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Speaker 1: Welcome to How the Money. I'm Joel and I and

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Speaker 1: Matt's and today we're discussing developing a home buying strategy.

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Speaker 1: This episode is dedicated to everyone who has purchased a

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Speaker 1: home or who is considering purchasing a home. Did that

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Speaker 1: kind of sound like an ad like this episode has

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Speaker 1: brought to you by home buying. Yeah, the general ability

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Speaker 1: to buy a home. We're gonna talk about that, and

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Speaker 1: Matt strategy is it's such an important part of buying

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Speaker 1: a home. I think it's something that people don't consider

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Speaker 1: enough and it can leave you over pain right for

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Speaker 1: the most expensive purchase you'll ever make in your life.

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Speaker 1: So there's an important topic for us to tackle. Absolutely. Man,

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Speaker 1: I know a lot of what we're going to talk

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Speaker 1: about in this episode. I never even can ordered back

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Speaker 1: when Kate and I bought our first house over ten

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Speaker 1: years ago, and so I wish that we had been

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Speaker 1: challenged in the way that we are going to challenge

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Speaker 1: our listeners today. So I'm excited to get to that, man.

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Speaker 1: But first, I've got a quick little frugal or cheap

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Speaker 1: for you. How do you feel about keeping something that

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Speaker 1: you got on sale if it doesn't fit perfect perfectly well,

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Speaker 1: Because here I'll give you a little bit of backround

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Speaker 1: while you consider. I got a nice jackets on sale

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Speaker 1: from a website that sells discounted outdoor clothing, and it's

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Speaker 1: a really nice jacket, and it was on tremendous sale,

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Speaker 1: and these kind of jackets never go on sale by

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Speaker 1: this particular company. It was over off, and so I pounced.

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Speaker 1: I thought, man, that's a great looking jacket. But the

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Speaker 1: thing is, it doesn't fit me the way I wished

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Speaker 1: it would fit me, and so that bums me out.

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Speaker 1: But I'm a little bit torn because I did get

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Speaker 1: such a good deal on it. So what are your

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Speaker 1: thoughts if I were to keep this jacket even though

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Speaker 1: it doesn't fit me so well? In my being cheap?

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Speaker 1: I think it's a cheap move. And and here's why

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Speaker 1: I've completely changed my tune on this. I used to

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Speaker 1: be all about paying a rock bottom price and if

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Speaker 1: it was something that I got, if it was I

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Speaker 1: think we've talked about this before. If it was like

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Speaker 1: an eleven dollar pair jeans, I'm gonna keep it, but

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Speaker 1: I'm not gonna wear them. And they just sit in

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Speaker 1: my drawer and you can't wash them. Otherwise they dissolve exactly.

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Speaker 1: So I think sometimes buying something on sale, getting a

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Speaker 1: great deal, I used to hold that in like the

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Speaker 1: highest esteem, and and then that just led to clutter

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Speaker 1: in my house and in my life. And so yeah,

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Speaker 1: I would recommend uh sending back, either getting a size

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Speaker 1: that fits you better, or finding just another jacket, maybe

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Speaker 1: that that you're actually gonna wear. I know, at least

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Speaker 1: for me, if it doesn't fit me, well, I'm not

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Speaker 1: gonna wear it, And so it's a complete waste of money.

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Speaker 1: Maybe some people don't care as much about the fit

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Speaker 1: and they're like, oh, it's a little bag, who cares.

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Speaker 1: I'm gonna wear it anyway. But but for me, it's like, man,

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Speaker 1: if it doesn't fit me, well, I'm not wearing it. Yeah.

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Speaker 1: I wonder if that's because you and I are both

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Speaker 1: like two skinny guys, and so it really is important

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Speaker 1: to me as well, Like I would rather wear a

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Speaker 1: shirt that I am less excited about wearing from like

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Speaker 1: a color or graphic or material stepoint pink with unicorns

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Speaker 1: on it takes me really well, I'm gonna wear it.

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Speaker 1: So I kind of agree with you. I'm of the

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Speaker 1: mindset of sending it back because it does in my

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Speaker 1: mind depending on the product. If it's something that's I

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Speaker 1: don't care much about. So for instance, I recently bought

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Speaker 1: like a bike light. I just picked one up that

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Speaker 1: was really cheap that had really great reviews. Like I

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Speaker 1: don't care about the brand. I don't care what other

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Speaker 1: features it has. It just needs to be able to

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Speaker 1: light up on the front, you know, for the handlebars

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Speaker 1: and the little red light on the back. It just

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Speaker 1: needs to blink, Like I really do not care. Uh,

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Speaker 1: And you might think that I would care because it's

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Speaker 1: bike related. As long as the cars can see you

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Speaker 1: and you can see the road exactly when it comes

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Speaker 1: to fit, I wanted to to sit a certain way

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Speaker 1: and especially to man like in the winter, I wear

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Speaker 1: jackets basically all the time, Like I just wear like

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Speaker 1: a T shirt and I wear a jacket over and

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Speaker 1: so basically that's like my all time shirt, Like it's

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Speaker 1: what people see. And so in that case, I'm willing

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Speaker 1: to pay a little bit more to have something that

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Speaker 1: I am excited to wear, not something that I you know,

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Speaker 1: I am not excited to wear, or even worst case scenario,

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Speaker 1: like you said, it just sits around ends up cluttering

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Speaker 1: your house and then you end up selling it for

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Speaker 1: you know, like ten bucks at the yard sale. Yeah,

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Speaker 1: and I think sometimes, I don't know, maybe some people

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Speaker 1: replace their jacket every winter every season. No, no, I'm

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Speaker 1: talking five ten years baby, right. I know you're not,

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Speaker 1: but I'm sure some people do that. Right. But but

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Speaker 1: you and I especially, we live in Atlanta, so like

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Speaker 1: the winner is not that cold, pretty mild, you know,

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Speaker 1: we can we can if we find the right jacket

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Speaker 1: that looks good, and then we can wear the that

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Speaker 1: same jacket for yeah, ten years. I know I have

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Speaker 1: most of the jackets I own, I've owned for about

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Speaker 1: a decade, and you know, I probably only have two

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Speaker 1: or three because again, it doesn't get super cold down here.

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Speaker 1: But that's just another factor. The more that you love

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Speaker 1: that jacket, you're drawn to it it fits well, Uh,

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Speaker 1: it doesn't matter even if you didn't get it on

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Speaker 1: at off sale. If you're gonna get more years out

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Speaker 1: of it and you're gonna enjoy wearing it, then I

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Speaker 1: think that's an important consideration. Nice. I'm glad we are

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Speaker 1: on the same page. I've got it right here in

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Speaker 1: the back of my chair. Do you notice I was

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Speaker 1: trying it out here in the office to see how

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Speaker 1: how it felt and whatnot. But I don't don't cut

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Speaker 1: the tags office yet. All right, let's go ahead and

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Speaker 1: introduce our beer for this episode. We are drinking a

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Speaker 1: Labonte with figs and this is a beer by Wicked Wheat.

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Speaker 1: This is a great brewery out of Asheville, North Carolina,

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Speaker 1: Beer City, USA. I'm looking forward to sharing this one

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Speaker 1: with you, buddy, and talking about it at the end

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Speaker 1: of the episode. Labonte sounds fran labonte. It is all right, yeah,

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Speaker 1: so you're saying that word. Yeah, right, it's labonte. It's cute.

