I agree as a single mom who's a widow, is tough, I want to buy a house but is so hard when your the sole provider and still trying to be a mom for your kids , but will never give up where there's a will there's a way and saving money is key 🔑 thank you for the tips 😊
Yup I would love to be able to just put $10k down but I really need 100k. I'm 1/2 way there. a 3% downpayment would make me house poor with even a starter home
@@NatashaEstrada hang in there and don’t give up, my wife and I come from a humble background and just by staying in the race and self educating have learned so much. From real estate vocabulary to strategy when putting in offers. Not to mention it has helped us develop saving strategies too.
@@DIVISIONINCISION I can't do everything at once. My husband's fairly well-paying job is based here in LA. My business can move from state to state and does well but right now on paper doesn't help with the qualification process and being self-employed can be risky. So we are opting to continue to save the 20%. Moving to a state where I can put peanuts down doesn't help if your income potential gets slashed by 2/3rds. If we move out of state we will do it when we can pay cash. Besides everyone moving from California to buy in red states is what will ruin them for people who are struggling to make it there. I don't need to make my problem their problem.
@@franciscojaque1480 Thanks Francisco. Basically right now we are just keeping up the saving and investing grind. I live a decent life without owning a house so I'm not sad. But it would be nice if it were cheaper amirite? D
@@lysan4878 Yes exactly and also there are only so many ways you can configure a house that make sense. Your friends aren't going to come over and say OOOOHHH you have a really nice floorplan
I won a bid on a house (309K) and my realtor got the seller to pay title fees and a home warranty! But they didn't want to do any repairs after inspection. Repairs are maybe 4-5K So yes extra money will help !!
I wish my realtor and lender were this honest about my finances. They were quick to pre approve me and start looking at homes. My realtor keeps bringing up the fact that the houses are just getting more expensive and I need to hurry. But once my first offer was turned down I started looking into more info to see how I could get them to pick me... ran into your channel and now realized that right now is definitely not a good time for a single mom to try and get a house especially here in Texas. You are doing the lords work and I thank you for all your honesty, even if it shattered my dreams 🥲
@@DarknessFalls29 lol me too! thats the reason why they are driving the prices so high for us Texans... everyone is moving down here because other states are even worse. So I feel you on that.
So true. And add homeowner's insurance. The only downside I have found with townhomes or condos is the high HOAs that sometimes make it more expensive than single family homes with a small HOA.
I'm in the top 10% of earners in my area, still barely feel like I can afford a good house and save as much as I want. Good houses near me used to be around 150-170K. Now I can"t find any good houses under 200k, I only want to have a 180K house (3 bed/2 bath/garage) so that I can save a substantial amount. I'm single and planning on putting 10% down. I want to get to 20% equity to avoid PMI and lower monthly payments close to 700$/month.
I'm in/was in a similar situation, 2 suggestions consider location and size. For me competition for 3/4br homes in my target area is so high putting an offer that wasn't 10-15k over with no consesions wasn't competitive, put in an offer on a 2bd/1ba home with full basement and 1.5 garage that got accepted. ultimately if what you want is out of your price range save more or figure out what compromises you can make to still have a home that you'll feel safe in and have enough space.
My husband and I have 30k in savings and looking to buy a home in the 260-270k range. Got approved... and can't get a house. It's so discouraging. We have been renting for 8 years and our neighborhood is going downhill and we have outgrown the house we are renting. We have put in 4 offers so far with no success. Investors in our area are buying homes for cash and blocking families from buying. It really sucks.
I’m in the same situation. We live in Houston Tx. We have put 8 offers and still haven’t gotten a offer accepted. Don’t get discouraged...all we can do is keep putting offers. We will hit the jackpot one day.
@@javiero9424 right... we are going to keep at it... we are on offer number 4, I know a few people who got homes because other offers fell through so 🤞
“The U.S. would need to build about 2.3 million new homes every year from 2018 to 2050-over twice the current rate and more than have been built in any year in the country's history, to fix the US housing shortage” -NAHB
@@StarSnow1101 Hard to say if it’s bias or not. If you copy and paste the quote in googles search bar it will bring up the article. When reading through the article it sure appears that a lot of research was done to come up with the numbers. I believe the government would have to heavily subsidize home builders for it to be economically feasible to build the number of new homes/starter homes needed each year. I don’t see the government doing that and currently home builders are mainly building larger homes that are profitable vs starter homes. If this continues many people will be priced out of single family home ownership permanently and the gap between the haves and have nots will only widen in the years to come.
