What They Don't Tell You About Buying Your First House
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- Опубликовано: 15 янв 2020
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What they don't tell you about buying a house! Here are some of the things that I learned along the way, while being a first time home buyer.. When it came to home buying, I relied heavily on watching youtube videos to learn more- thats why I tried to give you as much information as possible (even my mortgage) so that you can understand my situation! Buying a house is a weird thing to do and will always be complicated with so many people involved, but the biggest takeaway I learned is its actually not as difficult as you may think (aside from saving for the down payment). I hope these home buying tips help you out, let me know in the comments if your saving for your first place, have already bought, or are happy renting!
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ok, I have to break this down for all those saying they would not want to buy a house because of how much goes to interest. 1. You have to factor in appreciation on the property. If you buy a $100,000 house and put down $20,000, after 5 years you will have paid $15,000 in interest, but at average appreciation, the home is worth $123,819!!! The added value outpaces what you paid in interest!!! You've made 8,816 doing NOTHING, plus any money that went towards the principal is added as equity. This is why even though most of your money is going to interest, it's still cheaper in the long run. To the guy saying it's crazy that the "total" cost of the home will be 1.58M, the home will be worth well over 2M at average real estate returns at the end of the loan.
2. Inflation pays your principal for you. As inflation rises over the years, but your payment is fixed, the cost of that payment gets effectively cheaper. A $1000 payment in 2000 is basically the same as $1,400 payment today. Which means that if your payments isn't changing, every single year, that payment is cheaper and cheaper in terms of what the dollar does, so a lot of that interest is actually getting paid off by inflation the longer you keep the home.
This is a great comment! I didn't want to get into appreciation otherwise the video would've been waaay too long, but everyone should read this!
Thanks! Your home purchase is awesome, thanks for sharing! I'm in the process of buying a condo and super into this. Being driven a little crazy by the lack of mathematical understanding and false info going around.
Michael Molina that 8,000 is over 5 years :) your appreciation over 30 years is way more than average repair. The money, over many years, works out in the homeowners favor almost every time. Especially when you consider that you have to pay for housing anyway.
Rochelle Smith homes can lose value as well. There is no guarantee of appreciation. I’m not saying this to discourage home buying. Just that people are signing a paper to pay on a home for 30 years (or 15 or whatever) no matter what. Not I’m only paying on this home if it makes me money
I’m in lending and have been for years. I would have people tell me they walked away from homes because they lost value. That was frustrating for me.
Idk, do u really think a townhouse will be worth close to 2M? Only worth it if someone buys it.
I agree with you that all property goes up in value, but is anyone else worried that we’ve hit the ceiling with property values?
I can hardly see a home going up in value that high let a alone a townhouse. Doesn’t add up to me, especially when you use that logic and will someday say it will be worth over 4M in however many years.
These are the types of things we should be learning in school
Lauren Mun I absolutely 100% agree! Why don’t they have a personal finance class in high school? 😊🏡
No, these are the things we need to learn before buying a house!!! I don't think any stupid teacher will encourage anyone to pay extra on a house when there wasn't any multiple buyers. The realtor and the buyer made off with her money. Get back you money Monica!
Lauren Mun They teach his in Canadian schools the course is called Planning basically life planning.
1 - people don't learn until they care. I would've zoned out in this like i did in a lot of other classes.
2 - Also a lot of laws change in the 10 years between HS and home-buying time.
You can there classes you can take
“You’re good and life’s good and we’re all gonna be alright”
Okay but like I needed that
Did you? You weren't gonna.make it without that huh Sarah?
Chad Carlson so condescending for no reason
$4400 mortage almost made me spit my drink out! I live in a two bedroom, two story + basement townhome in Michigan and pay only $795 a month. Dang Seattle dang. But congratulations on home ownership!
@@mj-ix4pe Its about 1300 sq ft. 3 rooms 3 bathrooms. I end up paying $2400 a month with roommates pitching in a little over $900 of that going to equity.
And u live in michigan....it aint no seattle. Please dont compair the two. Completely two differ lifestyles.