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Speaker 1: All right, Let's get onto the subject at Handmatt. We're

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Speaker 1: talking about developing a home buying strategy. And it's interesting

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Speaker 1: because millennials, like they've often been considered to be behind

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Speaker 1: the curve when it comes to home buying. But now

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Speaker 1: that generation, the generation of millennials, the people in their

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Speaker 1: twenties and up to what eight uh, those people are

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Speaker 1: starting to get into the idea of homeownership in a

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Speaker 1: meaningful way. And the average price of a new home

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Speaker 1: it now exceeds thousand dollars. Crazy. Yeah, we recently just

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Speaker 1: crossed that line. There are lots of things to consider

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Speaker 1: in order to make a wise purchase, and at the

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Speaker 1: same time, interest rates are at all time lows. That

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Speaker 1: creates this feeling I think for a lot of people

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Speaker 1: like you have to move quickly before those rates start

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Speaker 1: to creep back up. But if you move too quickly,

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Speaker 1: you can make some missteps. So let's talk about the

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Speaker 1: home buying process today, Matt, and what it looks like

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Speaker 1: to have a solid strategy in place so that our

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Speaker 1: list seners can make a smart purchase, one that's going

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Speaker 1: to serve them well for years to come, and not

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Speaker 1: a hasty purchase that's still conceived. Kind of like your jacket.

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Speaker 1: It wasn't hasty, it was well thought out, you know,

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Speaker 1: and I pounced on the sale. But sometimes you can't

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Speaker 1: tell the fit until you get it in personally. I

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Speaker 1: felt the need to throw that in there, ruffle my

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Speaker 1: feathers a little bit. Uh. And So another reason that

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Speaker 1: home buying right, why this is so important to get right,

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Speaker 1: is that because once typical Americans purchased their first home,

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Speaker 1: a large portion of their wealth is instantly tied up

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Speaker 1: in that home right nearly, and as folks get older,

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Speaker 1: that percentage only increases. Households where folks are older than

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Speaker 1: seventy five have nearly half of their wealth as equity

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Speaker 1: in their primary residence. Now, this isn't necessarily a good

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Speaker 1: thing because it's tricky, you know, to survive off of

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Speaker 1: your home equity when you retire. You can't eat your

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Speaker 1: house unless you're a gingerbread man. I guess, yeah, but

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Speaker 1: then or with a helock. But he likes take time.

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Speaker 1: And as we've seen now that they're not readily available,

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Speaker 1: a lot of banks and credit unions are not offering them.

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Speaker 1: And even then you're paying money to access that that wealth,

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Speaker 1: it's tied up. Yeah. Yeah, And so whether we like

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Speaker 1: it or not, though, that's the reality for most folks.

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Speaker 1: But by developing a strategy for your home purchase, our

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Speaker 1: goal is that you'll you'll save a good bit of

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Speaker 1: money on that purchase, you know, along the way, and

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Speaker 1: then hopefully too, you might even consider spending less on

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Speaker 1: your house to begin with. So let's go ahead and

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Speaker 1: get into some of the most important considerations that we're

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Speaker 1: gonna talk about today. Yeah, part of this really involves

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Speaker 1: asking yourself a few incredibly important questions, right, And the

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Speaker 1: first one that you should be asking is should I

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Speaker 1: even be buying a home? Or does renting serve me better.

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Speaker 1: It's so important to note that buying isn't necessarily the

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Speaker 1: best option for everyone, and in fact, it's not the

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Speaker 1: best option for a decent swath of the population. Renting

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Speaker 1: can be a better move for people of all stages,

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Speaker 1: depending on how long you plan to live in that

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Speaker 1: location and your overall money goals. So part of your

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Speaker 1: strategy should involve a little thinking about why you're wanting

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Speaker 1: to buy a home. Is it because your friends have

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Speaker 1: started buying homes? That can be a factor for a

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Speaker 1: lot of people, but it's important not to base your

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Speaker 1: decision on your peers. It's a personal decision that is

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Speaker 1: going to affect you for years to come. Right at

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Speaker 1: the same time, a home can be an incredible place

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Speaker 1: to feel settled in a community or to raise a family,

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Speaker 1: But if you can't get rid of that home because

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Speaker 1: you were maybe a little shortsighted on the front end,

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Speaker 1: it can feel like a burden that you can't get

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Speaker 1: rid of. And that's why it's important to know that

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Speaker 1: you're ready to be planted in a place for a

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Speaker 1: while before you're making that purchase. Otherwise, buying that home

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Speaker 1: the day of closing it can be a joyous occasion.

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Speaker 1: The day that you list it, and the months that

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Speaker 1: it might be on the market while you're trying to

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Speaker 1: sell it and not lose money can be incredibly frustrating. Yeah, man,

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Speaker 1: And so you mentioned some of those personal lifestyle considerations, right,

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Speaker 1: But then of course there's also the financial considerations as well.

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Speaker 1: You know, you mentioned it being a burden. It's a

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Speaker 1: burden because financially speaking, you're either going to take a loss,

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Speaker 1: like you said, when when it when it comes time

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Speaker 1: to sell it, or if you can't afford it um

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Speaker 1: if you have a boatload of other debts. Maybe if

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Speaker 1: you have poor credit, and if you live in an

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Speaker 1: expense of market, then buying a house might be a

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Speaker 1: bad decision for you. The same goes to if your

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Speaker 1: employment is a bit tenuous. You know, we've seen this

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Speaker 1: past year. Sometimes it's not even about how great of

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Speaker 1: an employee you are, but there are larger issues at play,

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Speaker 1: which then in turn impacts your industry and then your company.

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Speaker 1: Where you feel the effects of something like a pandemic,

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Speaker 1: it can be tough, you know, especially for a single

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Speaker 1: individual with just one source of income, to have solid

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Speaker 1: financial footing. And so if that's you, if you're not

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Speaker 1: in a solid position, you might be better off running

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Speaker 1: matt And sometimes that doesn't necessarily mean you'll never own

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Speaker 1: a home. That's just right for the time being, right,

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Speaker 1: And I know there are a lot of people who

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Speaker 1: that's a goal, that's a dream, that's an aspiration, and

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Speaker 1: that's great. But if your financial circumstances currently dictate that

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Speaker 1: it's not the smartest move for you, you don't want

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Speaker 1: to buy a home at the wrong time, then it

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Speaker 1: becomes again, like we were saying, like this this plague

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Speaker 1: on your personal finances and a source of frustration instead

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Speaker 1: of that source of joy. So again, it doesn't mean

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Speaker 1: that it's not a possibility at some point. It just

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Speaker 1: means that it's not a great idea right now. Yeah,

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Speaker 1: that's right, man. And so we wanted to mention that

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Speaker 1: that renting might be a good option before we dive

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Speaker 1: into you know, all this home purchasing talk. But that's

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Speaker 1: what we're gonna get into next. Specifically, we're gonna talk about,

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Speaker 1: you know, sort of an overarching strategy for for buying

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Speaker 1: a home that will have a dramatic impact on your

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Speaker 1: ability to grow your wealth. And so we're gonna get

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Speaker 1: to that right after the break. All right, we're back

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Speaker 1: from the break. Let's keep talking about developing that home

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Speaker 1: buying strategy, Matt. And and again there's a few important

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Speaker 1: questions we talked about. One isn't even the right time

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Speaker 1: to buy home. But the next most important question for

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Speaker 1: anybody to ask themselves when they're thinking about buying home

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Speaker 1: is what's the purpose of this home? Right? What's the

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Speaker 1: core to how you're approaching purchasing a home, Like if

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Speaker 1: you're going to be house hacking or if you're buying

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Speaker 1: a multifamily property, there's a different a set of circumstances

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Speaker 1: that you need to consider versus buying a single family residence.

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Speaker 1: And so yeah, that that overarching question of what's the

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Speaker 1: purpose of this house is an important one. It can

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Speaker 1: significantly change how you approach purchasing that home, Right, Matt.

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Speaker 1: We've talked about house hacking on the show a good

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Speaker 1: bit and you know what, maybe we'll do it more

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Speaker 1: in the future. I'm sure that's because the ability that

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Speaker 1: we have to significantly reduce the cost of our housing,

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Speaker 1: which is of course the largest expense many of us

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Speaker 1: face across the board, it's unmatched. Right. If we can

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Speaker 1: find a way to use our home and profit from it,

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Speaker 1: or at least drastically lower the costs of our own

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Speaker 1: housing by renting out a room or having a multifamily

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Speaker 1: home where other tenants essentially pay the mortgage for us,

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Speaker 1: that's gonna change the equation on our buying strategy, right.

