1 00:00:00,080 --> 00:00:02,960 Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt, 2 00:00:03,200 --> 00:00:06,280 Speaker 1: and today we're discussing what you need to do before 3 00:00:06,280 --> 00:00:27,240 Speaker 1: you buy a house, Matt. Before you buy a house, 4 00:00:27,320 --> 00:00:28,720 Speaker 1: there are a lot of ducks that you need to 5 00:00:28,720 --> 00:00:31,080 Speaker 1: get in a row, and we're gonna put those ducks 6 00:00:31,120 --> 00:00:33,080 Speaker 1: in a row with people, uh in just a few minutes. 7 00:00:33,120 --> 00:00:35,520 Speaker 1: I'm excited to kind of tackle this topic today. That's right, Joel. 8 00:00:35,560 --> 00:00:37,440 Speaker 1: But before we kind of kick things off, we are 9 00:00:37,440 --> 00:00:39,760 Speaker 1: in our new dining room space. Kate and I have 10 00:00:39,880 --> 00:00:42,680 Speaker 1: renovated our house. We we did in a few episodes 11 00:00:42,760 --> 00:00:46,040 Speaker 1: on renovating a few weeks ago. Gosh, we are so 12 00:00:46,680 --> 00:00:49,080 Speaker 1: freaking happy to be back in our kitchen, in our 13 00:00:49,080 --> 00:00:51,040 Speaker 1: dining room now that we have this sort of connected 14 00:00:51,040 --> 00:00:53,199 Speaker 1: space for our family to spend a lot of time in. 15 00:00:53,840 --> 00:00:55,400 Speaker 1: And it's nice as well for you and I to 16 00:00:55,400 --> 00:00:57,400 Speaker 1: be able to record and not have the instat pot 17 00:00:57,440 --> 00:01:00,160 Speaker 1: over my shoulder here, plus all the spices behind you 18 00:01:00,240 --> 00:01:02,760 Speaker 1: over there, that whole thing going on. It was easier 19 00:01:02,800 --> 00:01:04,720 Speaker 1: to get the beers from the fridge because it was 20 00:01:04,760 --> 00:01:06,640 Speaker 1: just an arms length a way when we recorded in 21 00:01:06,680 --> 00:01:09,520 Speaker 1: your old dining room slash kitchen. Because everything was mixed 22 00:01:09,520 --> 00:01:11,440 Speaker 1: together in one. But but no, this is a nice 23 00:01:11,440 --> 00:01:14,000 Speaker 1: new space, and yeah, it looks really nice, and it's 24 00:01:14,040 --> 00:01:16,480 Speaker 1: nice to have kind of an upgraded recording studio here 25 00:01:16,520 --> 00:01:19,119 Speaker 1: at your dining room table. That's definitely more comfortable and honestly, 26 00:01:19,120 --> 00:01:20,840 Speaker 1: and just the utility that Kate and I that we 27 00:01:20,880 --> 00:01:22,679 Speaker 1: have been able to get out of it as a family. 28 00:01:22,760 --> 00:01:24,240 Speaker 1: We're not even done yet. We still have a punch 29 00:01:24,280 --> 00:01:26,360 Speaker 1: list of things that need to be completed before we, 30 00:01:26,440 --> 00:01:28,240 Speaker 1: you know, write that final check like we talked about 31 00:01:28,319 --> 00:01:31,000 Speaker 1: when it comes to renovating your house. But I realized 32 00:01:31,000 --> 00:01:33,679 Speaker 1: how much stress was sort of on us by not 33 00:01:33,800 --> 00:01:36,560 Speaker 1: being back here and sort of having our our usual 34 00:01:36,560 --> 00:01:38,560 Speaker 1: space and feeling like we're kind of camping out. You know, 35 00:01:38,600 --> 00:01:40,240 Speaker 1: we've been camping out for the past three or four 36 00:01:40,240 --> 00:01:42,360 Speaker 1: months now while this has all been going on, and 37 00:01:42,400 --> 00:01:44,160 Speaker 1: it's nice to be able to resume life and to 38 00:01:44,240 --> 00:01:46,440 Speaker 1: pick up what we left off. Yeah, Matt, and there's 39 00:01:46,480 --> 00:01:49,960 Speaker 1: some really interesting income producing aspects of your innovation that 40 00:01:50,000 --> 00:01:52,080 Speaker 1: we are going to talk about in a future episode. 41 00:01:52,160 --> 00:01:54,320 Speaker 1: So we're gonna need some time and some numbers to 42 00:01:54,320 --> 00:01:56,000 Speaker 1: come in on that. And uh yeah, so we'll get 43 00:01:56,040 --> 00:01:57,880 Speaker 1: to that maybe a few months down the road. But 44 00:01:57,920 --> 00:02:00,280 Speaker 1: first I've got a frugal versus cheap for you. I'll 45 00:02:00,320 --> 00:02:04,520 Speaker 1: bring it, and that is school lunches. Your daughter and 46 00:02:04,560 --> 00:02:06,880 Speaker 1: my daughter, they both go to the same elementary school. 47 00:02:07,160 --> 00:02:10,040 Speaker 1: School lunches are four dollars there, and that's for a 48 00:02:10,160 --> 00:02:13,359 Speaker 1: nice lunch, right, like if they have an incredible lunch program. 49 00:02:13,400 --> 00:02:15,440 Speaker 1: And it's like the nutrition and all the thought that 50 00:02:15,480 --> 00:02:17,840 Speaker 1: goes into these meals, Like last time that my wife 51 00:02:17,880 --> 00:02:20,600 Speaker 1: was there, like the kids were eating beat salad, which 52 00:02:20,639 --> 00:02:23,960 Speaker 1: is amazing, Like I love beats. That's impressive. But the 53 00:02:23,960 --> 00:02:25,880 Speaker 1: fact is four dollars is still a lot of money. 54 00:02:25,919 --> 00:02:27,960 Speaker 1: And in our family were able to feed each one 55 00:02:28,000 --> 00:02:30,000 Speaker 1: of us individually for one dollar per meal, so this 56 00:02:30,040 --> 00:02:33,000 Speaker 1: is four times that. And Kate and I we're having 57 00:02:33,000 --> 00:02:35,240 Speaker 1: the discussion the other day and we were asking ourselves, 58 00:02:35,320 --> 00:02:37,840 Speaker 1: are we withholding a sort of special experience from our 59 00:02:37,919 --> 00:02:41,480 Speaker 1: daughter by not allowing her to buy school lunch? Are 60 00:02:41,480 --> 00:02:44,560 Speaker 1: we depriving her of this sort of fun thing that 61 00:02:44,720 --> 00:02:46,400 Speaker 1: the other kids get to do, Because it's something that 62 00:02:46,440 --> 00:02:48,800 Speaker 1: recently she has been sort of mentioning, kind of on 63 00:02:48,840 --> 00:02:50,440 Speaker 1: the side a little bit she did she hasn't like 64 00:02:50,480 --> 00:02:53,440 Speaker 1: demanded anything, but yeah, what are your thoughts on that? Well, 65 00:02:53,480 --> 00:02:55,960 Speaker 1: So we actually let our daughter buy one day a week, 66 00:02:56,120 --> 00:02:59,360 Speaker 1: so she buys either Monday's or Fridays, and we usually 67 00:02:59,360 --> 00:03:01,280 Speaker 1: picked the meal that we think she's gonna enjoy the 68 00:03:01,320 --> 00:03:04,359 Speaker 1: most based on those days. It's one fewer day that 69 00:03:04,760 --> 00:03:06,440 Speaker 1: that we have to pack a lunch for, which just 70 00:03:06,520 --> 00:03:08,160 Speaker 1: kind of makes it easier to get out the door 71 00:03:08,200 --> 00:03:10,480 Speaker 1: in the morning. But for the most part, we're packing 72 00:03:10,560 --> 00:03:13,000 Speaker 1: lunches because it's way cheaper. Yeah, well, that's that's where 73 00:03:13,040 --> 00:03:14,600 Speaker 1: we are with it. We feel like that it's frugal 74 00:03:15,280 --> 00:03:18,560 Speaker 1: because otherwise we're spending four times flasts or twenty bucks 75 00:03:18,800 --> 00:03:21,320 Speaker 1: four weeks a month. You're looking at eighty bucks just 76 00:03:21,400 --> 00:03:24,919 Speaker 1: for lunches, just for one kid. And I don't know, 77 00:03:25,000 --> 00:03:27,000 Speaker 1: part of that is we can't really get around and 78 00:03:27,040 --> 00:03:30,000 Speaker 1: like we know our lunches are just as nutritious, But 79 00:03:30,120 --> 00:03:32,160 Speaker 1: there's just I guess the fun aspect of it that 80 00:03:32,200 --> 00:03:35,400 Speaker 1: we feel we're sort of depriving heavy of a little bit. 81 00:03:35,480 --> 00:03:37,280 Speaker 1: And I mean basically, she just wants to be able 82 00:03:37,320 --> 00:03:39,560 Speaker 1: to like eat pancakes when they have pancake Day, or 83 00:03:39,640 --> 00:03:42,080 Speaker 1: like French toast, right, you know, Yeah, that's definitely the 84 00:03:42,080 --> 00:03:43,480 Speaker 1: one you should let her have. And so I didn't 85 00:03:43,480 --> 00:03:45,240 Speaker 1: know you guys actually did that. I didn't know you 86 00:03:45,240 --> 00:03:46,760 Speaker 1: you did one day a week thing. And I think 87 00:03:46,760 --> 00:03:49,120 Speaker 1: we might start looking ahead to the lunch menu and 88 00:03:49,160 --> 00:03:52,000 Speaker 1: maybe when there's a day in particular that sounds extra delicious, 89 00:03:52,040 --> 00:03:54,760 Speaker 1: maybe we'll start allowing that. You know, it's cool, Matt. 90 00:03:54,840 --> 00:03:57,600 Speaker 1: You can actually ask if you have an Amazon Alexa device, 91 00:03:57,680 --> 00:04:00,520 Speaker 1: you can ask it to read the cool lunch for 92 00:04:00,520 --> 00:04:02,520 Speaker 1: our school. Someone told me that I heard that recently 93 00:04:02,560 --> 00:04:04,200 Speaker 1: as well. You know what else you can ask Alexa 94 00:04:04,240 --> 00:04:06,600 Speaker 1: to do? Play our podcast, can you really? Yeah, you 95 00:04:06,600 --> 00:04:08,760 Speaker 1: can say Alexa, play How to Money and it'll it 96 00:04:08,760 --> 00:04:11,360 Speaker 1: will happen. So, by the way, if anyone's listening to 97 00:04:11,880 --> 00:04:14,000 Speaker 1: us right now and they have an Alexa in the room, 98 00:04:14,280 --> 00:04:17,960 Speaker 1: Alexa probably just played our podcast because I said, alright, Matt, 99 00:04:18,040 --> 00:04:20,440 Speaker 1: so real quick, let's tell everybody. The beer we're drinking 100 00:04:20,440 --> 00:04:23,360 Speaker 1: on the show today another beer from rhein Geist. Our 101 00:04:23,400 --> 00:04:25,839 Speaker 1: friend Natalie, who works at Ryan Guys, sent us a 102 00:04:25,880 --> 00:04:27,680 Speaker 1: couple of bottles, and so today on the show, we're 103 00:04:27,720 --> 00:04:31,640 Speaker 1: drinking a barrel aged Imperial stout called Ink. And I 104 00:04:31,680 --> 00:04:33,160 Speaker 1: was looking at the bottle. Man, I love how they 105 00:04:33,160 --> 00:04:35,400 Speaker 1: got this little skull. They've got like a droplet I 106 00:04:35,400 --> 00:04:38,159 Speaker 1: assume of little beer dripping down from a barrel. A 107 00:04:38,200 --> 00:04:41,039 Speaker 1: little droplet has a little skull designed into it makes 108 00:04:41,080 --> 00:04:45,280 Speaker 1: it look hardcore. It's like a mixture of hardcore and Q. Yeah. Yeah, 109 00:04:45,279 --> 00:04:48,159 Speaker 1: it's it's so small, it's pretty cute. Yeah. I just 110 00:04:48,160 --> 00:04:49,840 Speaker 1: took a sip. This is good and I can't wait 111 00:04:49,839 --> 00:04:52,280 Speaker 1: to delve into our full thoughts at the end of 112 00:04:52,320 --> 00:04:54,679 Speaker 1: the show. But for now, let's get into the topic 113 00:04:54,720 --> 00:04:57,000 Speaker 1: of hand. What to do before you buy a house? 114 00:04:57,560 --> 00:04:59,839 Speaker 1: And Matt back in the episode thirty of the show, 115 00:04:59,880 --> 00:05:03,520 Speaker 1: we discussed by buying a home is typically a terrible investment. 