Yes, good point. A basic guideline that I've often read is no more than 33% of your take home pay for the home loan, no more than 39% for all debt payments. I personally was never comfortable anywhere near that, so for us it was closer to 20% when we bought our current house 10 years ago. (That's for a 30-year mortgage... obviously, also consider the total price of the house, since a adjustable rate mortgage can make things seem more advantageous than they actually are.)
Slight adjustment: "Contratulations. You own a home." should say, "Congratulations. The bank has decided to let you move into its home while you pay them back".
I don't know anbout NA, but that is technically wrong here in Italy. The bank does not own your house and depending on what kind of collateral you set up to get your loan, at worst there's a mortgage which means that even if you don't pay it is a long judicial process to strip your house from you.
@@vicepresidentmikepence889 pay some punk rent for 30 years and have your kids go through the same shit or pay your bank for 30 years and leave something substantial for your kids to live off of so they don't have to repeat that shit?? wake up bub
I’m in Kentucky and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
This is precisely why I like having an asset manager look over my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a manager for more than two years, and I've made over 85% of my initial amount.
Rebecca Noblett Roberts, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable resource
Alex Dimov In the USA it’s a long process that involves many parts. Only getting clear from the bank took 2 months of uncertainty where anything could have happened.
I just wanted to write to tell you guys that my husband and I just purchased our first home in one of the most difficult markets to buy (Austin TX). I don't think we would have been able to do so without your video as a guide. Just wanted to say thanks for the content, as it has actually helped me and my new family considerably!
Make sure you loan officer is a broker not one associated with a specific bank. The can negotiate with more lenders for you for the best rate based on your information.
Where do you find a loan officer? I feel like this part of the equation is not expanded in the video. I'm a first-time home buyer with zero experience, doing research. I was thinking about going to my credit union but wouldn't the person working there be a loan officer that is not a broker? Where do I look for a broker as you mentioned?
@@michtig don't be overwhelmed with the experience. It will be fine as long as you are patient enough and ask questions. Getting a broker is usually by a good Google search or word of mouth referral. If you don't mind sharing your zip code, I can see if I can help with a good search.
Yeah I would really be interested in renting Vs buying. I mean, if i instead use the money I would use to buy a house to I cleverly invest in the market, wouldn't I be able to pay my rent+ even more money? I know most buildings just don't have the rent option, but it still a cool way to live I think, and when you'll be older and will just want to rest just buy long term obbligations and pay the rent with that
@@TwoCentsPBS apartments, or condos are actually a terrible financial choice, at least here in Washington DC. Some people did make money from early to mid 2000's but after that few broke even. The HOA costs and one off major repairs that the association didn't save for and had to be paid out of pocket, outpace valuation increase and stagnating rents.
It’s hard to nail down specific predictions for the housing market because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
A lot of folks have been going on about the bull rally and said stocks that would be experiencing significant growth, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a broker, before I started seeing any significant results in my portfolio, been using the same Adviser and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?
As someone who has owned a couple of homes I'd say one big piece of advice is knowing what you want to own...example if you hate yard work then buy a condo or townhouse...an older home doesn't necessarily have "better bones" than a newer home...and for my fellow Veterans out there VA loan is the way to go and if you've already used it once then a 5% down payment brings the fees down as if you're on your first time using it. And lastly even if you don't have kids, look at the rating of the school district as this can have an impact on the value and future value of your home
Pro tip: find your own home inspector, versus having your agent recommend one. I know, it’s easier that way, but the person your agent recommends is interested more in getting repeat business from your agent... so they’re going to downplay any issues they spot so you’re more likely to buy the house. And your agent is happy because they know every time they recommend said inspector they end up selling a house.
Krista Really?? I don't think you understand the buying process at all. There is so much wrong with this video, I don't know where to start. Could it be your state has different laws? What happened to the Escrow Company? You don't contact the Title Company; Escrow will contact the Title Company The Title company only prepares the Title, makes sure there are no leans on the property and gives you an insurance policy to protect you in case something pots up against the title. It is the Escrow Company that does all the work. They are the people who coordinate all activity. They gather all the paperwork, along with the approved loan and submit it to the Underwriter. Option period? what is that? I have never heard of an option period. Once you sign the offer and put down your deposit you have contracted to buy. You can only back out (assume there is nothing wrong with the Inspection) IF the seller is ok with that. (sellers mostly do) The Earnest Fee (deposit money) does not go to the buyer, it goes into your escrow account, and becomes part of the fees needed to close the purchase. It is the escrow company that pays out all the fees, Including all the cash you have paid to escrow. In fact, you don't need a realtor. You only need Loan officer & Escrow company. If you are paying cash? The Escrow company is all you need.
@@gumerzambrano Probably drowning in money from people who desperately try to get a roof under their head. You can't trust realtors, just like bankers and politicians.
Danny Padilla Well in a place that forces attendance for the sake of learning, they should actually teach teach real life applications. They don’t teach investing, purchasing homes, filing taxes, etc. and they should.
And if they do teach this in school do you think a 14-18 year old is going to retain any of this information when they are ready to buy a house? Or even pay attention to this information? You must not know anything about teenagers. They think they know everything. Try to get them to stay focused during this 5 min video. And give them a test on it. But not just your own teenager, 25 teenagers that are not related to you. That is what a teacher deals with but for 60 mins + four times a day, 5 days a week.
Don't forget to leave a lot of money on hand for painting walls, or what I had to do, replacing sinks. There is always something you don't think of, so just have a cushion of money for it!
Your home inspector should point those things out and you can negotiate based on the inspection. Yes that is true you should always have at least $1000 in savings :)
@@saucytabasco I tend to disagree...if you have enough money to afford 800+ rent, you can def afford a home. I key is to not overspend...there is always good 1st time home buyer areas to look into... continuing to pay rent is insane
@@jasonharris765 whether you can "afford" it is not the point of whether you should in that case. If you only have enough in savings to cover one months mortgage, that is a huge problem. You are one small error away from financial ruin. What if your car breaks down? Or the roof starts leaking? The heat or AC unit goes out? That's not even considering losing your job or getting injured to where you can't do your job. You should have multiple months of savings before you even think of purchasing a home, 3 to 6 months minimum, including all expenses beyond just your mortgage. $1000 is in no way adequate in today's market. Multiply that by 10, that MIGHT be enough for a starting point. Anyone purchasing their home with less than $10k in savings needs their head checked.
@@saucytabasco ha there is always "what if" scenarios you can come up with. I'm speaking from experience and no here say...you don't need that much in savings to buy a house. I save more money than I ever have owning a house than paying high rent.
I would love to see more on the real cost of a home before choosing a house to buy. It's fairly easy to calculate a monthly mortgage payment, but adding in things like PMI, homeowners insurance, taxes, higher utilities, repairs needed just to keep the house in shape, etc. Basically things that most renters haven't dealt with or might not take into account. A $2000 mortgage payment may sound do-able with your budget, but there are many other costs that can increase that total monthly amount.
I used to live in Riverside, California. My dad bought our house @ $250,000. It was a 4 bedroom, 2 1/2 bathroom house with a 3/4 acre land, but after the great recession, we had to foreclose. The house price went down to $70,000 by 2012. I wish I was old enough back then to buy a house. 😭
As a real estate agent, it's much different to this video. What many buyers don't know is that 90% of an agent's job is looking after the seller - convincing them to sell to build up stock. And by law our obligations are only to the seller.
