Top 10 First Time Home Buyer Fears Solved! | First Time Home Buyer Tips | How to Buy a House

as promised i'm bringing you the top 10 fears i asked on my community page about five days ago i asked you as first-time buyers what are your top 10 fears so i'm gonna go over the top ten because i want you to get out of fear and get into action to become a first time home buyer this is shahida hill getting you over the hill to home ownership and helping you confidently keyword confidently by your first home so the first major fear fear and i hear this a lot that's why i made it number one not being approved or fearing rejection okay so first i want you to fear never owning more than getting rejected so replace that fear with i may never own a house i need to do something different and the gap between wealth between homeowners and renters is huge over six figures so you want to be a homeowner at some point okay now i want you to get over that fear because even if you get rejected it will be the best information source you can get for free okay that lender if you get a good one remember i say i always say go to the realtor first then the lender if you get a good lender and you are not approved they are going to tell you exactly why and bonus they will tell you what you can do to fix it so most people are most people are rejected because of credit and debt to income ratio for the most part so if your credit is not good almost all lenders have simulators where they can tell you specifically what you need to do how high you need to get it up and what will get it up the fastest and then secondly the other fear is dti ratio they probably can't help you get your income up but again either get your income up or you pay down debt either one they'll tell you where that number needs to be so you're going to get even if rejected you're going to get information that's going to make you a homeowner in in less time than it would be if you just sit around i don't know i'm so scared to do it i'm so scared to do it do it do it and if you haven't already join my first time buyers facebook group where people are doing it and doing it all the time getting the approvals getting approved not getting approved and working through it number two not being able to find a house in an affordable neighborhood in an affordable and keyword safe neighborhood so this is what i want you to think about if you're worried about affordable and safe in your city where are those neighborhoods what neighborhoods are both not crime free no place is crime free but what neighborhoods are the safest low crime and affordable because affordable is relative what's affordable for someone is not affordable to other people i want you to do that research i want you to go on zillow because you have access to that or realtor.com go on one of those sites and say okay this is my price range where are these houses where can i find these houses then i want you to go to crime maps crime maps every like police local police county police city police they have crime maps in most major cities and i want you to put in addresses that match your price range and then i want you to see okay is this a high crime neighborhood at this price and i want you to start moving farther farther out from the city until you find the one that's both affordable and safe affordable and safe and then when it's time for you to buy and you're talking to your realtor you can say you know what these are the three neighborhoods that i want to be in i know they're both affordable and i know that they're safe so then you're in a place of you know knowledge when i say the confidently closed thing i want you to confidently buy your first home the the first thing that builds confidence is knowledge because when you're knowledgeable you're confident about what you're doing it's when you're not sure about something that you lose confidence so you're going to be sure that these neighborhoods have low crime and they're in my price range number three losing money in the losing earnest money so you put up some earnest money whatever it is um you know it might be one percent of the sales price that's what was common um one percent so if you are buying a four hundred thousand dollar house then you are putting up for four thousand dollars it's increased um in a seller's market it definitely will be more and a buyer's market will be less but whatever you're putting up for earnest money when you put that money up initially there are a few safeguards in your contract that will allow you to get that money back there are three major ones okay i'm gonna go over those three your due diligence period you'll have a period that you get to look at the house you get to inspect the house you can get you know other people to come in to look at the house and in that time period it could be a certain amount of days it varies by you know area and by the type of market we're in but in that time period if you find something that you are not comfortable with you can terminate your contract and you can get your full earnest money back and then you have a finance contingency right now most people are just when you're getting started you're just pre-approved but then you have to go through underwriting for them to fully approve you and sometimes when you go through underwriting they deny you not very often if you haven't watched my underwriting video watch that it's not very often that they deny you at underwriting if they pre-approve you initially but sometimes it does happen you have a finance contingency that says if i'm denied i can get my full earnest money back because i was denied financing now you have to work with your realtor to make sure you have a finance contingency and work with your lender so make sure you get through underwriting before that finance contingency expires but those are your safeguards so you don't lose your earnest money last one appraisal contingency appraisal contingency allows you if that house is not appraised for the contract price you can terminate and get your money back for fha loans and va loans this is guaranteed to you even if you wrote something in the special stipulations that says you know i'll pay over i'll waive my appraisal you can still get your earnest money back if when you're talking to your agent and they don't know about the due diligence period the finance contingency the appraisal contingency you need another realtor you should tell them i don't want to lose my earnest money what are my safeguards to get it back now once you get once all of these contingencies expire then you are at risk you can if you come to closing you're like i changed my mind they weren't closing that seller's put their house off the market but i don't know how long and you decide at the last minute you're not going to get the house they probably are going to be entitled to your earnest money so next number four maintenance costs okay so sorry let me go back to number three those three things i want you in a seller's market some people waive some of these contingencies if losing that earnest money is going to be detrimental detrimental to your your um finances don't wave them do not wave them don't have somebody force you in or convince you to wave something and you know