Hello, everyone and welcome back to a new video Sean's, a name and a Real Estate's the game. Today I want to talk about potentially one of the biggest investments you will ever make in your entire lifetime, and that is buying your first home. It's something I think everyone should do ASAP the sooner you can buy an appreciating asset, the wealthier off. You will be no matter what you do in your 20s, whether you're traveling messing around whatever you need to be buying an appreciating asset as soon as possible, and luckily most people probably already know this.

So today I want to talk about the three biggest things that stop first-time homebuyers from getting into their first home. Okay, here's the thing: if you don't think you should be buying a home, a s, a P, then I've got two words for you, you're dumb. I get it the second you go from being ridiculously poor in high school or college or whatever to making a little bit of money. You want to go, have some fun, whether it's like buying a dope car buying some cool clothes or just raging your face off.

I get it, I am 23. I am right there with you right now, but here's why you should actually save some money not to just go, buy a cool car, but you actually buy a house. If you buy a house when you're 20 years old you'll, have it paid off no later than the time you're 50 right well, not only does that be buying a home in your 30s and not having it paid off until you're, 60, plus and you're trying to Retire but the sooner you get into real estate, the wealthier off you'll, be on average homes in the United States appreciate at about a rate of 5 % every single year. That means, if you bought a $ 300,000 home when you're 20 by the time, you're 50, that home is going to be worth about 1.3 million dollars, baller right.

That means you'll make about Emillio at home. Most people don't even make that in their entire lifetime, but we can't forget that you're more than likely paying interest on this bad boy. So let's say you went with a conventional 3 % down loan and, yes, you can do a conventional loan with only 3 % down, but you'll pay about two hundred nine thousand one hundred thirty nine dollars and 87 cents in interest and about fifteen thousand. Eight hundred.

Ninety three dollars and forty-five cents in mortgage insurance that does blow, but even with all of that, you are still profiting seven hundred seventy one thousand five hundred forty nine dollars in thirty-nine cents over those thirty years. That's basically adding twenty six thousand dollars to your yearly. Take-Home for the next thirty years, do you understand now how important it is to buy an appreciating asset as soon as mother possible? It's important. So many people keep putting off the process of buying a home until they're, more mature or until they're ready to buy a home when in reality, most people realize that it's a process to buy a home.

You don't just wake up and say: I'm gon na go buy a home today. No, you need to start that process now. So when you are ready or more mature, you actually are financially ready and are able to qualify to buy a home. Alright.

Now that we got that out of the way - and you finally realize okay, I need to actually start this whole pre-qualification process or the whole home buying process. Now so I am ready to buy a home in a year or two or three. Then then you do need to get pre-qualified okay, so I don't want to dive into that in this video. If you want to learn more about that head on over to Lending Shaun maoqiu com tons of great resources over there with some other good videos and stuff like that, but I don't want to get into that stuff.

Oh, you can also go watch when I bought my first home. I dive into some other really good info on that I'll. Leave that link down below, but again don't want to dive into that. I want to say focus on the psychological reasons why people my age? Don't think they are ready to buy a home or the reasons that stop them from buying home, okay, so number.

One reason why people my age are held back from buying a home is because they don't hit the like button on this video, so make sure you do that all right now, I'm just messing around, but in all seriousness I work in the industry. So I see this every single day, I'm in this age group, so I'm living with this every single day and I've also done tons of research on this. So the number one reason why people my age are held back from buying a home is because of a down payment. Come on people.

Again, I touch on the big three things: credit assets and income in a different video link down below, but I want to focus on the fact that people aren't willing to save for a down payment to get into a home. Millennials are really anyone born between 1980 and 2000 struggled to save up for a down payment. Its fact this is known, but most people don't realize is that you only need 3 to 3.5 percent to actually put down on a home. So if you're buying a $ 300,000 home, that's only 9 grand in the grand scheme of things that is literally nothing think about how much the car you're driving is worth or how much you spent on your education or how much you spend on a day-to-day basis.

9 grand might seem like a lot right now, but in the grand scheme it is nothing the reason it's so hard people to save those, because, on average, the yearly income of a millennial is only thirty five thousand five hundred and ninety two dollars, which again makes That nine thousand dollars look huge. You Shh when in reality, if you saved three thousand dollars for three years straight, your total yearly income wouldn't really decrease that much and you would be able to buy a home. Sad thing is most Millennials, don't know how to save at all and if you're, one of those people and you're watching this video, then figure it out boy but moving on the number two obstacle which is really dumb. In my opinion, that actually holds you back from buying a home is the fact that our generation is moving much slower than our parents generation and our parents, parents generation we're talking about life in prison.

