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

[@rochellesmith8837]

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.

[@MonicaChurch]

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!

[@rochellesmith8837]

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.

[@rochellesmith8837]

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.

[@rachaeldavis5438]

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.

[@davide4809]

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.

[@laurenmun536]

These are the types of things we should be learning in school

[@JasonWalter1]

Lauren Mun I absolutely 100% agree! Why don’t they have a personal finance class in high school? 😊🏡

[@trumpdonalds2024]

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!

[@FuturePsychNurse]

Lauren Mun They teach his in Canadian schools the course is called Planning basically life planning.

[@thejohnbeck]

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.

[@bobberry1463]

You can there classes you can take

[@ItsSarahThyme]

“You’re good and life’s good and we’re all gonna be alright” Okay but like I needed that

[@chadcarlson8311]

Did you? You weren't gonna.make it without that huh Sarah?

[@beans9019]

Chad Carlson so condescending for no reason

[@jessischlosser]

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!

[@AteTreeWon]

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!

[@trumpdonalds2024]

She should have not purchased that house $7,000 plus 10% down... She should have ran.

[@GameBrigade]

Trump Messed Up you have no idea what you’re talking about.

[@mohammedali5092]

You and your twin are so mature at such young age. Your parents should be proud.

[@MonicaChurch]

Thank you very much!

[@ominous450]

How old is she?

[@bhuvanabaliga45]

ominous450 she’s 25

[@SOLDbyNat]

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.

[@miichelletran]

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.

[@robertturnip7850]

I would ask to speak to the other person to confirm that the agent isn't just lying.

[@screammachineman]

My goodness ty for informing ppl. It’s pretty important ppl understand how to not get taken advantage of

[@jewel.s.journey]

yes we were wondering. It seems like a scam jusy to get more money in comission.

[@CityCinderella]

@@miichelletran In a city like Seattle, I'm sure it's the norm to get the offer in.

[@graceg7151]

$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!

[@MonicaChurch]

@@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.

[@carriemiranda130]

And u live in michigan....it aint no seattle. Please dont compair the two. Completely two differ lifestyles.

[@ttc958]

That's so cheap, that cost atleast 2500 in Toronto. Homes start at 900k, that's for a condo..

[@gc377]

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)

[@trumpdonalds2024]

hahahahahaha! She is crazy!!!! Sell that house Monica!!!

[@alexishernandez2811]

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.

[@MonicaChurch]

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.

[@loverslanehawj6244]

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.

[@caitlingibson1241]

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

[@sarasthoughts]

@@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.

[@erickahope9864]

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.

[@arxdeath773]

This woman is super chill, she explained well, she was not judgmental. I like her.

[@laurashannon1122]

Love how financially transparent you are!

[@Blckman9183]

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.

[@DianaEricJ]

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.

[@lahmarket]

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.

[@megannicole8118]

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! 😊

[@colbywilson]

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 :)

[@Lili-xq9sn]

Thanks

[@leslieennis9088]

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.

[@kauigirl808]

Thank you. This is why wealthier areas have much better public schools. People don't understand this.

[@duweydang]

Sometimes it is understood. It’s the management of said taxes that gives people a bad view of it.

[@kingslayer1156]

You forgot interest on loans and military spending

[@rizzeau]

and public servant pensions

[@andreamarie9526]

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 :(

[@purplefreak3]

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.

[@KurtVanEtten]

Roommates? So not only are you a homeowner, you're also technically a landlord now! Congrats on getting the house, it looks beautiful.

[@SimonCU]

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%.

[@jwb4bb]

@@IamMae72 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.

[@orangeguy3314]

@@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.

[@jwb4bb]

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.

[@orangeguy3314]

@@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.

[@MrsDavis913]

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 🍾🎊

[@adam311835]

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!!

[@camiiii31]

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!

[@WifeMommyFamilyJourney]

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!!

[@k.d.8304]

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.

[@BeingBetter]

We were so lucky to have a good friend as our realtor.

[@lindacade3975]

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.

[@courtneynicole3399]

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!!

[@SteveDaria]

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 😎

[@rebeccaanne3083]

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.

[@roxannescott6956]

Well said

[@SteveDaria]

Rebecca Anne Awesome work!!

[@casondrastinson8525]

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, KZbin is free education.

[@SteveDaria]

CaSondra Stinson Awesome work! 🤙😎

[@brendahorton7639]

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!!

[@purpleshield27]

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!

[@dnellbuck1896]

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.

