Lets get back to the basics in terms of saving enough for a down payment to buy real estate, what you’ll need for lenders to give you money, and some things to prepare for before you start buying a house. Enjoy! Add me on Instagram/Snapchat: GPStephan
Learn my exact strategies to help grow your career as a real estate agent to a six-figure income, how to best build your network of clients, expand into luxury markets, and exactly what you can do to begin taking your career to the next level…these strategies took me to $120,000,000 in sales volume: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
It begins with the following:
Good credit - Anything above a 740 generally gets the best rates.
2 years worth of tax returns - This shows that your income is consistent and that you’ve built up some work history.
Bank Statements and proof of income for the last 2-6 months - this way you can prove how much money you’re actually making and spending. With that, they can calculate what your debt to income ratio is - banks prefer those who save a lot, and spend very little.
Cash reserves - sometimes it can be 3-6 months of mortgage payments, taxes, insurance, and a buffer in liquid cash or assets.
Pretty much any time you buy real estate, you’ll need a down payment. Banks want to see that you have your own money at risk when you buy a house…this down payment forms your initial equity in the property. Generally 15-20% down is about what I’m seeing.
If you don’t put down 20%, you’ll generally need to pay PMI which stands for private mortgage insurance. This is an extra cost that helps assure the bank you’ll be making your payments, since the less money you have in the deal, the higher the risk is that the bank will lose money in the event you foreclose.
If you can qualify lower down payments and the numbers make sense, go for it. But in more expensive markets, you’re going to need more money down. Some other options might be available like a VA loan where you can buy with 0% down - so this will be up to you figure out what’ll be best.
When saving for a property, it’s really about setting your priorities and deciding what comes first - if buying a property is your number one priority, it might make sense to cut back in other areas just for the sake of accomplishing this.
What I use that helps a lot is Mint.com and PersonalCapital.com - I use these to track all of my expenses. You need to know where every penny is spent and exactly how much you earn. It’ll be nearly impossible to save as much as you can without doing this.
One other strategy I like to use is to automate my savings. I have one bank account where all of my money is deposited and saved - this is Ally Bank. Then I have a Bank of America account for my expenses. I’ll only transfer a certain amount of money every month to bank of America, this means that everything else I have is pretty much already stashed away.
Finally, generally banks won’t want the mortgage payment to exceed about 44% of your total income after expenses.
Again, with this, it’s all cutting back as much as you can. You really have to make this a priority to save as much as you can.
Now for those who just don’t earn much money in the first place, the reality is that you’ll need to either cut back on your expenses as much as you can and save the difference - or work to increase your income. There’s no way around it, there’s no way to sugar coat this - if you’re not earning enough money, you’ll need dedicate yourself to making more money. This is one of those things where if you want it bad enough, you will somehow find a way to make it happen.
Now one more thing I do when it comes to saving is to keep it all in a high interest savings account. Most people want to invest it, although in the short term, there could be too much volatility to risk it in the markets.
Ultimately, when saving up for a down payment, it really just comes down to income vs expenses - and once that’s handled, banks will look at the bigger picture to determine what you’d be qualified to receive. And patience and discipline here goes a long way - you will need to do this long term consistently.
For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3

By Stock Chat

where the coffee is hot and so is the chat

35 thoughts on “How to save for a house plus everything else you’ll need to know”
  1. Avataaar/Circle Created with python_avatars Pablo Herrera says:

    😆👍

  2. Avataaar/Circle Created with python_avatars M Khan says:

    F PMI

  3. Avataaar/Circle Created with python_avatars Dreamy2020_ says:

    Your channel is very informative! Thanks 😊 just subscribed!

  4. Avataaar/Circle Created with python_avatars Jeff Hiatt says:

    No close captions 🙁

  5. Avataaar/Circle Created with python_avatars Diego Alessandro says:

    >This is a very interesting and informative video.

    Are you someone who reads as much as possible about potential investments and asks questions about them? If so, maybe you don't need investment advice. However, if you are busy with work, children, or other responsibilities, or if you feel that you are not knowledgeable enough to invest on your own, seek professional investment advice.

  6. Avataaar/Circle Created with python_avatars Matthew says:

    Have an addition like fouseytube. I’m dead

  7. Avataaar/Circle Created with python_avatars Ashley Heath says:

    OMG it was so funny when you imitated that "random person" that complains, dislikes, blocks and unsubscribes because they know another another random person who lived in an exception to the rule scenario. LOL.

  8. Avataaar/Circle Created with python_avatars Pens4Stanley says:

    Best way to save for a house… it’s simple. Don’t have kids, and don’t be tied down to someone aka ending up filing for a divorce down the road and paying alimony. I’ll pass on all that. 🥴😂🙅🏻‍♂️

  9. Avataaar/Circle Created with python_avatars Susan Marty says:

    Awesome information. U helped me out tons!!!!

