Welcome to the leftist global reset, where those in power remain rich while the middle class disappears into a communist economy with higher taxes, crippled supply chains (building materials) and "free money" (less workers) FJ
140k condo making 15 an hour in 2020 so about 28-29k a year. Now I'm making 21.75 so 42.5k and my home has increased 80k in value. Was a great buy. I had zero debt so that's why I was able to pull it off
Wow you sound like me, I bought my town home back in 2017 for 90,000, while only making 13.50 an hour now my house is worth nearly 180,000 great Investment!!
Someone making 50k a year paying $1,900 a month mortgage is insane. I make 80k a year and I can barley afford the $2,030 monthly payment on the condo I just bought. Please before you assume you can afford the maximum amount the bank will lend you make a list of all you're typical expenses and add them up. You will see that if you take the maximum loan the bank will give you then you will have to cut back in alot of other areas and even after drastic cutbacks you still won't save anything. I work in construction and occasionally there are a few months without, I have found if I save 10% of my gross pay I can get through these tough times, If my payment was any higher than it is I would not be saving 10% and would likely lose the condo in the next downturn.
damn that is a lot. Mine is a bit more reasonable$1500 before hoa fees. Even that is feel is high but its not as high as the rents around here and factor in all that damn moving I was doing year after year. I am actually saving. I didn't do my calculations on gross income like they did. I looked at my net income and knew based off that and my revolving debt and basic expenses what I could afford and still be able to save money.
Progressive23, excellent comment. Also, things can happen like hours being cut back or illness. Then suddenly. especially with a maxed out house payment, there goes the house. With the inflation in prices for a lot if basic items like meat, gas, household goods, plus taxes and fees( in California) who knows what your future budget will be???
If you can't afford $2030 monthly payment, then you must either have a family with one than one child and/or a non-working spouse or you must be spending your money at restaurants, bars, goofing off with friends, traveling, etc.
I make 65k a year and have a 770 credit score, planning on putting down 20k with no closing cost since I work for a real estate attorney. Wish me luck 🤞🏼
I see adverts for jobs at 15 an hour in ATL. House's over 400k in the cheap burbs. They are looking for a degree and year's of experience with that. I'm seeing corporate companies advertising jobs of half the salary they were last year
Purchased my home for 185 when I was making about 80k. Mortgage was 900 but out the door (tax, insurance, mortgage insurance) was $1200. It was ok. Wasn't house poor but after taxes and retirement contribution on my pay check I wasn't rich either.
I am about 20K more and I still felt like I went over my budget. It's all good as I can manage it and have some savings left. It was either do it now or not to be able to do it ever in this market. This video was a bit depressing. Keep hope alive. At some point if you want a place badly enough you will get something.
It is kind of scary that someone who doesn't do self budgeting calculations could very well end up being qualified and approved for a loan and go through the purchase only to realize later that they can't afford the payment.
@Storytime with Mamabear not sure why you left out things like regulation, high taxes, illegals flowing in unchecked, CA closing down almost all mental health institutions, etc. Because greedy landlords have to pay mortgages too, you know? Not sure how lenders are greedy, is it that they want you to pay back the money you borrowed and agreed to repay? Also not sure what you mean by Toxic wealth. There are super wealthy people/entities everywhere, even in communist/socialist countries. The US is the only place where this shouldn't be an obstacle to you getting ahead.
@Storytime with Mamabear i have no idea where you are coming from with these statements. The rich people on average give much more to charities than any government ever does. Also rich people usually also create more jobs. I am not one of them, but I feel like you are slapping labels on anyone that becomes successful at earning money, and for some reason you are super concerned with what other people make/have rather than focusing on advocating for everyone else to make good decisions, work hard and live a comfortable life. Being from the former USSR, I can tell you that when the war on the rich ends everyone (outside of the controlling/government class) will be poor.
I'd say 3-6 months to be safe. 6 months could end up costing you the entire six months if you found a good deal and waited until you had a few more months of reserves. Then there's also those like me who pays $1655/month on rent when a 400k house here costs me roughly $1745 on the mortgage+property tax+insurance. Literally the moment I rent out one room, it offsets the house monthly to below the rent monthly. Even if I had zero tenants, at least not the entire $1655 portion will be thrown into the void but most of the $1745 will be towards building equity aka investing back into myself.
A really simple calculation is that a buyer should never take on a mortgage where the monthly payment is more than 25% of take home pay. This puts someone earning $50,000 right around $185,000 to $200,000 as a max, which is also 4x yearly income. So in California or Western Washington, to afford a $1.3 million mortgage somewhere far off from the big city, the buyer would need to make a minimum of $325,000 per year. If the buyer cannot afford it, then the buyer should move where it’s cheaper to live, end of story.
@@5guysproduction234 well, I can say $180k base average per spouse for a couple is common here, and that’s what drives the demand since they are willing to max out what they can borrow to get a loan on a house. You can look up four bedroom houses in Issaquah, Sammamish, or Bellevue in Washington State on Zillow to get an idea of the prices. I would prefer not to share our income, but I can say it’s pretty much game over for anyone below the $325k income threshold who wants to raise a family in a good area with decent schools. I would say that’s about equivalent to what $60,000 used to be in 1998. People can live comfortably on $500k/year at the moment, so that’s about what $100k/year was in 1998. These comparisons are about in line with similar comparisons regarding the price of gold. There are some crime-ridden areas further out where houses can be had for maybe $600,000 to $1MM. I wouldn’t roam around those areas without carrying, though. If one heads out where it’s maybe a two-hour or longer commute, maybe a deal can be found. That’s just the reality.