[@jewel.s.journey]

@@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.

[@maxamillion9370]

@@jewel.s.journey 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.

[@MsLizzy981]

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.

[@MonicaChurch]

Thank you so much!

[@SM-lg3mn]

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!

[@christinajuliavlogs5044]

I just payed the rent for the first time in my life and was so proud, got a reality check now Hahahaha

[@MonicaChurch]

no, thats still exciting!!

[@GwennethClise]

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

[@MonicaChurch]

I am so glad this helped! :)

[@Juliezeneth]

omg i know right?! no one teaches you these things haha 💕

[@hendersonandre1]

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.

[@JasonWalter1]

juliezeneth I do! 😀🏡😀🏡😀

[@alliew.4213]

I love these grown up topics that feel like things I should know. We are talking about money, equity, and adulting in 2020 ladies!!!

[@yw1261]

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

[@seaseabamba]

When you were talking about escrow all I could think of was TJ from Gilmore girls constantly saying “I’m in escrow!!”

[@findKhristine]

lol I was thinking of that too!

[@Loissupes]

I thought she would insert that clip!

[@trumpdonalds2024]

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!!!

[@candy2325]

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.

[@lindajasmin4914]

Hahaa!! Me too, I have it looping in my head now😂😂

[@astudentpilotlife]

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!😭

[@WaveManMike]

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.

[@jennifern.2740]

i appreciate how you used real numbers, it makes it SO much easier to understand

[@kathleenn]

the content that you’ve been putting out is sooo helpful and useful i love it!

[@MonicaChurch]

Thank you!

[@thelifeofnicx]

She’s always transparent with the numbers. We love to see it

[@lesliebautista2964]

Wow, no one ever posts such insightful and easy to understand content like this! Thank so much!!

[@Raini2727]

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! 💕

[@LM53180]

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

[@rebeccaanne3083]

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.

[@KiaraMadisen]

So crazy helpful...I’m dying to buy a house before I’m 27 so let’s let the saving begin 👏🏻

[@colinmiller3112]

I’d love to help you buy a house!! I’m a realtor that specializes in first time home buyers👌🏼

[@CatonDelRosario]

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!

[@Cp-gv5kn]

I just brought my first, I’m only 22 and from Australia 👍💪💪

[@alyshavendrasco6440]

did you do it?

[@laurenprada3335]

Great video. My husband and I bought our first house two years ago. I will say that making extra principal payments helps knock out some interest. It’s not really paying extra. It’s paying principal early and you end up paying less in the long run. Just paying $100 extra principal payments a month can knock years off of your mortgage. Check out an amortization calculator online. It’s really cool to see.

[@Lili-xq9sn]

Thanks for recommending the amortization calculator.

[@TarynnH]

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.

[@xmmj16]

What I thought I had learned on KZbin 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 !

[@dee8546]

I recommend if you didn't get a personal finance class in high school, definitely consider taking a personal finance class in college.

[@paulstandaert2042]

This is good information. Just keep in mind that the short term gains of renting fall far short of the long term gains of getting a mortgage and paying it off. I did the math over and over with renting vs buying and as long as you can do basic home repairs and budget your money in a smart fashion, the work of it WILL pay off. And don't forget association dues. It sounded like this was a condo/townhouse, so they will probably apply.

[@natalieturk]

thank you for teaching me more than school ever did.

[@mykatv88]

I brought from Ashley home store back in 2010 and when I tell you, their furniture was the best and long lasting quality I’ve ever purchased. They give you furniture to last … 👍🏾

[@nikkitube26]

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.

[@colinmiller3112]

Nikki Riehle that’s awesome! Where are you located?

[@lookatme808]

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.

[@daisynavarro7759]

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

[@MonicaChurch]

yesss

[@anthonyramirez2576]

Daisy Navarro wet

[@thedietingman5995]

Everyone needs a “Future House Sh*t” playlist 😂

[@cold_as_ice999]

I did the same! My playlist is called Finally Adulting 🤣

[@BadWolf507]

Good luck overpaying for your future house

[@TheKRGS]

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.

[@shannondodson2976]

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?

[@Vgenv]

Same

[@MANDY28997]

i;m always apprehensive clicking on your videos because you have money and could come off as an obnoxious rich girl, but i'm always pleasantly surprised with how down to earth you are. it's great. and refreshing in this era of youtube

[@erinshay2108]

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...

[@HyphenDude]

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).

[@cecilewampler]

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!