@@Needglory23 Absolutely agree more single family starter houses are needed. The 1000-1500 square foot tract homes need to be done again in large quantities. Problem is these houses cost about the same as a 2000sq ft+ house costs to build with all the costs such as land, utility hookup, foundation, exc.
These numbers are right on. You really do need to have money saved. There are so many extras you may not have remembered or budgeted before looking. Very lucky to have had most of my closing paid by seller as that is not being done much these days. Listen to Javier and write a list of all that you need to budget to realize your true house poor number. Another great informative video. Thanks Javier
So glad I bought 6 years ago. I am sitting pretty right now, I even just refinanced from 4.65% (which was a great rate in 2015) to 2.5%. The house I bought in 2007, I got spanked on. The height of the market back then. It feels like 2007 right now.
Yep. Was qualified this year and this was liberating! Yet, I need more down to be able to swing it conventional in this market. Buckling down and committed to do it. No need to hurry this market stinks, I am buying once the bubble breaks.
A realtor did me so dirty today it almost made me cry. He literally lied to me abt a home that was already under contract but it hadnt posted yet.... then told me to double qualify with his lender to make my offer stronger then when i qualified with his lender he told me Ill never find a house in that area with my loan and Ill only find a house with his lender (with horrible terms) then told me the house that he had was gone anyway.
That is so shady!!! Time for a new realtor and different lender. You definitely don't want to work with someone you can't trust. Seems like they were putting their best interest before yours. Don't give up you will find the right team to work with 💕
Me thinking fixing my credit and saving money was the hardest thing! 😪 nope! Now comes the disappointments over and over because we can't find a house and when we do the the fighting for it.
Thanks for the tips. There's always a lot more beyond the down-payment... I'll try out the house poor calculations although I think rent in my city already makes us "rent poor" so 🤣
"don't get depressed..." yeah already there!; and yes, I've noticed being single and making decent but not great money is a disadvantage to trying to get a home now...
A new home needs ladder(s), hose, sprinkler, shovels(?), misc. garden or landscape tools, simple carpentry tools etc., etc., etc. Being close to big box hardware store is nice as no home repair is done with less than three trips there each day.
Great video, more practical advise about buying a home needs to be out there. I waited to buy my first place and did similar planning because first and foremost I knew the math had to math. I'm hopeful the market will become more advantageous soon for people looking to buy their first home or just a more affordable house. The current trend just isn't sustainable.
My fiance and I worked for an entire year to fix our credit and save. We were finally pre-approved and have almost 10k saved. We were also pre-qualified for way more then what we were comfortable with so we kept that in mind. We just put in an offer, it's been sitting for 14 days now so we offered list price and them pay closing, it's also usda available so if all goes well we can keep all that savings. Also in alabama so living cost is low.
Thank you for this video. Really good, grounded, graspable tips instead of the super general “save money” ones. I’ve been trying to get myself organized to buy a home, but I need some silicon valley cash or create the next squat potty to make it worth with current prices and restrictions cause I’m by myself and, although I have a decent job, it seems that it won’t be enough. Well... I’ll continue to see 16 year old Tik Tokers & YT buy big houses as teenagers and Zillow properties while I’m parked on my mom’s driveway on my used Kia Soul.
I hear you. Im in the same boat. People showing up with cash offers over asking price making me feel like a second class citizen even though Ive done everything right.
7:03 got me. Thank you for talking about this. I see SO many agents saying "you need to get in now" and pushing this sense of FOMO. I'm in the Austin area where it is INSANE right now. I'd rather push liquid assets than go liquid poor to just buy a house to say I got one.
Javier could you do a video for homeowners on how to upkeep important factors for when reselling becomes an option. Or ways you can add value to the home cosmetically. For instance we don’t have a back porch, would having one done increase the value and make our home different from others?
Crazy. My number is $1,100, which is exactly what my rent is. I feel very comfortable at that number, but I’ll never get a mortgage for that in my area/state.
If you're searching in NJ, CT or NY for housing that amount would be the property taxes and homeowners insurance portion of the mortgage in some areas.
California prices are getting absurd. 800k homes here are getting you a small house thats not move in ready. I have 20% down, closing costs, 2 years of emergency funds, but feel like its not even worth it to buy.
This market is out of control. I would never risk waiving an inspection, appraisal , if your that desperate to buy the best advice is to just wait . I have found a lot of home here are not updated, older, with older AC units, lost of homes need huge upgrades.