116 00:05:03,520 --> 00:05:05,640 Speaker 1: And so if you're thinking about buying a home, oh man, 117 00:05:05,680 --> 00:05:07,600 Speaker 1: this is gonna be a great investment, and this is 118 00:05:07,640 --> 00:05:10,520 Speaker 1: gonna be good for me financially over the long haul. 119 00:05:10,600 --> 00:05:12,560 Speaker 1: Well that's likely not the case. And if you want 120 00:05:12,600 --> 00:05:14,080 Speaker 1: to know more about that, go back and listen to 121 00:05:14,120 --> 00:05:16,839 Speaker 1: episode thirty. But for so many of us, buying a 122 00:05:16,920 --> 00:05:21,400 Speaker 1: home has large appeal for so many other reasons besides 123 00:05:21,520 --> 00:05:24,760 Speaker 1: just being a quote unquote investment. Right, So, how do 124 00:05:24,800 --> 00:05:27,680 Speaker 1: you buy a home intelligently? In light of the fact 125 00:05:27,680 --> 00:05:30,120 Speaker 1: that buying a home might not necessarily be the smartest 126 00:05:30,160 --> 00:05:32,680 Speaker 1: financial decision, but it is a decision that many of 127 00:05:32,760 --> 00:05:35,560 Speaker 1: us choose to make for so many other reasons. The 128 00:05:35,560 --> 00:05:37,360 Speaker 1: other thing, too, is that it's just such a huge 129 00:05:37,480 --> 00:05:39,880 Speaker 1: deal to buy a house, right, Like it's intimidating and 130 00:05:39,880 --> 00:05:41,840 Speaker 1: it's a big deal, and it's because it costs a 131 00:05:41,839 --> 00:05:44,120 Speaker 1: ton of money. This isn't a purchase that we make 132 00:05:44,200 --> 00:05:46,080 Speaker 1: frequently at all. You know, unless you're getting an fh 133 00:05:46,160 --> 00:05:49,400 Speaker 1: J loan, you've gotta put down like twenty for down payment, 134 00:05:49,440 --> 00:05:52,320 Speaker 1: and that is a huge amount of money. Last year, 135 00:05:52,360 --> 00:05:54,479 Speaker 1: the median home prices in the US were over three 136 00:05:54,880 --> 00:05:58,280 Speaker 1: thousand dollars, So we're talking at least sixty thou dollars 137 00:05:58,279 --> 00:06:00,160 Speaker 1: that you've got to put down, not including as in 138 00:06:00,240 --> 00:06:03,279 Speaker 1: costs or anything else associated with a move. And because 139 00:06:03,320 --> 00:06:05,119 Speaker 1: this isn't a purchase that we make all the time, 140 00:06:05,279 --> 00:06:08,600 Speaker 1: we're just less familiar with the process. Like even if 141 00:06:08,600 --> 00:06:10,719 Speaker 1: this was something that we did annually, like home buyers 142 00:06:10,800 --> 00:06:13,039 Speaker 1: might feel a little bit more comfortable, But the fact 143 00:06:13,120 --> 00:06:15,440 Speaker 1: is that's not the case. And so I'm glad that 144 00:06:15,560 --> 00:06:17,160 Speaker 1: this is something that we're tackling. I think we've got 145 00:06:17,160 --> 00:06:19,800 Speaker 1: a lot of homebuyers out there, especially a lot of 146 00:06:19,839 --> 00:06:22,920 Speaker 1: first time homebuyers, and with us being the Spring, that's 147 00:06:22,960 --> 00:06:25,160 Speaker 1: a hot time to buy a house for sure. Yeah, 148 00:06:25,200 --> 00:06:27,200 Speaker 1: no doubt. So where do you even begin, right finding 149 00:06:27,200 --> 00:06:30,200 Speaker 1: an agent bruising Zillo. Nope, that's definitely not where you 150 00:06:30,240 --> 00:06:32,000 Speaker 1: want to start. The first thing you need to do 151 00:06:32,120 --> 00:06:36,360 Speaker 1: is take stock of your situation, your personal situation. Buying 152 00:06:36,480 --> 00:06:37,960 Speaker 1: is only going to be a decent move if you 153 00:06:38,000 --> 00:06:41,040 Speaker 1: plan on living in that home for seven years or longer. 154 00:06:41,120 --> 00:06:42,800 Speaker 1: And if you can't make that kind of time commitment, 155 00:06:43,200 --> 00:06:46,239 Speaker 1: it's almost always a bad financial move to buy a house. 156 00:06:46,760 --> 00:06:49,280 Speaker 1: In that case, you're better off renting or you're gonna 157 00:06:49,320 --> 00:06:52,520 Speaker 1: lose money typically when you sell, because of the transaction 158 00:06:52,560 --> 00:06:55,320 Speaker 1: costs involved in buying and selling real estate. Sorry, Joe, 159 00:06:55,360 --> 00:06:58,080 Speaker 1: this reminds me of episode fifteen, So even further back, 160 00:06:58,080 --> 00:07:01,280 Speaker 1: we talked about renting versus buying and if you are 161 00:07:01,320 --> 00:07:03,120 Speaker 1: sort of on the fence of whether you should maybe 162 00:07:03,120 --> 00:07:05,880 Speaker 1: continue renting or maybe this is time for you to buy. 163 00:07:06,320 --> 00:07:08,000 Speaker 1: This is sort of back in the old days when 164 00:07:08,040 --> 00:07:09,520 Speaker 1: Joel and I are recording, But go back and listen 165 00:07:09,520 --> 00:07:11,200 Speaker 1: to that episode. We we we talked about a lot of 166 00:07:11,280 --> 00:07:13,640 Speaker 1: important things that you want to consider when it comes 167 00:07:13,640 --> 00:07:16,320 Speaker 1: to renting versus buying a house. And so after the break, 168 00:07:16,320 --> 00:07:18,720 Speaker 1: we're specifically going to talk about how you should be 169 00:07:18,760 --> 00:07:22,000 Speaker 1: thinking about purchasing a home, like what is the mindset 170 00:07:22,040 --> 00:07:23,960 Speaker 1: that you should have, And we're also going to spend 171 00:07:23,960 --> 00:07:26,640 Speaker 1: a good amount of time talking about financing because that 172 00:07:27,160 --> 00:07:30,240 Speaker 1: is a very important part of buying a house. Game changer. 173 00:07:39,200 --> 00:07:41,200 Speaker 1: All right, Joe, let's go ahead and kick this thing off. Man. 174 00:07:41,240 --> 00:07:43,600 Speaker 1: You know, if it turns out that you are ready 175 00:07:43,600 --> 00:07:45,680 Speaker 1: to go ahead and buy a house, we've got a 176 00:07:45,720 --> 00:07:48,680 Speaker 1: solid order of approach that we think that everyone should follow. 177 00:07:48,920 --> 00:07:51,080 Speaker 1: First of all, make sure that you're spending a lot 178 00:07:51,120 --> 00:07:53,400 Speaker 1: of time thinking about where it is that you want 179 00:07:53,480 --> 00:07:56,480 Speaker 1: to live. And especially if you're moving to a new place, 180 00:07:57,080 --> 00:07:59,960 Speaker 1: this specific location that you're possibly moving to could make 181 00:08:00,160 --> 00:08:01,960 Speaker 1: or break things for you. You know, it could mean 182 00:08:02,080 --> 00:08:04,760 Speaker 1: maybe a longer commute for you, or it could mean 183 00:08:04,880 --> 00:08:07,120 Speaker 1: a short, simple bike ride. And you can even mean 184 00:08:07,200 --> 00:08:09,400 Speaker 1: higher taxes versus lower taxes. You know, if you're in 185 00:08:09,440 --> 00:08:12,160 Speaker 1: an area that is maybe more affluence and the home 186 00:08:12,240 --> 00:08:14,400 Speaker 1: values are much higher, you're gonna see a bigger tax 187 00:08:14,440 --> 00:08:16,880 Speaker 1: bill every single year. Yeah, man, I feel like people 188 00:08:16,920 --> 00:08:19,480 Speaker 1: often don't spend enough time on the front end thinking 189 00:08:19,520 --> 00:08:22,280 Speaker 1: about the specific location they want to live in. They 190 00:08:22,320 --> 00:08:24,840 Speaker 1: maybe draw too big of an outline around where they're 191 00:08:24,840 --> 00:08:27,560 Speaker 1: willing to live and they cast in it too wide, 192 00:08:27,840 --> 00:08:30,880 Speaker 1: and because of that, they're not focused enough on a 193 00:08:30,920 --> 00:08:34,400 Speaker 1: specific neighborhood or location. They don't figure out the specific 194 00:08:34,440 --> 00:08:36,960 Speaker 1: place where they do want to live. And especially if 195 00:08:36,960 --> 00:08:39,360 Speaker 1: you're moving to a new place and you're planning on 196 00:08:39,480 --> 00:08:42,520 Speaker 1: buying right away, if you haven't done your research, you 197 00:08:42,600 --> 00:08:45,000 Speaker 1: might end up buying a place where the location just 198 00:08:45,040 --> 00:08:48,160 Speaker 1: doesn't work well for you, your family, your commute right. 199 00:08:48,559 --> 00:08:51,280 Speaker 1: And renting, well, that's not that big of a deal. 200 00:08:51,559 --> 00:08:53,120 Speaker 1: You live there for a year, you move on to 201 00:08:53,160 --> 00:08:54,800 Speaker 1: the next place. If you just move on, yeah, But 202 00:08:54,840 --> 00:08:57,520 Speaker 1: if you buy something, man, that's a huge pain. The 203 00:08:57,559 --> 00:09:00,400 Speaker 1: transaction costs are huge that and that's why we mentioned 204 00:09:00,400 --> 00:09:02,880 Speaker 1: before the break living in a place for seven years 205 00:09:02,920 --> 00:09:05,440 Speaker 1: potentially that sounds like a long time, and it is 206 00:09:05,480 --> 00:09:08,480 Speaker 1: a long time. But the transaction costs are killer in 207 00:09:08,600 --> 00:09:10,840 Speaker 1: real estate. It can make or break the home purchase. 208 00:09:10,920 --> 00:09:13,440 Speaker 1: Even if your home appreciates over time, you could still 209 00:09:13,520 --> 00:09:15,560 Speaker 1: end up having to bring money to the closing table 210 00:09:15,840 --> 00:09:18,360 Speaker 1: if you're only in there for three or four or 211 00:09:18,400 --> 00:09:20,679 Speaker 1: even five years, which is kind of I guess been 212 00:09:20,880 --> 00:09:23,520 Speaker 1: what financial experts traditionally say how long you should be 213 00:09:23,520 --> 00:09:26,880 Speaker 1: in a house. So considering that location, spending more time 214 00:09:27,240 --> 00:09:30,079 Speaker 1: on the front end, making sure that that location is 215 00:09:30,120 --> 00:09:32,480 Speaker 1: exactly where you want to be. It's worth that due 216 00:09:32,480 --> 00:09:34,440 Speaker 1: diligence because it could save you a lot of money 217 00:09:34,440 --> 00:09:36,079 Speaker 1: in the long run. And the next thing you want 218 00:09:36,080 --> 00:09:38,000 Speaker 1: to make sure that you're considering is the size of 219 00:09:38,000 --> 00:09:40,480 Speaker 1: the house and the different amenities that you're wanting. You know, 220 00:09:40,480 --> 00:09:43,559 Speaker 1: there's a balance between having enough house now and then 221 00:09:43,640 --> 00:09:46,400 Speaker 1: looking ahead to your likely needs in the future, like 222 00:09:46,440 --> 00:09:48,040 Speaker 1: three hot tubs. I need three hot tubs in the 223 00:09:48,040 --> 00:09:51,080 Speaker 1: future need them all. As we recently covered, renovating is 224 00:09:51,120 --> 00:09:54,560 Speaker 1: really expensive, So you want to have enough house now. However, 225 00:09:54,600 --> 00:09:57,240 Speaker 1: you also don't want to pay tons of money just 226 00:09:57,320 --> 00:10:01,040 Speaker 1: to have some extre amenities that you rarely use. Right 227 00:10:01,080 --> 00:10:03,199 Speaker 1: If you consider often you use that guest bedroom, where 228 00:10:03,200 --> 00:10:05,520 Speaker 1: that guest bath. After doing the math, that could be 229 00:10:05,600 --> 00:10:09,119 Speaker 1: the equivalent of paying five hundred to a thousand dollars 230 00:10:09,160 --> 00:10:11,880 Speaker 1: a night if you're only using those amenities just a 231 00:10:11,880 --> 00:10:14,160 Speaker 1: few times a year. Yeah, so it might be better 232 00:10:14,200 --> 00:10:16,000 Speaker 1: for you to be a little more generous and put 233 00:10:16,080 --> 00:10:19,640 Speaker 1: up your friend or your family in uh nearby hotel 234 00:10:19,920 --> 00:10:21,600 Speaker 1: as opposed to putting them up in your own house, 235 00:10:21,880 --> 00:10:25,400 Speaker 1: having a smaller house, which means right lower monthly out 236 00:10:25,400 --> 00:10:28,199 Speaker 1: of pocket expenses. It all just really depends on your 237 00:10:28,200 --> 00:10:31,760 Speaker 1: situation and what you prioritize. And also now is the 238 00:10:31,760 --> 00:10:34,360 Speaker 1: time to start thinking about your credit. You know, if 239 00:10:34,400 --> 00:10:36,440 Speaker 1: you kind of have had some things in your credit, 240 00:10:36,640 --> 00:10:38,440 Speaker 1: now is when you're gonna want to start having that 241 00:10:38,520 --> 00:10:40,840 Speaker 1: cleaned up and making sure that you qualify for the 242 00:10:40,840 --> 00:10:44,319 Speaker 1: best rates, because having a credit score a hundred points 243 00:10:44,320 --> 00:10:46,920 Speaker 1: lower than what it actually could be could and up 244 00:10:46,960 --> 00:10:49,120 Speaker 1: constion you tons of money down the road, and I'm 245 00:10:49,160 --> 00:10:51,559 Speaker 1: talking thousands and thousands of dollars if you don't have 246 00:10:51,679 --> 00:10:55,400 Speaker 1: to qualify for the best product. Yeah, Matt. On episode ten, 247 00:10:55,480 --> 00:10:57,800 Speaker 1: we talked about how to improve your credit score, gave 248 00:10:57,840 --> 00:10:59,959 Speaker 1: you kind of some tips and tricks. One thing you're 249 00:11:00,000 --> 00:11:02,040 Speaker 1: gonna want to stay away from is anyone who says 250 00:11:02,080 --> 00:11:03,640 Speaker 1: pay me money and I'll help you clean up your 251 00:11:03,640 --> 00:11:06,480 Speaker 1: credit score. That is a no no, because those people 252 00:11:06,520 --> 00:11:08,560 Speaker 1: often are gonna take your money and not help you 253 00:11:08,640 --> 00:11:11,640 Speaker 1: very much. But it's definitely of utmost importance to make 254 00:11:11,640 --> 00:11:13,680 Speaker 1: sure that your credit score is in tip top shape 255 00:11:14,040 --> 00:11:16,920 Speaker 1: because the ultimate terms that you're gonna get from a lender, well, 256 00:11:16,960 --> 00:11:19,120 Speaker 1: your credit score is going to be a huge factor 257 00:11:19,240 --> 00:11:22,240 Speaker 1: in how good those terms are. And so thinking about 258 00:11:22,320 --> 00:11:25,480 Speaker 1: your credit score now and how much you can boost 259 00:11:25,480 --> 00:11:27,320 Speaker 1: it by doing some of the things we've talked about 260 00:11:27,360 --> 00:11:29,200 Speaker 1: in that episode, that is going to make a huge 261 00:11:29,240 --> 00:11:31,920 Speaker 1: difference in the rate that you end up getting and 262 00:11:32,080 --> 00:11:34,800 Speaker 1: ultimately what you're out of pocket is every month on 263 00:11:34,840 --> 00:11:37,360 Speaker 1: that new home purchase. That's right. Once you've done all 264 00:11:37,400 --> 00:11:39,720 Speaker 1: those things, now is the time to start looking around 265 00:11:39,960 --> 00:11:42,360 Speaker 1: and seeing if the different things that you value in 266 00:11:42,400 --> 00:11:44,640 Speaker 1: a home, if those things fit within your budget, and 267 00:11:44,720 --> 00:11:48,360 Speaker 1: if they're realistic. These days, almost all home searches begin 268 00:11:48,480 --> 00:11:51,120 Speaker 1: on the internet, right, whether it be through Zillo, which 269 00:11:51,160 --> 00:11:53,960 Speaker 1: is my favorite, or Redfin. I like red Finn, do 270 00:11:54,000 --> 00:11:56,280 Speaker 1: you really, Yeah, that's my favorite. But even just with 271 00:11:56,400 --> 00:11:59,360 Speaker 1: Google stree view, you can see so much of a 272 00:11:59,400 --> 00:12:01,880 Speaker 1: house in this rounding area. You know, with satellite view 273 00:12:02,040 --> 00:12:04,240 Speaker 1: you can see what green spaces and parks there are 274 00:12:04,280 --> 00:12:06,080 Speaker 1: close by by, kind of zooming out a little bit. 275 00:12:06,360 --> 00:12:08,520 Speaker 1: There's a lot you can do remotely before even leaving 276 00:12:08,559 --> 00:12:10,920 Speaker 1: your house. The only downside, though, is that if you 277 00:12:10,960 --> 00:12:13,120 Speaker 1: get your heart set on a certain size home or 278 00:12:13,200 --> 00:12:15,880 Speaker 1: part of town that you can't actually afford in right, Like, 279 00:12:15,920 --> 00:12:18,439 Speaker 1: so you started looking and you realize that, like, oh wow, 280 00:12:18,480 --> 00:12:21,880 Speaker 1: in reality, I can't afford where I want to actually live, 281 00:12:22,320 --> 00:12:24,800 Speaker 1: you might be tempted to increase your budget. And so 282 00:12:24,880 --> 00:12:27,400 Speaker 1: if you know that that's sort of how you operate, 283 00:12:27,440 --> 00:12:30,079 Speaker 1: and if that's you, we would recommend to start with 284 00:12:30,160 --> 00:12:33,160 Speaker 1: your budget and then limits your options based on what 285 00:12:33,200 --> 00:12:34,880 Speaker 1: you can afford. And we're gonna get to that in 286 00:12:34,960 --> 00:12:37,720 Speaker 1: just one second. But I did want to say that everybody, 287 00:12:37,760 --> 00:12:41,000 Speaker 1: no matter what your price point is, everybody has kind 288 00:12:41,000 --> 00:12:43,720 Speaker 1: of a dream home. Everybody has a thought of the 289 00:12:43,760 --> 00:12:46,680 Speaker 1: place that they want to live, and the reality of 290 00:12:46,760 --> 00:12:50,280 Speaker 1: the budget never matches up to exactly what we want. 291 00:12:50,360 --> 00:12:52,520 Speaker 1: Right those three hot tubs I mentioned, Matt, I didn't 292 00:12:52,520 --> 00:12:54,320 Speaker 1: get them. I don't even have one hot tub, and 293 00:12:54,360 --> 00:12:56,240 Speaker 1: it's a huge bummer. I'm not gonna lie at one 294 00:12:56,280 --> 00:12:58,440 Speaker 1: of these days hot tub. It's in the car day. 295 00:12:59,160 --> 00:13:02,000 Speaker 1: But everybody has to make trade offs, and so just 296 00:13:02,080 --> 00:13:04,839 Speaker 1: make sure before you start looking super hard and getting 297 00:13:04,840 --> 00:13:08,120 Speaker 1: your heart set on things that are budget breakers, that 298 00:13:08,160 --> 00:13:10,800 Speaker 1: you've kind of dialed in a dose of realism of 299 00:13:10,840 --> 00:13:13,040 Speaker 1: what you can actually afford. And one of the ways 300 00:13:13,040 --> 00:13:15,040 Speaker 1: that you can do that is by actually touring some 301 00:13:15,160 --> 00:13:18,120 Speaker 1: homes before you're actually in the market to buy, to 302 00:13:18,200 --> 00:13:21,400 Speaker 1: do some walkthroughs and see, Okay, if I really want 303 00:13:21,640 --> 00:13:23,960 Speaker 1: this kind of house, I might have to move to 304 00:13:24,000 --> 00:13:26,400 Speaker 1: a neighborhood that isn't exactly where I wanted to be, 305 00:13:26,840 --> 00:13:30,240 Speaker 1: or man, if the neighborhood location is the most important 306 00:13:30,240 --> 00:13:32,040 Speaker 1: factor for me, you know what, I might have to 307 00:13:32,080 --> 00:13:34,640 Speaker 1: live in a smaller house. And those are the kind 308 00:13:34,640 --> 00:13:37,280 Speaker 1: of trade offs that in all likelihood you are going 309 00:13:37,320 --> 00:13:39,840 Speaker 1: to have to make. None of us get that exact 310 00:13:39,920 --> 00:13:42,920 Speaker 1: perfect dream home that we want, And so touring homes 311 00:13:42,920 --> 00:13:44,640 Speaker 1: that are on the market during this phase can be 312 00:13:44,679 --> 00:13:47,840 Speaker 1: just kind of really helpful to setting some realistic expectations 313 00:13:47,880 --> 00:13:51,040 Speaker 1: before you're even in the market. Rajeel, And again, the 314 00:13:51,040 --> 00:13:53,120 Speaker 1: goal here is to initially figure out what your ballpark 315 00:13:53,200 --> 00:13:55,920 Speaker 1: figures are of what you can afford. Like you said, 316 00:13:55,960 --> 00:13:58,080 Speaker 1: maybe after seeing the costs, you might realize that you 317 00:13:58,120 --> 00:14:00,720 Speaker 1: can't actually afford in that area that you want, or 318 00:14:00,760 --> 00:14:04,440 Speaker 1: maybe after realizing that you actually need down, you realize 319 00:14:04,440 --> 00:14:06,080 Speaker 1: you need to say for another year, Like, that's a 320 00:14:06,120 --> 00:14:08,600 Speaker 1: lot of money, and that that's sort of like the 321 00:14:08,640 --> 00:14:13,120 Speaker 1: information gathering stage of house purchasing, thinking a lot about it, 322 00:14:13,160 --> 00:14:15,040 Speaker 1: seeing what's out there, getting a field for the different 323 00:14:15,040 --> 00:14:17,200 Speaker 1: neighborhoods you want to do, all of this before you 324 00:14:17,240 --> 00:14:20,640 Speaker 1: actually start taking what we'd call real steps towards purchasing 325 00:14:20,640 --> 00:14:24,040 Speaker 1: a home. Okay, real steps though, getting financing right. That's 326 00:14:24,040 --> 00:14:27,280 Speaker 1: a huge important step, and I gotta be honest, it's 327 00:14:27,320 --> 00:14:30,640 Speaker 1: the step that people usually skip. They usually call on 328 00:14:30,640 --> 00:14:33,800 Speaker 1: one lender, maybe two, but often the due diligence and 329 00:14:33,800 --> 00:14:37,840 Speaker 1: the research uh that people give to getting financing is 330 00:14:37,880 --> 00:14:39,520 Speaker 1: way less than they need to and it ends up 331 00:14:39,520 --> 00:14:41,960 Speaker 1: costing them a lot of money. So let's go over that. 332 00:14:42,240 --> 00:14:44,840 Speaker 1: A general rule that you should think about when getting 333 00:14:44,880 --> 00:14:47,880 Speaker 1: financing for a home is that you should strongly consider 334 00:14:48,200 --> 00:14:50,960 Speaker 1: not taking out a loan that is more than three 335 00:14:51,000 --> 00:14:54,440 Speaker 1: times your income. And you know what a lender might say, No, 336 00:14:54,600 --> 00:14:57,640 Speaker 1: it's totally okay. You qualify for a loan that is 337 00:14:58,040 --> 00:15:01,120 Speaker 1: five times your income or sick times your income, Like, no, 338 00:15:01,240 --> 00:15:03,840 Speaker 1: you bother you got this, you can make it happen. 339 00:15:03,960 --> 00:15:07,120 Speaker 1: It's okay. You know what, don't listen to them. Listening 340 00:15:07,160 --> 00:15:10,880 Speaker 1: to your lender as opposed to reason in this case 341 00:15:11,400 --> 00:15:14,520 Speaker 1: is a recipe for being house poor, for buying something 342 00:15:14,560 --> 00:15:17,560 Speaker 1: that you truly can't afford, and if something unexpected happens, 343 00:15:17,800 --> 00:15:19,920 Speaker 1: you might not be able to afford that mortgage payment. 