@@cds162 yeah but the agents make a percentage of the cost of the house. What incentives does the buyer's agent have to keep the cost down? The more the buyer spends the more money they will make.
Yep, though you can take a loan for the down payment with very bad security and high rates. (though that is not advised, if you can't afford the down payment, you probably shouldn't by a house/apartment anyway) There are also rules that you are required to pay back the loan at least 2% every year from 85-70% and then 1% per year down to 50%. If you are interested you can Google "Swedish House loan regulation" and you should find some links from "fi" or "finansinspektionen" in English.
Coming here to say that my husband and I just closed on our first time home (September 2024)! Never thought this day would come but I'm so happy we waited until we were much more financially stable. This video is a great guide that summarizes the house buying process. We had a fantastic realtor and loan officer that guided us through what seems like an endless amount of paperwork and tasks. I highly recommend going with a realtor that is recommended to you by someone you trust. Ours was recommended to us from a work friend who bought and sold with our realtor before and they knew each other for decades as friends. We are over the moon happy with our new home!
I’m buying my first home by myself at the moment and I have been here constantly to remind myself of where I am... “Appraisal” is coming up... I’m nervous & anxious afu guys!, this video simplifies the steps for me and helps me feel at least somewhat better lol.
I'm closing on a home soon and came back to this video multiple times to clarify some of the process. It was supremely helpful and I'm grateful for the info. Thanks so much! It's a stressful process, now I'm honestly lost for what to do after closing...I would LOVE a video explaining how to determine what to do with your home once you own it: how much of it to renovate, what will add value to the home, how to source a good contractor, etc.
I REALLY wish we saw this BEFORE we bought a house! We did a lot of things wrong first in the beginning that kind of culminated into those mistakes kicking our butts towards the end, but thank goodness it still ended up working out to the best case scenario! Seeing this beforehand would’ve saved us A LOT of heartache and stress!!
I bought my home in 2003 for $135,000. Major expenses have been: $10K - new siding, windows, front and back door (this was done immediately) New Driveway $3K. New upstairs bathroom $6-7K, new deck and garage siding $6K, new roof $6K, chimney fixed and exhaust fan added $1,500. Carpeting downstairs - $1K, new kitchen countertops $4K. Those are just the major expenses, I probably have another $5K for new snowblower/lawn mower/new flooring/paint/trim/etc. That adds up to about $2,700/ year in upkeep. Don't forget about that when you figure out what you *want* to afford. Our family has spent about $30K on vacations over the same period of time. (2003-2019)
@@Sooopersteve It's worth it, just don't get too crazy with how expensive of a house you choose. Having a big emergency fund provides tremendous peace of mind.
Honestly, houses around where I live are about twice the cost, maybe a bit less, without factoring in upkeep, of what you paid for yours. It's ridiculous.
Always remember that everything is negotiable as well. The seller helped with closing cost and escrow as well for my home. And leave room in your monthly budget for mortgage payment increases. Tax levies, etc can pass which increases your payment so think ahead of time before the ink drys...love you guys :)
this is important! even with a fixed rate motage, your monthly payments can go up with taxes, like when your property is assessed every year. if your home value goes up, so will your taxes. at least this is the way it is in Texas. if the city over values your house, you can contest it and get it lowered though.
Very true, when I bought my apartment 10 yrs ago, the mostly cost include other cost of living is 1900, now it's like 2700. Everything goes up just like inflation.
I am a millennial Real Estate agent in Utah and can answer this for you. Typically if you are a cash buyer you 1. Find a Realtor 2. Select your home 3. Have the Realtor send in the offer with your signature on the home and once an agreed offer (seller signs the offer) is accepted the home is now under contract 4. Negotiations of the deal (are you wanting to keep something in the home, home inspection, home warranty, and other needs) 5. Once everything had been agreed on paper and signed the realtor sends the paperwork to the Title company to change the Deed/Title into your name and to properly transfer the funds into the sellers account. 6. Once the sellers get their money and you have the deed to the home it gets recorded in the county and Congratulations you have a new home.
I have to say, as someone in the process of buying a house, having this outline of the process has been helpful. Also helpful have been my realtor and loan officer, who have both been transparent and helped keep my feet on the ground.
Even before going to loan officer: talk about it, go to a first time homeowner seminar, your loan officer is not your best friend, plan ahead and fall in love with your numbers first, not the house!!!
As a European l've always wondered how this whole process works. I've heard people saying they're closing on their new house etc. but never knew what that meant. This was explained perfectly in this video. Thank you!
Make sure you find a home inspector that is certified. Most states don’t have any requirements to become a home inspector and many will just have a check list they printed off from the internet (not really knowing how to review the items or not fully checking everything). Also a good home inspector will walk around the house with you going over all the things they reviewed. One of the main things to think about when buying your first house is not to think about finding your dream home. You can always upgrade later and after three years of living in your home any profit from the sale of the home is tax free. So, use that money to get a better house.
Even though I'm not an American but this channel is worth subscribing. And ya ! don't forget to hit that bell icon. Edit : I'm a real estate developer based in Central India and most of these processes are kind of similar here.
Having searching for this topic on YT, I was overwhelmed with al the results. Thankfully the PBS logo on your thumbnail stood out and communicate “trustworthy”. This was video really broke down how simple the process can be! Thanks for creating great videos!
when you start to buy a home? you will realize almost all of this is wrong. There is so much wrong with this video, I don't know where to start. Could it be your state has different laws? What happened to the Escrow Company? You don't contact the Title Company; Escrow will contact the Title Company The Title company only prepares the Title, makes sure there are no leans on the property and gives you an insurance policy to protect you in case something pots up against the title. It is the Escrow Company that does all the work. They are the people who coordinate all activity. They gather all the paperwork, along with the approved loan and submit it to the Underwriter. Option period? what is that? I have never heard of an option period. Once you sign the offer and put down your deposit you have contracted to buy. You can only back out (assume there is nothing wrong with the Inspection) IF the seller is ok with that. (sellers mostly do) The Earnest Fee (deposit money) does not go to the buyer, it goes into your escrow account, and becomes part of the fees needed to close the purchase. It is the escrow company that pays out all the fees, Including all the cash you have paid to escrow. In fact, you don't need a realtor. You only need Loan officer & Escrow company. If you are paying cash? The Escrow company is all you need.
i'm a graphic designer in a national mortgage company. I've made these kinds of illustrated paths to home ownership a bajillion times. This is the first time i've had someone clearly state what the underwriter does. Way to gloss over the major jargon that goes along when loan officers try to dumb down the process but still manage insert a lot of their job-related slang and nomenclature. NOICE!
My husband and I are going to talk to a loan officer about first time homebuyers loans tomorrow, the kind you don't need a big down payment for. This video was a huge help. Thanks.
I bought my first home at 19 years old and I’m going to make a video on how I did it. I’m also a professional licensed real estate agent so I am qualified to explain how. Love you guys!! I’ll finish the video editing soon.
