's easy.
I am new to YNAB and love it! but I am having a lot of trouble setting it up. I have watched almost all of the video about YNAB but it seems like I am still having trouble with it. I don’t know what I am doing wrong here
Hey Mahnbuah! Happy to help!! Are you using YNAB primarily on your phone or on a computer? Once I know your platform preference, I can be of a little more help! 🌻 Hannah
My husband and I are renting our dream home. It's a farmhouse with a wrap around porch, and enough land for our horses. We want to buy it in the near future. So, my question is, Do we consider lease to own while we work on our credit or save enough money for landlord for down payment?
Same for the UK. Never heard of earnest money and some of these aren’t relevant to us but the idea of splitting things up rather than one lump sum is so useful. I’ve got solicitor fees, mortgage advisor fees, general moving expenses, home survey, and moving day expenses (eg takeaway and stuff until you get everything you need)
Oh, I love hearing the different language! I would assume your "home survey" is our "home inspection." I don't even know what solicitor fees means 😂 Never thought about terminology or procedures being different! So fascinating! 🌻 Hannah
I’m not even planning on buying a house, but I miss Hannah videos so I watched this one. 🤪 Good video.
I already own a home for like 7 years but hard same
YAY!! 😂 Thanks!! We've been busy busy busy at YNAB lately, but content will never stop comin'-I promise!! 🥰
🌻 Hannah
I went through this earlier this year as well. This was a good breakdown of everything leading up to the closing. Maybe one thing to add is a category for any immediate repairs or improvements you’ll need. Of course that depends on the house, and sometimes you can get the seller to knock those costs off the closing price, but still there always seems to be a surprise just after moving in (AC goes out, leaky toilets or faucets, etc).
Yes!! So far my husband and I have been lucky and haven't had to do anything (fingers crossed, knock on wood, all the things), but my brother immediately had a busted washer/dryer, leaking water, and had to replace alllll the flooring downstairs in addition to replacing the water heater. In their first MONTH. Can you imagine?!?! Eesh!! Seems like we could never have big enough emergency funds or home repair funds!!
🌻 Hannah
Also decorating! Curtains/blinds, towels, rugs, knick knacks, pillows, there's always something and it can add up fast that first month or two if you're not watching.
Great suggestion, it's just hard to put a firm number on these things. We have a manufactured home and are saving home expenses/repairs for our current domicile, so at least we should have some to transfer over to the new home. But I figure I'll want to do some remodeling of the new place. That adds up fast. I feel like no amount will ever be enough so we'll just have to make do with whatever we've saved up by then...
Thank you! I am no where near ready to even look for a home yet, but I have no idea how this all works so I'm doing research ahead of time :) Your explanation is great!
YES!! Brilliant! 👏🏻 Learning ahead of time will allow you to move so much quicker when the time actually arrives! We learned it all as we went, and I felt like I was just nodding my head in blind faith at everything every step of the way 😂
🌻 Hannah
Wow. Here I was thinking we had our 20% down payment and were almost ready to go. Nope. It's going to cost up to $30,000 more than I thought. This video was super helpful and now I've got it all straightened out and categorized in YNAB. What peace of mind this brings! Hopefully we can buy a house in 2-3 years.
It's WILD how much extra money we needed than we thought. Very eye-opening.
🌻 Hannah
Very helpful. I am saving for a house and just have one big category. I’m going to split it out like this!
With so many of these being pretty variable, we just had one big category while we saved up. Once we had enough to start seriously looking and putting in offers, we began splitting the different fees out.
Find a good mortgage broker that will communicate with you and check in with them once every couple of weeks while you are putting in offers. There are so many variables that can change your mortgage, you always want to know what you are able to offer.
For example, we added a couple thousand dollars to our down payment, which lowered our PMI rate and our interest rate slightly, which raised the amount of house we could purchase at the same monthly payment by almost $10,000.
Thanks Hannah! I’ve been dreaming of buying my own house lately and this helped so much. 😊
YAY!! We absolutely love to hear it. Good luck!!
🌻 Hannah
An Additional inspection is the fireplace/chimney.
While I wish I had YNAB when I was in the process of purchasing my first home, I'm so glad I have it now as a homeowner. Tracking my sinking funds for improvements and renovations while saving for other important life events gives me so much peace of mind now that I use YNAB.