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Speaker 1: And most folks out there, they just don't really consider

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Speaker 1: house hacking or moving out and renting out their old place.

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Speaker 1: But that's something that that we think is important to

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Speaker 1: challenge people to at least consider because it has a

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Speaker 1: mans have impact on the strategy, but also a massive

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Speaker 1: impact on your ability to grow your net worth over time.

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Speaker 1: If you can choose house hacking as opposed to the

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Speaker 1: traditional way of buying a home, you're gonna completely alter

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Speaker 1: your financial future. Yeah, and just to clarify, I mean,

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Speaker 1: like you said, you like, house hacking can be as

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Speaker 1: simple literally as just having roommates, right. It doesn't have

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Speaker 1: to be this overly complicated thing, but it can be. Right,

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Speaker 1: if you want to buy a quadplex where you are

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Speaker 1: only living in a single unit, maybe the smallest unit

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Speaker 1: there is in that quadplex, and then you're running out

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Speaker 1: the other three units and then you're cash fling every

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Speaker 1: single month. Or maybe even more complicated is say adding

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Speaker 1: onto your house like we did and finishing out a

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Speaker 1: basement that you plan to list on Airbnb. There's a

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Speaker 1: wide spectrum of what house hacking could look like. In

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Speaker 1: our book, every single one of those is a type

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Speaker 1: of house hacking, and so that's what we are referring

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Speaker 1: to when we are talking about house hacking. Yeah, Matt.

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Speaker 1: And another example, like when I bought my first and

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Speaker 1: second house, each one of those purchases was done with

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Speaker 1: the intention of becoming a rental property in the future,

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Speaker 1: and that changed the parameters of what I was looking for.

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Speaker 1: I was looking more at multifamily properties and I had

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Speaker 1: like a hard cap on the price I was willing

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Speaker 1: to pay for a single family home. Both homes that

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Speaker 1: we ended up purchasing a couple of years apart from

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Speaker 1: each other ended up being single family homes and they've

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Speaker 1: been great. But knowing the purpose behind the home I

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Speaker 1: was looking for before we began our search and even

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Speaker 1: started making offers was crucial to the path that we

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Speaker 1: ended up taking, because if I wasn't ultimately thinking with

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Speaker 1: a future investment in mind, the homes I'm actually pursuing

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Speaker 1: probably would have cost more and wouldn't have been nearly

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Speaker 1: as good of a fit for an investment or rental property.

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Speaker 1: So yeah, that's definitely an important thing to keep in mind.

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Speaker 1: What's going to be the current and what's going to

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Speaker 1: be the potential future use of this home in your life.

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Speaker 1: It also takes the pressure off of that first house

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Speaker 1: perhaps being like the perfect house, you know, like it

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Speaker 1: doesn't have to be a perfect fit. It doesn't have

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Speaker 1: to be your dream house. Basically, if you can look

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Speaker 1: at it and say, hey, this is a house I

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Speaker 1: can see myself in for the next couple of years,

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Speaker 1: and the numbers make sense, it kind of comes down

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Speaker 1: to the numbers at that point. It's more of a

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Speaker 1: math equation versus could I see myself here for the

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Speaker 1: next ten twenty years. Can I seem myself raising a

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Speaker 1: family in this house? Probably not, you know, like, if

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Speaker 1: you can happen to find a house that can evolve

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Speaker 1: with you, uh, I think that's amazing, Like that's great.

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Speaker 1: But at the same time, I think there can be

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Speaker 1: so much pressure on individuals finding the perfect house for

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Speaker 1: their very first house purchase, and like you mentioned, I

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Speaker 1: think that can cause a lot of folks to to

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Speaker 1: overpay maybe and and even over extend themselves to choose

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Speaker 1: something that's a little bit maybe beyond their reach. And

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Speaker 1: so you know, another question too for folks to consider

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Speaker 1: is what's your timeline? Second to what's your purpose behind

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Speaker 1: this house? This is probably the most important question you

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Speaker 1: can ask, uh, And it's also a consideration that is

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Speaker 1: impacted by whether or not you're planning on house hacking

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Speaker 1: or not. So for example, if you're buying a to

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Speaker 1: one and then you're planning maybe on having four kids

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Speaker 1: in the next few years or in our case ten years, uh,

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Speaker 1: you might not be there for very long and it

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Speaker 1: may be an unwise purchase, unless again, you are planning

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Speaker 1: to convert that house to a rental, which is actually

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Speaker 1: what we did. So when it comes to houses, kay,

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Speaker 1: now we've only moved once. We moved from you know,

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Speaker 1: one house to the house that we're in. Now you've

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Speaker 1: moved twice. So you've got to convert two houses in Tormentos,

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Speaker 1: we've only converted one. And so again that's something that's

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Speaker 1: going to be significantly impacted depending on what it is

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Speaker 1: that you're planning to do with that house when you're

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Speaker 1: ready to move on. Yeah, the timeline, Matt, is crucial, crucial,

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Speaker 1: crucial for how to think about the home that you're buying.

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Speaker 1: And I think a lot of people haven't thought through

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Speaker 1: maybe how long they plan on living in that city,

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Speaker 1: or whether that home is going to meet their needs

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Speaker 1: for a number of years to come. They buy something

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Speaker 1: because it fits their lifestyle right now, and when it

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Speaker 1: comes to something like buying a home, because of the

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Speaker 1: massive amount of transaction costs involved in that move, you

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Speaker 1: can't think like that. You can't afford to be shortsighted.

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Speaker 1: So you have to ask yourself this question of what's

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Speaker 1: your timeline. And let's say, Matt, somebody's in the army

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Speaker 1: in their station somewhere for the next three years, but

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Speaker 1: they have no idea where they're going to be after that, Like,

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Speaker 1: buying a home doesn't make a whole lot of sense, uh,

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Speaker 1: in particular financial sense for that person either. Right, it's

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Speaker 1: important to think about some of the likely scenarios of

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Speaker 1: how long you're gonna own the home. But again, if

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Speaker 1: you serve in the military and you're like, you know what,

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Speaker 1: I'm totally cool being a long distance landlord, then maybe

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Speaker 1: buying a home with that in mind makes a whole

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Speaker 1: lot of sense. Right, If you're cool with that property

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Speaker 1: becoming an investment property in the future, your personal timeline

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Speaker 1: of how long you're going to live in the property

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Speaker 1: matters less. But at the same time, there are a

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Speaker 1: whole lot of people that aren't interested in becoming landlords,

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Speaker 1: and so your timeline and how long you're planning on

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Speaker 1: living in the property is just of massive importance. Yeah,

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Speaker 1: I've heard that the most unhappy landlords are the landlords

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Speaker 1: by default. Yeah, it's a whether you're planning on your

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Speaker 1: house being a personal residence only versus a house hack.

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Speaker 1: That also has an impact on how much you need

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Speaker 1: to have saved up for a down payment. We're all

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Speaker 1: about pushing people to have a down payment if it's

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Speaker 1: for a personal residence, but you know what, we're okay

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Speaker 1: with a smaller down payment. If you're buying the home

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Speaker 1: partially as an investment property. You know, if your home

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Speaker 1: will provide cash flow as a house hack, or you're

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Speaker 1: looking to buy some multi family housing that will provide income, well,

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Speaker 1: that threshold is less important. This is another instance where

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Speaker 1: you're basically looking at the numbs. If you can crunch

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Speaker 1: the numbers and it makes sense if you're getting a

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Speaker 1: good return on your investment versus what you'd be able

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Speaker 1: to get in the market, then this becomes less of

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Speaker 1: a personal kind of qualitative decision and it becomes more

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Speaker 1: of a numbers decision. Yeah, accelerating your savings for a

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Speaker 1: down payment is huge when it comes to your strategy

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Speaker 1: for buying a home, and Matt, for people out there

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Speaker 1: listening who have been running for a number of years

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Speaker 1: with the goal of owning a home, maybe in the

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Speaker 1: back of their mind, maybe in the front of their mind,

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Speaker 1: it's really really important to start saving up for that

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Speaker 1: now and making it a major goal in your monthly budget.