[@KevinEstopinal504]

Yup inflation and LOCATION!

[@chicee123]

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!

[@BaileyDir]

Who else dropped everything they were doing to watch this?!? Bc SAMEEEE🤩

[@evotme9995]

Looool.

[@ohShnapss]

Nope. Still eating.

[@chelseagranger6434]

Banks also dont loan on condos as easily as townhomes because in a condo you only own the interior of the home. In a townhome you own the whole lot. So if damage happen to a condo the hoa has to have much more insurance and stored funds to cover that damage, which risks the loan. Downtimes the hoa still has to have funds but not as much and the banks dont have to verify those HOAs like they do with condos

[@EmilysLook]

I'm actually pleasantly surprised. This was quite informative and easy to understand!

[@DivineBella1]

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

[@Liz-ug6sq]

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.

[@hoku4star]

Going through the process now pretty Accurate so far. Going through our contingencies and we also put down about 1500 of ernest money. To show we where intrested in the home. Going to have an appraiser through the bank check the house and we decided to get an inspection. Hoping to be in our new home by the ending of May.

[@chellox68]

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

[@colinmiller3112]

Chelsea Stephenson I’m a real estate agent and would love to help you when the time comes. Where are you located?

[@chellox68]

Colin Miller thanks for the offer, however I’m not living in the states lol

[@reynoldscf95]

I am currently in the process of buying my first property so thank you for the video! One thing I want to note is that the earnest money goes to the escrow company and not directly to the seller.

[@karinal4149]

You have the most practical and well made videos! Keep up the good work!

[@veronicageorge7982]

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.

[@UnwittingMango]

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.

[@mikebrown6081]

From someone who just went through this myself at the top of year - you did a great job explaining this.

[@cait.]

I had no idea about how you pay more interest in the start of the loan! Wow that’s actually a really useful thing to know. Thank you!!

[@ritamix33]

WOW. real positive video! THANKS, GIRL!

[@TheBWrighter]

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.

[@MonicaChurch]

Thank you!

[@rosalier9402]

I bought my first house when I was 24 here in south FL and decided to do it without a real estate agent. It was so stressful figuring it all out on my own, looking back, I feel like I would have been better off spending that money on a real estate agent to guide me the whole way through. I knew absolutely nothing about the home buying process. I got through it and am now a proud homeowner but next time I will most definitely let the professionals do their job!

[@colinmiller3112]

Rosalie R that’s what we are here for. I’d love to help you with any future real estate needs you might have!

[@RemedNaturel]

I just bought my house I put 25% down

[@Willie-si7qz]

25% is wonderful. Congratulations! 🍾🎊🎉

[@johnjacobjingle6090]

Should have put Zero down

[@areopostle101]

This is why I love you Monica always making real videos ❤️

[@Aznmf]

Idea home: 100k financing at 3% or lower interest at 15 years.

[@MonicaChurch]

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.

[@MonicaChurch]

@@Nunyabiz8787 that is so interesting! I want to make video about you!!

[@Nunyabiz8787]

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.

[@Listen2me400]

BeckyLee B. Wow!!!!!

[@charellepizzotti6834]

I bought my current sofa and loveseat from Ashley in 2005. It's still in good shape. Congratulations on your new home.

[@laurabowers81]

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.

[@jessiej.6351]

I waited for a short sale for 4 months only to be denied by the seller's bank... Then I got the lovely chance to re-apply for a new home loan once again because of how long I waited. Certain aspects of homebuying can be super stressful! I found a house down here in SoCal, just waiting on raising my credit again (For the re apply).

[@sairadelrey]

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

[@TreavorUnion]

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

[@darthvader7010]

Stop wasting money on starbucks

[@sairadelrey]

Darth Vader who’s drinking Starbucks? 😂😂

[@majesticj42]

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.

[@mikejuba9228]

Start watching Dave Ramsey videos. They may help you to head down a good financial path. You have nothing to lose kiddo.

[@lilsislaura]

Hi! I really liked how you inference at the end that either buying a house or renting is both okay. It was comforting to hear someone reinstate that. I found your video because I had this sudden urge to educate and prepare myself to buy a house one day, but that is a societal pressure for young adults who are joining the workforce.

[@JBidwell]

Yes, the sewer is optional - GET THE SEWER INSPECTION.

[@JasonWalter1]

Jacob Bidwell I totally agree. It’s $150 in my area (Sacramento CA) and you could find $10k in issues.