  10. Avataaar/Circle Created with python_avatars Sa’vaughn Martin says:

    I’m 18 saving for a house rn . I put my goal to 30000 . I’m projected to be there in 8-10 months

  11. Avataaar/Circle Created with python_avatars M A says:

    Hey Graham, when you said you were making a high income at your job; how much were you making?

  12. Avataaar/Circle Created with python_avatars Christopher Bacon says:

    Watching this again in 2022, and it's still gold.

  13. Avataaar/Circle Created with python_avatars Mark Chin says:

    What is the link to Allied bank. I googled them but only a Pakistan bank showed up. is that them? They aren't FDIC insured

  14. Avataaar/Circle Created with python_avatars Saliem Aregaye says:

    Love your content, thank you Graham! I’m really motivated to get a house and I love the info you provide!

  15. Avataaar/Circle Created with python_avatars Cherelle Palacios says:

    This is great information! I'm planning on buying a home in 3-4 years and want to be in this best financial shape for getting my dream home 🏡 😍

  16. Avataaar/Circle Created with python_avatars Hola! Joshua Garcia says:

    I recently started watching your channel and it has truly helped me!
    I don't have the best credit and I am not able to get any credit cards until 2024 and my job pays me just enough to be -$309.21 after bills and necessaties.
    Can you make a video on how to use a life savings account for a down payment on a house?
    I can't provide for my family anymore in life but I know I can provide for them in death.

  17. Avataaar/Circle Created with python_avatars Razor says:

    Can I still transfer my “cash reserves” to my high interest savings acct??

  18. Avataaar/Circle Created with python_avatars zziggy808 says:

    Do you invest the savings or keep it liquid? 😮

  19. Avataaar/Circle Created with python_avatars arisavixen says:

    this is kind of depending on your state with the downpayments

  20. Avataaar/Circle Created with python_avatars JuJu Michelle says:

    Your voice sounds much deeper here

  21. Avataaar/Circle Created with python_avatars Ariel Williams says:

    Good to know I'll never be able to get a house in this lifetime. Thanks for that.

  22. Avataaar/Circle Created with python_avatars Chriselias714 says:

    Shoutout fouseytube tho

  23. Avataaar/Circle Created with python_avatars Daniel Sanchez says:

    I miss all the bitconnect memes. When did they stop?

  24. Avataaar/Circle Created with python_avatars Joua Vang says:

    Uncle Dave Ramsey says debt is evil. I'll work really hard to buy the property outright. So far, I have two duplexes. I'm working on my 3rd duplex within the next year.

  25. Avataaar/Circle Created with python_avatars Money Talk With MP says:

    Thank you! Very informative. I just made a similar video on my channel as well. It will be so worth it when we wait, save up and then put down a good amount as Down Payment, so we can truly enjoy our DREAM HOME!

  26. Avataaar/Circle Created with python_avatars Louana Rose says:

    I live in Germany. I am 21 years old and I am always thinking about buying a house. I work in a deposit and I earn around 1.500€ a month. I have done some mistakes right after turning 18 I bought a fridge and a photo camera which were both pricey and both were financed. One time I had no job anymore and I was at the lowest and I could not pay for them anymore and now I have to pay back 1.800€ but thank goodness that I can pay each month 100€. Is it ok to start saving money from now? Or when I am done with paying off the bills? Because I am paying with my card and the bank will see that I am giving money away for a mistake and they might think that I am a traitor.. Thank you! And I still have time to repair what I have done. I was young and excited. Now I am more concerned about what I am doing and I am trying to do better and better everyday! God bless everyone! ❤️

  27. Avataaar/Circle Created with python_avatars Pens and morez says:

    Is it a good idea if I bought it all cash?

  28. Avataaar/Circle Created with python_avatars Danny Lovell says:

    "I lived like I (only) made a few grand a month" (in reference to living below your means and saving). This dude is an out of touch idiot.

  29. Avataaar/Circle Created with python_avatars Tommy Da Figure says:

    I appreciate it bro your helping out a future wealthy man remember Tommy I can’t wait to share with the world that you helped me

  30. Avataaar/Circle Created with python_avatars Paint Paint Paint Co. says:

    Why do you sound like a normal man in this video? New videos make you sound like some preteen

  31. Avataaar/Circle Created with python_avatars You TV says:

    I'm 18 and getting started in real Astate in the UK whats the best advice you could give me? Thanks love your vids.

  32. Avataaar/Circle Created with python_avatars Jacob says:

    I say this all the time…. a bank will freely give 100k for a house but if you decide to buy a house for the same 100k, there is a lot red tape.

  33. Avataaar/Circle Created with python_avatars Cano suarez says:

    Investing in bitcoin is the best investment anyone can do this, because it has made a lot of people millionaire. I pray that anyone who reads this will be successful in life

  34. Avataaar/Circle Created with python_avatars Laura Kelly says:

    "I lived like I made ONLY a few grand a month" 🙄😑🤔

  35. Avataaar/Circle Created with python_avatars Charles Ross says:

    Do they look at people shaking up at the in laws house in order to save on a house, thus making it easier to save money?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.