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
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
😆👍
F PMI
Your channel is very informative! Thanks 😊 just subscribed!
No close captions 🙁
>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.
Have an addition like fouseytube. I’m dead
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.
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. 🥴😂🙅🏻♂️
Awesome information. U helped me out tons!!!!
I’m 18 saving for a house rn . I put my goal to 30000 . I’m projected to be there in 8-10 months
Hey Graham, when you said you were making a high income at your job; how much were you making?
Watching this again in 2022, and it's still gold.
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
Love your content, thank you Graham! I’m really motivated to get a house and I love the info you provide!
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 🏡 😍
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.
Can I still transfer my “cash reserves” to my high interest savings acct??
Do you invest the savings or keep it liquid? 😮
this is kind of depending on your state with the downpayments
Your voice sounds much deeper here
Good to know I'll never be able to get a house in this lifetime. Thanks for that.
Shoutout fouseytube tho
I miss all the bitconnect memes. When did they stop?
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.
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!
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! ❤️
Is it a good idea if I bought it all cash?
"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.
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
Why do you sound like a normal man in this video? New videos make you sound like some preteen
I'm 18 and getting started in real Astate in the UK whats the best advice you could give me? Thanks love your vids.
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.
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
"I lived like I made ONLY a few grand a month" 🙄😑🤔
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?