Thank you for addressing the hardships of independent owners. As a single person intending to stay single its hell, idk if ill ever realistically be able to earn enough as an independent. Things are really geared towards couples and family units :/
My husband and I have managed to save 20k, got pre-qualified for 375k+. We really thought we would be able to find a house in PHX for 250k or a little over. Finding now that those houses tend to have 5 or more offers or be the ugliest house in the worse neighborhood! I'd love to wait until things die down a little bit starting to feel like the longer we wait the more expensive the house is going to be! We are now at the top of our budget and looking at mortgage payments over 2k🤦
Thanks for this video. I am looking to buy and I am in a similar position as your friend. I am gonna save and wait for the market to chill a little. Hopefully 2022ish🤞🏾
ALL Lumber sold in the U.S. just doubled in price! Just a heads-up! Husband went to Lowe's to get 2x4's for stick-built homes and the price per 2x4 went from $4,50ish to $7,85 in anticipation of Biden's 'build better' plan. Also, in anticipation of the minimum wage going to $15,- an hour (which DID NOT HAPPEN), all consumer goods went up. So, not only did nobody get a pay increase, most goods are starting to go up and even double in price, including labor services, which did not get a pay increase but the business owner uses it as an excuse, as if it had happened.
You can either go directly through the owner and a lawyer and title company or you can get a realtor to submit the offer to the owner. You’ll likely still have to pay closing costs and inspection fees.
Here in the San Francisco BayArea you’re probably going to be house poor regardless, I’ll be getting off child support in June and if I figured in that payment I should be ok at 25 percent because I’ve never seen that extra income in the past 21 years for my two kids and that’s the reason I’m never having another kid in this country again I’m currently 41 years old I’m now glad I had my kids super young and now I’m going to have a chance of getting my stuff together
To be fair, you were playing on hard mode as a dedicated wage slave. That's basically what you're signing up for if you knock her up nowadays in the US. Her body, her choice. Your wallet, her money. If you stay single it's actually pretty easy to build up wealth, especially if you earn a better than median income.
In the Seattle Metro area, really a suburb, but pay $2000 a month rent, have enough for 20% down on a $500k home up here. And, in a lot of ways, that's not even a great home up here. After 20% down, it leaves us savings, but not much. We have excellent credit, and manage to put money in savings, about $600 a month currently. What do you recommend, waiting, or purchasing? The market is only going up the longer we wait.....too much California Love up here!!!
Great video, outside the box thinking, every UA-camr is bidding a dead horse with the housing market crash that is not coming !, we will have an affordability market crash
Throwing in my 2cents because I see loads of UA-camrs talking about 3% closing costs. Be careful, they aren't that low everywhere. Here in PA, closing costs normally reach or exceed 6%!
Anyone can become a home buyer it takes discipline and sacrifice to become a home owner I hear talk about people being home owners 97% are actually home buyers, I am a home owner have been since 2009 also debt free since 2009 most folks are renters leasers or buyers of everything they have, it appears most folks have an insatiable appetite for debt
Yeah...even the cheapest houses are out of my range. Florida can be brutal for the majority that works here. With the way things are going, I'm working on a homeless plan because that will be the future unfortunately.
Not understanding this. According to Zillow my affordability calculator for a house is an eighth of the average cost of rent. If I'm struggling to pay for rent at 1,200.00 plus a month how can my affordability be under 300.00 a month for mortgage?
I'm that independent single guy, just shy of realistically being able to afford what I want. Hard to justify emptying my stocks for a downpayment on a condo I don't want to live in.. who is your friend?(;
It’s interesting to see the stats saying “X amount of people couldn’t cover a $500 emergency” then seeing houses flying off the market over asking ..something ain’t adding up
Both are true, investors are buying multiple houses, older established buyers are buying 2nd homes, people are not listing their home because they need a place to live, and foreign buyers....there’s a lot going on now
Mortgage is just the beginning. You essentially rent from the bank and the municipality once you “own”. But on the bright side you can paint the interior any color you want. Oh, and any and all repairs inside and out are your $$$ not the landlord’s. My sister and her husband sold their condo and rent now. She confided how nice it was to call the landlord for repairs and even replacements for nonfunctional appliances . She requested a railing for the steps going from the sidewalk to the porch (after she fell) and that was taken care of also. On the other hand they have missed out on crazy appreciation but who was to know 6 years ago?