That's so cheap, that cost atleast 2500 in Toronto. Homes start at 900k, that's for a condo..
For a house like that and bc she has renters, it’s pretty good.... if you think that’s bad imagine how bad it is here in CA 😫 (specifically the Bay Area)
hahahahahaha! She is crazy!!!! Sell that house Monica!!!
Roommates? So not only are you a homeowner, you're also technically a landlord now! Congrats on getting the house, it looks beautiful.
In reality, the home is not really hers yet... until she paid off her mortgage. So, in reality, the bank owns the majority of the house and she only own 10%.
@@MiddeWayToNirvana Respectfully disgree. Even with her mortgage paid off, she can still lose her home if she fails to pay property taxes. The state will force a tax lien sale and fire sale it to pay the bill, erasing all her equity in the process. If she can still lose her house even if she's paid the bank back in full, then she doesn't really own her house and never can, IMO.
I have recently paid off our house, and now all I have to pay for is insurance and taxes, but if I don't pay taxes I lose my house. The government owns everything.
@@jwb4bb Respectfully disgree. It is her home and no one can tell her what to do with it unless she breaks some law. In some countries like vietnam the government owns all the land and the people can build on it. Taxes are a by product of living in a country,but it doesn't take a away the legal right of owning something. She is listed as the legal owner of the property and not the government or bank.
Orangeguy I was making the distinction between “legal” owner and “real” owner. If she can lose her home because she didn’t pay the government, then does she really own it? Is it really hers if the government has the final say? Property tax is rent; the landlord you can never be free from. It’s a fee we must all pay or else.
@@jwb4bb The people of the country are the government. Without taxes things like schools and roads don't exist. Some countries only tax property when it sell's . It's what the people of that country by way of laws decided As they say: we are a country of laws. As long as I don't break any laws I am the owner on record on my home legal and real.
If someone sues me and wins a judgement against me. Everyone that's on record as the real and legal owners on my home will be part of that lawsuit. Think about it....if I sue you and win .Do I get to sue the government because you paid into taxes on that home or the bank, because they gave you a loan on the home.
You can pay all your property taxes and still lose your home by many ways. Like lying on your personal taxes or causing harm to someone else.
It’s called an escalation clause. Your agent is smart! Not all agents know about it or advise clients to use it to win a multiple offer situation. For those wondering, the seller’s agent has to provide proof of the highest offer if the escalation clause is enacted.
How would you know they are not lying? Do they have to show that highest offer by law? Because it seems like they can just say it to try to get more.
I would ask to speak to the other person to confirm that the agent isn't just lying.
My goodness ty for informing ppl. It’s pretty important ppl understand how to not get taken advantage of
yes we were wondering. It seems like a scam jusy to get more money in comission.
@@miichelletran In a city like Seattle, I'm sure it's the norm to get the offer in.
Please note - property taxes go toward paying for public schools, road creation and maintenance, public transit, public libraries, fire and police departments and basically all of the things so many Americans take for granted! We all pitch in for these things because we value them and know they make our society better, stronger and smarter.
Thank you.
This is why wealthier areas have much better public schools.
People don't understand this.
Sometimes it is understood. It’s the management of said taxes that gives people a bad view of it.
You forgot interest on loans and military spending
and public servant pensions
maybe, but it bothers me other people in other areas of the world pay higher taxes, sure, but least they get free education and healthcare out of it, mainly healthcare being the most important as it makes paying for a house or anything with kids etc hard when you have medical. so I wonder if we will ever get a better society in this type of way other then the ones you listed above :(
I loved how honest you were about the process. When you haven’t bought a home yet. It all feels like such a mystery! Thanks for the explanation!
She should have not purchased that house $7,000 plus 10% down... She should have ran.
Trump Messed Up you have no idea what you’re talking about.
When you were talking about escrow all I could think of was TJ from Gilmore girls constantly saying “I’m in escrow!!”
lol I was thinking of that too!
I thought she would insert that clip!
I was not thinking that!! I was thinking, this freaking girl bought a house and didn't know what the hell escrow means??? A sucker is born everyday! LOL!!!