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Speaker 1: But if that's kind of been on your radar but

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Speaker 1: you haven't been able to save maybe even a dime

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Speaker 1: towards that goal yet, then you know, we would say

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Speaker 1: buying a home needs to be put off until you've

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Speaker 1: been able to accrue at least a meaningful amount of

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Speaker 1: savings towards the down payment. Right and in particular, Matt,

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Speaker 1: you mentioned pushing people towards the number, that's not necessarily

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Speaker 1: a hard and fast thing. We think it works better

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Speaker 1: for people for so many reasons, right, uh, to get

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Speaker 1: to that market, it allows people to avoid p M.

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Speaker 1: I can add quite a bit to your monthly payments,

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Speaker 1: roughly one percent of the overall cost of the mortgage annually,

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Speaker 1: and that's just a tough pill to swallow. And at

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Speaker 1: the same time, you've got more more skin in the game.

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Speaker 1: So we love the idea of pushing people to to

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Speaker 1: have that much to put down because it's the smartest,

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Speaker 1: least risky way to go about it. And another thought

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Speaker 1: as well is that you know, you might be able

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Speaker 1: to afford the home today, right, but can you afford

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Speaker 1: it over the long haul? Like that's the question you

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Speaker 1: want to ask yourself, Like, are you buying too much

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Speaker 1: house right now? If you'll be stretched every month to

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Speaker 1: make the mortgage payment, it's not going to be worth it.

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Speaker 1: And then additionally to you need a factor in the

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Speaker 1: price of maintenance and upkeep into your life as well.

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Speaker 1: You know, a good rule of thumb for budgeting purposes

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Speaker 1: is one percent of the purchase price of the home.

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Speaker 1: So twollar home will likely need two thousand dollars annually

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Speaker 1: on average, right some years is going to be even

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Speaker 1: more than that, but some years it might be less.

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Speaker 1: So after factoring all those costs in as well, you

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Speaker 1: might be seeing yourself like renting for a couple more years.

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Speaker 1: Like that sounds like the way to go, and so

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Speaker 1: start there. We want you to consider house hacking. We

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Speaker 1: want that to be a challenge to you, and we

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Speaker 1: hope you consider that. But regardless of if you're going

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Speaker 1: to consider house hacking or not, if you're listening to

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Speaker 1: this episode, you might be looking to purchase a home

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Speaker 1: just for yourself as a primary residence. Either way, there

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Speaker 1: are some important guidelines to follow and we'll get to

429
00:19:12,680 --> 00:19:24,120
Speaker 1: those right after the break. All right, we're back from

430
00:19:24,119 --> 00:19:27,560
Speaker 1: the break and Matt hopefully we helped people refine their

431
00:19:27,600 --> 00:19:30,040
Speaker 1: home buying strategy just a little bit, making sure they're

432
00:19:30,080 --> 00:19:32,560
Speaker 1: not buying more house than they can afford, being sure

433
00:19:32,560 --> 00:19:34,760
Speaker 1: they know their timeline. Things like that are so important

434
00:19:34,760 --> 00:19:37,159
Speaker 1: before you pull the trigger on a home purchase. But

435
00:19:37,200 --> 00:19:39,920
Speaker 1: now let's talk about a few of the really important

436
00:19:39,960 --> 00:19:43,639
Speaker 1: things that people need to have in place as before

437
00:19:43,680 --> 00:19:46,520
Speaker 1: they begin home shopping. And one of the most important

438
00:19:46,520 --> 00:19:49,080
Speaker 1: things is to have a really good credit score. And

439
00:19:49,160 --> 00:19:50,840
Speaker 1: if you don't have one, you've got to work on

440
00:19:50,880 --> 00:19:54,240
Speaker 1: improving it. Part of the home buying strategy involves making

441
00:19:54,240 --> 00:19:56,879
Speaker 1: sure that that credit score is in great shape. But

442
00:19:56,960 --> 00:19:58,280
Speaker 1: first you you kind of need to know what your

443
00:19:58,320 --> 00:20:00,920
Speaker 1: credit score is, right, A lot of people out there

444
00:20:00,960 --> 00:20:03,880
Speaker 1: listening might not know what their score is. And so, yeah,

445
00:20:03,960 --> 00:20:06,120
Speaker 1: look at the section in your credit card bill where

446
00:20:06,119 --> 00:20:07,760
Speaker 1: they give you that info every month. And if you

447
00:20:07,800 --> 00:20:10,280
Speaker 1: don't have access to your credit score there, check out

448
00:20:10,280 --> 00:20:13,680
Speaker 1: a site like credit Scorecard or credit Karma. Both are awesome,

449
00:20:13,720 --> 00:20:16,280
Speaker 1: and Credit Karma does this great job. Also, they've got

450
00:20:16,320 --> 00:20:18,960
Speaker 1: a scorecard tool that gives you insight on how to

451
00:20:19,040 --> 00:20:21,359
Speaker 1: improve that credit score. They'll say, you know what, in

452
00:20:21,400 --> 00:20:24,040
Speaker 1: this area, you're getting an A over here you're getting

453
00:20:24,200 --> 00:20:26,280
Speaker 1: a C minus. And so that's the part of your

454
00:20:26,280 --> 00:20:29,359
Speaker 1: credit score that you can attack the hardest in order

455
00:20:29,400 --> 00:20:32,159
Speaker 1: to to boost that score, because your score is going

456
00:20:32,200 --> 00:20:34,600
Speaker 1: to have such an impact on the loan terms you're

457
00:20:34,600 --> 00:20:36,679
Speaker 1: gonna be able to get, and those loan terms are

458
00:20:36,680 --> 00:20:39,600
Speaker 1: gonna have a direct reflection on your monthly payment, which

459
00:20:39,600 --> 00:20:42,160
Speaker 1: influences your budget and and so yeah, it just goes

460
00:20:42,200 --> 00:20:44,240
Speaker 1: on and on. You've gotta have a great credit score.

461
00:20:44,359 --> 00:20:46,679
Speaker 1: You gotta be working on your credit score before you

462
00:20:46,680 --> 00:20:49,280
Speaker 1: start shopping for that house. Yeah, that's right, and and

463
00:20:49,320 --> 00:20:51,360
Speaker 1: so if your your credit score is awful, we would

464
00:20:51,359 --> 00:20:54,080
Speaker 1: recommend for folks to go back and check out episode

465
00:20:54,119 --> 00:20:56,760
Speaker 1: one thirteen. That's where we talk about how to rebuild

466
00:20:56,840 --> 00:21:00,159
Speaker 1: a rough credit score. Uh, it's not always easy, you know,

467
00:21:00,160 --> 00:21:02,240
Speaker 1: and it can take quite a bit of time, but

468
00:21:02,280 --> 00:21:04,919
Speaker 1: that that hard work will pay off big time in

469
00:21:04,960 --> 00:21:07,040
Speaker 1: the future as you will be able to qualify for

470
00:21:07,080 --> 00:21:10,320
Speaker 1: the best mortgage terms and interest rates as well, and

471
00:21:10,400 --> 00:21:13,000
Speaker 1: that can save you tens of thousands of dollars over

472
00:21:13,119 --> 00:21:14,679
Speaker 1: the life of the loan. But like you know, like

473
00:21:14,680 --> 00:21:17,360
Speaker 1: we're saying, it's gonna take a while. You can't instantly

474
00:21:17,440 --> 00:21:19,800
Speaker 1: flip the switch on your credit score. And so if

475
00:21:19,800 --> 00:21:21,760
Speaker 1: a home purchases in your future, that's something that you're

476
00:21:21,800 --> 00:21:24,240
Speaker 1: gonna want to start now, all right, Matt, you just

477
00:21:24,320 --> 00:21:27,960
Speaker 1: mentioned getting the best mortgage terms and interest rates, and yeah,

478
00:21:27,960 --> 00:21:30,960
Speaker 1: one of the next important things and having a solid

479
00:21:31,000 --> 00:21:34,200
Speaker 1: homebuying strategy is is shopping around for the best financing.