@@carylhalfwassen8555 Yeah, I am honestly very comfortable renting and I feel I am not having to have an extra fund in case things brake in the house, I just have the emergency fund for in case of a layoff.
I feel like I should have stopped watching...that outro was awkward 😆 Great actionable advice! I’m going to start tracking the list price vs. sale price to better understand trends in my target areas. I’m not ready now, but I feel like that will help me prepare for when I am ready to jump. Thanks very much Javier, another excellent video!
The % of gross should be adjusted by income. It costs the same to live for someone who makes 300k as it does for someone who makes 30k. A 300k person spending 97% of their money on a mortgage has the same amount left over as someone making 30k spending 30% on their mortgage.
@@ww21943 The feds are going to keep pumping money to avoid a crash. Also the median income has grown as well. Before in 2008 minimum in Los Angeles county $8 now it’s about $15 I believe. Almost doubled. That’s inflation and houses will follow that as well
@@lorenzol332 you’re right they can’t buy many people have got money through stimulus and children. Many loans will require to pay the money at the end of your mortgage terms and others in lump sums. At the end your right once all the artificial feds pumps end we will see the effects.
I agree as a single mom who's a widow, is tough, I want to buy a house but is so hard when your the sole provider and still trying to be a mom for your kids , but will never give up where there's a will there's a way and saving money is key 🔑 thank you for the tips 😊
It’s hard for even people like me with my wife, just started saving for a home since last October , I guess I’ll save for 1-2 years at this rate
Good video, it’s bad out here in CA but all we can do is keep saving and waiting!
Agree! That's what I'm doing too.
Yup I would love to be able to just put $10k down but I really need 100k. I'm 1/2 way there. a 3% downpayment would make me house poor with even a starter home
@@NatashaEstrada hang in there and don’t give up, my wife and I come from a humble background and just by staying in the race and self educating have learned so much. From real estate vocabulary to strategy when putting in offers. Not to mention it has helped us develop saving strategies too.
@@DIVISIONINCISION I can't do everything at once. My husband's fairly well-paying job is based here in LA. My business can move from state to state and does well but right now on paper doesn't help with the qualification process and being self-employed can be risky.
So we are opting to continue to save the 20%.
Moving to a state where I can put peanuts down doesn't help if your income potential gets slashed by 2/3rds.
If we move out of state we will do it when we can pay cash.
Besides everyone moving from California to buy in red states is what will ruin them for people who are struggling to make it there. I don't need to make my problem their problem.
@@franciscojaque1480 Thanks Francisco. Basically right now we are just keeping up the saving and investing grind. I live a decent life without owning a house so I'm not sad. But it would be nice if it were cheaper amirite? D
Closing on April 15th. Spec home in Maricopa, AZ fell into my lap. They are even paying my closing costs and giving me a 2.75% interest rate.
Nice 👍🏽
I bought a spec home & closed 2 months ago. I am upgrading it to what I want. It will take me the rest of 2021 to finish it all.
Did you get a 15 year loan? That's why the low interest rate?
@@DIVISIONINCISION maybe that’s all they could afford and not everyone is picky. Don’t be such a negative Nancy and be happy for the person!
@@lysan4878 Yes exactly and also there are only so many ways you can configure a house that make sense.
Your friends aren't going to come over and say OOOOHHH you have a really nice floorplan
I won a bid on a house (309K) and my realtor got the seller to pay title fees and a home warranty! But they didn't want to do any repairs after inspection. Repairs are maybe 4-5K
So yes extra money will help !!
I wish my realtor and lender were this honest about my finances. They were quick to pre approve me and start looking at homes. My realtor keeps bringing up the fact that the houses are just getting more expensive and I need to hurry. But once my first offer was turned down I started looking into more info to see how I could get them to pick me... ran into your channel and now realized that right now is definitely not a good time for a single mom to try and get a house especially here in Texas. You are doing the lords work and I thank you for all your honesty, even if it shattered my dreams 🥲
I wish those Texas prices were in the D.C. area.
@@DarknessFalls29 lol me too! thats the reason why they are driving the prices so high for us Texans... everyone is moving down here because other states are even worse. So I feel you on that.
He's a bit of Debby Downer, isn't he? So many people will give up after watching his videos. That's sad.
So true. And add homeowner's insurance. The only downside I have found with townhomes or condos is the high HOAs that sometimes make it more expensive than single family homes with a small HOA.
I'm in the top 10% of earners in my area, still barely feel like I can afford a good house and save as much as I want.