if you lost that money it would be detrimental to you don't do it number four maintenance costs the fear of coming into a house and something major happening and you cannot afford to fix it you can't afford to fix it so first of all maintaining a home is basically like brushing and flossing your teeth okay you brush and you floss so you don't have to get a root canal that's going to be very expensive so once you get in in a house you want to make sure you're maintaining it but before you buy you're going to get inspections get as many inspections that makes you comfortable most people just get one inspection and then they're you know they know what's going on with that house and what condition it's in if it makes you more comfortable you don't trust that inspection inspector do two like inspections are not super expensive so if whatever you whatever makes you most comfortable to make sure this surprise thing doesn't happen then you want to do that but i want to run down some of the most expensive things in your home and how long they typically last your air condition conditioning air conditioner a compressor sorry your air conditioner oppression compressor what can i say that it's 8 to 15 years sorry about that um your furnace is 15 to 20 years your roof is 17 to 20 years your water heater is 8 to 12 years and your appliances are 10 to 15 years so all of those things hopefully i didn't miss anything that was a major i said ac gas or heater um roof water heater appliances so if you know and i'll list that below so just in case i missed anything if you know what age home all of those things are what are the ages of those components when you move in then you can kind of prepare and have enough savings set aside if one of those needed to be repaired or replaced that you have the funds to do so i wouldn't move in a house if you don't have some savings set aside to address these things that will eliminate that fear for you because you know okay if something happens the likelihood is maybe small because there may be in a good lifespan but if it does happen i have the money to take care of it and very rarely does everything happen at once if you've been maintaining it and you know they're saying oh it's in good condition it should last for a little while then you should be good you don't get root canals all at once unless you really haven't been doing anything with your teeth so you really just want to make sure you're maintaining them and you have an emergency fund to deal with any of the expenses if i missed something with the years i'll put it in the description number five no one will accept my down payment assistance offer okay so this is kind of scary i know i deal with a lot of people that do down payment assistance and it is scary especially when there are multiple offers it is very difficult for somebody to a seller to accept your down payment assistance offer there's a lot of reasons i put them in other videos but i want to say two things one is is it going to be on your pre-approval at all not all down payment assistance do you have to disclose that's one thing so you want to know if you're going to do down payment assistance and typically it will be on your pre-approval letter okay so you want to know from your lender is it going to be on my pre-approval letter do i have to disclose to the sellers that i'm using down payment assistance in some assistance programs you do not so that's number one number two is they may not want to accept your offer because of your down payment assistance so you want to do a couple of things one get your mindset together that it might take you longer so it might take you longer the other mindset i want you to get together is i while i'm waiting i'm going to start saving so i can perhaps get a house and i won't need the down payment assistance so either one like sometimes people just wait a little bit longer they find something some people are saving and they do both if i can get down payment assistance i'll use it if not i won't so you want to give yourself as many options as possible if you haven't already download my guide don't do it right now because i still have five more left but i have a guide to tell you exactly where i want you to start if you haven't already please like and subscribe and hit the bell icon for all of my videos you'll get notified thank you so much number six losing your job and possibly losing your house okay so this is basically foreclosure you're scared your income will drop something will happen and you will not be able to pay your mortgage let's talk this through really quickly um what happens if you lose your job and you can't pay your rent the same thing happens you'll probably be evicted and i would say you would be addicted way faster then you will be foreclosed on in a lot of cases the lender in the most most lenders do not want your house they don't want your house they're not in the business of foreclosing taking property and selling it back they don't want it so if you want to check ahead of time just to make sure like what happens if i can't afford to pay what um what mitigation you know what do they have that you know if i can't pay what kind what are my options there are plenty of them not only are there government options that can help you a little bit there are also options with your lender where they can try to work it out so they don't foreclose if you can get where you're back on payments after a couple of months or so they will not foreclose and it takes them again a long time to foreclose on you way longer than rent and so say you know you couldn't find another job you're down on your luck um and i want you to have a emergency fund too so if you do lose your job you have that emergency fund and you don't have you can still pay your bills but if this happens to you and you have to foreclose and again let me say this you could sell the house you could rent the house you could rent out stay with family foreclose is really you can't sublet your apartment usually you can't sell your apartment if you can't pay rent but if you couldn't pay your rent you could sell you could go on airbnb you have a plenty of options you can do if you own something rather than rent so i'd rather lose my job as a homeowner than to lose my job as a renter because it's not i don't have as many options as i have as a homeowner so i want you to do that i was going to say something else but i think i forgot i might come back to it okay so but you have way more options um with foreclosure or potential foreclosure than you have if you are just renting number seven i know what i want to say now sorry what i wanted to say was foreclosure if you do foreclose you it will hurt your credit say you're paying everything else on time it'll hurt your credit maybe 60 to 80 to 100 points i would say that but you'll be allowed and you can buy a house after three years so after three years you can buy again okay so don't feel that bad but again way more options in home ownership than losing your job or losing your income as a renter number seven finding the fear is finding a realtor that specializes in first-time home buyers so finding a realtor that specializes in first-time homebuyers now most people found me in atlanta because