This Is What You NEED to Know Before Buying your First Home

If you’re looking to buy your first home, there are a few things you should know beforehand. In this video, I break down the basics of what you need to know when buying your first home. From understanding the language of real estate to budgeting for repairs, this video will equip you with the knowledge you need to make a smart purchase.

Are you thinking of buying your first home in this video i’m going to share some tips that will help ease your nerves on the topic stick around to the end of the video too to find out about this max price calculator i’m working on and how you can get it for those of you don’t know me my name is brandon byram i’m a realtor and investor in the dallas fort worth

Market working with clients looking not only to buy or sell a home but to make money doing so if you’re looking to stay well informed on all things real estate then hit that notification bell and subscribe so you can be notified when i put out new content if you find this video valuable then hit that like button too as you all know that helps the channel grow

And show us youtube that this is something worthwhile well you’ve decided to take a big step in your life how terrified are you thinking about all the steps you’re about to have to take i can imagine you’re much more worried than you should be i’m going to break this topic up over a series of videos so i can dive a little deeper into each portion and still be time

Efficient we all know these days our attention spans are almost non-existent so i’ll make them short and to the point today i’m going to go over considering the budget for buying your first piece of real estate now if you’re like most people probably feeling a little bit overwhelmed with the thought of actually buying your first home the whole process comes off as

A pretty daunting task don’t worry because with the right realtor that task will be a breeze for you when you’re first planning and considering your budget you need to have some realistic expectations of what you can actually afford you also need to understand what a realistic time frame for the whole process is too typically most transactions take anywhere from 30

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To 45 days to close during that time you’re going to be expected to have some money for certain odds and ends that come up such as the cost of an inspection which is normally between four and five hundred dollars sounds steep i know but this is definitely one step you don’t want to forego because it could end up costing you much more money in the long run i would

Suggest having about two grand set aside for those expenses that should put you in a comfortable position to offset any surprise expenses that’s just a suggestion though in my experience it’s always a good thing to have a cushion you want to sit down and decide what you want to spend on the new place i know we all have champagne tastes when it comes to buying

Our first place but in reality most really only have a beer budget typically you want to start off with no more than 25 percent of your net monthly income now even though some lenders will allow you to commit up to 35 percent i want you to avoid being house poor so stick with the 25 percent staying in that range will help out with something i’ll mention in just a

Few minutes with the way mortgage rates are right now many clients are tempted to push that 35 percent range i would highly advise you not to do that if you thought buying your first home was scary just wait till the phrase foreclosure is mentioned to you then you’ll really be crapping your pants you should take everyone’s opinion with a grain of salt though and

Do what’s best for you you also also have some upfront costs when getting your first home obviously one of those costs is your down payment still to this day i have clients automatically assume they will have to come up with 20 for the down payment that’s fine for some but when you take into account what the national average salary is most people don’t have the

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Money to spare to save that kind of down payment i’ll go more into that in the video about lending on top of your down payment you have the closing costs which are generally between two and four percent of the purchase price these are the costs that you’re responsible for when taking out a mortgage to buy your first home if we use a hundred thousand dollars as an

Example price for your home your closing cost would be between two thousand and four thousand dollars that is a pretty wide range i know but it’s because there are so many variables when it comes to lenders setting up your mortgage some other upfront costs include appraisal fees and if you’re not sure what the difference between appraisal and inspection is go check

Out my video breaking down the appraisal lenders fees are another more manageable upfront costs that’s another thing i’ll go over in the lending video too another thing to take into account budget wise is the condition of the home you’re looking at as we all know you can get much more house for your money if it happens to be in a fixer-upper status it is important

To have a realistic idea of how much you can afford to spend on a property how much you can set aside for repairs renovations and other unexpected costs that are bound to come up this also goes back to why i’m suggesting you stay in that 25 range by doing your research up front you’ll be better prepared to make a wise purchase i could go on and on about the fees

Associated with upfront costs but some of those fees can be better explained by the lender or the title company when you work with a knowledgeable realtor like myself you can be assured that i’ve done my homework on the lenders and the title companies that i recommend there’s a fine line between what i can say and what i can’t say so some questions i may know the

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Answer to but i’ll have to direct you to the appropriate person so i can keep myself out of hot water one of the best ways to step up that housing ladder is to use the capital gains hack which i made a video on previously that’s one thing i try to stress with all my clients if they happen to not be in a position to buy their dream home right off the bat then it’s

An extremely useful tactic and if you’re young you’ll probably be moving around a lot anyway now i assume that if you’ve made it this far you’re in for the long haul or you’ve skipped ahead just to get the info on my max price calculator i’m just kidding so here’s the info i’m in the process of finalizing a google sheet that has a step-by-step direction for all of

You to enter in your monthly expenses this calculator is strictly an estimator of what you can afford since i’m not a financial advisor or a loan officer you should always double check the numbers with them it will however give you a good idea of what you can expect if you would like to get access to that calculator then reach out to me by leaving a comment below

With the way to contact you or you can shoot me a dm on instagram or tick tock and i’ll get that out to you as for now if you have any questions be sure to leave them down in the comments i read them all so don’t think you’ll get overlooked let’s get you on the right path to having the home of your dreams and see you in the next one foreign

Transcribed from video
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