How to Buy a Home

Is it possible to buy your first home in a very expensive area with just one income? This Baltimore first-time home buyer couple did it!

Allison and Ephraim found out their rent was going up 30%, and they discovered it was over $10,000 cheaper to break their lease. So they decided to buy their first home with only ONE income and ended up paying their monthly mortgage only $50 more than their rent.

Tune in for a ton of incredible tips, tricks, and hacks, including how they used the podcast to help them make a decision – a decision based on facts, and not fear!

Here are some power takeaways from today’s conversation:

• How Allison and Ephraim prepped for their first home purchase
• Realizing the positives of the numbers
• Their biggest fears going into the process
• What could have been their biggest nightmare
• Do not waive your inspection
• Making choices based on facts, not fear

Episode Highlights:

[06:29] Ways to Save Effectively

Statistics suggest that 73% of Americans have less than $1,000 saved. Whether it’s your Netflix subscription, your cable, or your daily Starbucks fix, identify which expenses can you cut back on for the short term so you can make the long term happen. Make a few sacrifices now for the long term. The bigger your savings, the larger the down payment you can make when buying a house, and the less you have to pay on your mortgage.

[17:59] Realize the Positives of the Numbers

Make sure the numbers work and that you stick to your numbers. Lenders are going to ask you to show all your bank accounts that you’re going to feel like you’re naked. Then they will crush your dreams. That’s why you have to realize the positives of the numbers because that will keep you going.

[19:02] Be Extra Careful When Wiring the Money

When you close a deal, sometimes you have to wire a down payment, which involves a large chunk of money. Sometimes, if it's over a certain amount, they'd prefer to wire it versus a cashier's check. This couple happened to send the money to the wrong place. Fortunately, the money got sent back to their bank account just in time. To prevent this kind of mishap, always check with your lender if they allow you to pay through a cashier's check instead of a wire transfer, or check with your bank to learn how to wire money safely.

[37:35] Making Choices Based on Facts, Not Fear

Sometimes, you might find that the house does fit you perfectly. But if it makes you compromise on something, do not be afraid to walk away because there will always be another house out there. The reason people are not confident is that they're not knowledgeable. Ignorance is not a bad word. But the more information you have, the more you know, and the better choices you’re going to make because your decisions are based on facts, not fear.

Resources Mentioned:

Instagram: @DavidSidoni

Tik Tok: @howtobuyahome"

www.HowtoBuyaHome.com

After a crazy several months of high interest rates, inflation, a recession, and even a bank crisis, the housing market has gone through a lot of highs and (even more) lows. But, despite it all, demand for homes is still high, which means that bidding wars are BACK. So, how do you get your offer on top of the pile when the bidding gets tough? David tells all in this latest episode.

Here are some power takeaways from today’s conversation:

• As usual, low inventory is the problem
• There is no logic and no math in bidding wars
• What you need to know to win a war
• Prove your legitimacy with your offer

Episode Highlights:

[04:22] How Much Should You Offer?

When it comes to making an offer on a home, there is no spreadsheet answer to how much your offer should be. Sorry, engineers, but that’s the truth. When multiple people are putting offers on a home, the value is not determined by logic or math - it becomes subjective. Because the seller is the seller, they can handle the sale any way they want to. Any spreadsheet you’ve made, well, throw it out.

[07:46] The List You Really Need

In a real bidding war, a spreadsheet won’t help you. Instead, David’s list shows you what you need to survive one like a champ. Here it goes:

1. Don’t give up.
2. Believe.
3. Be ready to compromise.
4. Talented professionals can speed up the process.

Ultimately, having a solid support team is really going to get you the help you need. Finding someone who is a seasoned realtor and knows the prices of homes in an area will put you at an advantage.

[10:41] Building Blocks for Bidding Success

This part of the podcast is where David really dives into the nitty gritty behind winning bidding wars. First, you need to make sure you have a solid support team. Second, there are some things you can put in your offer to sweeten the deal. Sometimes a higher price just won’t cut it, but offering to cover the closing costs might. Next, how to chat with your lender about removing certain contingencies to make you even more legit in front of the seller. Lastly, how do you counter an offer?

Resources Mentioned:

https://www.howtobuyahome.com/podcast/

Imagine a website where you could find out how much mortgage you can afford with just ONE CLICK. Sounds magical, right? Well, unfortunately, it is too good to be true. There’s no website that can tell you - honestly - how much home you can afford with just one easy step. David explains why you should be on your guard with these kinds of institutions and helps you understand the mortgage process better so you can protect yourself.

Here are some power takeaways from today’s conversation:

• The history of the “one-day mortgage”
• What happened to Better.com
• Why you shouldn’t trust these agencies at face value
• How a mortgage works

Episode Highlights:

[02:39] The History of the One-day Mortgage

A year or so ago, someone invented something called “the one-day mortgage” and claimed that it would be “revolutionary” for first-time home buyers. Buyers could get approved for a mortgage from one click on their mobile device from a digital lender called Better.com. Sounds great, right? But then some sketchy stuff surfaced about this one-day mortgage process. First, not many people who actually applied were then qualified, even at the exorbitant interest rates they were offering at the time. Then, they were purchased by another company who hired 900 employees to help move the company towards a dazzling success... right before they fired every single one of them. So, do we believe them when they say they have the key to first-time home-buying success? Um, NO.

