First-time homebuyer tips: Things to know when buying your first home

Buying a home can be exciting and stressful at the same time, especially for the first-time homebuyer. Here are some tips to help you through a complicated p…
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Renting vs. Buying a home

More free lessons at: The math of renting vs. buying a home. Challenging the notion that it is always better t…

37 thoughts on “First-time homebuyer tips: Things to know when buying your first home

  1. @SteeleRose46: The full transcript for each video can be located within the
    video description. You can also click the “cc” button on the video player
    to watch the video with the closed captions running. 

  2. my mom is a single parent trying to buy a home please help her out! we are
    in need of help after being harassed by our recent neighbors at the place
    we rent at. she’s decided to buy a house and isn’t sure how much in loans
    we will get. any amount helps us thanks a bunch

  3. Homes used to be fairly good investments. Many couples bought their homes
    early in their marriage and when they retired, sold it and bought a place
    where they retired cash. Having a very low or no mortgage payment while
    retired should be on everyone’s plan.

    Today, the only reason I would purchase a home is to be able to deduct part
    of the “housing expenditure” on my taxes. I rent a condo for $1,700/mo. The
    deductible portion of the rent is minimal. The same monthly payment could
    be for a house or owned apartment including property taxes, insurance, and
    mortgage payment. The other thing to consider is maintenance of a house
    which could be costly depending on the size and age of the building. 

  4. Tips for First-Time Home Buyers!! Great Video for potential buyers!
    #firsttimehomebuyer #1sttimehomebuyer #1sttimebuyers #mortgage 

  5. Why would you take advice from a realtor who has a vested interest in you
    paying as much as possible for the house? Why would they have any reason to
    give you sound guidance when the more you spend, the more they make. It’s
    akin to trusting the used car salesman. And as soon as the bank cuts the
    check, the money is theirs, even after you default on your NINJA loan.

  6. There are a lot of issues to renting versus buying. If you are wanting a
    yard for you pets, children or exercise, 1 consideration. Are you planning
    to be a mover & shaker, or pretty much settled for the long term? Buying a
    house doesn’t make sense if you expect to be mobile. If your employer will
    pay for your move & give consideration to offset losses, etc- not so much
    of an issue. If you have a hobby that requires space, such as woodworking,
    car restoration, boats, campers etc-home ownership is likely necessary.
    When buying a house look at schools, neighboring homes, any covenants, have
    an independent inspection, lots of common sense needed. Use friends, family
    & internet searches. Even though mortgage rates are up, I still consider
    them a bargain. You are not only making the biggest investment you will
    probably make, you are buying freedoms, making memories, having something
    to call your own. Again, timing is important: are you ready, can you afford
    it, can you do repairs or want to learn? Our first house was bought when
    interest rates were 12 percent. As for paying for your home, lots of ways
    to trade your way up, pay extra each month, make your own improvements, buy
    an undervalued property, etc.

  7. After WWII purchasing a home was a no brainer for bankers,sellers,and
    It’s very simple.In 1950 the population was 150 million.Today it is twice
    as large.
    Then in 2007 something shocking happened:home prices fell and did not rise.
    At the same time, the Fed dropped interest rates to stimulate home and
    farm sales.
    Bank margins shrank as banks could not pay higher interest to savers.
    Interest on bonds dropped as well making the life of saving a tough
    choice,especially after the stock market cratered,as frantic debtors began
    cashing out their collateral in mortgages.
    Many large investors could however count on the creation of more households
    through the soaring divorce rates.But these divorce rates peaked,then
    The massive shift toward computers, the loss of jobs in construction,and
    the surplus of highly educated workers created lower buying power.
    These created this present recession,despite the favorable demographic
    These are not easy to overcome for they are systemic changes,and a subsidy
    once given cannot be reversed.,and the dream like accounting practices
    which grew up during this constant housing inflation became real within the
    public domain,a foolish and ultimately very frightening burden of unfunded
    liabilities means many people will watch their pensions gradually
    disappear,or states and federal government will print funny money.