Good houses near me used to be around 150-170K. Now I can"t find any good houses under 200k, I only want to have a 180K house (3 bed/2 bath/garage) so that I can save a substantial amount. I'm single and planning on putting 10% down. I want to get to 20% equity to avoid PMI and lower monthly payments close to 700$/month.
I'm in/was in a similar situation, 2 suggestions consider location and size. For me competition for 3/4br homes in my target area is so high putting an offer that wasn't 10-15k over with no consesions wasn't competitive, put in an offer on a 2bd/1ba home with full basement and 1.5 garage that got accepted. ultimately if what you want is out of your price range save more or figure out what compromises you can make to still have a home that you'll feel safe in and have enough space.
My husband and I have 30k in savings and looking to buy a home in the 260-270k range. Got approved... and can't get a house. It's so discouraging. We have been renting for 8 years and our neighborhood is going downhill and we have outgrown the house we are renting. We have put in 4 offers so far with no success. Investors in our area are buying homes for cash and blocking families from buying. It really sucks.
I’m in the same situation. We live in Houston Tx. We have put 8 offers and still haven’t gotten a offer accepted. Don’t get discouraged...all we can do is keep putting offers. We will hit the jackpot one day.
There should be a law about that. Investors should only be looked at last.
@@javiero9424 right... we are going to keep at it... we are on offer number 4, I know a few people who got homes because other offers fell through so 🤞
I am number 1. Closing on our new home next week. Thanks Javier for the sound advice throughout this process!
“The U.S. would need to build about 2.3 million new homes every year from 2018 to 2050-over twice the current rate and more than have been built in any year in the country's history, to fix the US housing shortage” -NAHB
Wow, this is a great stat. It may be a bit bias considering the source but still the perspective of the shortage is real. Thank you for sharing!
@@StarSnow1101
Hard to say if it’s bias or not. If you copy and paste the quote in googles search bar it will bring up the article. When reading through the article it sure appears that a lot of research was done to come up with the numbers.
I believe the government would have to heavily subsidize home builders for it to be economically feasible to build the number of new homes/starter homes needed each year. I don’t see the government doing that and currently home builders are mainly building larger homes that are profitable vs starter homes. If this continues many people will be priced out of single family home ownership permanently and the gap between the haves and have nots will only widen in the years to come.
@@Needglory23 Absolutely agree more single family starter houses are needed. The 1000-1500 square foot tract homes need to be done again in large quantities. Problem is these houses cost about the same as a 2000sq ft+ house costs to build with all the costs such as land, utility hookup, foundation, exc.
These numbers are right on. You really do need to have money saved. There are so many extras you may not have remembered or budgeted before looking. Very lucky to have had most of my closing paid by seller as that is not being done much these days. Listen to Javier and write a list of all that you need to budget to realize your true house poor number. Another great informative video. Thanks Javier
So glad I bought 6 years ago. I am sitting pretty right now, I even just refinanced from 4.65% (which was a great rate in 2015) to 2.5%.
The house I bought in 2007, I got spanked on. The height of the market back then. It feels like 2007 right now.
Yep. Was qualified this year and this was liberating! Yet, I need more down to be able to swing it conventional in this market. Buckling down and committed to do it. No need to hurry this market stinks, I am buying once the bubble breaks.
I SAW WHAT YOU DID
what do you mean uwu
He just wanted to include you in the video 😂
Always a great video. I appreciate that you talk about budgeting because that’s also a part of it
I feel like redfin has a more accurate mortgage calculator!
A realtor did me so dirty today it almost made me cry. He literally lied to me abt a home that was already under contract but it hadnt posted yet.... then told me to double qualify with his lender to make my offer stronger then when i qualified with his lender he told me Ill never find a house in that area with my loan and Ill only find a house with his lender (with horrible terms) then told me the house that he had was gone anyway.
wow that is awful. I’m so sorry. I would be so upset
@D'angela Shake it off!! Move forward. God is with you and will open doors that will surprise you. TRUST in Him and see what He will do!
That is so shady!!! Time for a new realtor and different lender. You definitely don't want to work with someone you can't trust. Seems like they were putting their best interest before yours. Don't give up you will find the right team to work with 💕
So now you find a new realtor/broker, and before you do, talk to the broker about their shitty agent.
Me thinking fixing my credit and saving money was the hardest thing! 😪 nope! Now comes the disappointments over and over because we can't find a house and when we do the the fighting for it.