I'm telling you paying in cash was the easiest thing. I just had to get a family member to look at the house and sign the paperwork (because I work overseas), and that was really it. It was actually too easy. I felt like I got scammed. haha, but I didn't. Yes, I know I'm in the small minority. However, if you really budget and plan and actually stick with it. Anyone could pay it off. It's all with what you want. Also, even tho I didn't need it. I read up about buying a home when I was saying. NEVER get a Arm rate.. you'll regret it when the economy goes bad. Always go for fixed. Make sure you know your HOA rules and yearly fees. (I said I would NEVER get a home with HOA) But because I basically got a great deal and the HOA was actually cheap. I changed that rule. Also even if you pay off your house you truly never own it. Property tax and home insurance can run from 300 to 500 a month depending again on the location and economy. So be aware of that FOREVER payment. that if you miss you can lose everything.
Simple and effective guide, thank you. Although most millennials can't afford this route. There are other options out there this video does not cover. So it is not the ultimate guide the title suggests. Hence, there are multiple ways to buy a house. Don't feel pressured into doing it this way!
Getting a pre-approved loan is NOT the end of the financing discussion. I understood there would be closing costs and inspection fees but I didn't know about earnest money where an arbitrary amount in the thousands is paid on the house upfront. I was not told that you had to buy a year's worth of home insurance upfront. And a lot of people do not factor in a lawyer fee (which is optional but should be recommended). All in all I paid over $5,500 out of pocket besides my down payment on $150k house.
I bought a cheap mobile home, a cheap 1/2 acre land, andcheap vehicles, and paid it all off in like in 10 years. You don't have to buy the most expensive things.
Great video as always, So is loan officer equivalent to a mortgage specialist or broker in Canada? Another tip is to go around and shop for better mortgage rate, some banks of loan company will match other banks rate in order to get you as a client. Or special incentive like paying for your lawyer fee or 500 dollars bonus. When buy a place, it's good to have a non conditional offer (meaning you can actually pay the amount), rather than conditional offer (still waiting for mortgage approval). When meeting with loan officer, at least for Canadians, they usually just need paystub info, record of current employment and wage from your employer, and any other assets or current loan you have to speed up the approval process. Another useful tip is probably carried over from previous 2 cents videos, but make sure you have enough money left in your bank to cover 3 to 6 months of living expenses after you paid off closing cost. That will give you a buffer in case anything happens.
I would love to see a video on buying your second house. What is the process of selling one house while purchasing another house look like. How does it work with downpayments, etc.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420,000 losing value because of these factors and more. Where else can we keep our money?
Well, I suggest you make a diversification plan because it's been harder to build a good portfolio that stays afloat since COVID. Personally, I garner knowledge from a brokerage Adviser whom I work with, and I've actually made over $350K with their help since February. Very effective defensive strategies are used to protect my portfolio and make profits despite the ups and downs.
I encountered Natalie Lynn Fisk through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Natalie up and send her a message. You've truly motivated me. God's blessings on you.
I love this channel! You two are great hosts and make topics easier to understand. Can you do a video on the steps to buy a non traditional home please? Like a manufactured, modular, or tiny homes?
It's so different in Ireland...you can approach each bank directly. The most they will lend is 3.5x salary. You must have 10% down payment if it's your first time or 20% if it isn't. Once you do get approved and know what you have to spend, you search online yourself until you find what you like. You then make an offer to the estate agent and if it's accepted you put down a booking deposit (2%). You then get a lawyer to agree contracts and check title. This can take 3-6 months. When this is going on you can get a structural survey done on the house and need to arrange life insurance which is assigned to the bank. Once everything is in order the lawyer will draw the money from the bank and arrange the close. Lawyers fees are around 2.5k and the buyer must pay a 1% value of the house tax to the government (stamp duty) before closing.
Loan officer could ruined your application. As a first time home buyers @ 28 years old I had to go to a private mortgage company.795 credit score , 25% saved for down and steady job for 5 years. since TD banks loan officer didn’t do right paper work. So make sure the bank do right documentation.just for heads up . Great video though.
It is even worse if you're a business owner for 5 years. They give us the 3rd degree on income calculations as though your W-2 is stability, you could get fired or your company go under. We show income by tax returns, and the goal is to not show income there taking legal deductions. So you pay less tax (we get double taxed anyway) but then aren't perceived to qualify for as much as we should. Same credit and stable job. I even had to put down 42%.
Chris Invests , My loan couldn’t go through because my income was $500. Less than the house I could afford. If I would have told , I would have put that money towards the principal amount. But my application screwed up by the bank loan officer. I was surprised when I got the letter that my loan application is denied because I can not afford that house, the income difference is $500 only . Can you imagine! Now ! Its been two years since I bought my house through a private mortgage lender and I don’t have to rent anymore.
Thanks for the concise information. Have been gathering my information for a visit to my loan officer for a pre-approval tomorrow. So far, finding the right home has been the toughest part - still searching.
You don't actually need all the middle men, if you're buying cash and know what you're doing and can properly inspect homes, you can just buy a house person to person. But if you aren't good at those things, all those middlemen *do* actually serve a valuable purpose. But they aren't 100% necessary
Thank you guys so much!!! Your “two cents” makes it easier for me to understand on this and the other videos. I watch everyone to gain the knowledge because it is truly important when I finally get out in the “real world.”
My husband and I used the website/real estate agency Redfin to find our home. The person that gives you tours may not even be your real estate agent! They close with less costs to you. We liked searching the website ourselves and finding the houses we liked that way, as we knew exactly what we wanted. We ended up loving the first home we toured, and put in an offer only a few days later (the market is really fast where we are, And we really didn't see anything else we liked). We were able to move in in just only two months!
@@jasonharris765 Actually VA loans are terrible. They are specifically designed for veterans who don't have 20% down payment. You can get a conventional loan for less fees and typically better interest rates.
FHA is expensive, but it isn't always a bad idea. I bought my home 6y ago and FHA is all I could get cause I was not a resident yet. I refinanced to a conventional load as soon as I got my green card. The house has since appreciated 150000, so I am very glad I bought it when I did
@K O This is why most people live paycheck to paycheck. Most people in the world are one paycheck away from not being able to make their monthly payment. This is why I love my six month emergency fund. I never worry.
Awesome advice! Exactly what I went through as a first time home buyer. One thing I would add is to make sure to read all the disclosure documents, and the HOA rules if it's a condo. Again, awesome video!
Just got a good appraisal/inspection this week for a small house my Fiance and I really wanted, and we're almost done with the process, started right here with advice to find a loan officer/get pre approval. Thanks
@@darhi_yis9175 In other countries you can just get a deal right with the person without agents, pay up, and go to the civil registry for the house's papers transfer of property stuff
I confirm that's the case in France ! I really had no idea how complicated it is in the US... Glad I didn't come there last year, I wasn't ready for this 😅
This video was amazing! I have been working to get things in order to make the move and buy a house. Showing to my spouse so they can better understand what all goes into buying a house. Thank you for this valuable content!
Oky u live in most expensive town in world , so what? Most important its how much salary u get and how much u pay at end of month. You left whit not much , then its shit to live there. Simple as that.
You’re estimates on the eagerness of a Realtor is an understatement. Once you enter into a contact with the agent, they no longer have your best interests in mind. Still, overall a good overview here. Thank you.
I used to think this for a super long time, then a few years ago I realized that I could use my immaculate credit to load up on cheap debt and use the money to fund investments with a higher rate of return.
