Home Buying Advice No One Else Will Tell You 

So many people are worried about "throwing away money" on rent, but no one is worried about "throwing away money" on interest.

A friend bought a condo in a seller's market. Condos were listed on Friday and sold on Sunday with multiple bids driving up the price. It was discouraging. Finally he found a fixer upper that didn't show well. Everyone wanted move in perfection. This condo needed paint, carpet and a few minor repairs. He was able to negotiate with the seller as there were no other buyers. Look for a place with cosmetic faults and then have a home inspection to make sure that the faults are cosmetic.

I love this style of video where it's a compilation of a single topic.

We bought a house. We like it. That's all there is to it.😊 Buying was the right decision for us. We rented for many years. That rent kept going up year after year. We ended up spending more than we wanted to spend.

My father taught me also pay attention. Go see it after it rains see where the water sits. You don’t wanna buy a house below road level

Title insurance is typically mandated by the mortgage company but it is a total rip-off… it’s just extra profit for them. Also, shop around. I was quoted $1800 for title insurance when I got my closing docs. I went online and found it for $800. When I showed this to title company they immediately matched it. Saved $1000 for 5 minutes of searching online.

Would love Dave to give us a live Zillow demo of the current housing market and tell us what’s affordable to buy with the median income within 30 minutes of Nashville.

I said I would never buy a corner lot, did not like the idea of having 2 front yards. Well never say never. We bought a corner lot home and have lived in it for 36 years.

Don't ever use your real estate agent's recommendation on a home inspector.

Caller #1 - Make sure you are completely out of debt first with a fully funded emergency fund (finish babystep 3). Don't have a car loan, save before you buy your next vehicle so you can pay cash with no monthly debts. Caller #2 - find a new job first, find out if they will help with relocation uf that will help. Then you will know where to look for housing convenient to work. Good advice to rent first while looking for property to buy in area you like.

When Dave was talking about how renting is terrible I was thinking "what this lady needs is a condo" and that is just where the conversation went. My aunt bought a condo for retirement and she just turned 80 and still loves that condo in a nice area.

Put 20% down to avoid PMI. Get title Insurance. Get a survey and home inspection.

No more than 25% of your take home pay with a 15-year fixed rate mortgage and 20% down to avoid PMI. Basically get filthy rich before you buy any real estate within 100 miles of any city. Live in the sticks and work remote for a company working out of NYC that doesn't do any cost of living adjustments to their salary.

Thank you for your content. Peace and Blessings to you and your Family.

Problem I've ran into which buying a house was there's so much competition for even the most mediocre house that the seller only sells to the person offering far over asking price and skipping the home inspection. Really hard to get a house without doing both of those things now

When you finally make six figures, but can only afford to buy a house in Mississippi..

As a surveyor I approve this message. Its always unfortunate to do it after.

Home buying tip home inspectors at least in my State doesnt require anything special. A weekend class. I'm a licensed Plumber over 10,000 hours and stayed test to get where I'm at. I walk into houses that where inspected that have all sorts of problems. I here all the time I spent hundreds if not thousands to have it inspected. If it was me I'd hire a trades person in that field specifically a master and hire them to look at it.

Just make 170k a year and have 80k down to afford the average American house price of 400k, by Dave's rules. Ok got it, so the other 95% of us just stick to renting

What we are doing is buying now, the interest rate is high and no we don’t have the 20% down but mortgage rates are going to go down and when they do we will refinance in the event they don’t we are “safe” because if they continue to rise it will be nearly impossible to buy.

I bought my house in 2007, by 2013 I paid completely at 34. Now I moved to the US at 45 and want to buy a house here but the market is like the wild wild West 😢. Start over again but older...

I love your advice on not getting a house that is a good deal but ugly! I would also add the same is true for the backyard. If there’s something you hate when you look at a house and you think “I’ll get over it,” be really careful, you might not ever get over it. We bought a house that was a good deal but the backyard was surrounded by neighbors, so every window you looked into the neighbor’s windows and we had zero privacy at every angle. It was something we thought we could get past but it was not worth waiting for a 10 year privacy screen to improve. 😬

The average length of home ownership is 8 years. 16% live in their home for less than 5 years or less. So if you know you will only be there a short period of time, why not get a 30 year mortgage with low monthly payments?