[09:07] Surprise, Surprise: It Wasn’t About You

Their whole business model was centered around getting easy money. That’s why mortgages for first-time home buyers aren’t even what they specialize in - it’s refinancing because that’s where the money is. Why is all this important? Because David wants to open the doors about what really goes on in these institutions so you know how to be better prepared. They want you to buy into their craziness because they want your MONEY. Not because they care about you. And you, How-to-Buy-a-Homie, are not even their first priority. You’re their last-ditch effort to save their bottom line. So whether it’s Better.com, RocketMortgage, or any other digital lender, BE WARY.

[17:49] How Does a Mortgage Work?

First of all, “one-day mortgage” is a lie right off the bat. Why? Here’s the deal: you need someone who is going to really help you through the entire process because mortgages do not happen overnight. You can find out how much you’re approved for on these digital lending sites, they will certainly tell you how much you can afford... right in that very moment. Instead, unicorn lenders are unicorns because they are helping you simultaneously understand your situation, understand it well enough to improve it, and support you the whole way. Trust David - it makes a difference.

Resources Mentioned

Inside the Human Cost of Better.com’s Brutal Layoffs

Better.com Lays Off Real Estate Team and Shutters Business Unit

Okay, so you’ve seen it all in the news - big banks are in a crisis right now. According to the news, we’re all done for! But, is that really the case?

David Sidoni dives into research and data to give you the REAL story behind the bank failures and how this could affect the housing market for this year. Also, he throws it into a handy-dandy cheat sheet to help you understand this mess.

Connect with me to find a trusted realtor in your area or to answer your burning questions!

Subscribe to our YouTube Channel @HowToBuyaHome

Instagram @HowtoBuyAHomePodcast

Tik Tok @HowToBuyAHome

This podcast was created for YOU - to cut through the confusion and empower you to buy your first home. Let's change how the real estate industry treats first-timers, one buyer at a time- starting with YOU!

Visit our Resource Center to "Ask David" AND get your FREE Home Buying Starter Kit!

David Sidoni, the "How to Buy a Home Guy," is a seasoned real estate professional and consumer advocate with over 18 years of experience helping first-time homebuyers navigate the real estate market. His podcast, "How to Buy a Home," is a trusted resource for anyone looking to buy their first home. It offers expert advice, actionable tips, and inspiring stories from real first-time homebuyers. With a focus on making the home-buying process accessible and understandable, David breaks down complex topics into easy-to-follow steps, covering everything from budgeting and financing to finding the right home and making an offer.

Subscribe for regular market updates, and leave a review to help us reach more people. Ready for an honest, informed home-buying experience? Viva la Unicorn Revolution - join us!

Resources Mentioned

Bank Runs and Rescues: A Timeline of This Week’s Panics

Why Regular People Need to Know About SVB’s Sudden Closure

Ask a Nerd: How Will SVB’s Closure Affect Me?

Silicon Valley Bank, Proptech Hub For Real Estate Clients, Collapses

Mortgage Rates Nosedive In Fallout From Silicon Valley Bank Failure

Signature Becomes 2nd Major Real Estate-focused Bank To Fail

How SVB’s Collapse Could Impact Housing Market

SVB Collapse Set To Completely Upend Housing Market

How 3 Recent Bank Failures Could Impact Housing Market

Savers Could End Up Being Big Winners After SVB Collapse

The housing market is INSANE in 2021 and early 2022, so it HAS to be a bubble ready to burst, right? This can't keep going like this, so it's gotta crash, right? Well....I don't want to be pollyanna, rainbows and puppies kinda guy who sounds like they are trying to sell you something that will always be worth more than you paid for it, but there is some pretty compelling data that says this is NOT like the last time, and the bubble may be more of a slow rolling train that will keep on trucking for a little while, and only slow down later on down the line, not jump the tracks.

Connect with me to find a trusted realtor in your area or to answer your burning questions!

Subscribe to our YouTube Channel @HowToBuyaHome

Instagram @HowtoBuyAHomePodcast

Tik Tok @HowToBuyAHome

This podcast was created for YOU - to cut through the confusion and empower you to buy your first home. Let's change how the real estate industry treats first-timers, one buyer at a time- starting with YOU!

Visit our Resource Center to "Ask David" AND get your FREE Home Buying Starter Kit!

David Sidoni, the "How to Buy a Home Guy," is a seasoned real estate professional and consumer advocate with over 18 years of experience helping first-time homebuyers navigate the real estate market. His podcast, "How to Buy a Home," is a trusted resource for anyone looking to buy their first home. It offers expert advice, actionable tips, and inspiring stories from real first-time homebuyers. With a focus on making the home-buying process accessible and understandable, David breaks down complex topics into easy-to-follow steps, covering everything from budgeting and financing to finding the right home and making an offer.

Subscribe for regular market updates, and leave a review to help us reach more people. Ready for an honest, informed home-buying experience? Viva la Unicorn Revolution - join us!