480
00:21:34,560 --> 00:21:36,840
Speaker 1: Most people look at a ton of homes but really

481
00:21:36,880 --> 00:21:40,200
Speaker 1: actually only apply for financing with one lender, like one

482
00:21:40,240 --> 00:21:42,600
Speaker 1: bank or credit union, and then they stop there because

483
00:21:42,600 --> 00:21:44,760
Speaker 1: they're like Okay, this person got back to me. Yeah,

484
00:21:45,080 --> 00:21:47,600
Speaker 1: and yet what they don't realize is that there could

485
00:21:47,640 --> 00:21:51,000
Speaker 1: be uh thousands of dollars in difference in closing costs,

486
00:21:51,359 --> 00:21:53,560
Speaker 1: or you know, a half a percentage of difference in

487
00:21:53,600 --> 00:21:56,199
Speaker 1: the interest rate you're being offered by different lenders. So

488
00:21:56,240 --> 00:21:59,320
Speaker 1: it's really crucial to get that apples to apples comparison

489
00:21:59,560 --> 00:22:01,760
Speaker 1: from a a mom of three. Different lenders look to

490
00:22:01,800 --> 00:22:04,720
Speaker 1: local credit unions and local banks in particular. Right, credit

491
00:22:04,840 --> 00:22:08,440
Speaker 1: unions often offer the lowest rates and they can charge

492
00:22:08,560 --> 00:22:11,800
Speaker 1: fewer fees for the loans that they're offering. Mortgage brokers

493
00:22:11,800 --> 00:22:13,960
Speaker 1: are also a great place to turn because they can

494
00:22:14,040 --> 00:22:17,560
Speaker 1: essentially shop with a bunch of different lenders for you

495
00:22:18,080 --> 00:22:20,680
Speaker 1: all at one time with your information. So, yeah, reach

496
00:22:20,680 --> 00:22:23,520
Speaker 1: out to a mortgage broker as well. But yeah, shopping

497
00:22:23,520 --> 00:22:26,240
Speaker 1: for financing is it just an incredibly crucial step in

498
00:22:26,240 --> 00:22:28,480
Speaker 1: the home buying process. Yeah, mortgage brokers are great, and

499
00:22:28,520 --> 00:22:31,480
Speaker 1: so are insurance brokers when it comes to ensuring that house.

500
00:22:31,480 --> 00:22:33,359
Speaker 1: But we're not going to get into that this episode.

501
00:22:34,200 --> 00:22:37,119
Speaker 1: Let's keep talking about financing. You know, it's also important

502
00:22:37,160 --> 00:22:39,000
Speaker 1: to think about, you know, what type of loan that

503
00:22:39,040 --> 00:22:41,000
Speaker 1: you're gonna be taking out. I'm sure a lot of

504
00:22:41,000 --> 00:22:43,840
Speaker 1: folks have heard of fifteen year thirty year mortgages. Maybe

505
00:22:43,840 --> 00:22:46,280
Speaker 1: they've heard of f h A or arms as well.

506
00:22:46,760 --> 00:22:49,320
Speaker 1: There are all sorts of options that you can choose from,

507
00:22:49,720 --> 00:22:52,359
Speaker 1: but we are not fans of f h A loans,

508
00:22:52,680 --> 00:22:55,800
Speaker 1: and almost never is an ARM ideal, especially in the

509
00:22:55,800 --> 00:22:58,960
Speaker 1: current age of insanely low rates that we have right now,

510
00:22:59,320 --> 00:23:01,280
Speaker 1: and so that's why we recommend for folks to consider

511
00:23:01,800 --> 00:23:05,720
Speaker 1: either a conventional fifteen or thirty year fixed rate mortgage. Yeah,

512
00:23:05,760 --> 00:23:09,000
Speaker 1: there are all sorts of interesting mortgage products out there,

513
00:23:09,320 --> 00:23:11,879
Speaker 1: but the two most basic are are the ones that

514
00:23:11,960 --> 00:23:14,480
Speaker 1: are ultimately the best for most people, the fifteen and

515
00:23:14,520 --> 00:23:17,200
Speaker 1: the thirty. Right, and Matt, let's talk about to the

516
00:23:17,600 --> 00:23:21,120
Speaker 1: pre approval letter. As you're starting to shop for homes

517
00:23:21,160 --> 00:23:24,160
Speaker 1: before you make your first offer, it's important to get

518
00:23:24,200 --> 00:23:27,439
Speaker 1: pre approved from a lender before you start submitting those offers.

519
00:23:28,119 --> 00:23:31,159
Speaker 1: But here's the problem with the pre approval typically is

520
00:23:31,240 --> 00:23:34,840
Speaker 1: that the bank or credit union sometimes might overestimate how

521
00:23:34,960 --> 00:23:38,120
Speaker 1: much home you can afford. They're not necessarily thinking about

522
00:23:38,240 --> 00:23:40,639
Speaker 1: what fits into your monthly budget and how much breathing

523
00:23:40,680 --> 00:23:42,639
Speaker 1: room you're gonna need. Yeah, they're not looking out for

524
00:23:42,720 --> 00:23:45,560
Speaker 1: your best interests necessarily, right, Yeah, they're just saying, oh,

525
00:23:45,720 --> 00:23:46,960
Speaker 1: you know what, on paper, it looks like you could

526
00:23:46,960 --> 00:23:49,560
Speaker 1: afford this much house. So let's say you're like pre

527
00:23:49,600 --> 00:23:53,879
Speaker 1: approved for a dollar mortgage from a lender. That doesn't

528
00:23:53,960 --> 00:23:55,480
Speaker 1: mean that you should be buying a home that cost

529
00:23:55,600 --> 00:23:58,240
Speaker 1: that much. I think that's like one common misstep map

530
00:23:58,320 --> 00:23:59,959
Speaker 1: that people make when it comes to their home by

531
00:24:00,119 --> 00:24:03,880
Speaker 1: strategy is they take that fixed number that a lender

532
00:24:03,920 --> 00:24:07,159
Speaker 1: gave them as gold as their upper limit or the

533
00:24:07,320 --> 00:24:08,720
Speaker 1: you know, the price of a home that they should

534
00:24:08,720 --> 00:24:11,800
Speaker 1: be looking at. It's not terribly different from spending on

535
00:24:11,800 --> 00:24:14,320
Speaker 1: your credit card up to the limit just because you can.

536
00:24:14,880 --> 00:24:17,320
Speaker 1: Right Instead, it's important to figure out what works in

537
00:24:17,720 --> 00:24:20,600
Speaker 1: your monthly budget and don't be afraid to be conservative.

