Hey there, Future Homeowner! It’s a big step, buying your first house, isn’t it? How do you know if you’re ready to become a first time homebuyer?
In my latest video, I reveal the 3 key signs that you’re ready to make your dream home a reality. Learn how to recognize the emotional readiness and understand your finances – the most important steps needed for this exciting journey. Whether you’ve been saving for years or just started considering the idea, this video is your essential guide to navigating the complex world of homeownership. You’ll gain the confidence to make informed decisions, ensuring your first homebuying experience is nothing short of amazing. So, are you ready to turn your homeownership dream into a reality?
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Transcript:
Did you know that in biblical times, you were either born a lord or a lady if your family had land or a peasant. And that is where the term landlord comes from. Of course, we don’t like them. We’re American. We want to get out of under the sum of the, of the kingdom reign. What am I saying? This is way more work than you think it was anyway. Ok. So in today’s video, I want to give you three reasons or three signs rather that you are ready to stop renting and buy your own place.
So getting straight into it, sign number one, you know, in your soul that you’re just paying somebody else’s mortgage and it drives you freaking nuts. You, you’re just paying the mortgage every single month and then putting a little bit of money in your landlord’s pocket. And you know, you know that the house that you’re staying in is anywhere from three to $800 cheaper for the landlord and you’re just, you’re sick of it.
You don’t want to do it anymore. Maybe you don’t like your landlord. Maybe that’s a true thing. Maybe you think they’re all up in your business. You have the need to call something your own. You need land, you need the land and you know that it’s not yours. You have urges to tear down walls in your bathroom. You know, you want to remove flooring, you really just know deep in your soul that you are ready to have a place of your own.
And, and that is the first sign 100% because a lot of people never get there. Some people love living in their apartment. They don’t like the maintenance of having a yard. They are worried about what happens if something breaks, they enjoy the community of sharing that space. That’s wonderful. If that’s how you feel. Great. Stay rent. It’s totally ok.
Really? In the United States? In 1960 68% of Americans were homeowners. So 68 of 100 Americans were homeowners in 2022. That number dropped to 43% because well, affordability. But also some people just don’t want to buy anymore. The American dream is not for every American, am I? Right? So, yeah, a couple more facts actually is, in where, where?
Yes, in America, the average home buyer is 36 years old. In 2022 the average home price was $348,000 which to me is a lot of money for a starter home. So I’m in the Houston, Texas area. Houston Galveston, Texas area. And like 348,000 $1000 is, is like the average price of a, of a home here. So that’s a lot. You can get a good, you can get a good starter home for a low $200,000 and still have everything you want.
And that’s like a three bedroom, two bath. So like $348,000. I don’t know how y’all do it in the north. So rough. Also. Ok, so here’s an interesting fact. Back to my notes. Here’s an interesting fact. 29% of first time homebuyers say that the down payment is the hardest part, which is wild to me because that’s less than a 3rd, 1% less than a third.
But for me, I felt like that was the biggest hurdle. However, I mean, we’ll talk about closing costs in a minute, but it’s not as bad as I thought it was. I really thought that I would never be able to do it. I’m a first generation homeowner. So it’s kind of a big deal. It broke that curse anyway. So those are some facts. But back to the signs, back to the sign, the three signs is, look, you just, you got the itch, you know, you want to buy, you know, you want to have something of your own that
you can say this is mine and that you can leave a legacy for your family. You know, that they’re not making any more land. I know it. You know, it, they’re not making it any easier to get a hold of it. They’re not making it any harder. You might be saying, well, you know, sah, but it’s so hard in 1960 you can afford a house and no, you can’t, you know what?
You’re right. But, you know, it also isn’t gonna help whining about it for another 30 years and missing your chance. Do you think it’s gonna get cheaper? I can’t say that I’m not an economist. but I do. No, thank you. So sign two that you are ready to move is you’re a financial grown up, you’re a grown up, you pay all of your bills on time. You’re not living paycheck to paycheck anymore.
You don’t owe people money, you pay your stuff when you’re supposed to pay your stuff. You don’t owe everybody around you a whole bunch of money. So that means that you are a financial grown up and it means that your credit is probably pretty decent. What is decent credit? So most lenders want a 626 20 credit score. 620 is going to get you a loan for all most conventional home loans.
Vhafha, I can make a video on that later if you want to move about that. However, a 500 you can still get some loans at a 500. But the the question that I want you to ask yourself, the question is, am I ready if I have a 500 credit score? Am I ready? Is the 500 credit score? Because I don’t know how to handle myself financially. You out I was there once but am I not able to handle myself financially or am I struggling?
Because I am not a great financial earner? I am not, I’m not, I don’t have the means to pay all of my things on time and buying a home is a financial move for me. Right. I don’t want to, if I’m, if I have a 500 credit score, I don’t want to consider buying a house because like I forget to pay my bills and I want to go, you know, get a new purse instead of pay my light bill.
Probably not a good idea because you don’t have your priorities straight. That’s the truth. Get into some credit counseling. but is it that or is it I’m struggling financially and buying a house is going to give me some wiggle room in my finances because the money is so dang tight that I need cheaper housing and cheaper housing is going to come with a mortgage, right?
Because we’re not paying somebody else’s mortgage, we’re paying our own. Also interesting fact, if you know this, at least in the state of Texas, you can actually buy a home with section eight. So if you are a low income earner and you are struggling with making ends meet and you are ready to take this step and you know that you want to buy a house and you know that that’s going to be the best thing for you and for your family.
So hopefully your next generation and your legacy will be able to own a land which is don’t get me started, but that’s where the wealth gap came from because land. So if you’re ready to make that move and you just, you need to and you can’t quite make ends meet, you’re a low income earner. There are some programs that can help you actually purchase a house with section eight which is phenomenal for people who need that service.
Like I wish you the best. I hope that you get to break generational curses. Yes. Yes, I agree. Ok. And so you’ve got a little bit of money, right? If you’re, if you’re a financial grown up, you’ve got a little bit of money and you’re not living paycheck to paycheck, your credit score is probably pretty decent because you’re not, you know, not paying your bills, you’re paying your bills on time and that’s going to lead you to have a decent credit score.
You’re not carrying a lot of debt. and you have a little bit of liquid cash, you got a little, a little liquid gold. So that you can actually purchase a house. And that is the question, right? How much does it cost to purchase a house? Well, they say between 2 to 6%. So let’s say 4%. So if we take 4% of that $348,000 the first time home buyer price average, first time home buyer price, which is wild.
you’re gonna, you’re looking at like 13,000, what is it? 13,920 dollars. and that is going to cover all of your costs, things like the cost to get a loan, your loan application and origin fees, any credit reports that you’re going to have to pull which you’ll have to pull a couple any appraisals inspections, extra inspections, the inspections that you should have the inspections of the inspections of the inspections of the inspections of the inspections.
So if you have all of that right? Oh yeah, discount points, discount points, insurance PM I that’s private mortgage insurance. We can talk about that later. You have all of that. You have the, you have to cover all of that in your closing costs, which I can make a video later if you’re interested in listening to a video later about those kinds of things. Why don’t you go ahead and give me a like and subscribe, tell your friends, tell your neighbor and let me know in the comments.
What video you I would like to see next. Hopefully, this is giving you a little bit of Oh yeah. Third, the third, wait, the third sign that you are ready to move into your own house is you’ve simply made it through this very, very long video of me rambling. Hopefully, I’ve given you some information. Hopefully this makes sense to you. Hopefully you loved it. And again, please like, subscribe, share, do your thing and I’ll catch you on the flip side.