How Do You Actually Buy a House?
ฝัง
- เผยแพร่เมื่อ 27 ก.ย. 2024
- Think you're ready to buy a house? The path to get from here to there may seem confusing, but once you understand the steps and the people involved, you'll be ready to make your first move!
SUBSCRIBE to Two Cents! goo.gl/jQ857H
Two Cents on FB: / twocentspbs
Two Cents on Twitter: @twocentspbs
Email us: twocentspbs@gmail.com
--
Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Julia Lorenz-Olson & Andrew Matthews
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Andrew Orsak
Images by: Shutterstock
Music by: APM
SOURCES:
time.com/money/...
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
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
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 :^)
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
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.
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?
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.
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...
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.
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 😂
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.
*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 ;)
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 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
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.
No school will teach you even 10% of this video whatsoever 😂 thank you TWOCENTS
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 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?
you guys are creating a total shift in financial literacy THANK YOU
Ok now I need a “how to buy a house for introverts who don’t have friends or references” video
lmao
This was perfect for our 3rd grader to help her understand where we were in the house buying process. The visuals 🎉
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.
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’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.
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.
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
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
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.
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
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.
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.
EXCELLENT, CLEAR and ACCURATE. Love this channel!
You could say they ACE’d the subject
Thanks so much!
Yu
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.
Buying a house can often make or break you!
I just made a video about house buying 🏡
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!
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 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.
Always love your videos and advise 😊
Thanks so much!
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.
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!!!
Yup this lets me know I'm not ready to buy. It seems like too much stress, think I'll rent and just inherit my parent's houses lol.
Wow this was amazing! You compressed so mucn into an easy to understand cliffsnotes/starting point. Thank you!
I’m 32. This is the best and most useful video I’ve ever watched. Thank you
I just found this TH-cam channel today and yet they already answered 21 questions that I didn’t have no answers. Great Job.
Uhhhh...where has this channel been all my life? Thank you so much for the content, information, and guidance. Subscribed!!!!
Really loved the visuals guys!!! I’m in the first process of getting my financial status up to par!
I am not interested in buying a home until I can buy it straight up on cash!
Name checks out.
If u rich then yes. But in Europe that will cost frome maybe 50.000 to milions of euro.
That's what smart people do, not like people who caused 2008 crisis
@@bassam_salim was the elites who coused that . They knew very good that will happend. Many people are smart and die poor. And many are stupid but they born in rich familys . Whats ur point ?
I did that in Las Vegas. The process was alot faster.
THANK YOU!!! omg finally someone who makes the process digestible.
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.
Can you guys do a video on how to rent out a home? I don’t want to be anyone’s landlord and have to struggle with their rent payments. Isn’t there a more efficient way to deal with that kind of stuff?
Now if only I can buy a house using your two cents 😂
Detroit, just don't forget your bulletproof vest
You both explained it so well and I appreciate the excellent graphics. Thank you very much!
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
Closing costs of only 2%? In Europe, the realtor alone charges you 3%, the city (where I bought my home) taxes you 2.5%, and the notary and legal fees run around another 1.5%, so that's 7% closing costs.
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.
The knowledge given is impeccable. Impressive
Best video seen so far on buying a home, simple and straight to the point.
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.
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 🙄
These videos are helping me adult!!! Don’t stop!
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.”
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
Still Seems complicated i think im just gunna live with my parents for another 20 years
I'm planning to save up for a few years. I fucked up my plan to have a home fully paid for by instead going to ITT TECH and leaving my job at the time to focus on studies. Took me 2 years at least to pay it all off. Now I have very little saved up and need to be frugal until I can safely move out, which will allow my parents to either move back to their home country or move in with me or other relatives.
@@riosmax4317 should have just went to work for free for someone to learn the trade. Those schools are such scams it makes me sick
@@ve2430 I had previously thought of going to ACC just for the basic training, but I decided to go to ITT instead. At ACC, I would've only had to pay several grand for it all and drive closer to school. Now I'm working until real estate prices drop since I don't think that those prices will be higher and higher.
@@riosmax4317 you can learn everything they teach and more for free by just working for someone for low pay or no pay depending on the field. I went to Apex tech many years ago to be a mechanic.. 13k later i just had some certificate that no one cared about and no real world skills. Everything i learned was on the field with low pay. And real estate prices in NY for example do not go down. Only up. Even in 2008 housing crash they didn't go down. Some real estate does not go down.
Honestly same. I live in California and living in general is so expensive
Thank god you guys are here to help me grow up.
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.
This was soooo helpful. You break down a really complicated process into a step-by-step process that made sense to me. THANK YOU!
The visuals on this are *chefs kiss*
Thank you so much, I'm 13 and I'm so worried for myself because school doesn't teach us this stuff so watching this made it sound easier than it looks to buy a home
You guys are teaching us everything we wished someone in school had
Damn. I might just keep renting lol
Thank You. Great job. I was well informed
Live below your means and work hard on something that is worth it
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.