344 00:15:20,040 --> 00:15:23,000 Speaker 1: So sticking to that rule of three times your income 345 00:15:23,360 --> 00:15:26,240 Speaker 1: as the maximum purchase price for a house makes sense 346 00:15:26,240 --> 00:15:29,320 Speaker 1: in our opinion. And another rule of thumb that we've 347 00:15:29,320 --> 00:15:32,080 Speaker 1: practiced is that your mortgage payment should not be more 348 00:15:32,080 --> 00:15:35,520 Speaker 1: than of your take home pay. I think that might 349 00:15:35,520 --> 00:15:38,920 Speaker 1: be a somewhat more lenient view towards towards your home, 350 00:15:38,960 --> 00:15:40,720 Speaker 1: and I think that's okay as well, right, Like, it's 351 00:15:40,760 --> 00:15:43,040 Speaker 1: okay to have these different rules of thumb. Ask you 352 00:15:43,080 --> 00:15:45,840 Speaker 1: how much your your housing costs are, because it kind 353 00:15:45,840 --> 00:15:48,040 Speaker 1: of comes down to what you value and what you 354 00:15:48,040 --> 00:15:50,200 Speaker 1: want to prioritize. I know, for Kate, and this is 355 00:15:50,440 --> 00:15:53,920 Speaker 1: literally a discussion that we've had before. We've said, do 356 00:15:53,960 --> 00:15:56,280 Speaker 1: we want to spend more than maybe we should on 357 00:15:56,320 --> 00:15:58,400 Speaker 1: our housing? And we've identified the fact that with a 358 00:15:58,400 --> 00:16:00,240 Speaker 1: bunch of young kids like we spend a lot of 359 00:16:00,240 --> 00:16:02,480 Speaker 1: time at home. We value our time at home, Like 360 00:16:02,560 --> 00:16:04,920 Speaker 1: both Kate and I are both homebodies, and so that's 361 00:16:04,920 --> 00:16:07,280 Speaker 1: something that we've intentionally pursued and we know that we're 362 00:16:07,320 --> 00:16:09,280 Speaker 1: more comfortable spending maybe a little bit more on our 363 00:16:09,360 --> 00:16:12,680 Speaker 1: house And that's okay as long as you have proactively 364 00:16:12,720 --> 00:16:15,640 Speaker 1: identify that as something that you do want to pursue. 365 00:16:15,680 --> 00:16:17,520 Speaker 1: And so whatever your guidelines, you just want to make 366 00:16:17,560 --> 00:16:19,880 Speaker 1: sure that you're not spending too much on housing then 367 00:16:19,920 --> 00:16:22,240 Speaker 1: you can afford. And for you, in particular, Matt, housing 368 00:16:22,360 --> 00:16:24,480 Speaker 1: is also actually you know where you do your work 369 00:16:24,560 --> 00:16:27,440 Speaker 1: and so you home office as well. Yeah, so it's 370 00:16:27,440 --> 00:16:29,520 Speaker 1: got a dual purpose. I will say though, there was 371 00:16:29,560 --> 00:16:32,960 Speaker 1: a stat I saw recently almost fifteen percent of Americans 372 00:16:33,280 --> 00:16:36,680 Speaker 1: spend over fifty percent of their income on housing. Jeez, 373 00:16:36,880 --> 00:16:39,120 Speaker 1: that's a lot. Yeah, that's an awful place to be. 374 00:16:39,320 --> 00:16:41,120 Speaker 1: And so yeah, we just don't want you to be 375 00:16:41,200 --> 00:16:43,760 Speaker 1: in a place of weakness when it comes to buying 376 00:16:43,760 --> 00:16:46,800 Speaker 1: a home. And if you're in a situation obviously a 377 00:16:46,800 --> 00:16:49,480 Speaker 1: mortgage lender typically isn't going to allow you to get 378 00:16:49,520 --> 00:16:51,800 Speaker 1: into that kind of space. But you know what, if 379 00:16:51,840 --> 00:16:54,240 Speaker 1: you follow what a lender tells you can afford. There's 380 00:16:54,280 --> 00:16:56,520 Speaker 1: a good chance that you're going to get into a 381 00:16:56,560 --> 00:16:59,240 Speaker 1: position where you can't afford your mortgage with a comfortable 382 00:16:59,320 --> 00:17:01,600 Speaker 1: level of say means and investing at the same time. 383 00:17:01,880 --> 00:17:03,440 Speaker 1: And that's not the place that we want you to be. 384 00:17:03,520 --> 00:17:05,440 Speaker 1: We want you to be in a place of strength 385 00:17:05,760 --> 00:17:07,840 Speaker 1: in housing. And if that means you need to look 386 00:17:07,880 --> 00:17:10,160 Speaker 1: at buying in a different neighborhood or look at buying 387 00:17:10,240 --> 00:17:12,639 Speaker 1: a smaller home, we think that's a trade off you 388 00:17:12,680 --> 00:17:15,560 Speaker 1: need to be willing to consider, because being house port 389 00:17:15,680 --> 00:17:18,880 Speaker 1: is no fun. Oh, Joel. Also, financing, like, we didn't 390 00:17:18,880 --> 00:17:21,280 Speaker 1: really define it, and I think most people know what 391 00:17:21,320 --> 00:17:23,480 Speaker 1: financing is, but that's just sort of a fancy term 392 00:17:23,600 --> 00:17:26,119 Speaker 1: for how you're going to pay for your house unless 393 00:17:26,119 --> 00:17:28,520 Speaker 1: you have cash to buy your home. And if you 394 00:17:28,520 --> 00:17:30,760 Speaker 1: do have cash to purchase your home, you probably know 395 00:17:30,800 --> 00:17:35,680 Speaker 1: what financing is and you reach spollars. But but yeah, basically, 396 00:17:35,720 --> 00:17:37,880 Speaker 1: pretty much everyone is going to be financing their home 397 00:17:37,880 --> 00:17:39,600 Speaker 1: and that just means getting alone for the purchase of 398 00:17:39,600 --> 00:17:42,240 Speaker 1: that home. And when it comes to getting that financing 399 00:17:42,320 --> 00:17:44,879 Speaker 1: or getting that loan for your house, well, credit unions 400 00:17:44,880 --> 00:17:47,199 Speaker 1: are a great place to start. So if you're not 401 00:17:47,320 --> 00:17:49,520 Speaker 1: a member of a local credit union, we would encourage 402 00:17:49,560 --> 00:17:51,600 Speaker 1: you to go join one and make sure you're shopping 403 00:17:51,680 --> 00:17:54,119 Speaker 1: rates with the credit union that you're a member of. 404 00:17:54,440 --> 00:17:58,080 Speaker 1: Also consider contacting a mortgage broker in your area. They 405 00:17:58,119 --> 00:18:00,760 Speaker 1: often have access to a whole slew of lenders and 406 00:18:00,800 --> 00:18:02,480 Speaker 1: so they can help you find some of the best 407 00:18:02,600 --> 00:18:05,280 Speaker 1: rates available on the market. Ultimately, you're gonna want to 408 00:18:05,280 --> 00:18:08,040 Speaker 1: make sure you go with a lender that has experience 409 00:18:08,600 --> 00:18:12,199 Speaker 1: and that can close quickly. Lenders that have a solid 410 00:18:12,359 --> 00:18:15,400 Speaker 1: reputation that have been doing it for years. You can 411 00:18:15,480 --> 00:18:19,080 Speaker 1: just feel a lot more comfortable with that and closing quickly. Well, 412 00:18:19,119 --> 00:18:21,400 Speaker 1: that's just going to allow you to take advantage of 413 00:18:21,440 --> 00:18:23,679 Speaker 1: some of the best housing deals that you find. And 414 00:18:23,720 --> 00:18:25,879 Speaker 1: we mentioned financing and when making sure you have that 415 00:18:25,920 --> 00:18:28,760 Speaker 1: lined up before you even seriously start looking at houses, 416 00:18:28,800 --> 00:18:30,800 Speaker 1: And that's a big reason why I Joel like you 417 00:18:30,800 --> 00:18:33,560 Speaker 1: want to have financing in place. That way, when it 418 00:18:33,600 --> 00:18:35,719 Speaker 1: does come time to look at houses, you can pounce. 419 00:18:35,760 --> 00:18:37,879 Speaker 1: You can move quickly because in hot real estate markets 420 00:18:37,880 --> 00:18:40,360 Speaker 1: where sellers just have tons of buyers coming to them, 421 00:18:40,600 --> 00:18:43,560 Speaker 1: they're gonna typically go with whoever can come to them. 422 00:18:43,560 --> 00:18:46,320 Speaker 1: The quickest with the best offer, and so you may 423 00:18:46,320 --> 00:18:47,960 Speaker 1: not be able to show up with the best offer, 424 00:18:48,359 --> 00:18:49,679 Speaker 1: but you can definitely get your foot in the door. 425 00:18:49,720 --> 00:18:51,120 Speaker 1: You can have a leg up if you can turn 426 00:18:51,119 --> 00:18:52,879 Speaker 1: it around quickly and you've got your ducks all in 427 00:18:52,880 --> 00:18:54,600 Speaker 1: a row and real quick as well. Joel, you mentioned 428 00:18:54,600 --> 00:18:56,960 Speaker 1: credit unions. This might be helpful for our listeners. But 429 00:18:57,040 --> 00:18:59,679 Speaker 1: so credit unions are essentially the same as banks, right 430 00:18:59,680 --> 00:19:02,399 Speaker 1: like they they all offer savings and checking accounts and 431 00:19:02,600 --> 00:19:07,040 Speaker 1: offer loans whatnot. But credit unions are nonprofit and typically 432 00:19:07,080 --> 00:19:09,960 Speaker 1: offer better rates. And then you've got mortgage lenders, and 433 00:19:10,000 --> 00:19:13,080 Speaker 1: they typically will be faster and more streamline since they're 434 00:19:13,520 --> 00:19:16,919 Speaker 1: only in the business of making loans. Often times they 435 00:19:17,000 --> 00:19:19,840 Speaker 1: end up selling your mortgage to a bank, typically to 436 00:19:19,880 --> 00:19:21,520 Speaker 1: one of the big ones, and you know the big 437 00:19:21,520 --> 00:19:23,680 Speaker 1: bank will be the ones that end up servicing your loan. 438 00:19:24,200 --> 00:19:26,199 Speaker 1: And then, Joel, you know you already mentioned brokers, but 439 00:19:26,280 --> 00:19:28,680 Speaker 1: they kind of shop around for you and they might 440 00:19:28,720 --> 00:19:30,920 Speaker 1: be a great fit for you, in particular if you're 441 00:19:30,920 --> 00:19:33,440 Speaker 1: self employed or if you have a unique buying situation. 442 00:19:33,640 --> 00:19:35,359 Speaker 1: They're aware of the different products that are out there 443 00:19:35,359 --> 00:19:37,240 Speaker 1: and might be able to sort of custom fit something 444 00:19:37,320 --> 00:19:39,639 Speaker 1: more to to you and your needs, and and they 445 00:19:39,640 --> 00:19:42,760 Speaker 1: get paid either directly by the lender or a lot 446 00:19:42,760 --> 00:19:45,920 Speaker 1: of times, uh, their fees are baked directly into your rate. 447 00:19:46,320 --> 00:19:49,320 Speaker 1: I know, for like Kate and I specifically, we maybe 448 00:19:49,320 --> 00:19:51,520 Speaker 1: should have considered a broker early on, like when we 449 00:19:51,520 --> 00:19:53,720 Speaker 1: got our first house, because we had only been in 450 00:19:53,760 --> 00:19:56,360 Speaker 1: business for one year and because of that, we got 451 00:19:56,359 --> 00:19:59,879 Speaker 1: stuck with a terrible adjustable rate mortgage that we had 452 00:20:00,080 --> 00:20:02,880 Speaker 1: to refinance just a few years later, and that costs 453 00:20:02,880 --> 00:20:04,439 Speaker 1: a lot of money. Yeah, So if you don't have 454 00:20:04,480 --> 00:20:06,359 Speaker 1: a credit union and you're in the market for a house, 455 00:20:06,640 --> 00:20:08,960 Speaker 1: will go to n c U. A will put a 456 00:20:08,960 --> 00:20:10,919 Speaker 1: link to that in the show notes. That's gonna be 457 00:20:11,040 --> 00:20:13,680 Speaker 1: the website where you can find a local credit union 458 00:20:13,720 --> 00:20:17,280 Speaker 1: in your area. And so be sure to shop shop Shop. 459 00:20:17,440 --> 00:20:19,840 Speaker 1: You're gonna want to get three to five quotes minimum. 