Condos are great! I've lived in one since 2016. Bought super cheap and I haven't mowed a lawn since. If you need a small place and don't care about paying for an HOA, get you a good condo.

Great show!

in the 1700-1800 French Acadians people in Louisiana designed the "girls' bedroom" to be accessed by walking through the parents/ bedroom. The boys' bedroom would be on top of the kitchen building next to the house. Kitchens were usually in an adjacent building: too hot and help prevent house fires.

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

If it's just superficial stuff, ugly is fine, but if it's structural stuff then avoid it unless you're a contractor. My house was a great deal and looked "ugly" but it was easy fixes like terrible paint, horrible smelly carpet, and holes in the walls. All easy fixes even though it looked horrible going in.

Gosh, I wish we had received this advice on our first home. We didn’t even get a home inspection and the people had hidden the fact that there were leaks in the roof by painting the ceiling where the leaks had been so we wouldn’t notice anything. We didn’t even know to check the AC to see if it was good or not. It was actually a piece of crap. I have a whole list of things I can tell you that were wrong with this property and now 28 years later we’re ready to sell the place and we’re finding out that it was never converted to real property. Even though we paid for it. Luckily, we were able to track down all of the engineer reports and permit to prove that it was done as well as they can come look at the house. It’s a manufactured home, but it was supposed to be converted to real property that was contingent upon us getting the loan. But now 28 years later, we find out it was never converted. We thought it was converted all along, so we did improvements to the house like we stuccoed the home to make it look like a stick built home. We also put a metal roof on and we added shiplap to the dining room, and did some tile work in the bathroom only to be told that we needed permits for all of that work, and that it should never have been added to the manufactured house because it’s not constructed to hold that kind of weight. Now our argument to them is all of this work has been on this home for over 25 years and the home is in great condition. So now we have a fight on our hands to sell this piece of crap. Luckily we have 2 acres of land. With all that said and done it only appraised at $264,000 at this point we can only sell and get the hell out of there ! We paid $79,500 28 years ago. So it wont be that big of a profit.I wish I had this advice that Davie is giving right now back in the day. But I was only 21 years old at that time so it’s very smart of this person to be asking these questions at their age. I wish Dave was around back in 1995.😂😂😂

Soon, I’ll be ready to buy. Almost have the 20% down payment and money for moving expenses. Saw a house I like, an oldie but a real goodie, in an area I’d like to live in. Priced nicely. Taxes ok. This would be my little retirement haven. I’d do a 30 yr fixed mortgage though, because right now almost all my income is from SS and I want the payments to be at least $200 lower than my current rent so I’d have enough margin to actually enjoy retirement

If everyone followed the Dave Ramsey way almost no one would buy a house. I agree your mortgage payment should be around 25% of your take home pay. Your next house should be a 15 year mortgage. You are good with a 30 year mortgage on your first house

Thank you so much mr Ramsey . You have literally changed my life.bless you and your family n our lord Jesus Christ keep you and yours

I hate hearing people saying they want the flexibility of moving from renting but living at that spot for decades

I got a 30-year mortgage @ 2.75% in 2020. I am so glad I didn't wait until I could afford a 15-year loan. My home has appreciated in value by 40% in the past 4 years and interest rates are nearly triple. I agree with Dave about a lot of things, but not the 15-year loan. When faced with the choice of paying my mortgage + interest or paying someone else's mortgage + interest (renting), I'll choose to pay my mortgage, even if the interest is a little higher. I am surprised that Dave hates car leasing, but then would make a suggestion to continue renting when you could afford a fixed-rate mortgage and pay for your own equity, rather than for a landlord's.

I'm so grateful I bought my first home in April 2020 just as the pandemic craziness hit. I wouldn't be able to afford it now with how much prices have risen

My advice buy a brand-new home, you got warranty and you're pretty good for 20 years for you have to do any repairs and it holds its value a lot better.

Best advice right now is DON'T buy if at all possible for about another 2 years..

Thank you for the video. Great information as always. I am happy to have found Dave’s videos

Corner lot if you live in the north and you have sidewalks you end up with extra snow shoveling and it can be a pain in the butt. if you have sidewalks

Dave us saving my financial life

George is the best!!

20% down and 15 years term only 25% of the income for the monthly payments INCLUDING taxes, HOA, insurance etc. at this point, only millionaires can afford even a basic home.