Trump Messed Up hey well now she knows. When I got my first car when I was young there’s a lot of terminology I had to learn and learned the process of making payments, getting insurance, taxes, etc. We all have to learn somewhere whether a house, car or big financial commitment.
Hahaa!! Me too, I have it looping in my head now😂😂
I just payed the rent for the first time in my life and was so proud, got a reality check now Hahahaha
no, thats still exciting!!
I really liked the last part of the video were you mentioned it’s OKAY to rent, and not feel like we are wasting money, I wasn’t aware of all the money that doesn’t go to the principal from your total mortgage payment.
Yeah I was shooook when I realized it too! Renting is TOTALLY ok! Look up renting vs owning who has more wealth, its so interesting- usually comes out about the same.
Alexis Hernandez Those who rush into buy what ever just to have the tile of “home owner” are buying for the wrong reasons/wasting money. Buying is the biggest investment....there are always houses available, builders are building homes daily....no need to rush. Life is short, focus on self love & live to the fullest with no regrets. Homes, cars and boats are just “materialist” items what really matter is having joy in life.
So much goes to interest. I broke it all down and in the last 4 years in my house we’ve paid almost $40000 in mortgage payments but only paid down about $4000 in principal. Its painful to think about
@@MonicaChurch okay but.. if you rent, then you have no assurance. Something happens and you struggle with money, you don't have a house anymore. Plus, if you rent your whole life's spending will be for nothing. If you buy a house, your relatives will get it when you pass away.
My mortgage on the home I’m looking to buy is 1,900 all in. 500 of that is going to principal. Lmao. It’s rough.
I recommend if you didn't get a personal finance class in high school, definitely consider taking a personal finance class in college.
Great vid. I've been investing and selling real estate since 2002. The unfortunate thing in my experience is people are approved for say $500,000 and they go out and cap that exact amount out. They do not live within their means, they become house poor and ultimately are miserable. For anyone reading this, keep your personal overhead low and you will live a happier life 😎
SteveInvests this is great advice! My husband and I only spend 10% of our monthly income on our mortgage and all other housing expenses. It is such a relief to live below our means.
Well said
Rebecca Anne Awesome work!!
Agreed! We went into home buying with that in mind. We were approved for $250,000 but wanted WAY LESS than that! Thre first realtor we worked with kept taking us to homes near the highway priced admitt $280,000 (I specifically wanted away from major highways). We dumped her & went with a realtor who listened. We were able to get a home at $175,000 & live in it as we fix it up. Nothing major, so definitely comfortable living as we make updates! Since then we've more than doubled our income, and that means we're not even towing the line of "house poor". I really hope everyone looking to buy a home watches videos like this! My family growing up was NOT good at money, RUclips is free education.
CaSondra Stinson Awesome work! 🤙😎
coming from a real estate agent, i love love LOVE that you spoke on the fact of your escalation clause! when buying a house and being in a bidding war, that extra X amount of dollars that the buyer is willing to go above the competing offer, like you said will really break down to a few dollars a month! we try to make sure buyers don’t get discouraged about that! thanks for such an awesome video & educating people!
You and your twin are so mature at such young age. Your parents should be proud.
Thank you very much!
How old is she?
ominous450 she’s 25
I’ve been watching Shelby on and off for a WHILE now and didn’t even know she had a twin.
When I came to this video and saw you face I immediately had to search for a video with you and Shelby together.
So crazy helpful...I’m dying to buy a house before I’m 27 so let’s let the saving begin 👏🏻
I’d love to help you buy a house!! I’m a realtor that specializes in first time home buyers👌🏼
check your county and city if there's any first time buyer programs! Though I totally recommend having about 3 months of payments saved up for a rainy day, since theres a ton of hidden costs to owning!
I just brought my first, I’m only 22 and from Australia 👍💪💪
did you do it?
the content that you’ve been putting out is sooo helpful and useful i love it!
Thank you!
