I Bought A House! My Mortgage & How Much It Cost

recorded you officially owned a house most of you guys probably know this if you watch my vlog channel this has been something i've been talking about for over six months the process of buying my second house but if this is news to you yes i bought a second house with my sister shelby church and today i've got my mortgage documents here so we're going to go over how much my mortgage is what the closing costs were like all sorts of stuff buying a house is really confusing though it is so i want to try and clear that up for you guys a bit today i am a real estate agent in the seattle washington area so if you have any home buying goals within the next year or two you can email me and my team we'd be happy to chat with you but today we're gonna talk about the house that i just bought let's start with the fun part i'm going to show you guys the house and then after the house tour i'm going to go through all the financial stuff that you really want to know the nitty-gritty how much i pay a month how much my down payment was how much my loan is so my total monthly payment that i pay every month for this house is all that nosy stuff that's fun to know but first let's go see the house so here is the house it is located in palm springs california and my sister and i bought it with the intention of turning it into an airbnb all right welcome to my house oh no we have a big leak just kidding uh we're draining the pool right now i guess is what's happening but yeah here it is this is the house let's go check it out so we have a carport not a garage but that's okay because it's always warm here here we have our little walkway and there's some construction happening i have to warn you guys this house is a bit of a hot mess but i thought it'd be fun to show you guys like the craziness like in the middle of a renovation okay welcome the house opens up to this entryway and we just put this light in today i love how simple it is and it just gives this really pretty ambiance when you walk in and i i think it's more mid-century than what was there before yeah we have a light he put it in and then right here it's just the furnace the water heater all that kind of stuff we're eventually gonna get all this out of here and either up on the roof or somewhere else and turn this into a mini bar the house is really simple the left side is the living space in the kitchen and the right side is the bedrooms it's 1225 square feet so it's not a ton of space but honestly it's enough for us this table i love so much it's actually just from wayfair over here is the living room so this l-shaped couch is from cardio modern i love it because it's just this classic mid-century look to it it has this built-in piece right here that's really really spacious you can put a bunch of coffee table books it's this really beautiful walnut and it also has the built-in right there and it's really handy i love the design thank you to cardio modern they actually sent me this and they are based out of seattle of all places to make mid-century modern furniture they're based out of seattle i love it so much this is the womb chair that's also from cardio modern it's super comfy everyone fights over who gets this chair this media console is from blue dot right here we have an assortment of items this is going to be a sconce for outside this is a super cool coffee espresso machine that i bought i want to say seven months ago and i bought it with the hopes that i'd have a house in palm springs to put it in one day this is a print from anthropologie i love this cobalt blue i have these things here to inspire me i think they're all really cool things and when i look at them next to each other it makes me happy but they're not going to be here forever all right so check out the ceiling guys we painted the ceiling white and it was a huge effort we're not done painting the ceilings in this house and um it's taken us many many many many hours of sanding caulking and then actually painting okay let's go to the kitchen kitchen i know it's a really long journey the previous owners lived here full time and so they closed in this area and so it made it like a really full kitchen but since it's such a small space we wanted to open things up so that's exactly what we did [Music] we're getting into the kitchen renovation in the next couple of weeks but we've got some cabinets ripped out we're just kind of living with it as it is i've gotten surprisingly used to using this kitchen though [Music] the biggest thing we've done to the house so far is get rid of this overhang that was right off of the kitchen and living area the reason we did that is because it blocked our mountain view let me show you the backyard because it is crazy i never in my life thought i'd be like doing something like this and be in the process of having a backyard that looks like this and check it out [Music] here we have it dirt dirt everywhere when we got this house the concrete was a bunch of different colors and cracked and elevated in some areas it was just a mess and we wanted it to look light gray and modern and simple and clean we quickly found out the only way to do that is to rip out all of the old concrete and pour new concrete we have some lounge chairs but the only things lounging on those chairs are clothes because we don't have a dryer yet let's check out the side yard so we're right off the backyard we're on the side yard which is this really big space and over here we plan on putting a hot tub and maybe a dining area and we're going to open up all of this we're going to get rid of the barb or the chain link fence [Applause] now let's go check out the bedrooms like i said super simple house right here we have a pretty large first bedroom we decided we're gonna go with two twin beds there was a built-in but we're turning it into just a closet like the other rooms are this is the second bedroom it's the smallest bedroom but it's actually my favorite it has awesome light wonderful clear story windows and it just feels really cozy in here [Music] in the hallway we have a washer just a washer no dryer what we're gonna do is take this out of here and extend the bathroom because one of the downfalls of these houses is the bathrooms are super small so we'll show you in this first bathroom here [Music] i can touch my wingspan can touch from the shower to the wall super small bathrooms and lastly we have the primary bedroom it's the biggest tallest ceilings and these wonderful stunning gorgeous jaw-dropping claire story windows there's this funky ledge up here there's