Amen amen and aaaamennnn. YNAB is a MUST have for the home owner. We have so many home related categories, it's ridiculous-home improvement, outdoor expenses, new fridge, new pergola, tree pruning, pest control, household items, and that's ON TOP of our mortgage payment, utilities, and "one extra mortgage payment a year" categories. Seriously, we wouldn't be able to keep track of (or remember to do any of these things) without YNAB.
🌻 Hannah
Super excited to see this video! Your buying your first car video helped me plan out buying my car a few years ago (yikes, time flies!) and now I'm in the process of saving for a house. For better or worse my research lined up with the expenses that you mentioned. I did miss the mail forwarding expense though... I'll be sure to add that in. 😊I've missed your videos!!
Wow 🥺 That is so special and touching to hear. We must be on the same wavelength!! BEST OF LUCK in buying that first house! We have LOVED having our own space and a place to truly call home. I hope you find yours soon!!
🌻 Hannah
I am just beginning this process, so this is very helpful.
YAY!! That was my hope!! We knew liiiiterally nothing about the home buying process when we went into it, so I'm ALL about helping people get a fulllll view of the actual home buying experience.
🌻 Hannah
Can you do a video on how to pay off your mortgage faster than the term (30 years or whatever) of your loan? pleeease
Here's a tip, do a bi-weekly payment. So if your monthly payment is $1000.00, then pay $500.00 every two weeks. By doing bi-weekly, you make 13 payments in a year instead of 12 monthly payments. I've read or heard somewhere, that by doing it this way, you will pay off your mortgage 6-7 years sooner.
Yes!! Our realtor told us we could also just make one additional payment each year (which we just did last month! And WHEW. That was a lotta money out the door 😂🥵) and she said it takes 8 years off your loan payback time. We try to make our monthly payment PLUS any extra we can scrap up from the "end of the month" budget leftovers, and that's been a good feeling to know we're lowering that interest accumulation jusssst slightly more than if we didn't do that.
🌻 Hannah
But yes, Miriam, I love this idea!! Lemme deep dive into it 🤓
🌻 Hannah
We did it in 11 years on a low income by being pretty frugal. We took in lodgers (foreign students) for the spare room and every penny went towards the mortgage. I used a free mortgage calculator think it was called “Karl Jeacle “ and you could put in the mortgage amount and interest rate and time frame and add in lump sums or extra monthly amounts to see the difference it would make to the time frame. I also used to look at mortgage free discussion groups (there’s a uk one on moneysavingexpert) and debt free discussions to get extra tips. I know many finance experts suggest investing over doing this but I wanted the security first. The feeling of owning every brick in the house is amazing. Go for it, you can do it!
Check your loan site. Mine let's me play around with how extra money will affect the loan and payback time. I can add a flat one time payment, an extra amount yearly, monthly, or whatever. And since they have all the numbers, it's easy.
I went thru all this recently. Could have used this video back in June
I am new to YNAB and love it! but I am having a lot of trouble setting it up. I have watched almost all of the video about YNAB but it seems like I am still having trouble with it. I don’t know what I am doing wrong here
There are a lot of more basic videos on the set up where maybe you could comment about the specific thing you're getting stuck on?
Hey Mahnbuah! Happy to help!! Are you using YNAB primarily on your phone or on a computer? Once I know your platform preference, I can be of a little more help!
🌻 Hannah
My husband and I are renting our dream home. It's a farmhouse with a wrap around porch, and enough land for our horses. We want to buy it in the near future. So, my question is, Do we consider lease to own while we work on our credit or save enough money for landlord for down payment?
Ooooh... that is a question I have no wisdom on. I'd take to google on that one!!
🌻 Hannah
This is great - but the procedures, etc are a bit different in Canada.
Oh, really?! I had no idea, but I'm not surprised!! Curious to hear what's different and what's the same!
🌻 Hannah
Same for the UK. Never heard of earnest money and some of these aren’t relevant to us but the idea of splitting things up rather than one lump sum is so useful. I’ve got solicitor fees, mortgage advisor fees, general moving expenses, home survey, and moving day expenses (eg takeaway and stuff until you get everything you need)
Oh, I love hearing the different language! I would assume your "home survey" is our "home inspection." I don't even know what solicitor fees means 😂 Never thought about terminology or procedures being different! So fascinating!
🌻 Hannah
this was amazing
Good luck with us who live in LA 😂
You get bored, you come try out Kansas and I'll give ya a lil tour! 😉
🌻 Hannah
@@YNABofficial you’re on!
Cries in millennial in Austin 🥲
😂😂🥵
🌻 Hannah