Buying a house can be STRESSFULL so get ready. I just bought my first house at 27, put 10% down with a 770 credit score and it took nearly 2 months to get the keys, alot of back and forth, and at closing you sign like literally 100 pages of documents. Your hand it tired at the end of it. Edit: But it is so worth it. To come home everyday knowing I own the house. Being proud of it. Perfecting my lawn etc. It's super rewarding.
no they did not. There is so much wrong with this video, I don't know where to start. Could it be your state has different laws? What happened to the Escrow Company? You don't contact the Title Company; Escrow will contact the Title Company The Title company only prepares the Title, makes sure there are no leans on the property and gives you an insurance policy to protect you in case something pots up against the title. It is the Escrow Company that does all the work. They are the people who coordinate all activity. They gather all the paperwork, along with the approved loan and submit it to the Underwriter. Option period? what is that? I have never heard of an option period. Once you sign the offer and put down your deposit you have contracted to buy. You can only back out (assume there is nothing wrong with the Inspection) IF the seller is ok with that. (sellers mostly do) The Earnest Fee (deposit money) does not go to the buyer, it goes into your escrow account, and becomes part of the fees needed to close the purchase. It is the escrow company that pays out all the fees, Including all the cash you have paid to escrow. In fact, you don't need a realtor. You only need Loan officer & Escrow company. If you are paying cash? The Escrow company is all you need.
Wow, of all the videos and articles I’ve come across, this is the clearest and best one so far!! For a first time buyer (like I wish to be soon), I know nothing about any of this, the terms that people throw around meant nothing to me, but after this video, I understand what everything means. Thanks for being clear communicators 😃
In most cases - it actually is but its a tedious, time consuming and an extremely taxing process. I survived just barely. Then we got a fixer-upper .. that was not tough and much easier than building.
It will be pretty tough if you have a full time job, and need lots of expertise to build a proper house. A fix upper like the other comment would be good, as long you like the base layout. Essentially, you are your own contractor, and manage that well, it can save a chunk of cash for sure.
two CENTS actually answering all the important questions
Hey, we never learned this stuff as kids, so we figure other folks out there might be in the dark too!
I'll give a penny for your thoughts, one each, and there goes my two cents. ;)
That was the most valuable 5-6 min video I've ever seen on houses haha
why CENTS is written in CAPS THO?
have been scammed alot but Dremax_hackz on lG...really makes me happy at last
Read this carefully!!! Do NOT let the bank tell you what home you can afford!! They will lend you more money than you should borrow!
👍TROOF👍
Yep! That's true. It's their job to tell you how much you CAN get from them. But its your job to make sure how much you SHOULD. ; )
*+*
Yes, good point. A basic guideline that I've often read is no more than 33% of your take home pay for the home loan, no more than 39% for all debt payments. I personally was never comfortable anywhere near that, so for us it was closer to 20% when we bought our current house 10 years ago. (That's for a 30-year mortgage... obviously, also consider the total price of the house, since a adjustable rate mortgage can make things seem more advantageous than they actually are.)
@@damatar I'm with you regarding a lower percentage. I woukdn't dream of an adjustable rate mortguage.
Slight adjustment: "Contratulations. You own a home." should say, "Congratulations. The bank has decided to let you move into its home while you pay them back".
I don't know anbout NA, but that is technically wrong here in Italy. The bank does not own your house and depending on what kind of collateral you set up to get your loan, at worst there's a mortgage which means that even if you don't pay it is a long judicial process to strip your house from you.
@@nicolamontori but they can still do it, and the bottom line is they're not stripping your house from you, they're taking their house back.
Well no it's more of "You own a home but if you can't pay your mortgage with cash you have to pay them with your house"
The 30 year mortgage is financial insanity
@@vicepresidentmikepence889 pay some punk rent for 30 years and have your kids go through the same shit or pay your bank for 30 years and leave something substantial for your kids to live off of so they don't have to repeat that shit?? wake up bub
I’m in Kentucky and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
This is precisely why I like having an asset manager look over my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a manager for more than two years, and I've made over 85% of my initial amount.
Mind if I ask you to recommend this particular coach you using their service?
Rebecca Noblett Roberts, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable resource
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
two cents > most high school curriculums
Hi, Damon! Cool to see a finance wiz like you on here!
Damon, I see you everywhere worthwhile, I swear!
This sort of stuff was in my HS curriculum
For real I’m in personal finance right now and we just watch Dave Ramsey videos all day 🥱
the plural is curricula :^)
Buying a home was the most unnecessarily complicated process in my life. Even with a large down payment and great credit.
Thanks for sharing this.
Ruth Cuadrado it seems the bank can never get enough information
Buying with cash is the best thing imo, just live below your means
What make is complicated? If you don’t mind me asking
Alex Dimov In the USA it’s a long process that involves many parts. Only getting clear from the bank took 2 months of uncertainty where anything could have happened.
That’s what i understood from the video lmao.
I just wanted to write to tell you guys that my husband and I just purchased our first home in one of the most difficult markets to buy (Austin TX). I don't think we would have been able to do so without your video as a guide. Just wanted to say thanks for the content, as it has actually helped me and my new family considerably!
Make sure you loan officer is a broker not one associated with a specific bank. The can negotiate with more lenders for you for the best rate based on your information.
This is a good idea for sure!
Where do you find a loan officer? I feel like this part of the equation is not expanded in the video. I'm a first-time home buyer with zero experience, doing research. I was thinking about going to my credit union but wouldn't the person working there be a loan officer that is not a broker? Where do I look for a broker as you mentioned?
@@michtig don't be overwhelmed with the experience. It will be fine as long as you are patient enough and ask questions. Getting a broker is usually by a good Google search or word of mouth referral. If you don't mind sharing your zip code, I can see if I can help with a good search.
get a loan online. don't pay fees and get the lowest rate.
@@nsinkov you mean online like rocket mortgage?
We need a video on apartments now.
steven salazar tiny houses first
Student roommate living situations
Yeah I would really be interested in renting Vs buying.
I mean, if i instead use the money I would use to buy a house to I cleverly invest in the market, wouldn't I be able to pay my rent+ even more money?
I know most buildings just don't have the rent option, but it still a cool way to live I think, and when you'll be older and will just want to rest just buy long term obbligations and pay the rent with that
@@fixafix69 Noted guys! We'll think about this as a topic!
@@TwoCentsPBS apartments, or condos are actually a terrible financial choice, at least here in Washington DC. Some people did make money from early to mid 2000's but after that few broke even. The HOA costs and one off major repairs that the association didn't save for and had to be paid out of pocket, outpace valuation increase and stagnating rents.
Shop around for your loans btw and have other places beat your current offers can easily go from 4.75% to 4% which is a lot of money on a 30 year loan
I'm a sub but I can't watch your vids anymore unless it's Cringe Tuesday
That is very good advice!
I can't stop working With Dremax_hackz on lG is so legit and affordable..
all of my offers were exactly the same. Doh!
Really? In Europe, it is rather 1,00 percent for 15 years, just saying. I am not kidding you...
It’s hard to nail down specific predictions for the housing market because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
A lot of folks have been going on about the bull rally and said stocks that would be experiencing significant growth, any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a broker, before I started seeing any significant results in my portfolio, been using the same Adviser and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
True, we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides yo help?