I work in mortgage lending, and this was a really great video! I also wish people knew there are SO MANY different loan options when it comes to buying, to suit different credit or down payment needs and that it doesn’t hurt to see what you could get approved for. Really great info though! 😊
Lord I lost it at the cost of that mortgage price but you are absolutely doing the right thing having roommates to help pay it down. Home owning is worth it, if for nothing but the appreciation alone. Congratulations 🍾🎊
I just bought a home in a pricey area still under construction. I bought it for $573K and the appraisal was 600K, so I have $27K instant equity after settlement. The key was to buy in a great location. The home appreciation rate in good areas pays for itself
Very informative! Thank you for being so open and honest about all of it. And I love how you ended and made people feel good about whatever choices they're making.
Thank you so much!
I'm 1 second into the video and saving this video to my "Future House Sh*t" playlist so when it comes time to buy a house, I know what to expect
yesss
Daisy Navarro wet
Everyone needs a “Future House Sh*t” playlist 😂
I did the same! My playlist is called Finally Adulting 🤣
Good luck overpaying for your future house
I just bought my first ever house too, and this was very accurate with my experience as well! I had no CLUE what escrow was, I thought it was a fancy word for the time between when the down payment was made to the time you get to move into the house. I also agree that it's not too stressful to buy a house, as long as you have a good team of realtors/lenders. I really only had one "stress" day during the buying process, but that was just from an issue from the inspection.
Enjoy your home!!
I live in Australia and bought my first home in 2019 at the age of 26.
It's funny how it was basically the exact same process in Aus, just with different names for each payment and service.
People had told me how there are so many unexpected payments, but the only unexpected one I dealt with is the inspector...
I think this video is so important because I was so intimidated by the buying process but you’re right, it’s really not that bad especially if you’re used to dealing with paperwork and contracts through your job. Also ty for touching on how little equity you build in the first few years of your mortgage, that’s such misleading advice millennials get from older generations.
This woman is super chill, she explained well, she was not judgmental. I like her.
I’m so glad somebody is being transparent about this process! I’m always seeing the “I bought a house” videos and wonder sheesh but how!? It’s really cool to see someone my age doing all this. Thanks Monica!!
Love how financially transparent you are!
Really great informative video! We are about 40 minutes south of you and got our house as a foreclosure 10 years ago for only $150k. Similar houses in our area are now selling at $350k so that is definitely one way we are feeling good about all the extra costs we will never get back. One other thing we do is round up our mortgage payment each month adding a little extra to the principle.
My husband and I are buying our first home together. What I would recommend to Anyone planning on buying a house get a realtor you vibe with not just someone looking for a paycheck. Your realtor has to have your back! Know everything you are looking for in a home & also keep a list of what you are willing to compromise (do not settlement it’s your future home!). DON’T BE CHEAP get all the inspections & keep them in case something happens, you have proof for insurance purposes! Be smart about getting into the home buying process ask questions, be comfortable with everything, & don’t settle.
We were so lucky to have a good friend as our realtor.
This was so helpful and honestly made me feel a lot more knowledgeable about home owning. I’m still in college and I didn’t know more than half of this. Thanks Monica!! Super great vid. I love when you do life/finance related vids
I am so glad this helped! :)
omg i know right?! no one teaches you these things haha 💕
What Monica did not tell everyone which you can do when making your normal payments. If you want to get your house paid off early or lower your loan amount owed. You can pay more of your money towards your principal. You would have to contact the company you got your loan from to ask the process for this and to ask them if you are penalized if you pay your loan off early. I did this with both houses I purchase. We send a extra check in the mail stating on it to go towards our principal.
And I don't think its a exaggeration to say getting a home can be a exhausting process. It is subjective and you have to look at it from the perspective of what you are buying such as are you "building" a house, buying a new home or a home that is a couple to several years old or even a decade old. Some home buyers have a lot they go through depending on what they are buying. I have purchase a new house and I have built a house. Buying a house already built was a cake walk compare to getting a house built. Getting a house built depending on the builder can be a long back and forth process that can be exhausting. One advice I would recommend everyone to do. If the builder or home owner tells you they will do something. Always get it in writing.
juliezeneth I do! 😀🏡😀🏡😀
You are very wise beyond your years!! I love that you are renting out your rooms so it cuts down your house expense❤️Congratulations on your first house!!! My hubby and i bought our first home years ago when We became debt free, saved up 20% downpayment and saved a 3-6 months emergency fund. It’s been wonderful!!!! Hope you make wonderful memories in your beautiful house!!
