Dave Ramsey's Steps To Buying A House 

Exactly. The area I used to live in California is that expensive. The only people who own homes are: Top 5% of income earners Mommy and daddy bought the house outright or at least put the down and co signed Both professional husband and wife that are in top 10% of income earners that make over $100k Divorced from a rich man Bought first house over 15 years ago. Younger middle class people are completely priced out of the housing market, probably forever, in many areas in the US. The reason why its so high is foreign investment and corps and llcs buying. There are almost no 1st time home buyers in the market.

Then move.

Obviously the income in that area is high so unless you make a lot don't buy in that area... Just because I live near NYC doesn't mean I need to buy something there

@@bennalbrecht the average income in Toronto is around $80,000 a year. So no.... the income in this area is not high... Most people were born and raised here, with family and friends and a job and a life.. You would have to move more than an hour drive away, 2-3 hours if you drive during rush hour traffic.. to be able to afford a home according to Dave's plan. Dave's plan would work perfectly for someone living in a small town with low cost of living.. doesn't work for everyone though

@@karolinrose I could I agree with you but I don't know where you're getting your information. I doubt every House nearby is almost a million dollars

He didn’t lie lol!

I did, and it's working out for me

Yes I laugh when they say it’s cheaper then renting

So glad you found him! So much great content.

That quote was at 3:17, for reference.

Why doesn’t this comment have more likes ?

If you were the buyer you do know you don’t pay the agent right? So you must’ve saved money when the appraisal came back because it came lower than purchase price or the seller cover closing costs. Both could be done with or without an agent.

Of course the mechanics says you shouldn’t ever fix your own car

How did you find the seller?

The buyer does not pay the agent

Much better use of your time

SAME

@@eamonshields2754 much better use of her money 😂

I was about to save that too.. 😀

Amazing!!

Robert Olmstead or else what will you do, rob?

You can rent it out.

Robert Olmstead Dave can do this because of this show that he has, not his investing strategy (which made him bankrupt in his 20s by the way). You’re better off buying a 30 year mortgage because your monthly payment will be lower, so you’re less likely to not be able to afford your bills each month.

​@@EmpireTextbooks No, if we are talking about monthly payment. The longer the mortgage, the less you will pay monthly. The way I paid for my first house was with a 15 yr mortgage at a 2.78% interest (perfect credit score melefucker!, plus some negotiation). Pay it off within 2 yrs of owning the house. Now, I'm renting it out to 2 families (through Airbnb) and making 3K/month passively from the house. Now, I'm working on rental properties.

Tien Doan ok agree with what you say...not sure why you think that’s a rebuttal to what I said

Dakota M location has a lot to do with it too. My job is unfortunately based out in LA. I make 80K a year but I’ve got no chance of being able to afford a house here.

You could buy a house for 25k back then, you’d only need like 3k to purchase the house

@@naddarr1 Yes, that's why I never mention dollar amounts. However, the ratio of income to house price was significantly lower. So while you only made 10K a year, it was still only a third of a years pay. An 80K down payment nowadays (60K average salary where I live) is more than the average salary per year. So we are, relatively speaking, required to save 20K above our 1 year salary So the ratio is 1/3 annual salary for the 1975 home, vs ~4/3 annual salary for the 2019 home. Part of the real problem is the fact that homes have gotten bigger and fancier. It was really hard to find a house < 1000 SqFt that I could buy.

Mind sets have changed. We bought our house cash 15 years ago.

Dakota M sorry but housing prices have inflated 200x more than income in the same period. We can’t keep saying people just aren’t working hard enough because the economy is completely different than 30 years ago.

In my region they list low to create bidding wars. People pay 20% over asking all the time because they’ll have 20 offers. Just the nature of our market.

The FlyingScrub fsbo I want to try this so bad, there aren’t any houses in my area for less than 300k and I really think I could sell my house myself fairly easily. I don’t want to pay someone with a buyer agent 3% either just crazy to me. Maybe I will try the Face Book approach like you said and just put nice pictures up and hose the open house myself. It’s hard to do when I have 2 roommates and have two small dogs but I agree this is a much better way to go. More money in my pocket. I always hear realtors say don’t do that though your house will just sit. I have a friend that’s a realtor for a long time said they would only charge me 1% to sell so that’s pretty decent I’m just dreading the person that comes in with a buyer agent wanting their 3% 😡

I used to think realtors just showed houses and did paperwork. I'm in closing and learned they also make phone calls. I'm buying a house for 60k and this firm is charging 3%, which I'm not paying for. When it's time for me to sell I'll either be a "certified" realtor somehow or I'm going to do for sale by owner. It can't be that difficult, I think people just get mystified by paperwork.