538
00:24:20,720 --> 00:24:23,920
Speaker 1: Right Like, for me, Matt, I'm nervous about being house poor,

539
00:24:24,000 --> 00:24:26,440
Speaker 1: and so I've always tried to buy cars or homes

540
00:24:26,520 --> 00:24:29,239
Speaker 1: or anything like that just that's far under what I

541
00:24:29,320 --> 00:24:33,040
Speaker 1: actually could afford because I want to prioritize saving and

542
00:24:33,080 --> 00:24:36,840
Speaker 1: investing and also using extra money to do other other

543
00:24:36,960 --> 00:24:39,679
Speaker 1: fun things as opposed to to socking it into a

544
00:24:39,720 --> 00:24:41,960
Speaker 1: home that's like a little on the expensive side. Yeah,

545
00:24:41,960 --> 00:24:43,879
Speaker 1: I sort of see a pre approval letter almost as

546
00:24:43,920 --> 00:24:46,199
Speaker 1: like the speedometer on your car, Like, just because it

547
00:24:46,240 --> 00:24:48,639
Speaker 1: says it can do one forty like doesn't mean you

548
00:24:48,680 --> 00:24:50,640
Speaker 1: should be doing them. You know, Like there's a limit

549
00:24:50,680 --> 00:24:52,720
Speaker 1: that you should probably stay within. There's a legal limit,

550
00:24:52,760 --> 00:24:55,080
Speaker 1: and there's not necessarily a financial limit that tells you

551
00:24:55,119 --> 00:24:57,240
Speaker 1: what you should or shouldn't do, per se when it

552
00:24:57,280 --> 00:24:58,919
Speaker 1: comes to the amount that you you know that you

553
00:24:58,920 --> 00:25:01,520
Speaker 1: can take out. But but yeah, just because you're pre

554
00:25:01,600 --> 00:25:04,120
Speaker 1: approved a certain amount doesn't mean you should take it there.

555
00:25:04,359 --> 00:25:05,960
Speaker 1: And so another question that's gonna come up to when

556
00:25:05,960 --> 00:25:08,120
Speaker 1: you're talking with a lender, uh, that they're gonna start

557
00:25:08,119 --> 00:25:11,640
Speaker 1: talking about your debt to income ratio. This also has

558
00:25:11,640 --> 00:25:14,000
Speaker 1: a major impact on the strategy that you'll need to take.

559
00:25:14,280 --> 00:25:16,119
Speaker 1: If you haven't saved enough money, you know, like that

560
00:25:16,119 --> 00:25:18,159
Speaker 1: could derail your ability to buy a home, But your

561
00:25:18,200 --> 00:25:21,240
Speaker 1: outstanding debt could also do the same. So it's important

562
00:25:21,280 --> 00:25:24,919
Speaker 1: to get focused on paying down your most egregious debts,

563
00:25:25,040 --> 00:25:28,520
Speaker 1: in particular your credit card debt before you buy a home. Yeah,

564
00:25:28,560 --> 00:25:30,760
Speaker 1: you might get some lender pushback as you're applying, and

565
00:25:30,800 --> 00:25:32,720
Speaker 1: they might say your d t I is too high, well,

566
00:25:32,720 --> 00:25:36,480
Speaker 1: that means that you have too many monthly debt obligations

567
00:25:36,480 --> 00:25:38,960
Speaker 1: and so yeah, relative to your income exactly. So you've

568
00:25:38,960 --> 00:25:40,720
Speaker 1: got to start paying some of those things off in

569
00:25:40,840 --> 00:25:43,160
Speaker 1: order to be able to then buy a home. And

570
00:25:43,280 --> 00:25:45,440
Speaker 1: specifically when we talk about d t I, the goal

571
00:25:45,480 --> 00:25:48,760
Speaker 1: should be to have one under thirty percent. They're helpful

572
00:25:48,840 --> 00:25:51,280
Speaker 1: dt I calculators out there on the internet. Will will

573
00:25:51,320 --> 00:25:53,439
Speaker 1: post a link to one in the show notes. But

574
00:25:53,480 --> 00:25:55,280
Speaker 1: that's something that you can kind of know ahead of

575
00:25:55,320 --> 00:25:58,879
Speaker 1: time before the lender gets back to you and says, actually, sorry,

576
00:25:59,000 --> 00:26:01,080
Speaker 1: you have too much debt. You qualified for this alone.

577
00:26:01,320 --> 00:26:03,240
Speaker 1: I think sometimes we have an internal gauge to a

578
00:26:03,240 --> 00:26:05,600
Speaker 1: certain extent of how bad our debt actually is. But

579
00:26:05,800 --> 00:26:08,639
Speaker 1: actually seeing the number and a d t I calculator

580
00:26:08,920 --> 00:26:11,320
Speaker 1: what your d t I percentage is, can really help

581
00:26:11,359 --> 00:26:13,479
Speaker 1: you know, Okay, I got some work to do before

582
00:26:13,720 --> 00:26:16,160
Speaker 1: before I keep going down this path. Or you know, actually,

583
00:26:16,200 --> 00:26:17,800
Speaker 1: I'm I'm in a pretty good spot and I have

584
00:26:17,880 --> 00:26:20,280
Speaker 1: a d t I that's that's healthy. So I can't

585
00:26:20,280 --> 00:26:21,920
Speaker 1: afford to buy a home right now. So every time

586
00:26:21,920 --> 00:26:23,480
Speaker 1: you say d t I, I just keep thinking d

587
00:26:23,520 --> 00:26:27,119
Speaker 1: t R do you remember having the d t R.

588
00:26:27,280 --> 00:26:29,320
Speaker 1: And we've been married so long now, I almost forgot

589
00:26:29,400 --> 00:26:31,359
Speaker 1: about the d t R. Yeah. Well, so when I

590
00:26:31,359 --> 00:26:34,199
Speaker 1: was back in college I actually appreciated having the d

591
00:26:34,240 --> 00:26:36,159
Speaker 1: t R because I just like clarity. I like to

592
00:26:36,160 --> 00:26:38,520
Speaker 1: know what I'm working towards. If this isn't gonna work out,

593
00:26:38,600 --> 00:26:40,280
Speaker 1: like I'm ready to move on to people know what

594
00:26:40,320 --> 00:26:42,680
Speaker 1: the means that DTR is defind the relations. Everybody knows

595
00:26:42,680 --> 00:26:46,400
Speaker 1: what d just in case. I. I specifically remember having

596
00:26:46,400 --> 00:26:48,720
Speaker 1: the d t R with Kate and it's just such

597
00:26:48,720 --> 00:26:50,680
Speaker 1: a good moment of clarity. But yeah, sorry, a little

598
00:26:50,680 --> 00:26:52,400
Speaker 1: tangent there. Every time you were saying d t I

599
00:26:52,400 --> 00:26:55,560
Speaker 1: I was like, he's just saying d t R. But

600
00:26:55,600 --> 00:26:57,359
Speaker 1: we're talking about money. We're talking about, you know, getting

601
00:26:57,440 --> 00:27:00,200
Speaker 1: qualified for a mortgage. Something else that can say. Or

602
00:27:00,280 --> 00:27:02,359
Speaker 1: if you're like me, if you're self employed and you

603
00:27:02,400 --> 00:27:04,840
Speaker 1: have been for the past twelve years of your life,

604
00:27:05,040 --> 00:27:08,320
Speaker 1: be prepared to go through a more rigorous underwritting process,

605
00:27:08,960 --> 00:27:12,160
Speaker 1: especially if you've been, you know, more recently self employed.

606
00:27:12,359 --> 00:27:14,199
Speaker 1: And so Kate and I we've been kind of transitioning

607
00:27:14,240 --> 00:27:17,520
Speaker 1: away from photography lately, and because of that, our income

608
00:27:17,560 --> 00:27:19,880
Speaker 1: has gone down a whole lot, and I very acutely

609
00:27:20,000 --> 00:27:22,080
Speaker 1: felt the effects of that, not just in our decreased

610
00:27:22,080 --> 00:27:25,400
Speaker 1: income a little bit, but in the ability to get

611
00:27:25,440 --> 00:27:27,320
Speaker 1: some mortgages refined. You know, you and I we both

612
00:27:27,359 --> 00:27:29,840
Speaker 1: have investment properties and with rates at all time loans,

613
00:27:29,880 --> 00:27:32,159
Speaker 1: of course we're pouncing on those opportunities to get a

614
00:27:32,200 --> 00:27:34,280
Speaker 1: lower rate. Well, dude, when you know it, because our

615
00:27:34,320 --> 00:27:36,679
Speaker 1: income has dropped, it dashed our hopes a little bit.