Do you mind sharing info of the adviser who assisted you?
Her name is Rebecca Noblett Roberts. Hope that helps
As someone who has owned a couple of homes I'd say one big piece of advice is knowing what you want to own...example if you hate yard work then buy a condo or townhouse...an older home doesn't necessarily have "better bones" than a newer home...and for my fellow Veterans out there VA loan is the way to go and if you've already used it once then a 5% down payment brings the fees down as if you're on your first time using it. And lastly even if you don't have kids, look at the rating of the school district as this can have an impact on the value and future value of your home
what's the best way to find rating of the school districts?
@@zbridgjpxupzm www.greatschools.org/ is what i use
@@zbridgjpxupzm Some of the real estate sites like Zillow also have it on their listings.
Pro tip: find your own home inspector, versus having your agent recommend one. I know, it’s easier that way, but the person your agent recommends is interested more in getting repeat business from your agent... so they’re going to downplay any issues they spot so you’re more likely to buy the house. And your agent is happy because they know every time they recommend said inspector they end up selling a house.
*How Do You Actually Buy A House:*
"Give them an offer they can't refuse"
_-Vito Corleone (The Godfather)_
😆
BAHAHA!
Can't argue with that logic!
They won't be able to refuse ;)
As a realtor, this is great! It explains it so well and I will be sharing this video with my first time homebuyers 😁
How's it going being a realtor !
Krista Really?? I don't think you understand the buying process at all. There is so much wrong with this video, I don't know where to start. Could it be your state has different laws? What happened to the Escrow Company? You don't contact the Title Company; Escrow will contact the Title Company The Title company only prepares the Title, makes sure there are no leans on the property and gives you an insurance policy to protect you in case something pots up against the title. It is the Escrow Company that does all the work. They are the people who coordinate all activity. They gather all the paperwork, along with the approved loan and submit it to the Underwriter. Option period? what is that? I have never heard of an option period. Once you sign the offer and put down your deposit you have contracted to buy. You can only back out (assume there is nothing wrong with the Inspection) IF the seller is ok with that. (sellers mostly do) The Earnest Fee (deposit money) does not go to the buyer, it goes into your escrow account, and becomes part of the fees needed to close the purchase. It is the escrow company that pays out all the fees, Including all the cash you have paid to escrow. In fact, you don't need a realtor. You only need Loan officer & Escrow company. If you are paying cash? The Escrow company is all you need.
@@gumerzambrano Probably drowning in money from people who desperately try to get a roof under their head. You can't trust realtors, just like bankers and politicians.
What's crazy is that you really did turn it into a board game
Gamify all the things! I wouldn't mind buying a physical copy of that board game actually
Gamification is the way 😎
Several of us on the Two Cents creation team love games, so we end up gamifying a lot of our concepts!
Do they actually sell it?
The underwriter looks like a villain lol
actually, KIM on 2:32 looks like Julia and underwriter is a mature version of Philip :)
Hahaha true...
Almost like the end of the first Incredibles movie, but with a slight change..
*"BEHOLD! THE UNDERWRITER!"*
Sounds like the underminer
The evil underwriter determining your home's future lol
Jacob Debernardi right? I thought the same thing. More like under taker 😂
Things that they should ACTALLY be teaching in school....
sooo true
Honestly! Im starting in this process now and not even one of these steps were talked about in school!
I think it's funny how people expect the school to teach everything... that's what life Is all about!!! We will face things we need to learn everyday!
Danny Padilla
Well in a place that forces attendance for the sake of learning, they should actually teach teach real life applications. They don’t teach investing, purchasing homes, filing taxes, etc. and they should.
And if they do teach this in school do you think a 14-18 year old is going to retain any of this information when they are ready to buy a house? Or even pay attention to this information? You must not know anything about teenagers. They think they know everything. Try to get them to stay focused during this 5 min video. And give them a test on it. But not just your own teenager, 25 teenagers that are not related to you. That is what a teacher deals with but for 60 mins + four times a day, 5 days a week.
Don't forget to leave a lot of money on hand for painting walls, or what I had to do, replacing sinks. There is always something you don't think of, so just have a cushion of money for it!
Your home inspector should point those things out and you can negotiate based on the inspection. Yes that is true you should always have at least $1000 in savings :)
@@jasonharris765 if you only have $1,000 in savings, you have no business buying a home lol. Not even close
@@saucytabasco I tend to disagree...if you have enough money to afford 800+ rent, you can def afford a home. I key is to not overspend...there is always good 1st time home buyer areas to look into... continuing to pay rent is insane
@@jasonharris765 whether you can "afford" it is not the point of whether you should in that case. If you only have enough in savings to cover one months mortgage, that is a huge problem. You are one small error away from financial ruin. What if your car breaks down? Or the roof starts leaking? The heat or AC unit goes out? That's not even considering losing your job or getting injured to where you can't do your job. You should have multiple months of savings before you even think of purchasing a home, 3 to 6 months minimum, including all expenses beyond just your mortgage. $1000 is in no way adequate in today's market. Multiply that by 10, that MIGHT be enough for a starting point. Anyone purchasing their home with less than $10k in savings needs their head checked.
@@saucytabasco ha there is always "what if" scenarios you can come up with. I'm speaking from experience and no here say...you don't need that much in savings to buy a house. I save more money than I ever have owning a house than paying high rent.
Great! Now all I need is the money
Don't we all haha.
Honestly lol
Anders Johnson same lol
Oooff
Jack Sparrow I have to save $132,000!?! might as well buy a house outright....
I would love to see more on the real cost of a home before choosing a house to buy. It's fairly easy to calculate a monthly mortgage payment, but adding in things like PMI, homeowners insurance, taxes, higher utilities, repairs needed just to keep the house in shape, etc. Basically things that most renters haven't dealt with or might not take into account. A $2000 mortgage payment may sound do-able with your budget, but there are many other costs that can increase that total monthly amount.
Please do a video next, on the costs involved in owning/maintaining a house!
Get home insurance and put 5% of your income in a low risk investment account and pull out when you need major repairs and insurance won't cover.
I used to live in Riverside, California. My dad bought our house @ $250,000. It was a 4 bedroom, 2 1/2 bathroom house with a 3/4 acre land, but after the great recession, we had to foreclose. The house price went down to $70,000 by 2012.
I wish I was old enough back then to buy a house. 😭
I don't know about Riverside CA but, you might expect to pay half million for a house like that now
As a real estate agent, it's much different to this video. What many buyers don't know is that 90% of an agent's job is looking after the seller - convincing them to sell to build up stock. And by law our obligations are only to the seller.
yes for the sellers agent. but buyers also have their agent. you forgot that side deal.
@@cds162 yeah but the agents make a percentage of the cost of the house. What incentives does the buyer's agent have to keep the cost down? The more the buyer spends the more money they will make.
Don't forget that these rules are mostly for the US. In Sweden for example, your down-payment must be at least 15%.
Isn't that a kinda stupid rule?
Interesting! That's the minimum?
Yep, though you can take a loan for the down payment with very bad security and high rates. (though that is not advised, if you can't afford the down payment, you probably shouldn't by a house/apartment anyway) There are also rules that you are required to pay back the loan at least 2% every year from 85-70% and then 1% per year down to 50%. If you are interested you can Google "Swedish House loan regulation" and you should find some links from "fi" or "finansinspektionen" in English.