460 00:20:20,000 --> 00:20:23,320 Speaker 1: So many people Matt, like I mentioned quickly earlier, skip 461 00:20:23,400 --> 00:20:25,879 Speaker 1: this step, and you know what, it ends up costing 462 00:20:25,920 --> 00:20:29,760 Speaker 1: them thousands, if not potentially tens of thousands of dollars 463 00:20:29,800 --> 00:20:32,119 Speaker 1: over the long run. And it's not usually the closing 464 00:20:32,160 --> 00:20:34,040 Speaker 1: costs that are the biggest difference, although that can be 465 00:20:34,080 --> 00:20:37,159 Speaker 1: you know, a few thousand dollars even in difference between 466 00:20:37,200 --> 00:20:40,520 Speaker 1: different lenders. Often it's gonna be that slight difference in 467 00:20:40,600 --> 00:20:43,480 Speaker 1: interest rate combined with those closing costs that can cost 468 00:20:43,520 --> 00:20:45,680 Speaker 1: you tens of thousands of dollars depending on the price 469 00:20:45,760 --> 00:20:47,720 Speaker 1: of your home. So you're gonna want to make sure 470 00:20:47,800 --> 00:20:51,680 Speaker 1: you get a couple quotes from credit unions, a mortgage broker, involved, 471 00:20:51,920 --> 00:20:54,359 Speaker 1: a local lender, and online lender, Like, you're gonna want 472 00:20:54,359 --> 00:20:56,080 Speaker 1: to kind of run the gamut. You're gonna want to 473 00:20:56,080 --> 00:20:58,280 Speaker 1: get a lot of quotes so that you can bring 474 00:20:58,320 --> 00:21:00,280 Speaker 1: them to the table, look at the apples to poles 475 00:21:00,320 --> 00:21:03,600 Speaker 1: comparisons and go with the lender that has the best 476 00:21:03,720 --> 00:21:06,920 Speaker 1: overall package for you. Yeah, and the actual document man 477 00:21:06,960 --> 00:21:09,199 Speaker 1: that you're gonna want to use to compare those apples 478 00:21:09,200 --> 00:21:12,879 Speaker 1: to apples is the loan estimate documents. It's gonna have 479 00:21:12,920 --> 00:21:15,639 Speaker 1: your points on there, your interest rate, your closing costs, 480 00:21:15,880 --> 00:21:17,919 Speaker 1: just everything that you're gonna want to take into account 481 00:21:17,920 --> 00:21:20,320 Speaker 1: when it comes to shopping the different lenders. And Matt 482 00:21:20,400 --> 00:21:23,240 Speaker 1: just mentioned getting an adjustable rate mortgage when he bought 483 00:21:23,240 --> 00:21:26,600 Speaker 1: his first house, we would highly advise against getting an 484 00:21:26,600 --> 00:21:30,440 Speaker 1: adjustable rate mortgage. Had they suck. Yeah, that can lead 485 00:21:30,480 --> 00:21:32,639 Speaker 1: to a lot of problems down the road. And so 486 00:21:32,680 --> 00:21:35,720 Speaker 1: the thirty year fixed is kind of the standard in lending. 487 00:21:35,840 --> 00:21:38,399 Speaker 1: That's kind of what most lenders are going to steer 488 00:21:38,400 --> 00:21:40,920 Speaker 1: you towards, and it's also one of the best products 489 00:21:40,960 --> 00:21:44,040 Speaker 1: on the market. But you should challenge yourself to consider 490 00:21:44,080 --> 00:21:46,520 Speaker 1: a fifteen year or a twenty year mortgage if your 491 00:21:46,600 --> 00:21:48,880 Speaker 1: lender offers it, and almost every lender offers at least 492 00:21:48,880 --> 00:21:51,600 Speaker 1: a fifteen year. If you can barely afford the thirty 493 00:21:51,680 --> 00:21:54,359 Speaker 1: year payment, though, you should really question whether or not 494 00:21:54,440 --> 00:21:56,840 Speaker 1: you can afford the home. It's worth looking at the 495 00:21:56,880 --> 00:21:59,800 Speaker 1: fifteen and twenty year mortgage options to see if one 496 00:21:59,800 --> 00:22:01,640 Speaker 1: of the can fit in your life. If they can, 497 00:22:01,880 --> 00:22:04,000 Speaker 1: you're gonna get a lower interest rate, and you're going 498 00:22:04,040 --> 00:22:06,960 Speaker 1: to obviously be paying on your loan for a lot 499 00:22:07,040 --> 00:22:09,359 Speaker 1: less years. The trade off is that you'll be paying 500 00:22:09,359 --> 00:22:12,159 Speaker 1: more every month towards the price of your house. But 501 00:22:12,240 --> 00:22:14,720 Speaker 1: if you can't make a fifteen or twenty year mortgage 502 00:22:14,760 --> 00:22:16,760 Speaker 1: work for you, a thirty year mortgage is a great 503 00:22:16,760 --> 00:22:18,959 Speaker 1: way to go. Just make sure that you can easily 504 00:22:19,000 --> 00:22:22,119 Speaker 1: afford that thirty year mortgage payment in your monthly budget. 505 00:22:22,440 --> 00:22:24,679 Speaker 1: Yea man. The reason for that is because you just 506 00:22:24,720 --> 00:22:26,720 Speaker 1: want to have margin in your life. When you own 507 00:22:26,720 --> 00:22:28,960 Speaker 1: a home, there are a lot of things that can 508 00:22:29,000 --> 00:22:32,480 Speaker 1: go wrong. There's a roof, there's electrical there's furnaces, there's 509 00:22:32,520 --> 00:22:34,760 Speaker 1: just all sorts of systems and plus a lot of 510 00:22:34,760 --> 00:22:36,960 Speaker 1: times you just want to spend money on your house. 511 00:22:37,240 --> 00:22:39,720 Speaker 1: Typically homes are maybe a little bit larger than the 512 00:22:39,760 --> 00:22:42,439 Speaker 1: space that you've been renting, and so there are just 513 00:22:42,520 --> 00:22:44,760 Speaker 1: other expenses that you want to make sure that you're 514 00:22:44,840 --> 00:22:48,199 Speaker 1: easily able to pay. And if the monthly mortgage payment 515 00:22:48,600 --> 00:22:51,000 Speaker 1: is equivalent to what you're paying in rent depending on 516 00:22:51,040 --> 00:22:53,840 Speaker 1: your income, that's potentially a red alert because when you 517 00:22:53,920 --> 00:22:56,760 Speaker 1: were renting, you weren't having to pay for any sort 518 00:22:56,760 --> 00:22:59,920 Speaker 1: of upkeep, and on our new home, guess what upkeep 519 00:23:00,160 --> 00:23:03,880 Speaker 1: is your responsibility. So unless you could easily afford them 520 00:23:03,880 --> 00:23:06,040 Speaker 1: out that you were paying in rent, you're gonna want 521 00:23:06,040 --> 00:23:08,280 Speaker 1: to find a house that provides you with a monthly 522 00:23:08,359 --> 00:23:11,399 Speaker 1: mortgage payment that actually comes in at less than what 523 00:23:11,480 --> 00:23:15,000 Speaker 1: you're paying in rent. And as far as upkeep and maintenance, 524 00:23:15,040 --> 00:23:18,280 Speaker 1: jool like most experts say to expect to pay one 525 00:23:18,359 --> 00:23:21,760 Speaker 1: percent of the cost of your home. And so you know, 526 00:23:21,800 --> 00:23:24,399 Speaker 1: earlier I mentioned that the median price of homes in 527 00:23:24,440 --> 00:23:26,280 Speaker 1: the in the United States last year was over three 528 00:23:26,359 --> 00:23:29,560 Speaker 1: hundred thousand. That means you're looking at spending three thousand 529 00:23:29,560 --> 00:23:33,320 Speaker 1: dollars additional every year just to maintain your home. And 530 00:23:33,400 --> 00:23:36,560 Speaker 1: while we're on the topic of percentages, make sure that 531 00:23:36,680 --> 00:23:39,080 Speaker 1: you have enough for down payment. You know, if you 532 00:23:39,080 --> 00:23:41,640 Speaker 1: don't have at least five percent down you probably shouldn't 533 00:23:41,640 --> 00:23:44,280 Speaker 1: be shopping around for a home is best you're gonna 534 00:23:44,320 --> 00:23:46,479 Speaker 1: be able to get the best rates. There are some 535 00:23:46,520 --> 00:23:48,440 Speaker 1: products out there that allow you to put down less. 536 00:23:48,440 --> 00:23:50,160 Speaker 1: You're looking at three and a half percent for an 537 00:23:50,160 --> 00:23:52,600 Speaker 1: f h A loan, for a v A loan, even 538 00:23:52,720 --> 00:23:55,040 Speaker 1: zero percent. The fact is those don't put you in 539 00:23:55,040 --> 00:23:57,280 Speaker 1: a strong position. Doesn't put you in a strong position 540 00:23:57,280 --> 00:23:59,199 Speaker 1: when it comes to the equity that you have in 541 00:23:59,240 --> 00:24:01,480 Speaker 1: the home, but also when it comes to trying to 542 00:24:01,520 --> 00:24:04,480 Speaker 1: purchase that home and make offers, those products just don't 543 00:24:04,480 --> 00:24:06,720 Speaker 1: look quite as strong. And we'll get more into that 544 00:24:06,880 --> 00:24:09,080 Speaker 1: next week. Actually, yeah, Matt, and I think if you're 545 00:24:09,080 --> 00:24:11,720 Speaker 1: bringing less down payment to the table, you need to 546 00:24:11,720 --> 00:24:13,679 Speaker 1: actually be willing to stay in the home even longer. 547 00:24:14,359 --> 00:24:17,120 Speaker 1: Forget seven years, how about ten right or the rest 548 00:24:17,160 --> 00:24:19,920 Speaker 1: of your life? Right? No, but seriously, because if you're 549 00:24:19,920 --> 00:24:22,840 Speaker 1: putting down on a home and you stay there for 550 00:24:22,880 --> 00:24:25,080 Speaker 1: five years, the chances of you selling your home and 551 00:24:25,080 --> 00:24:27,679 Speaker 1: going to the closing table and having to write a 552 00:24:27,760 --> 00:24:30,720 Speaker 1: check are are highly unlikely. But if you buy a 553 00:24:30,720 --> 00:24:33,040 Speaker 1: house with zero percent down with the v A loan 554 00:24:33,119 --> 00:24:34,480 Speaker 1: or three and a half percent down with an f 555 00:24:34,640 --> 00:24:36,680 Speaker 1: h A loan, and you're only there for four or 556 00:24:36,720 --> 00:24:39,359 Speaker 1: five years, the chances of you having to write a 557 00:24:39,400 --> 00:24:41,560 Speaker 1: check at the closing table, well they're pretty high, and 558 00:24:41,600 --> 00:24:43,280 Speaker 1: you might not have the money to cover it. And 559 00:24:43,320 --> 00:24:44,920 Speaker 1: so if you are going to come to the table 560 00:24:44,920 --> 00:24:47,320 Speaker 1: with less money down, which I don't think it's the 561 00:24:47,359 --> 00:24:49,119 Speaker 1: end of the world. Necessarily, it helps get a lot 562 00:24:49,160 --> 00:24:51,520 Speaker 1: of people in a home that they really want. Just 563 00:24:51,640 --> 00:24:53,400 Speaker 1: consider how long are you going to be in the home, 564 00:24:53,800 --> 00:24:56,159 Speaker 1: and you might need to just extend that timeline in 565 00:24:56,240 --> 00:24:58,280 Speaker 1: order to make it work. Yeah, So we're gonna talk 566 00:24:58,280 --> 00:25:01,440 Speaker 1: specifically about the different fee ease and costs associated with 567 00:25:01,520 --> 00:25:03,760 Speaker 1: purchasing a house next week. But right after the break, 568 00:25:03,760 --> 00:25:05,760 Speaker 1: we're gonna cover your new best friend who's gonna save 569 00:25:05,800 --> 00:25:17,440 Speaker 1: you tons of money your realtor. M all right, Matt, 570 00:25:17,480 --> 00:25:19,919 Speaker 1: let's talk realtors. It turns out most people find a 571 00:25:19,960 --> 00:25:23,520 Speaker 1: realtor from their cousins, best friend or Facebook or something 572 00:25:23,560 --> 00:25:26,520 Speaker 1: like that, right, And that's just not the best way 573 00:25:26,560 --> 00:25:29,320 Speaker 1: to find a realtor in your area. And I said 574 00:25:29,400 --> 00:25:32,000 Speaker 1: in your area, because it's really important to find someone 575 00:25:32,000 --> 00:25:35,080 Speaker 1: who specializes in the neighborhood or town where you live. 576 00:25:35,359 --> 00:25:39,439 Speaker 1: An agent with experience and connections is priceless. They know 577 00:25:39,520 --> 00:25:41,520 Speaker 1: the ropes, they know the system, they know the people. 