616
00:27:36,720 --> 00:27:39,560
Speaker 1: It ruined the opportunity to take advantage of the deals

617
00:27:39,680 --> 00:27:41,639
Speaker 1: right now, and so in our case, we weren't able

618
00:27:41,680 --> 00:27:44,119
Speaker 1: to refy. And so that's definitely something to consider. You know,

619
00:27:44,119 --> 00:27:46,119
Speaker 1: if you've had a corporate gig for you know, the

620
00:27:46,160 --> 00:27:49,240
Speaker 1: past five years, and you're moving more towards independent work,

621
00:27:49,240 --> 00:27:50,800
Speaker 1: where they're gonna want to see a couple of years

622
00:27:50,800 --> 00:27:54,080
Speaker 1: worth of corporate taxes in order to consider the income

623
00:27:54,119 --> 00:27:58,520
Speaker 1: that you received from those side businesses as qualified income. Yeah,

624
00:27:58,640 --> 00:28:02,840
Speaker 1: lenders love nine high people who collect a bi weekly paycheck.

625
00:28:02,920 --> 00:28:07,080
Speaker 1: That's for sure, totally predictable, exactly, It's never been my life.

626
00:28:07,720 --> 00:28:10,200
Speaker 1: Uh yeah. Another really really important thing, Matt, as we're

627
00:28:10,200 --> 00:28:12,000
Speaker 1: getting close to the end of this one, is is

628
00:28:12,040 --> 00:28:14,800
Speaker 1: finding a great real estate agent. That is such an

629
00:28:14,840 --> 00:28:18,680
Speaker 1: important part of this entire process. Right, finding a seasoned

630
00:28:18,720 --> 00:28:21,320
Speaker 1: agent can make all the difference when you're buying a home,

631
00:28:21,640 --> 00:28:24,360
Speaker 1: especially if you're a first time HomeBuyer. Matt, I remember

632
00:28:24,359 --> 00:28:27,280
Speaker 1: being so green when I was shopping from my first home.

633
00:28:27,440 --> 00:28:29,480
Speaker 1: I didn't really know what to look for, and I

634
00:28:29,480 --> 00:28:31,879
Speaker 1: felt like my agent was a godsend like guiding me

635
00:28:31,880 --> 00:28:33,879
Speaker 1: through the process. She had a couple of decades of

636
00:28:33,920 --> 00:28:36,680
Speaker 1: experience and she was incredible. I feel like she really

637
00:28:36,720 --> 00:28:38,400
Speaker 1: held my hand in the process. And there are probably

638
00:28:38,520 --> 00:28:40,360
Speaker 1: a lot of other agents I could have gone with

639
00:28:40,440 --> 00:28:43,360
Speaker 1: who wouldn't have provided nearly that value. And now that

640
00:28:43,480 --> 00:28:45,760
Speaker 1: I've been investing in real estate for a number of

641
00:28:45,880 --> 00:28:48,400
Speaker 1: years going on a decade, my agent provides help in

642
00:28:48,480 --> 00:28:52,040
Speaker 1: other ways, like being an expert negotiator. Now I don't

643
00:28:52,080 --> 00:28:54,600
Speaker 1: need nearly the amount of hand holding that I used

644
00:28:54,600 --> 00:28:56,400
Speaker 1: to need right when I was buying my first one.

645
00:28:56,640 --> 00:28:58,440
Speaker 1: But it's important to make sure you do your due

646
00:28:58,480 --> 00:29:01,680
Speaker 1: diligence on the real estate agent front as well. Right,

647
00:29:01,760 --> 00:29:04,200
Speaker 1: that solid agent makes a major difference not only in

648
00:29:04,200 --> 00:29:06,200
Speaker 1: the price you pay, but whether or not you're even

649
00:29:06,200 --> 00:29:08,440
Speaker 1: going to get the home that that you really want

650
00:29:08,520 --> 00:29:10,479
Speaker 1: or not. Yeah, that's right, man. And so speaking of

651
00:29:10,520 --> 00:29:13,400
Speaker 1: real estate agents, I know who your first realtor was

652
00:29:13,520 --> 00:29:16,240
Speaker 1: because I we used her one time. And my favorite

653
00:29:16,280 --> 00:29:19,240
Speaker 1: story about you in that realtor is that, well, that

654
00:29:19,280 --> 00:29:20,680
Speaker 1: was back in the day when you would ride around

655
00:29:20,680 --> 00:29:21,760
Speaker 1: in the car with them and you know, you'd go

656
00:29:21,840 --> 00:29:24,040
Speaker 1: to and see houses. I remember talking about one time

657
00:29:24,160 --> 00:29:26,440
Speaker 1: how she dropped you off back at your apartment, I guess,

658
00:29:26,480 --> 00:29:27,920
Speaker 1: and I think you responded with see you later, I

659
00:29:27,960 --> 00:29:31,320
Speaker 1: love you. It sounds like something I would say, Do

660
00:29:31,360 --> 00:29:33,800
Speaker 1: you remember that. I mean you're like, well, I mean, yeah,

661
00:29:33,880 --> 00:29:36,440
Speaker 1: you're great. But I think in your mind you had

662
00:29:36,480 --> 00:29:39,520
Speaker 1: that like, oh, this is mom dropping me off. She

663
00:29:39,720 --> 00:29:41,280
Speaker 1: was kind of like a second mom. Man. She's such

664
00:29:41,280 --> 00:29:43,040
Speaker 1: a great agent. I stay in touch with her still

665
00:29:43,080 --> 00:29:44,560
Speaker 1: a little bit. But it's great. Yeah. I love her,

666
00:29:44,560 --> 00:29:46,080
Speaker 1: I got I'll be honest. I love her. She's great.

667
00:29:46,160 --> 00:29:49,560
Speaker 1: She's the best. Yeah. Speaking of dtr Um and so,

668
00:29:49,680 --> 00:29:51,320
Speaker 1: you know, there are lots of other things to consider

669
00:29:51,400 --> 00:29:54,360
Speaker 1: when it comes to buying a home, like inspections, negotiating.

670
00:29:54,400 --> 00:29:55,960
Speaker 1: We just kind of mentioned that, but like, this isn't

671
00:29:56,240 --> 00:29:58,959
Speaker 1: a comprehensive list per se, but you know, The biggest

672
00:29:58,960 --> 00:30:01,680
Speaker 1: factor though that determines your home buying strategy is whether

673
00:30:01,840 --> 00:30:03,640
Speaker 1: or not you're planning in the house ack or if

674
00:30:03,640 --> 00:30:06,480
Speaker 1: you're going to convert that personal residence to our rental.

675
00:30:06,680 --> 00:30:08,719
Speaker 1: We feel that that can just have such an outsized

676
00:30:08,800 --> 00:30:11,640
Speaker 1: impact on your ability to put yourself in a home

677
00:30:11,680 --> 00:30:13,440
Speaker 1: that's going to treat you well down the road, because

678
00:30:13,480 --> 00:30:16,000
Speaker 1: you know what, like it has converted from what a

679
00:30:16,000 --> 00:30:18,360
Speaker 1: place that used to call home to something that is

680
00:30:18,400 --> 00:30:20,920
Speaker 1: now generating income. It's now an investment, and so we

681
00:30:20,920 --> 00:30:22,480
Speaker 1: want to make sure that folks are are going to

682
00:30:22,560 --> 00:30:24,920
Speaker 1: just challenge that notion of of just purchasing a home

683
00:30:25,000 --> 00:30:27,360
Speaker 1: for themselves and instead to consider some of those long

684
00:30:27,440 --> 00:30:31,000
Speaker 1: lasting implications as well. Yeah, and just the notion that

685
00:30:31,200 --> 00:30:33,959
Speaker 1: putting as little down as you can put down and

686
00:30:34,000 --> 00:30:36,479
Speaker 1: buying as much home as you can write like that,

687
00:30:36,520 --> 00:30:38,480
Speaker 1: those are two of the biggest mistakes you can make,

688
00:30:38,640 --> 00:30:40,520
Speaker 1: you know, in this home buying process. And so that's

689
00:30:40,520 --> 00:30:43,960
Speaker 1: an important thing to realize as well, is it's important

690
00:30:43,960 --> 00:30:47,080
Speaker 1: to be in a solid financial position before you even

691
00:30:47,080 --> 00:30:49,719
Speaker 1: go down this road. So to any of our listeners

692
00:30:49,760 --> 00:30:52,479
Speaker 1: out there, who are you know, in the process of

693
00:30:52,480 --> 00:30:54,600
Speaker 1: of getting ready to start shopping for home, or maybe

694
00:30:54,600 --> 00:30:55,959
Speaker 1: you're in the middle of it right now and you're

695
00:30:55,960 --> 00:30:57,920
Speaker 1: about to make an offer. Best of luck to you.