Monica, has anyone explained to you that you can pay extra on the principal each month? if you do that (and it does not have to be a huge amount) you gain in two ways: you pay down the principal which add to the equity faster, and the interest decreases proportionally so that is less money you pay the bank.
I have used that principal several times and paid off three houses, improving the quality of the houses each time. Now I I've in my retirement house which is paid off and the co-vid crises has not effected me at all. Good luck!!
Hi Brenda! Can you share how you can pay extra on principal? (ie do you talk to the bank/lender about it? Do you set up a weekly/biweekly payment instead of monthly?). Thank you!
All you have to do is specify with your bank that any overpayment is to go to your principal. Call your bank and ask how to do that, they may require it in writing. My math teacher in high school psid and extra 4 dollars a month a d paid his house off 4 years early. So even just a couple of extra dollars towards principal really makes a huge difference.
@@purpleshield27 you simply sendnin another payment that month. Or pay more during each payment. anything above the minimum goes to principle that month. Or you transfer large chuncks of the balance to a credit card.
@@agood1 this is not entirely true. Most lenders won’t apply extra payments to the principal without specification, it’ll go as a regular payment which pays the interest and other fee before actually paying the principal.
Who else dropped everything they were doing to watch this?!? Bc SAMEEEE🤩
Looool.
Nope. Still eating.
Monica, you explained the process of buying a home very well. One thing I would encourage you to do is to pay extra on your mortgage each month. Not so much you are "strapped for cash" but enough pay down your mortgage. For example, you buy a house for $500,000 with 10% down the loan is $450,000 and it's a 30-year conventional loan at 4.75% interest. Your principal and interest payment ONLY is $2084.02. Making no additional payments, at the end of 30 years, you've paid $300,247.26 in interest alone. By adding just $100 per month you save $27,525.76 and pay it off 2.42 years early. Increase that additional amount to $300/month and that brings savings on the interest to a whopping $69,247.63 and shaves off 6.17 years on that mortgage. There are several mortgage calculators you can use to play with these numbers.
thank you for teaching me more than school ever did.
Wow, no one ever posts such insightful and easy to understand content like this! Thank so much!!
One advantage of renting is when it comes to maintenance and repair. It doesn't come out of your pocket ($10,000 for a new roof, $5,000 for a new HVAC on a mid size home, etc). Downside is most rentals won't let you make the change you may want (painting, flooring changes, etc).
I appreciate that last part where you said we don't have to feel bad because I don't have a house and life's good. That made me feel a lot better.
I love these grown up topics that feel like things I should know. We are talking about money, equity, and adulting in 2020 ladies!!!
Honestly the most stressful part for me currently is waiting on the appraisal. There’s literally nothing else for you to do and there’s no way to speed up the process, it’s out of your hands. I don’t know why but that gives me so much anxiety.
I really really really appreciate that you give real numbers in your videos. Most of these types of videos from other YT’s feel clickbaity because they’ll give a generalized statement and MAYBE pretend numbers if you’re lucky. You keep it real and tell us what is actually going on. Thank you for being genuine! 💕
With a smart home purchase your equity can be quite more than you think. We live in Puyallup which is significantly less than Seattle. But we bought our house for $135k, took out a $16k loan to repair the house. 5 years later our house was valued at $340k thanks to the market and the equity we had in it. 1 year since that appraisal we could sell our house for $355k easily.
My fiancé bought his house at 21 and we have a plan to pay it off by 28 (in 5ish years) so that once we sell we will have a nice down payment to build a house double the size just in time for us to have kids. We constantly like to talk about our financial plans so this video was perfect. I like that Monica has grown with her subscribers. I was subscribed back during her beauty guru days, now we are at the age where we are buying a house.
Nikki Riehle that’s awesome! Where are you located?
I'm actually pleasantly surprised. This was quite informative and easy to understand!