also a sliding glass door off of here to go out to the side yard and the second bathroom is an ensuite just as small as the other one though pretty small and it's funny because the shower is actually a step down shower how funny is that there's a door to go outside from this bathroom as well so you have good access from you know if you go out in the pool and you go to the bathroom don't be in the pool okay then you can come here and not track your wet little paws all over the house [Music] so that is it for the house right now oh my gosh and we have time traveled into the future just kidding i sure wish i could time travel through some of these renovations you guys what you saw that house tour was about over a month month and a half ago while we were really in the midst of renovations we still are but as you can see here's a little sneak peek the backyard's starting to come together but now it's time to talk about the financing side of buying this house first and foremost the home price we bought this house for 752 000 as a real estate agent the most asked question i get from my clients is how much should we put down as a down payment it really is somewhat of a mystery because the thing is there's no correct answer there's no one-size-fits-all this is how much you should put down people like to say you should put twenty percent down but you don't have to sometimes putting five percent down makes more sense for you sometimes ten percent sometimes thirty percent it's totally different everyone's situation is different so i can't just give you an answer out of thin air but what i will do today is explain to you how much i put down on this house and why i did that i'm going to try and keep this as simple as i possibly can but basically how much money you should put down is going to depend on how much money you have your funds and how much of a loan the bank is going to give you those two things are going to guide you in how much money you should put down so when shelby and i knew we were serious about buying a house in palm springs we went to a lender we gave all our documents for pre-approval and they pre-approved us for a conventional loan of 510 000 so knowing that we're going to be able to borrow 510 000 going forward any houses we looked at we knew we were going to have to make up the difference so if we were looking at houses that were 600 000 we would need a down payment of 90 000 if we were looking at houses that were 700 000 we would need a down payment of 190 000 or if you happen to find the perfect house and it happens to be 752 000 you're gonna be putting 240 000 down which is what we had to do so it's a lot of money it's about 32 that is what we did as a down payment just because i put 32 down on this property doesn't mean that's what you need to do when you buy a house everyone's situation is different that's just kind of how it worked for us in the finances this time around we couldn't qualify for more than that 510 000 loan so we made up the rest and i'm very thankful that we're able to do that like extremely thankful never in my life did i think i would have that kind of money and i just need you to know i am so thankful and i don't take it for granted and i don't just try and throw that around like it's nothing so now let's get into all of the closing costs closing costs are basically the costs associated with buying a house there's a lot of processing done by many people so it's expensive the process in general when you're working with a lender you're paying for that when you have an escrow company holding all your money you're paying for that up front you're paying prorated taxes or insurance and i want to break that down for you as a buyer when you're the buyer you're just paying basically those loan escrow fees like that so your closing costs can be closer to one to two percent it varies and i'm just talking about my experience living in washington and california it might be different where you live though so just keep that in mind um first off i just want to google how much our closing costs on a house and the first thing that comes up is closing costs typically range from three to six percent i don't really know where they're getting that from but it's kind of frustrating because three percent versus six percent there's a really big difference there what if you're buying a one million dollar house three percent of that is thirty thousand dollars six percent of that is sixty thousand dollars that's a thirty thousand dollar difference there that's a lot and how do you account for that and how do you know what your closing costs are actually gonna be so let's break it down i'm just gonna break this down into sections exactly how i'm seeing it on my closing statements the first section is prorations slash adjustment so the first charge that i had was for county taxes and this was 268 dollars and 24 cents is what i had to pay the other proration i had was prepaid interest at 38.42 a day that amounted to 307.36 the next pro-rated item was homeowners insurance and that's because the sellers had already paid it for the whole year in fact they had already paid for january as well so at closing we basically owed them three months worth of homeowners insurance back so that was 108.92 per month equaling 326.76 due for three months and then the last prorated item was property taxes so they had also already paid the property taxes for the year and in california you pay property taxes in february and since we started occupying it in november that means we owed them four months of property taxes up front at 826.67 so at closing that was 3 306.68 okay property taxes are going to be one of your biggest closing costs so those are all the pro-rated things it can be a little confusing to understand trust me i get it but you just have to remember the seller might have already paid for some things up front for the whole year but now they're moving out and they already paid it so they're gonna want you to pay back for what you're now assuming now let's move on to the loan charges working with a lender which you have to do if you're gonna finance your house like you have to find someone that's gonna lend you money it costs money it costs them money to you know process your application and just work on getting the loan put together so that's why you have loan charges my first loan charge is the appraisal fee the appraisal you actually pay at least in my situation you pay for the appraisal the day that it's happening so this wasn't actually in the closing costs but they're just including it in the statement my appraisal fee