Here, aka marriage Millennials are wedding later and later and much less often, and when most people consider homeownership as a representation of a stable place to limp for the rest of your life. They correlate that with marriage right. So the normal thing to do here is to get married, buy a house, have some kids and then die riveting. I know, but because that more and more people are putting off this whole home buying process because they're waiting to find their cell mate wait.

Wait. No! No, not cell mate soul, mate, my bad. This means most people don't even think about the home buying process until they're actually Wed which, if this is your plan, then that's fine, just again you're dumb. I already showed you that buying a house as soon as possible is going to make you wealthier and what's more attractive than to find a significant other saying.

Look I'm stable, I actually own a house already. I don't know it could just be me, but another interesting thing that I like to pin in this same obstacle is the fact that people, my age, like you, travel a lot, which is totally cool and a lot of people. Don't know whether or not they want to settle down in this specific state that they're in now or if they're gon na be moving in a year or two, so they think well, if I'm gon na be moving in a year or two, I don't want to Be buying a house because I'm gon na buy a house, I'm gon na move into it and then I'm gon na have to sell it and move to another place. No, the fact that you actually own a house shouldn't hinder you at all from moving to a different state.

In fact, it should boost your ability to move to a different, because let's say I wanted to move stage which I've actually thought about, and the fact that I bought a house makes me want to go move to a different state and I can rent the house Out I mean now make a little bit of extra money and have some guaranteed money coming in, as I go venture out on a new adventure in a different state and even if I go rent in a different state, I'm still making money off the property. In this state, there's no reason for me to actually sell this property just because I'm moving states I might as well make some money on it. Whatever moving on and this last one, I totally get it it's the most important one, I think to most people our age and it's dead again, not gon na get into the nitty gritty of like the debt to income ratios or anything like that. But psychologically it's natural for us to not want to wrack on more debt in the form of a mortgage if we've already got 30 to $ 40,000 worth of debt, whether that's student, loan, debt or credit card debt, most Millennials have about $ 35,000 worth of debt And I get it, you don't want to take out a massive loan for a home when you're trying to pay off this debt already, but what most people don't realize is if you can actually qualify for a mortgage with that debt you already have, then you totally Should because, if you pay on that mortgage for five to seven years and you build a decent chunk of equity, you're still gon na have all this 30 to $ 40,000 student loan debt credit card debt card debt, whatever you have you're still gon na - have that.

But you're gon na have a bunch of equity in your home because again it's an appreciating asset. Then you can take cash out of this equity and pay off all of this debt over here and now. You've just got one debt and it's in your home and it's usually a much lower interest rate than all this other junk. But look I get it nobody likes to be in debt.

Nobody likes it. Okay think the lower dear Lord baby Jesus that I've only got debt in my home and it's in my mortgage. Luckily, I don't have any other debt, but I know that it can be ridiculously stressful when you're constantly paying twenty to forty percent of how much money you're, making every single month just going away and paying off debt when, in reality, you're really not paying off that Debt that much because of how high the interest rate is and then you're falling deeper and deeper into the hole of debt. Nobody likes it.

I get it it's scary to go and take out a mortgage on a home, but I'm telling you the sooner you can do it. The better off you're gon na be the trick is really just going to be able to qualify with all that debt for a home, which is another reason why you need to start this process now. Even if you don't plan on buying a home for a few years, but I think that's the big three I wanted to mention in this video again. I know it can be scary.

I know it can be stressful and I know a lot of people. Don't think they're ready to start the home buying process, but believe me, you are it's a process. You need to start it sooner than when you're actually wanting to buy a home, so yeah and if you're sitting there going well. Of course, Sean is gon na say to go out and buy a home because he's a mortgage lender, everyone working in the industry is gon na go tell you to go, buy because more buyers out.

There means more business for me and you know what that that is a true statement. I'll give you that that is a true statement, but you know what else is a true statement. Everything else I've said in this video. So if you want to hold off on buying a home, fine by me I'll be seven hundred seventy one thousand five hundred and forty nine dollars in thirty nine cents richer than you by the time.

I'm 50 oh yeah, for literally doing nothing but living in a house which you're probably already doing. The call is yours, but hopefully you enjoyed this video and learn something new. If you did, I would really appreciate hit that, like button also subscribe, if you're new around here, I'm always trying to release content that'll make your situation much better off but again, hopefully enjoy the video. Hopefully you learned something new.

Hopefully, you understand how important it is to start this home buying process as soon as possible, even if you're not ready to buy a house for a little while again, if you want more info on that head on over to Lending Shaun Matthew, comm or go watch That other video I will link down below in the description for you otherwise see you later.