  8. If you look close this video is made by “Chase Bank”

    Beware of anyone who tells you the “first step” toward financial freedom,
    is going $200,000 into debt. With interest ;)

  9. Tips for First-Time Home Buyers!! Great Video for potential buyers!
    #firsttimehomebuyer #1sttimehomebuyer #1sttimebuyers #mortgage 

  10. Some things are unique to India 🙂

    Also, the peace of mind of not having to shift every 11 months 🙂 and not
    having to pay the ever increasing rentals. I would any day want to “own” a
    house than rent a house. Especially when I plan to stay there for > 5 yrs.

    Rental values in India don’t fall, people just hold on to investments even
    when its not generating income. Which is creating a bigger bubble.

  11. That 1m dollar house is worth 1.2 in 2011. He could have lived in it for
    free and then made some. Now its like 1.3-1.4m ….koodos

  12. To me the part that was not shown was what you could do with the 250k and
    how that could generate income to pay the 3k rent easily and reduce your
    taxes and grow in value. It really is not that hard to get a 15-20% ROI if
    you know what you are doing. And I am not talking about the stock market.
    MOST people really have no business “buying” a home to live in. It’s all
    about financial literacy. Something that is sorely lacking today. That is
    why most people buy and are financial slaves.

  13. Rent goes up over the time too. I want to know over 30 years how much
    interest are disappeared to bank. Also how much maintenance is out of the
    pockets. Even if I sold the house. Gained the appreciation, where do I move
    to? A futher away place? A smaller place?

  14. After the 30 years the owner should have paid off the 750k and owns the 1
    million dollar home. And after 30 years that house could be worth 2 or 3
    million. Where as the renter has an extra 25k a year (25k x 30 = 750k) in
    the bank, even with accumulated interest wouldn’t even be close to the
    value of owning a million dollar property after 30 years. Property may drop
    in short term but not after 30 years. 

  15. 1) Rent goes up year to year, mortgage payment does not. 2) Rent for the
    same property is going to be higher than the monthly mortgage payment (the
    landlord is looking to make a profit, so higher than his mortgage, prop
    taxes, insurance, and maintenance/repairs)

  16. Not a fan of this example for a couple reasons:
    a) the interest rates chosen support the bias in this argument
    b) the apartment and home prices chosen also support the bias in this

    I just checked deposit rates at a credit union and as I thought, no one is
    getting anywhere 4% returns on deposits. More like “.4%”.

    Also checked bankrate for rates on a 1M mortgage with 25% down. The rates
    returned range between 4.37% and 4.57%.

    Inflation will cause rent to increase annually whereas a fixed rate
    mortgage is unaffected by inflation. Inflation will also cause the value of
    your house to increase annually. If this person is willing to sacrifice
    commute time for a lower purchase price, the rest of these factors makes
    this a no-brainer -> own.

    30 years of rent is lost eternally. 30 years of mortgage payments can be
    sold, and at a minimum, you’d break even (unless something like what
    happened in Detroit happens).

    NOTE: Insurance covers big ticket expenses like roof damage caused by
    storms, floods caused by weather or rusted water heaters, broken windows,
    and other unforeseen things. Owning is better assuming you do your homework
    on prices, rates, and insurance.

  17. I used a value of 4% interest and the difference in the end was $500. Add
    in the equity in your home and it seems that buying is the clear winner.
    Plus, after 30 years the home should appreciate in value. I guess the
    lesson is to not get a home loan with an atrocious interest rate like 6%?

  18. I see a lot of people criticizing this video but take a look at the date
    this was uploaded. This was about 6 months before the big crash that caused
    millions lose their homes. If he had listened to everyone he would have
    been devastated. Instead he waited and likely got a fantastic deal on one
    of the many houses that were foreclosed. 

  19. This Video is made on 2008 when housing Market is in a booon. When the
    Market crashed the following years that same property is in Market for 60%
    less. Now do the math

  20. Will people ever learn from the poverty of america?
    People lose their jobs and suddenly cant pay the mortgages on their homes.
    The end up homeless. Then what? Start renting of course..

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