696
00:30:57,960 --> 00:31:00,440
Speaker 1: I hope that this episode has been helpful so that

697
00:31:00,520 --> 00:31:03,160
Speaker 1: you can navigate these waters well and by something that's

698
00:31:03,160 --> 00:31:04,760
Speaker 1: going to be good for you and your family for

699
00:31:04,760 --> 00:31:06,440
Speaker 1: for years to come. All right, Matt, you want to

700
00:31:06,440 --> 00:31:08,200
Speaker 1: get back to the beer real quick. Today on the show,

701
00:31:08,200 --> 00:31:10,920
Speaker 1: we had a wicked weed Labonte And it's not just

702
00:31:11,040 --> 00:31:13,719
Speaker 1: Labonte's Labonte with figs. So this is a type of

703
00:31:13,760 --> 00:31:16,200
Speaker 1: sour that they make with like pear, with like some

704
00:31:16,240 --> 00:31:18,680
Speaker 1: other fruit as well. But yeah, this is the fig variation.

705
00:31:18,960 --> 00:31:20,320
Speaker 1: Reminds me of our fig tree that was in full

706
00:31:20,320 --> 00:31:22,200
Speaker 1: bloom the summer. Dude, we got so many figs off

707
00:31:22,200 --> 00:31:23,600
Speaker 1: that thing this year. But but what do you think

708
00:31:23,600 --> 00:31:25,120
Speaker 1: about this beer man? You have so many figs, But

709
00:31:25,160 --> 00:31:27,760
Speaker 1: did you make any beer with it? No, I'm a loser.

710
00:31:27,920 --> 00:31:31,120
Speaker 1: You're not a loser. You just you just don't make beer. Okay,

711
00:31:31,160 --> 00:31:34,760
Speaker 1: So this beer man, in my opinion, it was aggressively tart.

712
00:31:35,120 --> 00:31:36,920
Speaker 1: It was very acidic. But you know how I roll,

713
00:31:37,000 --> 00:31:39,280
Speaker 1: I really enjoy that in a sour beer, and so

714
00:31:39,400 --> 00:31:41,880
Speaker 1: this one didn't disappoint at all. I felt it did

715
00:31:41,880 --> 00:31:44,160
Speaker 1: have a little bit of that fig flavor going on,

716
00:31:44,240 --> 00:31:46,880
Speaker 1: not a whole lot of it, but something else I

717
00:31:46,960 --> 00:31:48,160
Speaker 1: feel like I picked up on. I don't know if

718
00:31:48,200 --> 00:31:50,560
Speaker 1: I'm just imagining this, but as I finished it out,

719
00:31:50,600 --> 00:31:52,160
Speaker 1: I feel like it would get sweeter, Like you drink

720
00:31:52,160 --> 00:31:54,720
Speaker 1: it immediately and it feels really tart, really mouth puckering,

721
00:31:54,880 --> 00:31:56,280
Speaker 1: but then the sweetness kind of rides out on the

722
00:31:56,320 --> 00:31:58,840
Speaker 1: back end. It kind of lingers, And specifically it kind

723
00:31:58,840 --> 00:32:01,240
Speaker 1: of made me think of like any sweetness, And I

724
00:32:01,280 --> 00:32:03,240
Speaker 1: wonder if that's because I'm just thinking in my head

725
00:32:03,280 --> 00:32:05,160
Speaker 1: of like a struck qu to replate where there's like

726
00:32:05,200 --> 00:32:07,960
Speaker 1: figs and honey with some meats, some cheeses. But yeah,

727
00:32:08,040 --> 00:32:09,840
Speaker 1: to me, it felt like it almost had this honey

728
00:32:09,840 --> 00:32:12,360
Speaker 1: sweetness going on on the tail end that made me

729
00:32:12,400 --> 00:32:14,560
Speaker 1: appreciate it even more. Yeah, I totally see what you're

730
00:32:14,560 --> 00:32:16,200
Speaker 1: saying on the sweetness. It almost had like a white

731
00:32:16,200 --> 00:32:18,920
Speaker 1: wine kind of quality, like a sweet white wine kind

732
00:32:18,920 --> 00:32:21,000
Speaker 1: of sweetness going on. And I agree it was kind

733
00:32:21,040 --> 00:32:23,320
Speaker 1: of light on the fig but heavy on the tart.

734
00:32:23,720 --> 00:32:25,880
Speaker 1: But I'm cool with that. I like figs, but not

735
00:32:25,920 --> 00:32:27,600
Speaker 1: nearly as much as my seven year old who would

736
00:32:27,600 --> 00:32:30,840
Speaker 1: just like pull them off in clumps and just start

737
00:32:30,920 --> 00:32:32,880
Speaker 1: tossing them in her mouth. But I thought it was

738
00:32:32,920 --> 00:32:36,240
Speaker 1: a truly excellent golden sour. I mean, wicked Weed still

739
00:32:36,280 --> 00:32:38,600
Speaker 1: makes I think some of the best fruited sours out there.

740
00:32:38,920 --> 00:32:40,680
Speaker 1: And you know with this bottles three years old, man,

741
00:32:40,680 --> 00:32:42,640
Speaker 1: it's held up nicely. This one's just been hanging out

742
00:32:42,680 --> 00:32:45,360
Speaker 1: in my beer cellar, which is actually our pantry, and

743
00:32:45,360 --> 00:32:48,200
Speaker 1: I really enjoyed it. Manethelois was a delicious sour beer.

744
00:32:48,560 --> 00:32:50,040
Speaker 1: Nice man, Well, that is going to be it for

745
00:32:50,080 --> 00:32:53,239
Speaker 1: this episode. Listeners can find our show notes up at

746
00:32:53,240 --> 00:32:55,320
Speaker 1: our website at how to money dot com and there

747
00:32:55,360 --> 00:32:58,080
Speaker 1: will be sure to link to that deaths income ratio calculator,

748
00:32:58,400 --> 00:33:00,600
Speaker 1: as well as some other resource is that you might

749
00:33:00,680 --> 00:33:03,800
Speaker 1: find helpful. Again, if you have enjoyed this episode, if

750
00:33:03,800 --> 00:33:06,040
Speaker 1: you're enjoying the show in general, well, we would encourage

751
00:33:06,040 --> 00:33:08,920
Speaker 1: you to hit the subscribe button so that you get

752
00:33:09,000 --> 00:33:11,840
Speaker 1: every single episode delivered to your podcatcher. And also if

753
00:33:11,840 --> 00:33:14,280
Speaker 1: you haven't left a review yet, man, we'd really appreciate

754
00:33:14,600 --> 00:33:16,320
Speaker 1: you letting people know what you think of the show

755
00:33:16,400 --> 00:33:19,520
Speaker 1: over on Apple Podcasts. And thanks in advance. All right, Matt,

756
00:33:19,560 --> 00:33:22,120
Speaker 1: that's gonna do it for this episode until next time.

757
00:33:22,200 --> 00:33:23,840
Speaker 1: Best Friends Out, Best Friends Out,