was 550 and i paid it the day that they did the appraisal the appraisal has to do with the loan because your lender is going to order an appraisal because they want to make sure your house is worth how much you want to buy it for next was the credit report fee and that was 120 next is the flood certification fee that was six dollars and 25 cents then there's the processing fee which was 895 so that's a bigger expense there the tax service fee which was 70 and then the underwriting fee which is 695 so the processing fee in the underwriting fee those were my loan costs but then i actually decided to pay a discount point and this is optional you don't need to pay a discount point but a lender might offer this to you and so a discount point is about one percent of the loan in this case for me it was 1.005 my loan was for 510 000 and so 1.005 percent of that was 5125.50 so that was an upfront fee we paid at closing and that was our most expensive fee a discount point is a way to lower your interest rate originally we were offered an interest rate of a flat three percent no other fees involved besides the normal processing fees and things like that but they also said if you pay a discount point we will lower your interest rate to 2.75 we decided to take that because a 2.75 interest rate is awesome that lowers our monthly payment you don't have to pay a discount point you really have to do the math yourself to see if it's worth it so then we have the government recording fees these aren't super expensive just the recording fee of the deed for 50 and the recording fee of the mortgage for 100 next are the title charges and when you're buying a house the house has a title and that's the legal way of saying that you own something there's fees involved with buying a house because you have to make sure that the person selling it actually has a clean title and actually owns the house that they're selling and then once you purchase it transferring the title to your name so endorsement fee to the title company was fifty dollars lender's title policy is 776 dollars a lender's title policy is basically insurance that protects against anything that could be wrong with the title next was the recording service fee of the title which is 25 then the sub escrow fee which is 125 and then the wire fee which was 25 next were the escrow charges and escrow is the third party that's holding the money that's coming in and then dispersing it to the proper parties first i had an escrow loan tie-in fee which was 275 an escrow processing fee which was 75 overnight handling service fee which was 125 i believe this is because they had to overnight me something to sign because i wasn't in palm springs at the time and lastly a settlement closing fee of eighteen hundred dollars but that's a little bit more pricey because they're taking the time to go through and make this statement right here and figure out you know who owes this to who who owes this to who how are you going to transfer the money so that costs money and then lastly i just have a couple more up-front fees uh the next was a home warranty for 715 next was natural hazard disclosure report 74.95 a notary signing service which was 300 and lastly homeowners insurance at one thousand three hundred and seven dollars the homeowner's insurance is a little bit confusing because you're paying it up front for the whole year but then in your next mortgage statement you're paying homeowners insurance and that homeowner's insurance that you're paying in that next mortgage statement is going into an account that's going to be paying it for the next year so that's why it's like that it's kind of weird so with all that said my closing costs ended up being about 2.2 percent of the purchase price and if i wouldn't have paid the discount point it would have been like 1.5 of the purchase price so i just think it's weird that when you google closing costs they're kind of high but in my experience mine weren't that high and in my seattle house my closing costs were also about 1.2 so i just think that's something to think about now we'll get into what my monthly mortgage is like and i'm just going to show you a clip that i have from a couple months ago for that here's my mortgage information our loan is for five hundred and ten thousand dollars interest rate of two point seven five percent so what does that look like for my monthly mortgage payment the actual mortgage itself is two thousand eighty-two dollars the principal portion the part of that two thousand dollars that's actually going towards equity of paying off my home was hundred and thirteen dollars and the interest portion was one thousand one hundred and sixty eight dollars so that's for the mortgage but i also have homeowners insurance property taxes my property taxes are eight hundred and twenty eight dollars a month it's quite expensive and my insurance is 108 dollars a month so my total monthly payment that i pay every month for this house is three thousand seventeen dollars and 62 cents and that is my mortgage on my house that is how i got the house that is what i pay that's it i don't know what else i can tell you guys so that's it for today's video and a little look inside the process of buying a second home it's not exactly the easiest thing when you're already carrying the debt of one mortgage and it's not something i thought i was going to do but here we are i'm so thankful to have the opportunity and to have the funds to be able to do something like this and make an investment like this so it's something that i just have to say i'm so grateful for so thank you for the continued support in watching my videos and i hope this helped clear things up for the home buying process for you i'm a real estate agent in the seattle and greater seattle area so if you're interested in buying your first home or selling your home or whatever position you're at in life my team and i would be happy to help you can shoot me an email right here and my team and i would be happy to connect and if you're interested in more content about my house in palm springs i've logged a bunch of it so i will have a playlist below of all of the house content of the renovation so far if you want to see that and i'll see you guys later bye [Music] you

Channel: Monica Church

Views: 142,951

Rating: 4.9476953 out of 5

Keywords: monica church, monica, real estate, buy a house, home buying, monica church house, real estate agent, i bought a house, what they dont tell you about buying a house, buying a house

Id: 2iD4mPyxc0A

Length: 20min 7sec (1207 seconds)

Published: Sat Mar 06 2021