Also, in case no one has mentioned it, USDA doesn't require a down payment as well. Currently buying our house through USDA. With this type of loan not only do you have to go through the bank underwriter but you also have to go through the USDA underwriter. Getting a good lender is VERY important and will pretty much make or break your application. Having an amazing realtor helps too
I'm not sure about your lender, but my lender was near impossible to get a hold of, however he gathered everything he needed and then some.
Our inspection was about 400,the survey was already done so that saved us 600, an hvac inspection was 99,and the appraisal was 500 all out of pocket.
I'm over in NW Florida getting a 150k house in case anyone has any questions :)
Thanks
I didn't use a big box mortgage company, so was able to sit down in person with our mortgage agent who was really great and explained everything from the very start and none of the stuff you talked about was a surprise to me cause they explained everything. They really went above and beyond what I think most agents would of done.
You have the most practical and well made videos! Keep up the good work!
I’m interested in seeing a video on how you chose your roommates. Did you already know them or met them during their application process?
Same
We had an escalation clause, no contingencies and a well written cover letter to seller but still didnt make top 3 highest offer on a house that sold $60k over listing. It is SUPER competitive in DC
This is one of the best home buying videos I've come across. I love how transparent she was and that she used real numbers. I'm still nervous but I like that I know everything to expect!
You have such a simple but very thorough way of explaining things! Thank you for this, wish we would’ve learned these things in high school. ☺️
Yes, the sewer is optional - GET THE SEWER INSPECTION.
Jacob Bidwell I totally agree. It’s $150 in my area (Sacramento CA) and you could find $10k in issues.
I'm currently in the home buying process... just about to hit the tail end. For me, it's been very stressful and mostly bc the mortgage lenders aren't very good at communicating. I chose to go with the builder's lender for the convenience and discount they make toward closing costs. Buying a house is a huge deal, but when I compare it to renting... I'd rather pay 1,500-1,800 on a mortgage than 1,200-1,500 on rent... but that's my personal preference... there's a lot of benefits in renting too.
Ok, Good for you Monica for being a first-time homeowner. I'm not going to get into all the details but usually, a home appreciates and when you sell the home you take what you sell it for minus the original purchase price and less any realtor fees when you sell it and that equates to your profit or appreciation. However, what many do not equate into these numbers is how much you paid in property tax as long as you own your home. You do not subtract the cost of insurance or upgrades. Do you have an HOA fee?
I will tell you that you made a wise decision because of your age and the longer you keep your home the more it appreciates. Those are my thoughts about purchasing a home. Good luck and welcome to having the "American Dream" of homeownership.
I just closed on a house in December. I went through everything you just mentioned except the mortgage insurance since I put 20% down and I didn't have to have an appraisal.
I wish I had this before I bought a house. This is very accurate, though house buying in every state does differ in small ways. Love the bedroom set, by the way.
Thank you!
From someone who just went through this myself at the top of year - you did a great job explaining this.
What I thought I had learned on RUclips and google definitely clicks after hearing you narrate it, makes me feel so much more confident about all the research that made sense in my mind, but I wasn’t sure if it really was that way until u narrated it the same in simple terms ! I feel reassured! Thanks a lot, you seem very humble !
Idea home: 100k financing at 3% or lower interest at 15 years.
You should look into prefab homes! They are smaller, less expensive, but really beautiful. with a 100k budget you could get one, but buying land would be a bit more.
@@Nunyabiz8787 that is so interesting! I want to make video about you!!
Monica Church Also, you are correct about the paperwork, it only takes about 30 minutes lol. I closed last year with a 30 year mortgage at 4.7% interest, and then rates dropped to 3.6% this year so I refinanced to a 20 year and the monthly payment is less than $100 more per month. I did have to close again and get a new appraisal (my house value already increased a few thousands dollars!) but it was worth it. I also rent out one of my spare rooms to traveling nurses.
BeckyLee B. Wow!!!!!