578 00:25:41,760 --> 00:25:44,439 Speaker 1: And so one way to find that right agent is 579 00:25:44,480 --> 00:25:47,119 Speaker 1: looking at for sale signs of homes that are for 580 00:25:47,160 --> 00:25:49,800 Speaker 1: sale in your target area. If you see the same 581 00:25:49,840 --> 00:25:52,439 Speaker 1: agent on lots of them, that's a great agent to 582 00:25:52,480 --> 00:25:55,480 Speaker 1: consider asking to represent you in the home buying process. 583 00:25:55,760 --> 00:25:58,400 Speaker 1: The same thing applies when you're looking at listings online. 584 00:25:58,480 --> 00:26:00,800 Speaker 1: If you see that same name popping up over and 585 00:26:00,840 --> 00:26:03,399 Speaker 1: over at homes that you're interested in, they're probably a 586 00:26:03,440 --> 00:26:07,640 Speaker 1: great choice to be your representative agent as a buyer. Yeah, 587 00:26:07,680 --> 00:26:09,479 Speaker 1: you know, man, When you have a great realtor who 588 00:26:09,560 --> 00:26:12,679 Speaker 1: is focused and specialized in a specific area, there's a 589 00:26:12,680 --> 00:26:14,679 Speaker 1: good chance they'll know of deals even before they even 590 00:26:14,760 --> 00:26:17,520 Speaker 1: hit MLS and before they go public, there is a 591 00:26:17,600 --> 00:26:20,320 Speaker 1: chance that you can get a really great deal. Yeah. 592 00:26:20,359 --> 00:26:22,199 Speaker 1: Those are called pocket listings. And by the way, you 593 00:26:22,240 --> 00:26:25,080 Speaker 1: just mentioned MLS, that's the Multiple Listing Service and that's 594 00:26:25,080 --> 00:26:27,600 Speaker 1: where pretty much everybody who wants to sell a house 595 00:26:27,680 --> 00:26:30,080 Speaker 1: list their home. If you're for sale by owner, it's 596 00:26:30,080 --> 00:26:32,600 Speaker 1: harder to get your home on the MLS. But the 597 00:26:32,720 --> 00:26:35,080 Speaker 1: MLS that's like the holy Grail. You have to have 598 00:26:35,119 --> 00:26:37,719 Speaker 1: your home on there in order to get maximum exposure 599 00:26:37,760 --> 00:26:39,840 Speaker 1: to all the buyers that you want to potentially reach. 600 00:26:40,040 --> 00:26:43,080 Speaker 1: It's like Apple Podcasts for podcasts. Right. If your podcast 601 00:26:43,080 --> 00:26:46,680 Speaker 1: ain't there, ain't nobody listening, right. But also keep in 602 00:26:46,720 --> 00:26:48,720 Speaker 1: mind too that the Internet is honestly changing what it 603 00:26:48,720 --> 00:26:51,679 Speaker 1: looks like to go and look at homes with your realtor, 604 00:26:51,800 --> 00:26:53,560 Speaker 1: like it used to be back in the day that 605 00:26:53,680 --> 00:26:56,359 Speaker 1: your realtor would send you maybe six or seven, you know, 606 00:26:56,400 --> 00:26:58,320 Speaker 1: homes that they've handpicked, and you get to go and 607 00:26:58,359 --> 00:27:00,600 Speaker 1: you tour them and you decide is this one gonna 608 00:27:00,600 --> 00:27:02,520 Speaker 1: be nice? Maybe it will, maybe it won't. But it 609 00:27:02,560 --> 00:27:05,000 Speaker 1: was kind of time consuming, kind of old school. Did 610 00:27:05,000 --> 00:27:07,520 Speaker 1: you do that with your first house? Oh? Yeah, okay, 611 00:27:07,760 --> 00:27:10,680 Speaker 1: there was a lot of Saturday driving around with my realtor, 612 00:27:11,119 --> 00:27:13,920 Speaker 1: which is fascinating because now I feel like so much 613 00:27:13,960 --> 00:27:17,800 Speaker 1: of the process is shouldered by the buyer. Yeah, which 614 00:27:17,840 --> 00:27:20,040 Speaker 1: is good though, I think because it's completely Yeah, it's 615 00:27:20,080 --> 00:27:23,200 Speaker 1: more efficient, and because there are tools out there now 616 00:27:23,240 --> 00:27:26,119 Speaker 1: that allow the buyers to have more autonomy to search 617 00:27:26,200 --> 00:27:28,439 Speaker 1: and to make their own filters and to create their 618 00:27:28,480 --> 00:27:30,919 Speaker 1: own criteria to find the home themselves. And what that 619 00:27:31,000 --> 00:27:34,040 Speaker 1: means though, is that you plan to meet at the 620 00:27:34,040 --> 00:27:36,120 Speaker 1: house with your realtor, but you don't have to drive 621 00:27:36,160 --> 00:27:39,399 Speaker 1: around in their car while, you know, making awkward conversations. Yeah. 622 00:27:39,520 --> 00:27:42,440 Speaker 1: And so you mentioned that sometimes realtors who specialized in 623 00:27:42,440 --> 00:27:45,800 Speaker 1: the neighborhood might have access to what are called pocket listings, 624 00:27:45,960 --> 00:27:48,000 Speaker 1: and that means that they hear about something that's going 625 00:27:48,040 --> 00:27:50,440 Speaker 1: to come up for sale or something that's just kind 626 00:27:50,440 --> 00:27:52,320 Speaker 1: of on the d L there on the inside, and 627 00:27:52,359 --> 00:27:55,040 Speaker 1: they know what's coming up. And so it's good to 628 00:27:55,040 --> 00:27:58,359 Speaker 1: have an agent who is connected, who's well connected, and 629 00:27:58,400 --> 00:28:02,040 Speaker 1: who has access to pocket listings like that. So, for example, Matt, 630 00:28:02,200 --> 00:28:05,160 Speaker 1: I've got a real estate agent. She's the best. Typically 631 00:28:05,359 --> 00:28:08,879 Speaker 1: I'm searching on my own on the MLS for properties 632 00:28:08,920 --> 00:28:11,600 Speaker 1: that interests me. But if a pocket listing comes up 633 00:28:11,600 --> 00:28:14,120 Speaker 1: that she hears about that fits my parameters, she knows 634 00:28:14,119 --> 00:28:16,239 Speaker 1: what I'm looking for, she will send it to me 635 00:28:16,320 --> 00:28:17,919 Speaker 1: and she'll say, hey, I know that you're in the 636 00:28:17,960 --> 00:28:20,800 Speaker 1: market for this kind of property. Does this interest you. 637 00:28:20,840 --> 00:28:22,440 Speaker 1: This is coming up on the market in a couple 638 00:28:22,480 --> 00:28:24,640 Speaker 1: of weeks, and I know about it ahead of time, 639 00:28:24,720 --> 00:28:27,560 Speaker 1: so we can get in ahead of other potential buyers 640 00:28:27,840 --> 00:28:29,959 Speaker 1: by being quick and jumping on it now. And so 641 00:28:30,000 --> 00:28:33,080 Speaker 1: that's one of the benefits that having an experienced agent 642 00:28:33,200 --> 00:28:36,200 Speaker 1: can offer you. In addition, I feel like an experienced 643 00:28:36,240 --> 00:28:39,640 Speaker 1: agent helps you with the negotiation process. And I know 644 00:28:39,840 --> 00:28:42,760 Speaker 1: that potential homebuyers might be a little more apprehensive to 645 00:28:43,240 --> 00:28:45,520 Speaker 1: a realtor taking kind of a bite out of the 646 00:28:45,560 --> 00:28:48,320 Speaker 1: pie taking a percentage fee. And we'll talk about this 647 00:28:48,360 --> 00:28:51,320 Speaker 1: more next week. But having a great agent is similar 648 00:28:51,320 --> 00:28:53,400 Speaker 1: to having a great lawyer in a court of law. 649 00:28:53,840 --> 00:28:56,400 Speaker 1: They're going to help you in the negotiation process. And 650 00:28:56,400 --> 00:28:59,240 Speaker 1: in all honesty, I've had great agents that have saved 651 00:28:59,240 --> 00:29:01,840 Speaker 1: me more than the fee that they're taking. So don't 652 00:29:01,920 --> 00:29:04,680 Speaker 1: cheap out on an agent. Find a good one. And 653 00:29:04,680 --> 00:29:07,320 Speaker 1: we've already mentioned Zillo, right that's my favorite, Joel, you 654 00:29:07,320 --> 00:29:10,320 Speaker 1: mentioned Redfinn, how that's your favorite. They are amazing tools, 655 00:29:10,320 --> 00:29:12,480 Speaker 1: and they allow homebuyers to do a ton of research 656 00:29:12,560 --> 00:29:14,320 Speaker 1: on their own. It allows them to really get to 657 00:29:14,360 --> 00:29:17,360 Speaker 1: know a neighborhood and familiarize themselves with what an area 658 00:29:17,440 --> 00:29:21,480 Speaker 1: has to offer. However, don't neglect to actually go visit 659 00:29:21,560 --> 00:29:24,240 Speaker 1: and go drive around the streets in person. There's so 660 00:29:24,320 --> 00:29:26,920 Speaker 1: much that you can gather from just being there as 661 00:29:26,960 --> 00:29:29,240 Speaker 1: a human being. Yeah, and you're gonna want to drive 662 00:29:29,240 --> 00:29:32,000 Speaker 1: those streets not only during the day, but at night too, 663 00:29:32,080 --> 00:29:34,480 Speaker 1: because some neighborhoods, I don't know where you live, but 664 00:29:34,640 --> 00:29:38,240 Speaker 1: but where we live, neighborhoods can change from day to evening, 665 00:29:38,560 --> 00:29:40,760 Speaker 1: and so driving by at different times of day can 666 00:29:40,800 --> 00:29:43,200 Speaker 1: help you get a better feel for the neighborhood. And 667 00:29:43,240 --> 00:29:45,560 Speaker 1: not only different times during the day as well, man, 668 00:29:45,600 --> 00:29:47,560 Speaker 1: but just on the weekends too. So by checking it 669 00:29:47,560 --> 00:29:49,320 Speaker 1: out on the weekend as well, just drive by and 670 00:29:49,360 --> 00:29:51,960 Speaker 1: see what's going on over there. That's an awesome way 671 00:29:52,000 --> 00:29:54,040 Speaker 1: to get a feel for the community. And you can 672 00:29:54,040 --> 00:29:56,120 Speaker 1: also do something that I like to call the wave test, 673 00:29:56,440 --> 00:29:58,360 Speaker 1: which is when you're driving around in an area that 674 00:29:58,400 --> 00:30:00,800 Speaker 1: you're scoping out, you know, have your window down hopefully 675 00:30:00,800 --> 00:30:03,320 Speaker 1: it's not too bitterly cold. And then when you see 676 00:30:03,360 --> 00:30:05,160 Speaker 1: someone kind of walking on the street or hanging out 677 00:30:05,160 --> 00:30:07,200 Speaker 1: on the front porch, just wave at them. What you 678 00:30:07,200 --> 00:30:09,040 Speaker 1: get to do is you get to see how friendly 679 00:30:09,080 --> 00:30:11,000 Speaker 1: they are and if they just kind of stare at 680 00:30:11,000 --> 00:30:13,480 Speaker 1: you and glare well, I don't know, maybe this isn't 681 00:30:13,480 --> 00:30:15,200 Speaker 1: the best street, or or maybe they're just having a 682 00:30:15,240 --> 00:30:17,520 Speaker 1: bad day. I don't know. Is there like a percentage 683 00:30:17,520 --> 00:30:19,640 Speaker 1: of waivers that you're looking for in a neighborhood to 684 00:30:19,640 --> 00:30:22,040 Speaker 1: determine whether it's worth buying a house in or not. 685 00:30:22,240 --> 00:30:24,720 Speaker 1: Like in general, I am looking for folks that are 686 00:30:24,760 --> 00:30:27,000 Speaker 1: just happy to see me. Right, Like if everyone that 687 00:30:27,040 --> 00:30:29,040 Speaker 1: you wave two just stares at you and they're wondering 688 00:30:29,120 --> 00:30:31,000 Speaker 1: why it is that you're waving at them, It's like, 689 00:30:31,040 --> 00:30:33,680 Speaker 1: I don't know, I want to live somewhere that's friendlier. 