Thanks for the tips. There's always a lot more beyond the down-payment... I'll try out the house poor calculations although I think rent in my city already makes us "rent poor" so 🤣
"don't get depressed..." yeah already there!; and yes, I've noticed being single and making decent but not great money is a disadvantage to trying to get a home now...
A new home needs ladder(s), hose, sprinkler, shovels(?), misc. garden or landscape tools, simple carpentry tools etc., etc., etc. Being close to big box hardware store is nice as no home repair is done with less than three trips there each day.
Great video, more practical advise about buying a home needs to be out there. I waited to buy my first place and did similar planning because first and foremost I knew the math had to math. I'm hopeful the market will become more advantageous soon for people looking to buy their first home or just a more affordable house. The current trend just isn't sustainable.
My fiance and I worked for an entire year to fix our credit and save. We were finally pre-approved and have almost 10k saved. We were also pre-qualified for way more then what we were comfortable with so we kept that in mind. We just put in an offer, it's been sitting for 14 days now so we offered list price and them pay closing, it's also usda available so if all goes well we can keep all that savings. Also in alabama so living cost is low.
Thank you for this video. Really good, grounded, graspable tips instead of the super general “save money” ones. I’ve been trying to get myself organized to buy a home, but I need some silicon valley cash or create the next squat potty to make it worth with current prices and restrictions cause I’m by myself and, although I have a decent job, it seems that it won’t be enough. Well... I’ll continue to see 16 year old Tik Tokers & YT buy big houses as teenagers and Zillow properties while I’m parked on my mom’s driveway on my used Kia Soul.
I hear you. Im in the same boat. People showing up with cash offers over asking price making me feel like a second class citizen even though Ive done everything right.
7:03 got me. Thank you for talking about this. I see SO many agents saying "you need to get in now" and pushing this sense of FOMO. I'm in the Austin area where it is INSANE right now. I'd rather push liquid assets than go liquid poor to just buy a house to say I got one.
Javier could you do a video for homeowners on how to upkeep important factors for when reselling becomes an option. Or ways you can add value to the home cosmetically. For instance we don’t have a back porch, would having one done increase the value and make our home different from others?
Crazy. My number is $1,100, which is exactly what my rent is. I feel very comfortable at that number, but I’ll never get a mortgage for that in my area/state.
If you're searching in NJ, CT or NY for housing that amount would be the property taxes and homeowners insurance portion of the mortgage in some areas.
@@gingerdavis8071 sad but true
@@gingerdavis8071 that’s where I’m looking! I still have another 2-3 years to be honest. I want to have a substantial savings just in case.
Great video. Dont be hard on yourself. Content was informative.
California prices are getting absurd. 800k homes here are getting you a small house thats not move in ready. I have 20% down, closing costs, 2 years of emergency funds, but feel like its not even worth it to buy.
But California os not only Bay area.
Great solution - leave California
This market is out of control. I would never risk waiving an inspection, appraisal , if your that desperate to buy the best advice is to just wait . I have found a lot of home here are not updated, older, with older AC units, lost of homes need huge upgrades.
Liked this video... I’ve been paying double my house poor number in rent the last 15 years.
Thank you for addressing the hardships of independent owners. As a single person intending to stay single its hell, idk if ill ever realistically be able to earn enough as an independent. Things are really geared towards couples and family units :/
My husband and I have managed to save 20k, got pre-qualified for 375k+. We really thought we would be able to find a house in PHX for 250k or a little over. Finding now that those houses tend to have 5 or more offers or be the ugliest house in the worse neighborhood! I'd love to wait until things die down a little bit starting to feel like the longer we wait the more expensive the house is going to be! We are now at the top of our budget and looking at mortgage payments over 2k🤦
In the future you'll look back and be grateful you didnt buy rn
@@user27278 unless the house cost double when your finally ready to purchase.
I was about to close this Friday but they came at me today and said I have to pay this years taxes which I just filed 🤦🏽♂️
No payment plan🤦🏽♂️
The money you owe the IRS is considered a monthly debt if you planned on paying it off over time. Thus changing your debt to income ratio.
Hey, Chad! Thanks for the video, I’m gonna do some zillow perusing and follow your advice. I didn’t even know about that tool, great idea!
Thanks for this video. I am looking to buy and I am in a similar position as your friend. I am gonna save and wait for the market to chill a little. Hopefully 2022ish🤞🏾
How are things going?
Decided that I might look into renting first! Starting to do my renting research & saving for a home in the future.
Amazing. This video is precisely what new home buyers need to hear. Me included. Thank you
I've been in real estate in one area or another...many years. And I LOVE your videos. You do a great job.