There are similar rules in Switzerland, I am kinda amazed not everyone has those as they really make sure you can afford buying a home.
In spain most banks offer only 80% of the price. And taxes have to be paid the first month, they are like 1.5%
Coming here to say that my husband and I just closed on our first time home (September 2024)! Never thought this day would come but I'm so happy we waited until we were much more financially stable. This video is a great guide that summarizes the house buying process. We had a fantastic realtor and loan officer that guided us through what seems like an endless amount of paperwork and tasks. I highly recommend going with a realtor that is recommended to you by someone you trust. Ours was recommended to us from a work friend who bought and sold with our realtor before and they knew each other for decades as friends. We are over the moon happy with our new home!
I’m buying my first home by myself at the moment and I have been here constantly to remind myself of where I am... “Appraisal” is coming up... I’m nervous & anxious afu guys!, this video simplifies the steps for me and helps me feel at least somewhat better lol.
I'm closing on a home soon and came back to this video multiple times to clarify some of the process. It was supremely helpful and I'm grateful for the info. Thanks so much! It's a stressful process, now I'm honestly lost for what to do after closing...I would LOVE a video explaining how to determine what to do with your home once you own it: how much of it to renovate, what will add value to the home, how to source a good contractor, etc.
I REALLY wish we saw this BEFORE we bought a house! We did a lot of things wrong first in the beginning that kind of culminated into those mistakes kicking our butts towards the end, but thank goodness it still ended up working out to the best case scenario!
Seeing this beforehand would’ve saved us A LOT of heartache and stress!!
I'm so glad I found this channel. This year, my husband and I are paying down debt so we can buy our house next year.
No school will teach you even 10% of this video whatsoever 😂 thank you TWOCENTS
you guys are creating a total shift in financial literacy THANK YOU
I bought my home in 2003 for $135,000. Major expenses have been: $10K - new siding, windows, front and back door (this was done immediately) New Driveway $3K. New upstairs bathroom $6-7K, new deck and garage siding $6K, new roof $6K, chimney fixed and exhaust fan added $1,500. Carpeting downstairs - $1K, new kitchen countertops $4K. Those are just the major expenses, I probably have another $5K for new snowblower/lawn mower/new flooring/paint/trim/etc. That adds up to about $2,700/ year in upkeep. Don't forget about that when you figure out what you *want* to afford. Our family has spent about $30K on vacations over the same period of time. (2003-2019)
This makes me seriously question wether a house is worth it.
@@Sooopersteve It's worth it, just don't get too crazy with how expensive of a house you choose. Having a big emergency fund provides tremendous peace of mind.
Honestly, houses around where I live are about twice the cost, maybe a bit less, without factoring in upkeep, of what you paid for yours. It's ridiculous.
@@Sooopersteve Where do you live? My house is worth about $190K now.
@Mike the Mechanic LLC Are you saying that people should let their house get very dated to save money?
This was perfect for our 3rd grader to help her understand where we were in the house buying process. The visuals 🎉
Always remember that everything is negotiable as well. The seller helped with closing cost and escrow as well for my home.
And leave room in your monthly budget for mortgage payment increases. Tax levies, etc can pass which increases your payment so think ahead of time before the ink drys...love you guys :)
this is important! even with a fixed rate motage, your monthly payments can go up with taxes, like when your property is assessed every year. if your home value goes up, so will your taxes. at least this is the way it is in Texas. if the city over values your house, you can contest it and get it lowered though.
@@jennrodriguezdaluz Yep. Very true!
Very true, when I bought my apartment 10 yrs ago, the mostly cost include other cost of living is 1900, now it's like 2700. Everything goes up just like inflation.
Damn tax rate in phx is like .77
Out of every videos I've seen, this is by far the most straight to the point and very fun to watch.
Which stepes do I skip as a cash buyer? Do I just go straight to homeowner and/or realtor?
I’ve ponder the exact same idea. 🤔
I am a millennial Real Estate agent in Utah and can answer this for you. Typically if you are a cash buyer you
1. Find a Realtor
2. Select your home
3. Have the Realtor send in the offer with your signature on the home and once an agreed offer (seller signs the offer) is accepted the home is now under contract
4. Negotiations of the deal (are you wanting to keep something in the home, home inspection, home warranty, and other needs)
5. Once everything had been agreed on paper and signed the realtor sends the paperwork to the Title company to change the Deed/Title into your name and to properly transfer the funds into the sellers account.
6. Once the sellers get their money and you have the deed to the home it gets recorded in the county and Congratulations you have a new home.
I have to say, as someone in the process of buying a house, having this outline of the process has been helpful. Also helpful have been my realtor and loan officer, who have both been transparent and helped keep my feet on the ground.
Even before going to loan officer: talk about it, go to a first time homeowner seminar, your loan officer is not your best friend, plan ahead and fall in love with
your numbers first, not the house!!!
As a European l've always wondered how this whole process works. I've heard people saying they're closing on their new house etc. but never knew what that meant. This was explained perfectly in this video. Thank you!
EXCELLENT, CLEAR and ACCURATE. Love this channel!
You could say they ACE’d the subject
Thanks so much!
Yu
I use these videos for my classrooms for adults with disabilities! Keep them coming!!
Buying a house can often make or break you!
I just made a video about house buying 🏡
Make sure you find a home inspector that is certified. Most states don’t have any requirements to become a home inspector and many will just have a check list they printed off from the internet (not really knowing how to review the items or not fully checking everything). Also a good home inspector will walk around the house with you going over all the things they reviewed. One of the main things to think about when buying your first house is not to think about finding your dream home. You can always upgrade later and after three years of living in your home any profit from the sale of the home is tax free. So, use that money to get a better house.
Even though I'm not an American but this channel is worth subscribing. And ya ! don't forget to hit that bell icon.
Edit : I'm a real estate developer based in Central India and most of these processes are kind of similar here.
@David and don't forget the vegana
Oh really?! That's awesome. So glad you're getting value out of it!
Theodor Butters only if your mom approves
Having searching for this topic on YT, I was overwhelmed with al the results. Thankfully the PBS logo on your thumbnail stood out and communicate “trustworthy”. This was video really broke down how simple the process can be! Thanks for creating great videos!
Thanks for making this video, I am a visual learner so this was extra helpful!
A lot of people are! Glad it resonated with you!
when you start to buy a home? you will realize almost all of this is wrong. There is so much wrong with this video, I don't know where to start. Could it be your state has different laws? What happened to the Escrow Company? You don't contact the Title Company; Escrow will contact the Title Company The Title company only prepares the Title, makes sure there are no leans on the property and gives you an insurance policy to protect you in case something pots up against the title. It is the Escrow Company that does all the work. They are the people who coordinate all activity. They gather all the paperwork, along with the approved loan and submit it to the Underwriter. Option period? what is that? I have never heard of an option period. Once you sign the offer and put down your deposit you have contracted to buy. You can only back out (assume there is nothing wrong with the Inspection) IF the seller is ok with that. (sellers mostly do) The Earnest Fee (deposit money) does not go to the buyer, it goes into your escrow account, and becomes part of the fees needed to close the purchase. It is the escrow company that pays out all the fees, Including all the cash you have paid to escrow. In fact, you don't need a realtor. You only need Loan officer & Escrow company. If you are paying cash? The Escrow company is all you need.
i'm a graphic designer in a national mortgage company. I've made these kinds of illustrated paths to home ownership a bajillion times. This is the first time i've had someone clearly state what the underwriter does. Way to gloss over the major jargon that goes along when loan officers try to dumb down the process but still manage insert a lot of their job-related slang and nomenclature. NOICE!