@Ziggy Zig The buyer will probably needs financing, so the finance company will dictate everything. Got to use their appraiser. They will say who to go through for the title search, etc.

@Dougie how do you decline an offer of full asking price if the hoped for bidding war fails to happen? it is your ASKING PRICE.

Michael Kite 38yrs old, selling my home & decreasing my cost of living as well. Never too late is it? I find it interesting what all I can do without and still be very comfortable in terms of possessions.

Congratulations on your success and hard work.

Good job @Mike Kite. You want to win and are going to make it happen!!!

Great plans. How is it going?

dyva lei It all worked out 🙂I put an offer on a townhouse in January and closed in March. Moved in a few weeks ago. It was a long road (baby steps 1,2,3, and 3b) but totally worth it. So glad to be out of that horrible apartment and into something much better. Followed Dave’s advice on buying: 15 year fixed mortgage where the payment is no more than 25% of your take home pay. Mine comes out to around 15%. I feel blessed and thankful to have cleaned up my act before corona virus. Being debt free with a six month emergency fund and a tiny little mortgage feels unbelievable. I don’t say that to brag, I’m just saying I’m a completely different person from who I was two years ago. Out of control with no plan.

How much do you pay in rent during that time 🤦‍♂️

@@JO-qc6nt true, but in my case, I had a tiny single-bedroom apartment to live in.

Any updates? Were you able to pay cash for a house?

@@JO-qc6nt Do you not know all of the interest costs, property taxes etc that is burnt money when having a mortgage? At the moment, those costs are higher than just renting (at least here in Australia) so it's actually more financially beneficial to rent and invest

Facts!!!!!!!!!!!!!!this dude is unrealistic

I’m glad it isn’t just me thinking that. if you make 60k a year you’d need a 1250 a month note and on a 15 year loan you’re only doing that buying a 120k house.

@@Vividlol I could barely afford 600 a month on that plan

@@durden2480 exactly. With those guidelines you’d be lucky to even be able to get a single wide trailer

House price Inflation is so high in my state...it just is impossible even buying a slum house.

LOL this is exactly what I needed

I bought a house with debt, very good decision I made. My equity is climbing decently while I pay down my debt concurrently.

I understand, but I don't want to rent a place forever. I want to buy a house, and my student loans are not going away anytime soon in the next 10 years. I rather invest money in a house rather than someone else's house.

@@queline213 see, I support student loan forgiveness for many people.

😂😂😂😂😂😂😂😂

potentially what anyone says or thinks doesn't matter any situation can and will have different circumstances just work hard and you'll get there

J Globetrotter yes u need to be debt free first. Stop being a child and doing what feels good in the moment.

I completely agree. We had some credit card debt but found out our rent was going to go up 50%. So we bit the bullet and bought a house while interest rates were only 3%. Our mortgage is significantly cheaper than what our rent was going to be and we are now paying our debts off way quicker than if we had stayed renting. I don’t care what Dave or anybody else says, that was the best decision we ever made.

Aunt Sally! 🤣🤣🤣

That's because they came from church. Had nothing to do with anything else. Don't ever believe anyone who came from church.

Definitely agree that would be a treat.

at least a picture of Dave back then when he sold that house. LOL

Investing Hustler please don’t put that creepy picture inside my head

I been think that I can use the sims 4 to craft a sim that look like Dave and with and let me get to that

Christina B. Please don’t

If you get a 30yr but on a 15yr payment schedule, how does 30yr allows for lower payments? The only benefit is the cushion which can be a blessing and a curse

@@gamatoutsikos Allows for lower payments should job loss or something unexpected occur where lower payments could be beneficial.