690 00:30:33,720 --> 00:30:35,640 Speaker 1: I want to live on a friendly street, And for 691 00:30:35,680 --> 00:30:38,240 Speaker 1: me personally, that's something I value. I like it. The 692 00:30:38,240 --> 00:30:41,120 Speaker 1: wave test. Yeah, another important thing to do, Matt. Not 693 00:30:41,200 --> 00:30:45,040 Speaker 1: only perusing Zillo and redfin right, more weeks and months 694 00:30:45,040 --> 00:30:48,280 Speaker 1: you spend on those sites, perusing homes and neighborhoods. It's 695 00:30:48,280 --> 00:30:50,880 Speaker 1: it's gonna help you. But it's also important for people 696 00:30:51,040 --> 00:30:53,320 Speaker 1: to take a look at a lot of homes in person, 697 00:30:53,520 --> 00:30:56,840 Speaker 1: especially for first time homebuyers. This is the largest purchase 698 00:30:56,880 --> 00:30:59,720 Speaker 1: you're gonna make potentially in your life. So do the research, 699 00:30:59,840 --> 00:31:02,960 Speaker 1: and not only the online research, but the more homes 700 00:31:02,960 --> 00:31:05,160 Speaker 1: that you see in person, you're gonna start to see 701 00:31:05,200 --> 00:31:08,440 Speaker 1: the corks the different homes present. If you look at 702 00:31:08,520 --> 00:31:10,800 Speaker 1: three homes before you make an offer, you're just in 703 00:31:10,840 --> 00:31:13,840 Speaker 1: a much inferior position to someone who's looked at fifty 704 00:31:13,880 --> 00:31:15,840 Speaker 1: homes before they make an offer. You just have a 705 00:31:15,880 --> 00:31:18,240 Speaker 1: whole lot more idea of what you're getting into if 706 00:31:18,280 --> 00:31:21,560 Speaker 1: you've looked at a much larger percentage of homes. Yeah, Joe, 707 00:31:21,600 --> 00:31:23,520 Speaker 1: I love that you said first time home buyers as well, 708 00:31:23,560 --> 00:31:26,080 Speaker 1: because I know for Kate and I as first time 709 00:31:26,120 --> 00:31:28,160 Speaker 1: home buyers, it took us a while to figure out 710 00:31:28,240 --> 00:31:30,320 Speaker 1: what it was exactly that we were looking for, Like 711 00:31:30,360 --> 00:31:33,680 Speaker 1: it took us looking at ten houses before we realized that, like, oh, 712 00:31:33,840 --> 00:31:36,680 Speaker 1: we're looking for a bungalow, We're looking for a front porch, 713 00:31:36,800 --> 00:31:38,200 Speaker 1: Like that's the kind of home, that's the kind of 714 00:31:38,280 --> 00:31:40,800 Speaker 1: vibe that we're looking for, and because we have never 715 00:31:40,840 --> 00:31:43,400 Speaker 1: owned a home, we didn't quite know how to verbalize 716 00:31:43,400 --> 00:31:45,760 Speaker 1: that to our realtor. And she didn't know because she's 717 00:31:45,800 --> 00:31:47,120 Speaker 1: just like, well, this is how much she said you 718 00:31:47,120 --> 00:31:49,479 Speaker 1: could spend, and this is these are the areas that 719 00:31:49,560 --> 00:31:52,000 Speaker 1: I know you can afford it. I fitted in your parameters. 720 00:31:52,360 --> 00:31:54,880 Speaker 1: I don't understand. But what we didn't realize was that, oh, 721 00:31:54,920 --> 00:31:58,200 Speaker 1: we're looking for a front porch, and typically bungalows have 722 00:31:58,320 --> 00:32:00,239 Speaker 1: a front porch, and typically you can find in these 723 00:32:00,320 --> 00:32:03,600 Speaker 1: nineties bungalows in these types of neighborhoods. For first time 724 00:32:03,680 --> 00:32:06,280 Speaker 1: home buyers, it's I think it's really important to look 725 00:32:06,320 --> 00:32:09,239 Speaker 1: at as many homes as possible. And also when you're 726 00:32:09,280 --> 00:32:11,440 Speaker 1: looking at these different homes, make sure you're taking lots 727 00:32:11,480 --> 00:32:15,040 Speaker 1: of pictures, especially of sort of like the weird things, right, 728 00:32:15,080 --> 00:32:18,160 Speaker 1: the different quirks, the things that aren't in the pictures 729 00:32:18,280 --> 00:32:21,200 Speaker 1: of the listings, because the listing photos they look really 730 00:32:21,240 --> 00:32:24,640 Speaker 1: good because they're taken by a professional real estate photographer 731 00:32:25,360 --> 00:32:27,400 Speaker 1: and they're made to make that house look as large 732 00:32:27,400 --> 00:32:31,800 Speaker 1: as possible, uh, while excluding all the different oddities. And 733 00:32:31,840 --> 00:32:34,000 Speaker 1: so by taking pictures and even jotting down a few 734 00:32:34,040 --> 00:32:36,920 Speaker 1: notes will help you to remember these different homes, and 735 00:32:36,960 --> 00:32:39,080 Speaker 1: that might also help you to remember the different feelings 736 00:32:39,080 --> 00:32:40,880 Speaker 1: that you had when you went into these homes, because 737 00:32:41,040 --> 00:32:42,920 Speaker 1: you know, if you're looking at maybe three or four, 738 00:32:43,120 --> 00:32:45,680 Speaker 1: maybe five homes in a row, a lot of times 739 00:32:45,680 --> 00:32:47,840 Speaker 1: they can kind of blur together. And sure you can 740 00:32:47,880 --> 00:32:50,200 Speaker 1: go back and look at the pictures, but having some 741 00:32:50,240 --> 00:32:52,960 Speaker 1: additional photos on your phone is an awesome way to 742 00:32:53,120 --> 00:32:56,920 Speaker 1: sort of document the weirdness of that particular house. Yeah, Matt, 743 00:32:56,920 --> 00:32:59,240 Speaker 1: speaking of quirky things, I think, especially a lot of 744 00:32:59,280 --> 00:33:02,440 Speaker 1: first time HomeBuyer, but homebuyers in general, they kind of 745 00:33:02,480 --> 00:33:06,080 Speaker 1: want that fully put together home, right, and the fully 746 00:33:06,120 --> 00:33:09,080 Speaker 1: put together home can have a couple of issues with it. One, 747 00:33:09,200 --> 00:33:12,239 Speaker 1: it can be prohibitively expensive to have the home that 748 00:33:12,280 --> 00:33:15,800 Speaker 1: has like granite countertops and everything is completely finished properly. 749 00:33:16,080 --> 00:33:18,040 Speaker 1: And the other thing is maybe it can look slick 750 00:33:18,080 --> 00:33:21,960 Speaker 1: on the outside, but beneath nothing's really been replaced. There's 751 00:33:22,000 --> 00:33:24,920 Speaker 1: old electrical, there's old plumbing, and so it can look 752 00:33:24,920 --> 00:33:27,720 Speaker 1: good to the naked eye, but down deep, that house 753 00:33:27,760 --> 00:33:30,640 Speaker 1: has a lot of potential issues with it. And so, yeah, 754 00:33:30,720 --> 00:33:32,800 Speaker 1: do you have thoughts on what people should be looking 755 00:33:32,800 --> 00:33:34,760 Speaker 1: for when they're buying a house, when it comes to 756 00:33:34,960 --> 00:33:38,480 Speaker 1: finishes and curb appeal. Yeah, well, I mean in regards 757 00:33:38,480 --> 00:33:40,400 Speaker 1: to like the specific systems, right Like, we're gonna talk 758 00:33:40,400 --> 00:33:42,560 Speaker 1: a lot about that. Next week. We're gonna talk about inspections. 759 00:33:42,560 --> 00:33:44,400 Speaker 1: We're gonna talk about the specific steps that you want 760 00:33:44,400 --> 00:33:46,880 Speaker 1: to say when it comes to actually purchasing a home, 761 00:33:47,360 --> 00:33:49,400 Speaker 1: the things that you can't see. But I want to 762 00:33:49,440 --> 00:33:52,320 Speaker 1: encourage folks to not be afraid to look at ugly houses. 763 00:33:52,560 --> 00:33:54,680 Speaker 1: Like you said, a lot of times we're sort of 764 00:33:54,680 --> 00:33:57,320 Speaker 1: turned off by just weird things, Like you walk into 765 00:33:57,320 --> 00:33:59,800 Speaker 1: a house and you think, oh, it doesn't smell like yeah, 766 00:33:59,800 --> 00:34:01,640 Speaker 1: one it to smell, or like there's weird art on 767 00:34:01,640 --> 00:34:04,520 Speaker 1: the walls. But those are all things that you can change. 768 00:34:04,960 --> 00:34:07,640 Speaker 1: Paint color, even a chandelier in the dining room, like, 769 00:34:07,680 --> 00:34:10,160 Speaker 1: these are things that are easily modified that you can 770 00:34:10,239 --> 00:34:13,520 Speaker 1: quickly change to make that home feel more like your 771 00:34:13,520 --> 00:34:15,320 Speaker 1: own home. And so I mean, I just want to 772 00:34:15,360 --> 00:34:17,520 Speaker 1: encourage folks to not be afraid to purchase a home 773 00:34:17,600 --> 00:34:20,839 Speaker 1: that might feel a little ugly, but it's got the amenities, 774 00:34:20,880 --> 00:34:22,600 Speaker 1: it's got the room count, and it's got the number 775 00:34:22,600 --> 00:34:24,560 Speaker 1: of bathrooms that you're looking for, or it's in the 776 00:34:24,640 --> 00:34:26,640 Speaker 1: right area that you're looking at. You want to make 777 00:34:26,680 --> 00:34:29,040 Speaker 1: sure that the crucial, like the most important things are 778 00:34:29,239 --> 00:34:31,960 Speaker 1: taken care of. Don't be turned off by, Oh, they've 779 00:34:32,000 --> 00:34:34,600 Speaker 1: got weird pendance over their bar I would never put 780 00:34:34,640 --> 00:34:36,600 Speaker 1: those in my house. Well, it doesn't matter, you can 781 00:34:36,640 --> 00:34:39,040 Speaker 1: swap those out. I see. First time homebuyers would have 782 00:34:39,080 --> 00:34:41,680 Speaker 1: fall into this line of thinking, right, and it keeps 783 00:34:41,719 --> 00:34:44,080 Speaker 1: them from purchasing a home that they could really get 784 00:34:44,120 --> 00:34:46,520 Speaker 1: a deal on and then spend a couple hundred bucks 785 00:34:46,600 --> 00:34:48,920 Speaker 1: on after the fact and truly make their own and 786 00:34:49,080 --> 00:34:51,160 Speaker 1: just maybe a couple of weekends worth of work. Yeah, 787 00:34:51,200 --> 00:34:54,520 Speaker 1: if you're looking at wood paneling or old cabinets with 788 00:34:54,680 --> 00:34:56,960 Speaker 1: old hardware, those are the kind of things that you 789 00:34:57,000 --> 00:35:00,279 Speaker 1: can quickly change for almost no money. But those are 790 00:35:00,280 --> 00:35:02,759 Speaker 1: the kind of things that so many homebuyers ride a 791 00:35:02,760 --> 00:35:05,840 Speaker 1: house off because of even though it is a solid 792 00:35:05,920 --> 00:35:08,720 Speaker 1: home in the place where they want to live, they say, Matt, Nope, 793 00:35:08,880 --> 00:35:12,120 Speaker 1: it's antiquated, it doesn't fit my style needs. I think 794 00:35:12,160 --> 00:35:14,279 Speaker 1: it's really good advice, Matt. That's something you want to 795 00:35:14,320 --> 00:35:17,359 Speaker 1: avoid judging house purely based on because there are so 796 00:35:17,400 --> 00:35:20,600 Speaker 1: many other intangibles. Maybe dealing with those things and being 797 00:35:20,640 --> 00:35:23,160 Speaker 1: able to fix those little things up over time can 798 00:35:23,200 --> 00:35:25,000 Speaker 1: help you get into the size house that you want 799 00:35:25,080 --> 00:35:27,960 Speaker 1: in a neighborhood that you like, and then make that 800 00:35:28,000 --> 00:35:30,720 Speaker 1: house your own over time. Plus you mentioned wood paneling. 