I see you two hiding your faces in the realtor and underwriter.
lol I saw that too!
Realty companies have all these procedures in their organizations. The realtor you select advises you on all these items and puts you in contact with people to get you through the process. Basically it’s one stop shopping once you find the right realtor company.
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!
We bought our first house last year, and this is super helpful and would have been an awesome overview before buying. I wish I'd found your channel sooner!
Imagine being able to afford a house within your lifetime. Thanks stagnant wages.
Love this program. PBS ALL THE WAY!
Such a long winded and expensive affair
A five minute video describing a process most of us spend years just trying to get to, let alone get through. You make it all sound so simple. 😅
This is great! Quick, fun yet informative and visual which helps you learn 100% better!
As a Millennial real estate agent I can second this.
1. Get pre approved.
2. Shop online first realtor.com (stop using Zillow many homes have already sold or/and have outdated pricing)
3. Find a Realtor (if a Realtor says they can get you the best deal its BS it's all about what the market will bear; you wont get a $400,000 home for $350,000 if the home is priced at market value)
4. Visit the top 2-5 choices on your dream home list.
5. Dont mess around or the home will sale to sombody else who wont fuss about with the same offer, many clients have lost their best dream home choice because they tried to either get a deal, wanted specific things done to a house first, etc.
Buying and owning a home is easy. As long as you have decent credit and steady work history. You don't really need a big down payment like you hear so many people pay, 3%-5% is usually good enough. I have bought 5 houses and the average amount I have put down is 5%. You will have to pay PMI until you have 20% equity in the home. We always pay extra on our houses and if you do too you will get to 20% pretty quick.
The major mistakes I see people get into when buying a house.
1. They buy way too much house for what they need. I met a woman who was single living in a small city in Tennessee where the median home at the time costs $180k. She bought a 2600 square foot 5 bedroom 3 1/2 home just for herself. The home cost her $289k. She could afford the payment no problem but what she didn't take into account when she was transfered for work 2 years later was how much it would cost to sell. Because she didn't put that much down and she hadn't had the house that long she didn't build much equity in the home.
2. Once someone has a new house they think they need new everything. They get a new truck, a new boat, and four wheelers. Soon the first dip in income has them over stretched and missing payments. Not long after that happens they loose everything.
3. They buy a house and don't account for the maintenance. Older houses need maintenance. Where I live new roof will cost at least $5500. A new HVAC will cost $5200. A new wood privacy fence will cost $6500. New appliances will cost about $4000 to replace all the kitchen and washer and dryer. These things are only designed to last about 10 years so keep that in mind when you buy a house. Even if you buy a brand new house you can expect to replace all of these things in about 10 years.
4. They don't have realistic expectations. They often want houses they can't afford in exclusive neighborhoods. They often do what ever it takes to get there including "creative" financing. This includes ARM loans, 80 10 10 loans, or intrest only loans. Don't do this, it's not smart.
I love the animations! I like how you're relating it to games. My brain grasps the concept much faster that way! Thanks!
🙌🙌 same for me
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.
You don’t “own” the home lol. How can you “own” the home and still pay your local municipality taxes on something you call yours? That’s like buying food from Walmart then paying Walmart to keep it in your fridge. You own the food. You work all your life to own the home just to keep paying
It genuinely irks me that you guys dont have more views and subs. This is good stuff, and I took all the accounting/personal finance classes in HS, and I'm still learning a whole heckin lot! TH-cam meeds to recommend less Shitposts, and more educational content. If they did they might get more advertising from related companies
The pig strutting his stuff at the end of the video is the reward I didn't know I needed for learning!😂Thanks!
Get a Time Machine and go back to the eighties and buy one for two years wage and a bag of corgettes. I’ve been priced out of my birthplace, Boston MA
This was very well explained, informative and the steps remain the same even now 2023. We just closed on our home. Thank you both.
Really appreciate the clear cut path!
Could you make a video about buying a new house from a builder? This was so helpful too!
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!
I remember when my parents went through the house buying process and this video did a nice job explaining it!
Aw thanks Ruby!
In my country most people who want to own a home save some money and buy an empty piece of land, then they build it slowly if they don't have a lot of money, my parents did that so we didn't need to get a loan or pay interest, yeah it took a lot of time (about 6 years) but we built the home just like we want and it costed way less than average home prices, we can get 150% money back if we decided to sell it then, that was after we was ripped off buy some dishonest builders, maybe if we did it again we can build it ourselves and save even more
I'm glad I got my house owner to owner there was way less hoops to jump through and way less people trying to get me to pay them.
Don't cheap out on the inspection. If applicable to your home, it makes sense to also have things like radon, pest, and septic inspections done. A few hundred extra spent on getting these items looked at could save you big money down the road.