@@brianmurray4724 therefore it's not a 15 yr pay off schedule anymore. One doesn't go with the other. You can't have both

@@gamatoutsikos thats not what he meant. lets say a 15 year mortgage is 2000 a month and obviously a 30 year payment plan will be less, lets say 1300 a month. you get the 30 year plan but you pay 2000 a month anyway to pay it off early. then if someone loses a job or something youre only required to pay 1300 a month until you can get back on your feet whereas the 15 year loan youre stuck needed to pay 2000 a month

@@michaellong6179 I understand that's what he said. If you look at my initial comment I acknowledged that but I said the cushion is a blessing and a curse. Because when you know you can reduce your payment, if you are not disciplined you will. And if you are disciplined you would have got the 1tur option in the first place since it is affordable at the moment . Source: myself. Used to sell and underwriter mortgages for 10 years before opening my own business. I've seen it happen many yimes

@Wren Wallis Yeah!! With the current problem around the world today I think it's best everyone invest more in digital asset than Saving in banks and real estate. Just my thoughts

@@matthewshaw811 yes it is,digital assets are actually the best way to save money cause you are earning while you save unlike banks

Investing in stocks is a good idea, a good trading system would puts you through many days of success.

Steph Makes Up congrats on getting your debt down. I was in the same boat, we rented a co-op for ten years, it was time to go! It told me 3 years to get my credit back up to 700. Paid off my debt and just moved into our first home in February! I worked 70 hrs a week to get it done, but I was determined!

Hey are you saying a house is better than a condo was thinking about getting a condo or a house

roxanne scott everyone’s situation is different. For us, it was definitely better. I love doing yard work and having 2 very energetic dogs, it was a no brainer. You have to weigh out your options and see what’s best.

Feel so regretful that I made dumb decisions financial and didn’t invest properly. Now I’m 40 and feel like I’m starting from scratch like a 25-30 year old

livenow13 I’m 46 and finally bought my first home. I went down that same road, but finally made the right decision

Are you able to secure a grants yet?.

I can help you,

Pretty much if you can't dish out $200k cash like mini pablo escobars don't buy a house is what he said. "Millennial couple making $100k a year saved for 4 years and paid it off" like who tf is making that even nowadays

Steps: Use the site recommended. This turned into an ad :/

I'm looking around and everybody is building 200-300k two story houses that have 12-15' between neighbors. People ballin outta control spending all they money.

He said it: 1) Get out of debt. 2) Have an emergency fund. 3) Buy a house. If you have to borrow money to do so, get a 15-year fixed-rate mortgage that costs less than 25% of your monthly take-home pay.

@@luisortega6140 alot of People are. A couple making 100k.. So one person makes 40k,60k, or 55k 45k. I see people making 110 and drive a Mercedes around.. It's silly. Should be saving.

It's kind of stupid advice in many markets; waiting has just meant, here in Southern Cali, that a home for $500k at 3% mortgage in 2020, is now $$750k at 7% in 2023. There are millions of folks who lost out on their chance to own their home. That's a fact.

The law of gravity is outdated 🤡

How is waiting to be debt free before you buy a home considered “Stone Age” advice?

Wow....your comment is GOLD, Ericka. Good stuff. Way to put it back into perspective. We all need that sometimes.

I hope all is well!! I am in the same situation my stomach rotates all around

@@isidoramartinez6510 got the house I wanted dude. Definitely worth it. Better area. Lots of work. Good luck. Trying to make wealth for my family.

I hope it went well and you’ve been able to get into a home!

Right!? I live in Cali and you are looking at a 500k minimum for a decent house, not even a nice house lol

I live in Tucson, tons of houses in good condition for 200k

Colorado 500k most now.

@@ClulssCrs3310 irs so hot though isn't it? Did it get hotter like everywhere else?

There's plenty of websites with houses under $150k in literally every state

What's in it?

Same lol. This is where the saying "Ok Boomer" fits nice and snug.

I work in IT. I literally open the backs of computers for a living!

I do it as a side hobby, fixing a computer is NOTHING like buying a house.

Same + I just replaced the frame on my truck lol

Id be working my life away for 20 years with what i make to accomplish that. Lol

no magic bullit here, just save, save and save, and when your ready just keep planning and saving until you have everything figured out when your ready to pay cash, its an on going journey.

He said "100% down" and I laughed my @$$ off!

Maybe it's ok for American standards? Idk

@@ihatepeoplewithlongusernam366 maybe some parts of the country

Easy no impossible certainly not I live in Southern California so housing isn’t cheap and it’s only going up in price. I’m looking to put down 20% and see what’s out there. But only buying a house the size I need and can afford I don’t need a 4 bedroom home with a 2 car garage is it nice of course is my family that big no

@@Curtis1900 Fair enough but in the world's most expensive cities I really don't think it would work.

Use extra money for principal only payments.

Perfect !

I can't put all my eggs in one Basket

I would say in half the major cities like New York or Socal if you make an average income you will never enter the housing market....EVER. The only way you can do it is if you move to a cheap area AND have a household income of at least 90k. Median income in the US is 35k.