I was with you up to “move where it’s cheaper”. Everyone can’t just pick up and move. For example my job dictates where I live and I can’t just quit whenever I want because I’m under contract but I hear you.
@@kayw1771 people interview in other parts of the country with the understanding that they intend to move there for the job, relocating once they get their one or more job offers. I would not recommend moving first and then finding a job second, so it’s a good point. Unless you are in the military, you should be able to do something similar. Some people decide to start a business with the intent to earn enough to cover the cost of living. It often starts as a side business and turns into something bigger. Really, those people will be the ones most likely to stay in the area as people do not want to earn well into the six figures and still live in a little apartment or in a bad part of town. I made an ultimatum with my wife to move if we could not earn enough to buy our next house and she moved fast re-entering the workforce and starting a company, I’ll just say that. Leaving her family was her motivator. So if there’s a will, there’s a way.
That's what I did. I moved out of Orange County in 1990 to the Seattle area to buy a house, & again I moved out of Orange County in 2021 to the Phoenix area to buy a house. I have no home loan since I have no income. I got laid off in 2008 & gave up looking after 4 or 5 years.
I’m in CA 50k/yr. Just started working with a lender. I am self employed with a great CPA. But because he is so good at what he does it makes it very hard to qualify.
Facts. They will want to see tax returns and bank statements as well. Its very challenging being an entrepreneur and applying for a home loan that's above your means, especially if you earn under the national average
'if you make $50k in California and are worried that you can't buy a house in that market, don't worry. I'm going to make another video for people that have a higher income.' Wtf?
The rate of home ownership is directly related to crime rates. The higher the home ownership, the less crime. So then it behooves a society to ensure that there are more home ownership than not.
I'm a single guy making this much, bought a 3BR, and rented the other rooms. My mortgage was just $300 more than I was paying in rent before, so they were pretty sure I could afford it.
I feel a lot better now. Haha. I make about 48,000-50k a year. I was actually looking at buying a 250,000ishk house. My bills are about…$900 a month! I think I can definitely afford it….I hope….
I make 51k yearly, bought my home this year for $148,000, the only debt I have is is student loans. There were some sellers that refused to accept an FHA offer but I was able to find a nice home that was FHA was approved. I do live in Tennessee which helps… but, it is possible!
Jeb! A number I’ll never forget: “One thousand nine hundred twenty four” Haha! All jokes aside. Looking forward to seeing other evaluations based on different income levels. What percentage do you see in your client base stretch budget who plan to rent out a room or room(s)? With high COL the house hacking route seems popular. Is this maybe a topic you bring to your clients to push toward more expensive housing or sway affordability?
@@JebSmith I don't understand what is going on? What was wrong with the number "One thousand nine hundred twenty four”?? Was it wrong? Which part? Why? I am confused after reading the comments.
Hi! When selecting a lender to start this process are there things I should be looking for? What makes one lender better than the other or do they all pretty much offer the same services? I know you offer assistance with referrals but I was just curious. And when you say lender… is that the same as a loan officer? Love your videos! Very informative for a newbie. Thank you
Yes, lender is same as loan officer but I should be saying "mortgage professional or mortgage expert". Communication, experience, knowledge in addition to rates/fees.
✅ - Get a Referral to a Mortgage Lender or Realtor - www.jebsmith.net/referral 🏠 - First Time Home Buyer Course - www.becominghomewise.com Interested in a FHA Loan - NEW FHA Loan Requirements - First Time Home Buyer - FHA Loan 2023 - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-dmuCCC0WCcg.html Also, I misspoke a few times when discussing numbers. I went back and tried to edit after the fact and wondering if it's confusing to the video? Should I re-record?
This is why you NEED to have a licensed loan officer or lender to review your situation. It can get very complicated real quick! Thanks for the video. Talk to a lender. They are not going to charge you anything. We basically work for free until a transaction is closed.
How much down payment do you have? If you have more than 10% then conventional is likely the best option. If not, FHA may be the way to go. Get your lender to give you a side/side comparison.
I am refinancing. But each time the mortgage company sends me new paperwork, the closing costs increases and how much I am supposed to get back is lower. Why is this happening? Should I just remove the money I'm getting back? How much do you think that people should take out for a refinance?
When I researched these programs in the past, they will charge you a higher interest rate and want a smaller debit to income ratio. I decided to wait and save on my own. Do your research to see if it works for you. Also, the escrow can take longer to process. I'm closing on my first home next month.
This makes me sad 😔 someone doing it all by themselves making under 50k seems like too much to afford not including food, gas and recurring monthly bills 😫 I don't know how folks do it these days. I would say good careers or some Ppl may shack up just for the joint financial help 🤷♀️ 😂⁉️ There's always the pole 🤣🤣🤣 just joking 💯❗️
@@rp1268 I can only speak for Mississippi but most of those things you listed are cheaper. Gas in California is $5 a gallon while it’s $2 and some change here buddy
@2:48 - lol, wtf? If you need to spice in new segments, do it in an intentional classy way, not like this. Just say "after recording, I updated the amounts... etc". Be transparent about it, not like this, just seems sketchy & amateur. (I know you may know better now since this was a year ago. Also, thanks for this content!)