i did videos on first-time buyers first-time buyer programs in the atlanta area so they knew that i specialized in first-time homebuyers so if you could find a realtor that already has information out there for first-time homebuyers that will be ideal also if you find a realtor i want you to google them if when you what comes up is not information about how to buy a house what area i serve what do i do or you see all homes that are you know luxury properties and you're not a luxury first-time buyer then that may not be your agent they may be very impressive they may be really good but if they're used to selling 3 million 10 million houses or even one million dollar house and your budget is 200 000 they may you make money as an agent based on the commission of that property so the more expensive that property is the more money the agent will make so they may take you on as a client but are you going to get the same service that you would get with somebody else if they're making a whole bunch of money some people some agents are able to do both they treat the 200 000 person the same way they treat the 10 million person and some people do not so you're going to be able to get a vibe from them but check their social media i want you to check their google i want you to google them i want you to see what is there to see that makes you feel like they would be patient that they're going to educate you and that they're going to really take your their time and take you through the process step by step all right three more i'm almost there okay number eight not the fear is not understanding the contract okay number one real estate contracts are not that complicated remember you can get your real estate agent sorry you can get your real estate license and you can you can buy a house starting at 18. they're not that complicated but your real estate agent or if you're going to use an attorney they will be able to explain it to you in a way that you can understand it if they cannot explain it to you in a way that you understand each and every thing that you're signing then i want you to choose another agent or another attorney okay you shouldn't feel dumb if you're asking questions that and you're spending the most money you've ever spent in your life if they make you feel like i don't know if i should ask that they're gonna think that's dumb and that's probably not the agent or the attorney for you you need to be able number one they need to be able to explain it number two you need to be able to understand it if they've explained it and you don't understand it y'all need to keep on talking until you do okay so i want you to make sure you understand before you sign anything and a lot of things are coming over their docusign their electronic signatures do not just sign things that you don't fully understand what you're signing and then you won't be scared if you know what you're doing again that confidence you won't be fearful to to sign it because okay i know why i'm signing this okay number nine and this is a big one in our current market if the market is going to crash and i'm going to be underwater okay now this did happen in 2008 and i would say this the market is not expected to crash i'm gonna put a link below for some data that's gonna tell you you know about the market and its expectations at least over the next year or two years okay i'll link that below but the market is not expected to crash but over time you may have dips in the market everything in real estate doesn't always go up usually it does but it's not always where you're going to get oh it's my house is worth 20 percent more each year after covet things and inflation things went up very quickly that is not the norm so you may have some time in you know life or in your life that you're a homeowner that things don't go up as much as they used to or maybe that go down within a year but on over time in the long run it you will end up on top in the majority of circumstances you can research it you can link i'm trying to put a link below you will be okay and if the if it crashes you won't be the only person underwater there'll be a lot of people underwater at the same time your as long as you keep your job if if the market crashes unemployment that may go back up people may lose their jobs that sort of thing so number one we don't really want the market to crash because it's going to impact a lot of people but just like in 2008 everybody didn't foreclose a lot of people stayed in their homes and they're in those homes now selling at a high price point because they stayed in their homes and they stayed in their property so if it does if it does go down a little bit it's going to go back up and you should be fine so just kind of ride that wave real estate especially real estate that you're living in not like you're investing you got to get in and out of the market for um home ownership is for the long term so if you are not planning to live in this house for five to seven years you shouldn't be buying if you're planning on living in a house for one or two years then i would not buy right now you need to be planning for the long term if you're a home owner or you're buying a house you need to be saying i'm gonna stay in here five to seven or more years and you should be fine because everything will eventually even out number and this our last one spending all of my money on down payment and spending all of my money on closing costs and having no money left if all you have is your down payment and your closing costs wait until you have extra money ideally you want three to six months of expenses if you're in a job that's not very stable and when i say stable typically things that were stable were teaching jobs stability police officers things that people rarely i guess get laid off in mass um those are were considered at one time to be stable positions if you feel like you have a stable position you probably can save a little bit less but if you're in an unstable position i want you to save a little bit more so but three to six months is good whatever makes you most comfortable six months may be good for me i had to save for a year because i was going into real estate in real estate sometimes you have closings and sometimes you don't but if if after you buy your house all your money is gone you are not ready to buy it's already talking about you need some money set aside for maintenance issues and that sort of thing so my ending thing for that fear is eliminate the fear by waiting to buy for number 10 if after you do your um down payment and after you do your closing costs you have no money left eliminate that fear and wait until you have more money after those two things are paid for thank you so much i hope this was helpful to help you go ahead and confidently buy your first home please like and subscribe to my channel for new videos every week

Channel: Shaheedah Hill

Views: 29,686

Keywords: Shaheedah Hill, Atlanta real estate, First time home buyer, First time homebuyer, First time home buyer tips, First time homebuer, first time home buyers tips and advice, first time home buyer 2021, First Time Homebuyer fear, How to buy a house

Id: Wz94ssZ4Lzg

Length: 22min 25sec (1345 seconds)

Published: Sat Aug 14 2021