You can get title insurance… but the title company is responsible for reporting the exact property transferred. If they fail to do so, you can certainly sue them for the damages associated with such inaccuracy.

Overall, Dave's advice is good. However, I think people need to remember it's called PERSONAL finance. Everyone needs to do their own research and make decisions based on their own circumstances. Is 30 yrs a long time? Yes. However, so is 15 yrs, so I don't think that option should be discounted. Crunch the numbers w/ the understanding the interest rate is higher than on a 15 yr. It's also a great way to keep a buffer in case of a rainy day. When things are great, pay it like a 15 yr if you can. When things go wrong, pay your lower normal payment.

Dave's calculator says I can afford a $162,000 house making $95,000/year LMAOOOOO

what do you think of cooperatives?

My next door neighbors house Same square footage as mine nice looking outside. He payed 150,000 less then me. I was shocked. Figured I overpaid. Then I saw the inside. The layout is awful. It doesn’t even make sense. My layout is beautiful and open. He will have to gut the whole interior. Or sell it for super cheap.

im a full time sing dad to a daughter and its true!!

18:19 😂 Dave so dramatic sometimes. I crack up when he yells 😂😂😂

My husband and I haven't bought a house just yet, but it sounds like our plans are right on track. We are planning to pay at least 20% down (maybe more, depending on price at the time we decide to buy), get inspections, and get a 15 year fixed mortgage. Though, with the current interest rate, we're waiting for now.

I agree with this advice. Have 20% down on a house. Do conventional loans only. Most corner houses I've seen look really nice. Get inspections always.

Most people only compare purchase cost vs selling price to determine what “profit” they made.. let’s consider it a wash between what you’d pay in rent vs what your mortgage payment is.. now if you own the home, you’ll have at least $6k in property tax, $3500 insurance.. another $1200 in basic maintenance… that’s $10k annually,,,, at some point, you’ll need a new roof =$25k, new a/c $15k, and whatever else goes out.. I’d say, over a 15yr period, a homeowner will spend around $16k per year.. that’s $240k over 15yrs.. and I haven’t even discussed mortgage interest… so if you buy a $400k home, you’ll need to sell for around $650 - $700k just to break even.. meanwhile I’ve invested that $16k annually into my 401k.. and I do t have to stress about anything breaking, or some crazy renter…

25% take home needs to cover mortgage and expenses on a 15 year loan? Bruh, at 7% interest rates, that is asinine. That gives a person making 80k a year a max budget of 125k.

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

Not sure I agree, condo's are built crappily and the builders know that and want to download onto you, they know if the freaking windows are poor and not sealed. The roof is leaking and the parking garage is flooding. And you have that all to pay for!

If my rent is comparable to insurance, mortgage, Maintenance and taxes isn't a condo worth buying, rent and maintenance both increase?

Best home buying advice is to look for value add opportunities, do you have an extra “bonus room” in the basement? Hire a company to install an egress window. outdated kitchen, update that and FORCE APPRECIATION. If you add value then you add money to your pocket.

20 years fixed for 1,5%, paid 46% as down-payment. And monthly is 18% of our take-home pay. But we do think about additional payments on the principal, not an easy decision.

You don’t need 20% that’s the biggest misconception! If you go conventional with 5% the PMI can drop (without having to refinance) after equity goes up ! Don’t stay out of the game because your focus on 20-% down. By the time you’re done saving 20% you will have to stay over because of how much home prices have gone up . We bought 2021 at 5% down debt free with an interest rate at 2.375% . If I would have waited I would have lucked out . My rent is the same as what people are paying for apartment.

Do you have any advice on getting a second loan to buy a piece of land?

18:49 Oh no, was Dave spying on me in 2020? I bought the biggest house I could at a 2.75% interest rate after paying off my old house.

Would u suggest a home, condo or townhouse for 59/56 yr old couple buying 100% cash?

😅 love to hear how he mimics ppl. So funny!!

So. I’m debt free but I’m 25 and hoping to get a house sometime. Where in the baby steps is saving for a down payment? After emergency fund or after investing in retirement? I feel like after investing 15% into retirement but I’m not 100% sure

But, i am considering for long term care…. When and if i get to that point i will do a reverse mortgage because long term care insurance is too expensive

What do I have to look for on buying land to build a house?

ppl aren't worried about how high any of the bills are bc they can always sell it in a year for 200k more

Get 30 years, not 15

Really wish you could tell me the Ramsey plan starting with no money hit bankruptcies and the do it again and become a real estate mogal

Do you think Dave knows that with a 15 year loan and 25% of your take home it equals out to about $15,000-20,000 a month? Wish I was doing that well.

lender's mortgage insurance Buyer pays and owner's mortgage insurance paid buy the seller. covers the loan and down payment.