ALL Lumber sold in the U.S. just doubled in price! Just a heads-up! Husband went to Lowe's to get 2x4's for stick-built homes and the price per 2x4 went from $4,50ish to $7,85 in anticipation of Biden's 'build better' plan. Also, in anticipation of the minimum wage going to $15,- an hour (which DID NOT HAPPEN), all consumer goods went up. So, not only did nobody get a pay increase, most goods are starting to go up and even double in price, including labor services, which did not get a pay increase but the business owner uses it as an excuse, as if it had happened.
Can you please explain how the process works when you plan to buy the house that you’re currently renting. Thanks! :)
You can either go directly through the owner and a lawyer and title company or you can get a realtor to submit the offer to the owner. You’ll likely still have to pay closing costs and inspection fees.
There are books (library) and info online for your research. Then consult a real estate attorney.
dang good video man. thank you for reinforcing these principles. savings matter
I always felt that gross and net should be swapped what we get after taxes is gross
I can't afford cause too expensive. Not making enough money to afford payments is my issues lol
Townhome and condos cost more with the HOA??🤔
Can you do a video on buying short sale properties and those numbers. Perks, pros and cons.
Here in the San Francisco BayArea you’re probably going to be house poor regardless, I’ll be getting off child support in June and if I figured in that payment I should be ok at 25 percent because I’ve never seen that extra income in the past 21 years for my two kids and that’s the reason I’m never having another kid in this country again I’m currently 41 years old I’m now glad I had my kids super young and now I’m going to have a chance of getting my stuff together
To be fair, you were playing on hard mode as a dedicated wage slave. That's basically what you're signing up for if you knock her up nowadays in the US. Her body, her choice. Your wallet, her money.
If you stay single it's actually pretty easy to build up wealth, especially if you earn a better than median income.
It’s been 9 months. We waited a few extra months, market still hot 😂
I want a multi unit September 2022, so let’s see.
In the Seattle Metro area, really a suburb, but pay $2000 a month rent, have enough for 20% down on a $500k home up here. And, in a lot of ways, that's not even a great home up here. After 20% down, it leaves us savings, but not much. We have excellent credit, and manage to put money in savings, about $600 a month currently. What do you recommend, waiting, or purchasing? The market is only going up the longer we wait.....too much California Love up here!!!
Great video as always. Javier been working out. Getting ready for city boy summer.
Great video, outside the box thinking, every UA-camr is bidding a dead horse with the housing market crash that is not coming !, we will have an affordability market crash
Throwing in my 2cents because I see loads of UA-camrs talking about 3% closing costs. Be careful, they aren't that low everywhere. Here in PA, closing costs normally reach or exceed 6%!
You always keep it real.💯💯💯
Anyone can become a home buyer it takes discipline and sacrifice to become a home owner I hear talk about people being home owners 97% are actually home buyers, I am a home owner have been since 2009 also debt free since 2009 most folks are renters leasers or buyers of everything they have, it appears most folks have an insatiable appetite for debt
Exactly. I am a home OWNER!
Haha the Banjo-Kazooie music at the end, nice!
Very good video 👍🏽👍🏽👍🏽 real talk 🦜!
Thank you for this explanation for my wife.
Currently stuck because rent is about 25% of my net monthly income as it is.... buying would be 30%
How to afford a home:
1. Don't be in the USA
2. Don't exist in 2021
3. That's it
😂
Wait until you look at the real estate in Hong Kong 🇭🇰😅
@@rubiirae he answers this in item 2
Yeah...even the cheapest houses are out of my range. Florida can be brutal for the majority that works here. With the way things are going, I'm working on a homeless plan because that will be the future unfortunately.
Not understanding this. According to Zillow my affordability calculator for a house is an eighth of the average cost of rent. If I'm struggling to pay for rent at 1,200.00 plus a month how can my affordability be under 300.00 a month for mortgage?
Great video, i’m looking to purchase in a few years. I’m saving this video for future reference...🏡😏👍🏿
Which app can I use to find the difference between list price and sold price/closing costs?
Most Californians have their mortgage payment at 60% of their net income it is very normal here in the Bay Area 😟😟 where median home prices is 800000
Yikes. They will eventually get spanked doing that
Best part of this video is how you fought through the verbage lol
The music in the end HAHAHAH! Love it!
You should do a video about how FHA loans are not worth it in this selling market.
