What They Don't Tell You About Buying Your First House

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.

You are so right

So many scam comments!

Nice realistic points to consider. I love your level of transparency on the whole process. Thank you for sharing all these details.

Can you just rent and it is ok on your mortgage? In the UK you are not allowed to do that

Thank you so much!!!! You have been so helpful, trying to build credit and such in high school so that it's easier. So glad it's not as hard as everyone makes it 😅

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Did you use any of the WA first time home buyer programs?

Success

Market/location is everything. Some markets (where I live), if you don't buy you will be priced out of the market within a couple years (or less) as rent for a one-bedroom apartment can become more than that mortgage payment would have been for a three bedroom house on land. (yes - I've seen this repeatedly in my market over 30 years.)

Other markets have more homes available, land costs less, and you can take your time. Prices won't go up that fast.

You can do a lot to a house to change it to meet your needs - but you can never change the location.

Thanks for sharing Monica

Imagine paying 4400 a month for a house that has 2 other houses attached to you f that I spend 1k a month and have 5 acres

The offer thing could of been fake. They wanted to pressure you into getting the house.

wonderful video. definitely will watch it again.

That instant "bidding war" is something that scares me buying my first home. I don't have equity and/or huge savings to throw at counter offers, and who's to say that those other offers that came up weren't ghost offers (from their friends or relatives, etc.) that they enacted just to pump the price up. Also, why would the downpayment make any difference to the seller? The seller should only know whether or not you have the funds.

Great video, and congrats on your purchase!

How did you get money for your home? Your parents or ?

This was very helpful and I appreciate you explaining your process of getting a home. It gave me some insight!

"$600 went to property taxes. So that's money I never, ever get back, it goes to the government." Hey, now... that money goes into the schools, primarily, but should also be helping fund fire departments, libraries, and other stuff. So you indirectly get that money back, ideally. ...yeah, I work in property assessment haha.

Just in case you don’t realize, that $7k is closer to $14k with interest especially if you’re planning on paying for it for THIRTY YEARS.

You did a phenomenal job at explaining the house buying process.

I have to respectfully disagree, it was stressful for me. Maybe because I was at a full-time job and lender kept asking me to send them different documents which seemed like all day everyday.

you must be rich

Very refreshing and honest presentation on home buying. I don't feel so about renting during this period of my life either. Well done thank you Monica.

Fuck humanity

i love your wrap up at the end - i have a roof over my head so i won't stress about home ownership:) what a nice sponsorship!

I was going to buy a house and get my own place too I was going to driving per-mint and driving license too okay .

I really appreciate this - the sequence of events is super confusing to me still but hoping to figure it out!

This was helpful, thank you!

what how the hell do yall have so much damm money 700 grand on a house in your twentys Tf

these numbers scares me

can you make a video on how to build your credit and when/how you started

This is why some women need A HUSBAND.. . Wow....

Great video! Thank you for the info!

How much do you make?

So pretty much u got fucked lmao

Your screencap looks like you are holding a baby to me.

700k for a “unit”. No wonder people are fleeing to free states.

To be fair, even though you may think you're "throwing away money" for paying interest and insurance, the benefits of owning your own property are still far superior than a rental. When you pay rent, you get nothing back, nothing out of it. You don't get to sell your apartment because you never owned it. So even though you have to pay interest, you are still owning and living in a house that is continuously appreciating in this market.

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!😭

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!

Thank you for this video. Excellent content pure.

hahhahahahhah

Watching this at the end of 2021.. I wish I had 3 other offers.. now it’s like “it’s been listed 10 minutes ago already has 15 offers half are cash half over list price seller wants best and highest in an hour”

4400 rent thats why your not making money

How does a person have so much to put down

An escalation clause is really not a smart strategy in a true sellers market. Unless the seller is getting bad advice, an escalation clause gives all the power to the buyer in the negotiation, but it also telegraphs how high you're willing to go. Yes, most clauses are written so that the seller has to give evidence for the next highest offer that you'll have to beat. But the other way to play it as a seller is to reject all offers and tell agents that you're only accepting offers higher than $X (where X is the highest your escalation clause said you wanted to go). Now all the other potential buyers can compete with you and the negotiations now start at your ceiling. You were already willing to go to $X and so now the seller either gets your HIGHEST possible offer or they get even more money because your competition now knows how high you were willing to go.

A savvy listing agent or savvy seller LOVES to see an escalation clause. It's not a smart play unless the home matters more to you than the price (in which case just offer your highest and best).

I was watching your video very interesting because the bank keeps denying my husband when he's got a good credit score makes me wonder why they're doing that

thx for the transparency and authenticity....

Such a great piece of advice.. and a wealth of information in your video! I just bought a condo- my first home ever- this year and am 31. A lot goes to interest for sure at the beginning.