Wow this was amazing! You compressed so mucn into an easy to understand cliffsnotes/starting point. Thank you!
My husband and I are going to talk to a loan officer about first time homebuyers loans tomorrow, the kind you don't need a big down payment for. This video was a huge help. Thanks.
I bought my first home at 19 years old and I’m going to make a video on how I did it. I’m also a professional licensed real estate agent so I am qualified to explain how. Love you guys!! I’ll finish the video editing soon.
I need details love share the wealth
I’m 32. This is the best and most useful video I’ve ever watched. Thank you
We’re buying a home and I keep going back to this video to see what space we’re on in the Game of Life. 🏡
Guys its alot easier than it seems. Make sure you just find the right team and supply them with the necessary. All documents needed are online.
Always love your videos and advise 😊
Thanks so much!
Bought my first home by my self as a 21 year old Mexican woman, I’m now 28 and boy have I learned a lot about being a home owner !
What is it confusing
Hunny I said nothing was confusing. I did it alone at 21 , if u need help lmk
Uhhhh...where has this channel been all my life? Thank you so much for the content, information, and guidance. Subscribed!!!!
I'm telling you paying in cash was the easiest thing. I just had to get a family member to look at the house and sign the paperwork (because I work overseas), and that was really it. It was actually too easy. I felt like I got scammed. haha, but I didn't. Yes, I know I'm in the small minority. However, if you really budget and plan and actually stick with it. Anyone could pay it off. It's all with what you want.
Also, even tho I didn't need it. I read up about buying a home when I was saying. NEVER get a Arm rate.. you'll regret it when the economy goes bad. Always go for fixed. Make sure you know your HOA rules and yearly fees. (I said I would NEVER get a home with HOA) But because I basically got a great deal and the HOA was actually cheap. I changed that rule. Also even if you pay off your house you truly never own it. Property tax and home insurance can run from 300 to 500 a month depending again on the location and economy. So be aware of that FOREVER payment. that if you miss you can lose everything.
Simple and effective guide, thank you. Although most millennials can't afford this route. There are other options out there this video does not cover. So it is not the ultimate guide the title suggests. Hence, there are multiple ways to buy a house. Don't feel pressured into doing it this way!
save up and wait for the next housing bubble to burst
Getting a pre-approved loan is NOT the end of the financing discussion. I understood there would be closing costs and inspection fees but I didn't know about earnest money where an arbitrary amount in the thousands is paid on the house upfront. I was not told that you had to buy a year's worth of home insurance upfront. And a lot of people do not factor in a lawyer fee (which is optional but should be recommended). All in all I paid over $5,500 out of pocket besides my down payment on $150k house.
I bought a cheap mobile home, a cheap 1/2 acre land, andcheap vehicles, and paid it all off in like in 10 years. You don't have to buy the most expensive things.
Great video as always, So is loan officer equivalent to a mortgage specialist or broker in Canada?
Another tip is to go around and shop for better mortgage rate, some banks of loan company will match other banks rate in order to get you as a client. Or special incentive like paying for your lawyer fee or 500 dollars bonus.
When buy a place, it's good to have a non conditional offer (meaning you can actually pay the amount), rather than conditional offer (still waiting for mortgage approval).
When meeting with loan officer, at least for Canadians, they usually just need paystub info, record of current employment and wage from your employer, and any other assets or current loan you have to speed up the approval process.
Another useful tip is probably carried over from previous 2 cents videos, but make sure you have enough money left in your bank to cover 3 to 6 months of living expenses after you paid off closing cost. That will give you a buffer in case anything happens.
The American dream is actually a nightmare.
The American dream only works if you're asleep.
Where is better?
@@mrtzak explain
I can't stop working With Dremax_hackz on lG is so legit and affordable..
@@tnrtnr7706 you have to be asleep to believe it
I just found this TH-cam channel today and yet they already answered 21 questions that I didn’t have no answers. Great Job.
Ok now I need a “how to buy a house for introverts who don’t have friends or references” video
lmao
I would love to see a video on buying your second house. What is the process of selling one house while purchasing another house look like. How does it work with downpayments, etc.
Clairellyn Sommersmith I’ve always wondered about this too! Thanks for asking - I second the motion.
Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Things are strange right now. The US dollar is becoming less valuable because of inflation, and other powerful nations waking up to trade in their own currencies. Good thing is, a lot of people still turn to the Dollar because of the safety is somehow assures. I'm worried about my retirement savings of about $420,000 losing value because of these factors and more. Where else can we keep our money?
Well, I suggest you make a diversification plan because it's been harder to build a good portfolio that stays afloat since COVID. Personally, I garner knowledge from a brokerage Adviser whom I work with, and I've actually made over $350K with their help since February. Very effective defensive strategies are used to protect my portfolio and make profits despite the ups and downs.
I find this intriguing. Could you please provide me with the means to get in touch with your Adviser? I am concerned about my dwindling portfolio.
I encountered Natalie Lynn Fisk through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Natalie up and send her a message. You've truly motivated me. God's blessings on you.
I love this channel! You two are great hosts and make topics easier to understand. Can you do a video on the steps to buy a non traditional home please? Like a manufactured, modular, or tiny homes?
Whew. Love living vicariously thru these videos since I'll never actually own one. You know, millennial things
It's so different in Ireland...you can approach each bank directly. The most they will lend is 3.5x salary. You must have 10% down payment if it's your first time or 20% if it isn't. Once you do get approved and know what you have to spend, you search online yourself until you find what you like. You then make an offer to the estate agent and if it's accepted you put down a booking deposit (2%). You then get a lawyer to agree contracts and check title. This can take 3-6 months. When this is going on you can get a structural survey done on the house and need to arrange life insurance which is assigned to the bank. Once everything is in order the lawyer will draw the money from the bank and arrange the close. Lawyers fees are around 2.5k and the buyer must pay a 1% value of the house tax to the government (stamp duty) before closing.
Loan officer could ruined your application. As a first time home buyers @ 28 years old I had to go to a private mortgage company.795 credit score , 25% saved for down and steady job for 5 years. since TD banks loan officer didn’t do right paper work. So make sure the bank do right documentation.just for heads up .
Great video though.
What did they do wrong??
It is even worse if you're a business owner for 5 years. They give us the 3rd degree on income calculations as though your W-2 is stability, you could get fired or your company go under. We show income by tax returns, and the goal is to not show income there taking legal deductions. So you pay less tax (we get double taxed anyway) but then aren't perceived to qualify for as much as we should.
Same credit and stable job. I even had to put down 42%.
jrg305 yes that's tough
Chris Invests ,
My loan couldn’t go through because my income was $500. Less than the house I could afford. If I would have told , I would have put that money towards the principal amount. But my application screwed up by the bank loan officer. I was surprised when I got the letter that my loan application is denied because I can not afford that house, the income difference is $500 only . Can you imagine!