“I’m in escrow” - TJ -> Gilmore girls 😂😂
Location makes a big difference. My house was $195,000 dollars. It is 2000sqft on 1.6ac. Our mortgage was $195,000 as we put 5% down and had to pay mortgage insurance. Our house insurance is $100/month, property taxes $50/month, doubled down mortgage is $1648/month and $1211 of that went to principal.
So per month we are out $587. For a 3 bedroom house the rent in our area would be $1500. So the math for us really leaned towards becoming homeowners.
I have been on a look for house for the past 4 month and my dream house offer finally get accepted yesterday after a offer got deny and now, I already put in the escrow and have the inspection take a look at. I can't wait to start moving in!😭
This was an AWESOME video thank you for actually breaking it down instead of just saying “save money” lol Congratulations to you!
dude I also live in seattle (well, north seattle) and I haven't turned my heat on either! I literally am boxed in on all sides by other apartments, left, right, above, below, it's awesome
dont let the process scare you!!!! i just bought a place and it seems so daunting but its all so worth it!! also dont let the up front costs scare you because it really pays off in the end!
You also have to factor in home repairs that you are now responsible for. I also spend a lot more on home improvements that I don't really need to but I just feel like I have to to keep my home up to date.
Nicholas Field same!!
This was very helpful!!! Thank you so much
I am currently in the process of buying my first home with my boyfriend and it just completely shocks me how much prices differ from state to state. My 3 bedroom 1 1/2 bath 1008 sqft home in Indiana is only $150,000 and $333 in property taxes for the entire year!
Yup inflation and LOCATION!
Exactly! I just bought a house and was so shocked how quick it was happening that i started procrastinating...you are correct,, folks it really is NOT that hard to buy a house
This was an AWESOME take on the overall homebuying process. I'm a millenial and a mortgage lender so I totally get how crazy the process can be. One last thing to remember on interest is that it is a writeoff on your taxes! make sure you take advantage of that come tax season, it'll save you a ton!
This video was very informative and yet also scary since I’m 24 and sooner or later I’ll have to buy a house and I have $0 lmao
Like she said, you don't have to have a mortgage/house. But in any instance just save whatever you can even if it's $2 a day
Stop wasting money on starbucks
Darth Vader who’s drinking Starbucks? 😂😂
You don't have to buy a house. Nothing is wrong with renting just depends on what you want. Get a second job to save for your down payment.
Start watching Dave Ramsey videos. They may help you to head down a good financial path. You have nothing to lose kiddo.
That’s what I thought escrow was too! Buying a house is SO confusing and we still don’t understand it all but it worked out for us 😆
One of the most informative & honest video I've been watching lately!!
Really appreciate your work on this, Monica.
Haven't watched the entire video yet but just because you went 10% down vs 20% down doesn't mean your offer is weaker. There is a misconception that downpayment is what makes or breaks a deal which is not always the case. There could be other things that makes your offer stronger like having a full blown loan conditional approval, not asking for closing costs, etc
Thanks, Monica! This was super helpful 👌
I remember signing my middle name on all those papers threw me off! There were a couple times I had to squeez it in there because I had NEVER signed with my middle name before haha
Damn, I haven't got a middle name. I'll never be able to buy a house.
This might seem crazy, but the thing I didn't really understand was how the bigger the house, the more you pay in property taxes. It's not the size of the lot, but more the square footage of the house that determines taxes. And by paying cash for the house, I was able to move into the house within 5 days from putting down a good faith deposit. So I was living in a tent for 5 days, and eating fast foods. 5 days later I was moving into the house.
completely wrong - the value of your house determines your property taxes - not the size.
I bought my current sofa and loveseat from Ashley in 2005. It's still in good shape. Congratulations on your new home.
If you’re itching to own for FOMO...
buy a duplex or triplex instead of a big condo.
I can guarantee you, After 3 months, Monica’s gonna be sick of her roommates, 😂
Privacy is priceless.
There’s also more BIG tax incentives on income property.
All repairs and improvements are write offs.
Love the way Monica breaks down the process.
Edgar Arenas this is interesting.... what about in Texas? How would this work?
April Mdz it’s works awesome. Check it out :
www.zillow.com/homedetails/7327-England-St-Houston-TX-77021/97608357_zpid/
@@moma5501 Where in Texas do you live? Whats you current rent like?