Can someone guide me to Dave Ramsey videos about property investment after i have completed the 7 baby steps? It will be appreciated.

Purchased my home in 2015 for 92K 2 Bed 2 bath. Now worth 250K mortgage payments are $970 should have it paid off in 3years.

A condo or townhouse is the best answer for her.

Will Dave revise his home buying advice to be a little less out of touch with the average person? A mortgage of no more than 25% of take home pay on a 15 year fixed is only doable by the very top earners LOL

❤❤❤❤Excellent work ❤❤❤❤❤

For that lady at 58 with a house she doesn't want anymore. I think she should get therapy or counselling. Just for a month or two, to help her decompress, and separate the anxiety and fatigue out of the decision-making. For myself, I'm looking to buy my first home.

lmao I swear Dave can be so hilarious 🤣🤣

If you buy a home make sure you have plenty of cash reserve for unforeseen expenses!

Do I need a home inspection for new built?

I would love to see where I can find the 15 years fixed rate Dave talks about I can only get 30 years

Should you move if you are in your late 50's and still working? I would like to move to a better neighborhood. Please advise

i donno... Ive saw quite a few ugly houses bought for cheap and flipped into a nice looking house for a profit. Depends on if you can DIY it or not... and depends on whats ugly... somethings cant be fixed.

Good luck. Save up 100k down payment. And a 15 year payment that is 30%. 3300 x100 /33 = 11'000 a mobth or 132k a year

Yes, thank you for this. We're 30 and only have 10 years left on our 15 mortgage and we're so happy. Our parents will never be done with their mortgages.

me trying not to laugh out loud at work 17:35 🤭😅

if you can fix it yourself fine; if you know less just make yourself a place which is sanitary but affordable in both home costs and costs of commuting to from work

Will there not be a lot of tax foreclosures on the horizon?

20% of Take home pay? (Gross or net?)

Housing must be so affordable in America. My wife snd i are 31 and In Australia i earn about 90k post tax and super contributions. My wife works 3 days a week and earn 45k post tax and super. Our homeloan could only be fixed for 4 or 5 years I think. We took out a 30 year loan, We fixed 480k for 3 years at 2% and left 180k variable as we were offeetting the entire amount while paying cash for a renovation. Our repayments are $775 per week on 660k that is about 7k above the 25% recommended. If we had not bought when we did we would have paid about 150k more for a worse/smaller house in a market that continues to go up. I dont know how people earning an average wage are suppose to be able to afford even a 2 bedroom house anywhere near where the majority of jobs are available.

I think it was this video, but I liked it when he said, “these principles work when it’s good, and they work when it’s bad, they’re not situational.” The Bible works all the time.

Great video, I have a quick question. I am an aspiring trader, I am looking study some traders and earn off their expertise rather than investing myself and lose money emotionally. Whats your take on copy trading? Do people really make money? Just looking for some reassurance. Thank you!

I want corner lot.

Regarding renting, my home payment goes up every year, over $700 since I first bought it, so that goes up as well as renting costs. Also the upkeep is lots of $$$$$$$ on a home so I think that lady would be just fine renting.

Literally No one is doing 25% of their take home at 15 year fixed rate have you seen the home prices, that’s NOT realistic at all, it should be more like 30% of your income with a 30 year you can still pay off a 30 year in 15 years when you’re able to add more to the principal

You can also just invest the proceeds and almost definitely outpace housing inflation lol

I would really like to know how he doesn’t jump every time Dave shouts..?

Dave says: 15, 20, 25.

The younger ramsey team members are more watchable and seem more relatable. Dave may have no debt and have made it, but he seems like a grumpy old man. He has some really good points but not all of his points are practical. He is right on being debt free.

"The market is white-hot, don't buy a house right now" - just go ahead and pay over priced rent so someone else can pay their mortgage... I'd like to hear Dave's logic for this with the actual numbers shown accounting for actual cost of renting vs actual cost of buying a home.