801 00:35:30,920 --> 00:35:33,160 Speaker 1: It all comes around. Dog. I feel like wood paneling 802 00:35:33,200 --> 00:35:36,239 Speaker 1: is hot. That's true. That's true. Man. When we bought 803 00:35:36,239 --> 00:35:38,319 Speaker 1: our house, it has the original wood molding from the 804 00:35:38,360 --> 00:35:41,080 Speaker 1: nineteen twenties. Yeah, the trim around your door. But yeah, 805 00:35:41,120 --> 00:35:43,279 Speaker 1: that like the crown molding and all that. Yeah. Yeah, 806 00:35:43,360 --> 00:35:47,000 Speaker 1: so there it's all unpainted, original wood molding, original stain. 807 00:35:47,280 --> 00:35:50,040 Speaker 1: It's amazing. It's hard to find, right. And I remember 808 00:35:50,080 --> 00:35:52,520 Speaker 1: walking you with my wife and she said, well, maybe 809 00:35:52,520 --> 00:35:54,200 Speaker 1: if we painted this white would be a little bit better. 810 00:35:54,200 --> 00:35:56,759 Speaker 1: And I was like, no, no, no, we can't do that. 811 00:35:56,880 --> 00:35:58,719 Speaker 1: We can't do that. This is original. I mean, this 812 00:35:58,800 --> 00:36:01,799 Speaker 1: is a hundred years worth of age on this beautiful trim. 813 00:36:01,800 --> 00:36:03,799 Speaker 1: No one's painted it yet. We can't be the ones 814 00:36:03,840 --> 00:36:06,319 Speaker 1: to do that. We're not going to touch that patina. Yeah, 815 00:36:06,440 --> 00:36:08,200 Speaker 1: until we grew into it and we love it. I 816 00:36:08,200 --> 00:36:09,799 Speaker 1: mean I loved it from the get go, but we've 817 00:36:09,800 --> 00:36:11,799 Speaker 1: really grown into it. And that's just the kind of 818 00:36:11,800 --> 00:36:14,680 Speaker 1: thing that once you've lived in the house for a 819 00:36:14,719 --> 00:36:17,480 Speaker 1: matter of months, that stuff just doesn't bother you like 820 00:36:17,520 --> 00:36:19,359 Speaker 1: it did when you walked in there the first time. 821 00:36:19,719 --> 00:36:22,040 Speaker 1: Your eyes are tuned to every single detail as a 822 00:36:22,040 --> 00:36:25,360 Speaker 1: first time HomeBuyer, especially walking through a home, and you 823 00:36:25,360 --> 00:36:28,080 Speaker 1: know what, you can change little things over time, and 824 00:36:28,120 --> 00:36:30,279 Speaker 1: also some of those things that bothered you maybe upon 825 00:36:30,360 --> 00:36:32,520 Speaker 1: first walk through start that big of a deal as 826 00:36:32,560 --> 00:36:34,880 Speaker 1: you grow into the home. Let's go ahead now and 827 00:36:35,239 --> 00:36:37,840 Speaker 1: take us back to the beer. We've got Ryan Geist 828 00:36:37,960 --> 00:36:42,480 Speaker 1: Brewery and today we're drinking ink, which sounds weird to say, 829 00:36:42,520 --> 00:36:45,840 Speaker 1: but this is an Imperial stout aged and bourbon barrels. 830 00:36:45,880 --> 00:36:48,480 Speaker 1: This beer, to me, Matt, felt like a quintessential stout. 831 00:36:48,840 --> 00:36:51,720 Speaker 1: None of the flavors necessarily stuck out in a major way. 832 00:36:52,040 --> 00:36:55,720 Speaker 1: Nothing was off putting. It was just amazingly nice, pleasant 833 00:36:55,880 --> 00:36:58,560 Speaker 1: bourbon barrel aged out. If anything stuck out in my 834 00:36:58,600 --> 00:37:00,719 Speaker 1: mind just a little bit, there is a little bit 835 00:37:00,760 --> 00:37:04,440 Speaker 1: of kind of light fruitiness, almost like Belgian quad or 836 00:37:04,480 --> 00:37:06,640 Speaker 1: something like that. Oh yeah, dude, kind of mixed in 837 00:37:06,960 --> 00:37:09,160 Speaker 1: like get you if you're fine tasting notes. You know, 838 00:37:09,320 --> 00:37:11,600 Speaker 1: I'm thinking about becoming a SMaL Ya. Maybe in my 839 00:37:11,640 --> 00:37:14,440 Speaker 1: next life, we'll see, but yeah, this was super delicious. 840 00:37:14,840 --> 00:37:17,400 Speaker 1: I thoroughly enjoyed it. Nice man, I am with you. 841 00:37:17,480 --> 00:37:20,440 Speaker 1: This was an incredibly well balanced beer. You know, when 842 00:37:20,440 --> 00:37:23,600 Speaker 1: you think of like the classic or the quintessential college experience, 843 00:37:23,640 --> 00:37:25,920 Speaker 1: and you think of, you know, the perfect college town 844 00:37:26,120 --> 00:37:28,239 Speaker 1: and you've got the sports, and you've got the academics, 845 00:37:28,239 --> 00:37:30,680 Speaker 1: and it kind of has it all. And that's when 846 00:37:30,680 --> 00:37:32,880 Speaker 1: I feel about this beer. When it comes to a 847 00:37:32,920 --> 00:37:35,520 Speaker 1: bourbon barrel Aged Doubt, it's sort of quintessential. It's got 848 00:37:35,560 --> 00:37:37,440 Speaker 1: everything you want. It's got the barrel, it's got the 849 00:37:37,480 --> 00:37:40,560 Speaker 1: dark flavors, it's got a cool name, inc It's got 850 00:37:40,640 --> 00:37:44,120 Speaker 1: everything you think of when you want to have a dark, boozy, 851 00:37:44,239 --> 00:37:47,160 Speaker 1: bourbon barrel Aged Doubt. And I'm incredibly thankful that our 852 00:37:47,200 --> 00:37:49,520 Speaker 1: friends over at Ryan Guy sent this our way. We're 853 00:37:49,560 --> 00:37:52,480 Speaker 1: looking forward to, hopefully someday visiting that sweet tasting room 854 00:37:52,520 --> 00:37:56,080 Speaker 1: that we mentioned last episode. Just this amazing industrial space. 855 00:37:56,120 --> 00:37:58,080 Speaker 1: And that's one of the things I love about breweries 856 00:37:58,120 --> 00:38:01,560 Speaker 1: is how they're sort of reclaiming these old, massive spaces 857 00:38:01,600 --> 00:38:05,080 Speaker 1: that have been neglected and turning them back into spaces 858 00:38:05,120 --> 00:38:07,960 Speaker 1: that people can enjoy and serve amazing craft beer in 859 00:38:08,320 --> 00:38:10,279 Speaker 1: all Right, Matt, onto our final thoughts. What to do 860 00:38:10,360 --> 00:38:13,200 Speaker 1: before you buy a house? Well, just remember house does 861 00:38:13,280 --> 00:38:15,360 Speaker 1: cost a lot of money, and any time that you 862 00:38:15,360 --> 00:38:18,839 Speaker 1: can spend researching and familiarizing yourself on the front end 863 00:38:19,120 --> 00:38:22,680 Speaker 1: will prevent you from making an ill advised decision buying 864 00:38:22,719 --> 00:38:24,759 Speaker 1: a bigger house than you need, buying a house that 865 00:38:24,800 --> 00:38:27,400 Speaker 1: you're unwilling to stay in for seven years or longer. 866 00:38:27,680 --> 00:38:30,120 Speaker 1: Don't be afraid to spend more time before you buy 867 00:38:30,320 --> 00:38:33,400 Speaker 1: in order to ensure that you're making the right decision. Also, 868 00:38:33,520 --> 00:38:35,560 Speaker 1: now is the time to clean up your credit. You 869 00:38:35,600 --> 00:38:38,200 Speaker 1: want to make sure you have things in order before 870 00:38:38,239 --> 00:38:40,880 Speaker 1: it comes time to applying for your mortgage. It takes 871 00:38:40,920 --> 00:38:42,920 Speaker 1: time to straighten now your credit, so make sure you 872 00:38:42,960 --> 00:38:45,640 Speaker 1: go ahead and get started on that well before you 873 00:38:45,680 --> 00:38:48,400 Speaker 1: start shopping and putting offers on houses. Yeah, a good 874 00:38:48,440 --> 00:38:51,239 Speaker 1: credit score can make a huge difference in the rate 875 00:38:51,320 --> 00:38:53,640 Speaker 1: that you end up getting offered, which has a specific 876 00:38:53,640 --> 00:38:56,280 Speaker 1: correlation to the out of pocket costs of your mortgage 877 00:38:56,320 --> 00:38:59,440 Speaker 1: every month, And in regards to that getting financing, be 878 00:38:59,520 --> 00:39:01,520 Speaker 1: sure to shop, shop shop. You want to make sure 879 00:39:01,560 --> 00:39:04,160 Speaker 1: you get three to five quotes minimum. Most people skip 880 00:39:04,239 --> 00:39:06,600 Speaker 1: this step. They go with one lender and it ends 881 00:39:06,640 --> 00:39:10,560 Speaker 1: up costing them thousands of dollars. Getting multiple loan estimates 882 00:39:10,640 --> 00:39:13,000 Speaker 1: that you can compare against each other will save you 883 00:39:13,080 --> 00:39:16,480 Speaker 1: lots of money. And also, don't underestimate the importance of 884 00:39:16,480 --> 00:39:19,400 Speaker 1: a great neighborhood agent who's familiar with your area. And 885 00:39:19,400 --> 00:39:21,640 Speaker 1: while you're looking at different houses, keep in mind you 886 00:39:21,640 --> 00:39:24,440 Speaker 1: want to look at a ton of houses, especially if 887 00:39:24,440 --> 00:39:26,680 Speaker 1: you're a first time HomeBuyer, and don't forget the wave 888 00:39:26,719 --> 00:39:29,600 Speaker 1: test and to see how maybe receptive the community might 889 00:39:29,680 --> 00:39:33,239 Speaker 1: be to you. And also don't be distracted by weird furnishings. 890 00:39:33,560 --> 00:39:35,640 Speaker 1: You know, a house with less curb appeal could be 891 00:39:35,640 --> 00:39:38,520 Speaker 1: an incredible deal for you. Alright, Matt, this episode has 892 00:39:38,560 --> 00:39:41,480 Speaker 1: been about before you buy a house. Next week we're 893 00:39:41,480 --> 00:39:43,719 Speaker 1: gonna get into I'm ready to buy a house? What 894 00:39:43,760 --> 00:39:45,560 Speaker 1: do I do? All right? And so we're gonna get 895 00:39:45,560 --> 00:39:48,719 Speaker 1: into all those specifics a week from today. So make 896 00:39:48,760 --> 00:39:51,680 Speaker 1: sure you check out next week's episode for more details 897 00:39:51,760 --> 00:39:54,520 Speaker 1: on what's next in the process. And so everyone, thank 898 00:39:54,560 --> 00:39:57,400 Speaker 1: you all for listening. We really appreciate it's we'll have 899 00:39:57,400 --> 00:39:59,600 Speaker 1: our show notes up for you on our website how 900 00:39:59,719 --> 00:40:02,120 Speaker 1: some money dot com. And also if you have some 901 00:40:02,160 --> 00:40:04,040 Speaker 1: feedback for us. If if you feel like that we 902 00:40:04,120 --> 00:40:06,000 Speaker 1: have left some things out or that we have some 903 00:40:06,080 --> 00:40:08,719 Speaker 1: room for improving, go to how to money dot com, 904 00:40:09,040 --> 00:40:11,960 Speaker 1: forward slash do Better and there you'll be able to 905 00:40:12,000 --> 00:40:13,839 Speaker 1: send us a note and we would love to hear 906 00:40:13,880 --> 00:40:16,919 Speaker 1: your feedback. We're always trying to improve and make sure 907 00:40:16,960 --> 00:40:19,400 Speaker 1: that we're doing things well, so we'd appreciate it if 908 00:40:19,400 --> 00:40:21,360 Speaker 1: you shot us a message. Yeah, and if you like 909 00:40:21,440 --> 00:40:23,480 Speaker 1: the show and you found it helpful, we'd appreciate it 910 00:40:23,520 --> 00:40:26,440 Speaker 1: if you would consider leaving a review on Apple Podcasts. 911 00:40:26,680 --> 00:40:29,439 Speaker 1: And also if you dig it, hit the subscribe button 912 00:40:29,520 --> 00:40:32,359 Speaker 1: while you're there. Joel, Until next time, Best Friends Out, 913 00:40:32,560 --> 00:40:33,359 Speaker 1: Best Friends Out,