Edgar Arenas I don’t have rent.... I live with family
@@moma5501that's cool. Yeah, a duplex would get you privacy and is smarter then paying rent.
Im at the point in my life where I have to start considering buying a home and no one talks about the process enough and most times its a learn as you go along process. Super helpful Monica 👌🏽👌🏽 thanks
Chelsea Stephenson I’m a real estate agent and would love to help you when the time comes. Where are you located?
Colin Miller thanks for the offer, however I’m not living in the states lol
i appreciate how you used real numbers, it makes it SO much easier to understand
This is why I love you Monica always making real videos ❤️
One word of caution from a real estate broker - every state has different real estate laws/practices. Some states use escrow agents, others don’t.
Terms also vary by deal / state. Don’t just assume that you’re going to automatically receive a refund on your earnest money if you back out of a deal. The things she speaks to in this video are very specific to Washington State but don’t necessarily apply elsewhere.
Love this video! Thank you!
The most useful video you have ever made! I love when people break things down like this
Thank you Monica for this video! I found it really interesting and informative. Despite being 19, I always love learning information that will help me make more informed decisions in the future.
$70,000 for a down payment just amazes me 🤭
In California a conventional loan down payment would have twice as much at 20% or $140,000 down for 700K home.
She is an idiot. It doesn't amaze me... She should get her money back. Let us come together and help her. She did all that and there was no other offer! Seller beware!!!
Camelot yeah! I guess I should clarify - having $70k cash to just drop down on a 10% down payment amazes me.
As young adult from the southeast, this isn’t the usual, so it’s tough to empathize - the fact that she has this opportunity is awesome though!
catj You could buy land and a home with that in TEXAS dang
You're going to need roughly $800k for retirement.
Seriously love videos like this 😍😍
Same!!!
I'm glad you mentioned that it's perfectly okay to rent and save your money (for retirement for example) in a different way. So many people push and push and push to buy a home and then become "house poor". Yeah, they have a house but that's it! They have no money left and have to sell their home in a few years.
Another factor to keep in mind is the money required for maintenance. I get $650 from a rental property each month, but I've also bought gutters for the house, paid for HVAC repair, etc. I'm not really "making" money on that house. Someone else is just paying for the upkeep.
I LOVE THESE HOUSE VIDEOS
Monica showing a few papers and people in Germany be like: hold my beer and pretzels“ 🤣
Germans are so obsessed with papers 🤠
I’m glad you talked about renting vs buying. A lot of people do make that general statement without actually know what goes into owning and maintaining a house vs just renting. Neither one is bad to me
We bought our house in a desirable area where I live. We were actually the second offer and because we wanted it so bad we offered $5,000 over asking. There were 7 other offers that flooded in after ours (mind you the house had been listed for 24 hours during quarantine may I add) lol
We close on the 27th of this month.....buying a house during the pandemic has been a unique experience.
Did you have to counter since there were multiple offers?
Thank you so much for going into detail about all of this! and for being so open with how much you pay a month and breaking THAT down for us! This makes me want to never buy a house lol just because of all that interest money going to waste and barely paying anything towards the principle 🙄that's my current situation with my student loan *sighs in debt*
duuude seriously so much interest $$ goes to waste, buying a house can be a bit overhyped. I am so glad this was helpful for you! Student loans... so unreal how unfair it is. I feel like there shouldn't be interest on that like wtf???? our world sometimes smh
Monica. Just a few notes for your benefit. One if your home appreciates 10% ( assuming your place is 700k and your down was 70k ) once you reach 20% of the loan have it appraised and ask the PMI be removed Two: get a good CPA and itemize your taxes. You can claim office space in your home and other work related write offs.
I had to give the previous owners of my apartment a deadline to respond to my offers cause the were so sloooow and so was the real estate agent. But in the end I got a great price so whateva :D
I actually love how this video gets concluded, theres just no pressure in reaching these milestones... although ultimately, we wanna have something to call our own so i guess, being a home owner wins. :) LOVE
This was actually super helpful. Thank you!