You are so damn funny omg. I switched over from a FHA loan to conventional just to be over this BS. I was getting NOWHERE with FHA
*sees 500 homes in LA. *Add filters. 3 homes left :) Refresh page. 0 homes left. 😭
my face when i float in the air excited.
I'm that independent single guy, just shy of realistically being able to afford what I want. Hard to justify emptying my stocks for a downpayment on a condo I don't want to live in.. who is your friend?(;
It blows my mind that people don’t just do this... 🤷♀️They don’t know how to budget?
It’s easier to blame others for their money problems.
Hey! Please be kind. People are here to learn from him, don’t put them down for learning and bettering themselves.
I moved from California to Texas and once again I can’t buy
Now that's an outro!
It’s interesting to see the stats saying “X amount of people couldn’t cover a $500 emergency” then seeing houses flying off the market over asking ..something ain’t adding up
Both are true, investors are buying multiple houses, older established buyers are buying 2nd homes, people are not listing their home because they need a place to live, and foreign buyers....there’s a lot going on now
killer outro!
I love your dancing skills. Hey hey 🥳🕺🏽
Lmao thank you so much for this video! I am also not ready and will keep saving!
The price for a fixer-upper is almost as much or in some cases more than a non-fixer-upper. At the moment why would anyone consider one.
Bro, I thought I was the only one that felt this!
Iced Coffee Gang represent!!!
The dancing 😂 !
I just want a house lol 😂
To be honest I can't live on a budget as if I owned a house because the reason why I want a house it to pay less than I pay for rent.
Same. My rent is $300 more than a mortgage would be.
Mortgage is just the beginning. You essentially rent from the bank and the municipality once you “own”. But on the bright side you can paint the interior any color you want. Oh, and any and all repairs inside and out are your $$$ not the landlord’s. My sister and her husband sold their condo and rent now. She confided how nice it was to call the landlord for repairs and even replacements for nonfunctional appliances . She requested a railing for the steps going from the sidewalk to the porch (after she fell) and that was taken care of also. On the other hand they have missed out on crazy appreciation but who was to know 6 years ago?
@@carylhalfwassen8555 Yeah, I am honestly very comfortable renting and I feel I am not having to have an extra fund in case things brake in the house, I just have the emergency fund for in case of a layoff.
I feel like I should have stopped watching...that outro was awkward 😆
Great actionable advice! I’m going to start tracking the list price vs. sale price to better understand trends in my target areas. I’m not ready now, but I feel like that will help me prepare for when I am ready to jump. Thanks very much Javier, another excellent video!
I got pre-approved for a low amount, because I wasn't able to use both my incomes, and house prices are inflated😪
My income is also, kind of gross.
My mortgage would be much less than my rent payment.
Javier: what is preventing you from buying a home?
Me: I’m addicted into investing in the stock market. I can’t save!
Handsome squidward 🤣🤣🤣
Aww im not first. Great video Javi!
Rates are back at 3.3 today
The % of gross should be adjusted by income. It costs the same to live for someone who makes 300k as it does for someone who makes 30k. A 300k person spending 97% of their money on a mortgage has the same amount left over as someone making 30k spending 30% on their mortgage.
LOL'd at the "eeeww Gross number". 😅
Great vid Javier! 👍🏽
Credit card survival YOLO!!
You crazy crazy 🤣
Merica!
Don’t forget property taxes
What do you mean? Property taxes are part of your closing costs.
@@JavyVidana Yearly property tax dues. Here in Texas we pay more in taxes than on principle and interest.
I blame my camping habit.
Banjo Kazooie?
I'm destined to be renting for the rest of my life after this video?
Good lord this video bummed me out. I make "good" money but I max out my 401k and boom, no houses in my budget in my city. Fuck.
I rather not pay 100k over asking. I'll wait till the slaughter begins
Sadly it’s becoming harder and harder. People with big equity and low rates. Low Supply and high demand. Government helping people with foreberance.
@@scinr yup. People are expecting a crash like 2008. It’s not coming, at least not in the housing market.
@@ww21943 The feds are going to keep pumping money to avoid a crash. Also the median income has grown as well. Before in 2008 minimum in Los Angeles county $8 now it’s about $15 I believe. Almost doubled. That’s inflation and houses will follow that as well
Forebarances can't last forever.
@@lorenzol332 you’re right they can’t buy many people have got money through stimulus and children. Many loans will require to pay the money at the end of your mortgage terms and others in lump sums. At the end your right once all the artificial feds pumps end we will see the effects.