[@that9boy]

This was super transparent & I appreciated that about this.. I'm definitely someone that won't be buying a house any time soon. Inflation, equity appreciation, repairs, taxes, and a number of other reasons just don't make sense for me. You did an awesome job shedding some light on some reasons why someone would go for buying a home. Not for everyone but really awesome video!

[@MaxandFlowerr]

This was an AWESOME video thank you for actually breaking it down instead of just saying “save money” lol Congratulations to you!

[@sadiemcgrawsm]

Love the way you broke down the mortgage payment!! Super easy to understand.

[@daisynavarro7759]

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*

[@MonicaChurch]

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

[@sterlingmarshel6299]

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.

[@jessiezsings]

I started a new job this year as a Loan Officer’s assistant, and I have learned SO much. Sooooo eye opening to see the ins and outs of buying a home and getting a loan. 😅

[@samanthalake5011]

Do tell.🧐

[@jessiezsings]

@@samanthalake5011 There are so many small details! My biggest advice before buying a home- deal with your debt! Make it your number one priority. Try your best not to pull out of a retirement account/401K- you will want that money later! You need documentation for every big financial decision you've ever made, so be prepared to have that!

[@samanthalake5011]

@@jessiezsings Thanks.💚

[@elichez]

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. ☺️

[@snowfert]

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

[@victoriapering4561]

It’s crazy how different buying a house is in Canada vs the states

[@paraniomia]

Completely different in Australia as well. And not as much paper signing

[@FuturePsychNurse]

Victoria Pering I bought my first property in Ontario and it was pretty much the same vs the states. The only thing I didn’t have to do was putting that initial deposit to show I was serious but a gf of mine and her man were asked to put that deposit down and they put 30,000 down to show they were serious.

[@MissMellyssaXO]

I never comment on people's videos cause i'm lazy af but just wanted to let you know that this video was SO informative and helpful! Learned so much

[@Hai_Hails]

The reason you’re paying so much in interest the first 10 years of your loan is because banks understand that people sell or refinance their homes within the first 5-7 years, so they need to get their interest upfront beforehand. It’s the study of human behavior and financial institutions understand that. :)

[@daveerickson5313]

Actually not. It’s just simple math. The reason you pay so much more interest during the first years is because you owe the most money during these years. The more you owe, the more interest you’re charged.

[@ButcherBird-FW190D]

@@daveerickson5313 Dave is entirely correct. Interest is not a linear function. You pay interest for a variety of reasons; mostly for the time value of the money. And while the total of payments is eye-popping upfront, you are paying that loan off with dollars in 2025, 2030, 2040, all the way to 2050. Ergo the entire concept of interest. Banks typically price off the 10-year t-note; since the "Effective Duration" of the P&I cashflows has historically been roughly 7-8 years for a 10-year note. Then, various levels of interest (measured in "Basis points", like pennies on a dollar) are added in for handling costs, the potential for loss, and profit. E.g., 100 bps for a 10-year note; then add-in 70 bps for handling costs, 10 bps for risk of loss on an annualized basis, and say 70 bps for profit. There ya have it at 3.5% for a 30-year fixed rate mortgage. P.S. "Mortgage" is French for "Death Pledge". P.P.S. I was a capital markets specialist for the FDIC for 32 years. Main gig ? Pricing analyst. : ) !

[@daveerickson5313]

@@ButcherBird-FW190D there are probably exactly two of us that understand what you just said. :)

[@ButcherBird-FW190D]

@@daveerickson5313 Ha ha, yes, you're likely correct. Then; we can start digging into the portfolio and discuss the five forms of duration (can't leave out DV01) and the result CPR and PSA numbers. Noting the 30-month ramp on the PSA factor (versus linear on the CPR) so the broker doesn't stick it to you re: making the paper look better than it really is.

[@daveerickson5313]

@@ButcherBird-FW190D .....and then there was one. :)

[@kristend344]

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.

[@neharaman6025]

This might be a random question, but since you are renting the other rooms out, do you worry that your future roommates will take advantage of the fact that you are the landlord?

[@101realtor]

Neha Raman never had it happen to me. I’ve lived with over 35 different people in my houses over the last 8 years. Have a good month to month rental agreement in place and everything should be fine.

[@neharaman6025]

@@101realtor I've done the same, I just never disclosed that info, however I'm thinking about making a video with my own experience since I did this in college, a bit younger than Monica.

[@gizanglyer5299]

taking advantage how?

[@SuperBurns78]

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