Stephany Gonzales Dave can do this because of this show that he has, not his investing strategy (which made him bankrupt in his 20s by the way). You’re better off buying a 30 year mortgage because your monthly payment will be lower, so you’re less likely to not be able to afford your bills each month.

easy for dave to say. i live in NY (not nyc) and the property taxes for a 150,000 dollar home are probably higher than what he pays in property taxes for his house. you could have your house paid off and still have to pay a grand a month

He's not wrong, he's just applying the proper discipline. I bought my first home at 24 in very expensive Fairfield County Connecticut 30 years ago. My son and his wife will now do the same in the 400k price range. No more than 25% of their take home and they will have a ton of disposable income. Stop watching HGTV and being brainwashed into over spending.

@@randystevens6302 generational wealth really helps

Good because that would be prostitution

places like that still exist.

@@groofromtheup5719 where?

Infidel Heretic yes. Apply extra payments to the principal.

save and pay cash.

@@hunkydude322 I hate banks and the idea of a mortgage, emotionally I'd rather pay cash. But interest rates on mortgages are so low, sometimes on par with inflation, which means you can leverage other people's money to own a huge asset. And I second the 30 year mortgage idea IF you know you'll be disciplined to pay it faster when times are going well.

But are you gonna use his services tho lol

Russ Adams which state?

Definitely wasn’t expecting to see your comment in this video Russ! (ZoMb1e_AsSaSiN

@@NotShowingOff North Carolina

@@georgelopez344 lol hows it going George?

Awesome! How long do you think it will take?

The whole segment was a commercial for his vetted agent recommendation service.

If everybody will only get agents had 100s closed sales, or doing 100 a year, how will an agent with less than 100 will get to 100? Right?

He is not hating. What are you talking about? Is it not a fact that someone who just got licensed is a novice? Or are you a pro real estate agent already? Humble yourself, the fool is the precursor to the master.

@@Bremith103 whoa relax

Lol

Where do you live? Because if you’re in America, you can’t legally enter into a contract at age 17. Not buying your story…

Cool to here about that. I think the 20% down rule can be taken with a grain of salt. If you can buy a home for cheaper than rent, I think it is a good idea.

U bought a room or house lol?

can’t listen to broke ppl 👂

Amanda I’m in the same boat but we are rent free and 22/24

Good move

A 2/3bed apartment would just do good enough

0 views That’s the point of the emergency fund and saving for 3-6months of expenses.

@0 views i did that too..take out 30yr mortgage but paid it in less than 10

youmakeitwhatitis I was looking for this comment. Lol I BUILT my own computer and car..

Obviously you join up with an experienced realitor while you learn the ropes. Then in 5 years the experienced realitor will need to pay you more, so you start your own business...not rocket science here.

@@ultimaetsolder do you feel better now that you got that off your chest?

My first year in real estate i earned $753.00. TOUGH YEAR!... After learning the lingo, reading all the sales book and following around a more experienced agent for a year. Things have dramatically improved. I will say, its a cut throat business though.

Lol which surgeon do you want , the new guy?

It’s because he wants his business to grow and cut out the competition

roadrunnersk2 that’s literally all it was, him trying to convince his audience to use a professional and that no professional other than HIS professionals are good enough Extremely disingenuous

You gotta tie some good advice to hook ppl in and then promote what you got too :/ lol

Then you can't afford to live there, oops did the math spoil your dream? Stop being such an elitist, humble yourself, your wallet will thank you.

Right! Not everyone has a “garage” or family they could stay with, also not everyone has a 100,000 job 😒 what about people who work hard and make regular pay.... we need more tips for those people

I guess, you can rent a room if you dont have a garage it's cheaper than an whole apartment... you are saving

T Perez You do not have to make $100k. He never said that. You may have to work two jobs, some people are married and have combined income etc. He always says live within your means and on less than you make. If your job sucks and does not pay well, then get a better paying one. It’s about solving issues to make your situation better.

Thank you! I'm an ENGINEER and living with 3 roommates ina cheap location i could MAX only save 1000-1500 a month... i like dave when it comes to a lot of things but this piece of advice is a remnant of a different time

@@L34VITT you are wasting money if that is all you could save. $1500x12 is $18,000. Let's assume you could save $20k a year. Are you really only bringing in $20k above the poverty level? Time to ask for a raise, rethink where you want to live or rethink what you can do without.