Now ! Its been two years since I bought my house through a private mortgage lender and I don’t have to rent anymore.
Thanks for the concise information. Have been gathering my information for a visit to my loan officer for a pre-approval tomorrow. So far, finding the right home has been the toughest part - still searching.
thank god i dont live in the US, in my country you don't have to deal with middle men, you only have to hire a legal cabinet/notaire for the papers.
Well idk. I dont know that you HAVE to have a realtor, but it makes you're job a heck of a lot easier.
You don't actually need all the middle men, if you're buying cash and know what you're doing and can properly inspect homes, you can just buy a house person to person. But if you aren't good at those things, all those middlemen *do* actually serve a valuable purpose. But they aren't 100% necessary
Love this program. PBS ALL THE WAY!
Lmao why a 12 years old kid like me keep watching debt and videos like that😭
You're smart, the earlier you learn about money the less lightly you are to make big mistakes and fall into future destroyer; debt.
Ahead of the game! Don't end up like the rest of us, 33 and have no idea about how to do any of this!!
Really loved the visuals guys!!! I’m in the first process of getting my financial status up to par!
Step 1 earn cash. Step 2 buy house with cash! Anyone that tells you different is wrong.
@Luís Andrade If you are “buying” a house and not paying in cash, that would make YOU the dingus.
Thank you guys so much!!! Your “two cents” makes it easier for me to understand on this and the other videos. I watch everyone to gain the knowledge because it is truly important when I finally get out in the “real world.”
This channel teach me more about life than 12 years of shool did
My husband and I used the website/real estate agency Redfin to find our home. The person that gives you tours may not even be your real estate agent! They close with less costs to you. We liked searching the website ourselves and finding the houses we liked that way, as we knew exactly what we wanted. We ended up loving the first home we toured, and put in an offer only a few days later (the market is really fast where we are, And we really didn't see anything else we liked). We were able to move in in just only two months!
Never do FHA or VA loans. These cost more. These are for folks who don't have 20% down. If you don't have 20% down, don't buy a home.
Ummmm....VA loans are the best loans available...you don't need a down payment and the rates are the best...
@@jasonharris765 Actually VA loans are terrible. They are specifically designed for veterans who don't have 20% down payment. You can get a conventional loan for less fees and typically better interest rates.
@K O You're right, FHA is expensive. That doesn't change the fact that you shouldn't be purchasing a home with 5% down.
FHA is expensive, but it isn't always a bad idea. I bought my home 6y ago and FHA is all I could get cause I was not a resident yet. I refinanced to a conventional load as soon as I got my green card. The house has since appreciated 150000, so I am very glad I bought it when I did
@K O This is why most people live paycheck to paycheck. Most people in the world are one paycheck away from not being able to make their monthly payment. This is why I love my six month emergency fund. I never worry.
Awesome advice! Exactly what I went through as a first time home buyer. One thing I would add is to make sure to read all the disclosure documents, and the HOA rules if it's a condo. Again, awesome video!
Now if only I can buy a house using your two cents 😂
Detroit, just don't forget your bulletproof vest
Just got a good appraisal/inspection this week for a small house my Fiance and I really wanted, and we're almost done with the process, started right here with advice to find a loan officer/get pre approval. Thanks
there are simply too many middlemen involved
Right, there has to be a simpler process.
@@darhi_yis9175 In other countries you can just get a deal right with the person without agents, pay up, and go to the civil registry for the house's papers transfer of property stuff
I confirm that's the case in France ! I really had no idea how complicated it is in the US... Glad I didn't come there last year, I wasn't ready for this 😅
This makes the process lengthy and expensive .
Americans are known for overcomplicating things 🙄
This video was amazing! I have been working to get things in order to make the move and buy a house. Showing to my spouse so they can better understand what all goes into buying a house. Thank you for this valuable content!
4:51 you will own the home in 30 years.
These videos are helping me adult!!! Don’t stop!
Purchase price of $210,000? In my city that's gonna get you a carpark, not a house.
Oky u live in most expensive town in world , so what? Most important its how much salary u get and how much u pay at end of month. You left whit not much , then its shit to live there. Simple as that.
In my country you can get a nice house with that, or a very good one if you build it yourself
Hence you live in a nearby city, and commute to the expensive city for work. Just have to run your numbers to see what works best for you.
In Sydney that gets you half a carpark
You’re estimates on the eagerness of a Realtor is an understatement. Once you enter into a contact with the agent, they no longer have your best interests in mind. Still, overall a good overview here. Thank you.
If I have no debt, wouldn’t it be better to live below my means and attempt to pay as much as possible in cash?
I used to think this for a super long time, then a few years ago I realized that I could use my immaculate credit to load up on cheap debt and use the money to fund investments with a higher rate of return.
Buying a house can be STRESSFULL so get ready. I just bought my first house at 27, put 10% down with a 770 credit score and it took nearly 2 months to get the keys, alot of back and forth, and at closing you sign like literally 100 pages of documents. Your hand it tired at the end of it.
Edit: But it is so worth it. To come home everyday knowing I own the house. Being proud of it. Perfecting my lawn etc. It's super rewarding.
Bravo! Coming from a Realtor you guys did great explaining the process.
Well thanks! Good to know it passes the test!
no they did not. There is so much wrong with this video, I don't know where to start. Could it be your state has different laws? What happened to the Escrow Company? You don't contact the Title Company; Escrow will contact the Title Company The Title company only prepares the Title, makes sure there are no leans on the property and gives you an insurance policy to protect you in case something pots up against the title. It is the Escrow Company that does all the work. They are the people who coordinate all activity. They gather all the paperwork, along with the approved loan and submit it to the Underwriter. Option period? what is that? I have never heard of an option period. Once you sign the offer and put down your deposit you have contracted to buy. You can only back out (assume there is nothing wrong with the Inspection) IF the seller is ok with that. (sellers mostly do) The Earnest Fee (deposit money) does not go to the buyer, it goes into your escrow account, and becomes part of the fees needed to close the purchase. It is the escrow company that pays out all the fees, Including all the cash you have paid to escrow. In fact, you don't need a realtor. You only need Loan officer & Escrow company. If you are paying cash? The Escrow company is all you need.
Wow, of all the videos and articles I’ve come across, this is the clearest and best one so far!! For a first time buyer (like I wish to be soon), I know nothing about any of this, the terms that people throw around meant nothing to me, but after this video, I understand what everything means. Thanks for being clear communicators 😃
I wonder if it is cheaper to purchase land and then build your home?
In most cases - it actually is but its a tedious, time consuming and an extremely taxing process. I survived just barely. Then we got a fixer-upper .. that was not tough and much easier than building.
It will be pretty tough if you have a full time job, and need lots of expertise to build a proper house. A fix upper like the other comment would be good, as long you like the base layout.
Essentially, you are your own contractor, and manage that well, it can save a chunk of cash for sure.
The knowledge given is impeccable. Impressive
Please do a video about Tiny Houses
Oh my god I've wanted this exact TH-cam channel for so long!!
Thank you so much. Donating to PBS right now.
I see you two hiding your faces in the realtor and underwriter.
lol I saw that too!
You both explained it so well and I appreciate the excellent graphics. Thank you very much!