Logo

What to Know Before Buying a Home: Hidden Costs, & Secrets to Save Big with Quiana Watson

en

January 31, 2025

TLDR: Discusses essential insights for home-buying from real estate expert Quiana Watson, covering closing costs, down payment assistance programs, property taxes, maintenance expenses, credit analysis, and the true cost of owning a house.

1Ask AI

Buying a home is a significant financial commitment, and understanding the process can save you from costly mistakes. In this podcast episode, real estate expert Quiana Watson dives into essential insights that every potential homebuyer should be aware of, particularly related to hidden costs and effective budgeting strategies.

Key Takeaways from the Episode

Understanding Hidden Costs

  • Closing and Down Payment Costs: Many buyers focus primarily on the down payment, neglecting additional expenses such as closing costs, which can range from 2% to 5% of the home's purchase price. Each state may have different requirements and programs for assistance, so it’s vital to inquire early.
  • Ongoing Expenses: Homeownership entails several ongoing costs beyond the mortgage payment:
    • Property Taxes: These can fluctuate based on local property values and should be accounted for in your budget.
    • Homeowners Insurance and Mortgage Insurance: Insurance costs add a substantial expense, particularly if you are required to pay mortgage insurance on loans with less than a 20% down payment.
    • Utilities & Maintenance: Buyers often overlook utility costs and regular maintenance, which can add up quickly. A well-maintained home typically incurs additional expenses such as plumbing and electrical repairs.

The Importance of Credit and Financial Positioning

  • Before jumping into the mortgage application process, buyers should know their credit scores and outstanding debts. Lenders typically evaluate your financial stability through debt-to-income (DTI) ratios to determine how much they are willing to lend.
  • Good Faith Estimate (GFE): Quiana emphasizes the importance of obtaining a GFE from lenders rather than relying solely on pre-approval letters which often do not reflect true borrowing power. This estimate gives a clearer view of all associated costs including the expected monthly mortgage payment.

Navigating Mortgage Options

  • Types of Loans: Quiana outlines various loan types available for home purchases, including FHA loans, which require a lower down payment, and VA loans, which offer zero down payment for veterans. Understanding these options empowers potential buyers to find a loan that suits their financial situation.
  • Negotiate Seller Concessions: In today's market, there's an opportunity for buyers to negotiate with sellers regarding closing costs. Seller concessions can significantly reduce the amount of cash needed upfront.

Working with Professionals

  • Selecting a Real Estate Agent: While some buyers may think they’re saving by not hiring an agent, Quiana strongly recommends engaging with a knowledgeable professional who can guide you through each step. Look for agents with a proven track record in negotiating and understanding the local real estate market.
  • Home Inspections: A thorough inspection can uncover hidden issues that may become costly later. Quiana highlights that buyers should consider having specialized inspections on older homes or areas of concern such as roofing or plumbing.

Practical Applications for Homebuyers

Set a Realistic Budget

  • It’s crucial to calculate a comprehensive budget that considers both the mortgage payment and all related expenses. Quiana advises buyers to practice financial discipline, aiming to live well within their means to avoid becoming "house poor," which means overextending oneself financially to afford a home.

Embrace Home Ownership as an Investment

  • Homeownership is not just about acquiring a place to live; it's also an investment. Quiana suggests viewing your home as an asset that can appreciate over time—something that will contribute to your overall wealth if purchased wisely.

Think Long-Term

  • When buying a home, consider your future goals. Will the house meet your needs in five years? Are you planning to grow your family or change jobs? If so, choose a property that can adapt to your changing life circumstances.

Conclusion

Quiana Watson’s insights provide a comprehensive overview of what it truly means to buy a home in today’s market. Understanding hidden costs, establishing a reasonable budget, and getting support from real estate professionals can significantly enhance your home purchasing experience. By applying these principles, prospective buyers can navigate the complexities of homeownership with confidence, making informed decisions that lead to long-term financial stability.

Was this summary helpful?

Recent Episodes

How To Boost Your Credit Score FAST: 5 Proven Strategies Revealed with Shonda Martin

How To Boost Your Credit Score FAST: 5 Proven Strategies Revealed with Shonda Martin

Earn Your Leisure

In this insightful episode of Earn Your Leisure, we engage in a comprehensive discussion with certified credit educator Shonda Martin, who shares her personal journey from grappling with poor credit to becoming a leading authority in credit education. Shonda offers practical strategies to enhance your credit score effectively.A key focus is on understanding credit utilization; she emphasizes the importance of maintaining a low credit utilization ratio, advising that keeping it under 10% can significantly boost your score. Additionally, Shonda underscores the critical role of timely payments, noting that consistent on-time payments are fundamental to credit improvement.She also delves into the process of building a solid credit history, providing guidance on establishing and maintaining good credit practices, even for those starting anew. The discussion includes insights into the use of secured credit cards as a valuable tool for rebuilding and enhancing your credit profile.Furthermore, Shonda highlights common pitfalls that can harm your credit score and offers advice on how to avoid them. Whether you’re aiming to repair damaged credit or build a strong credit foundation, this episode provides actionable steps to help you achieve your financial goals.#CreditScore #ShondaMartin #EarnYourLeisure #CreditRepair #FinancialTipsOur Sponsors:* Check out Acorns: https://acorns.com/EYL* Check out Chime: https://chime.com/EARNAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

February 08, 2025

Essential Home Buying Tips: Utilities, HOA, and Mortgage Insurance Explained

Essential Home Buying Tips: Utilities, HOA, and Mortgage Insurance Explained

Earn Your Leisure

In this insightful clip from EYL, we're joined by the incredible Quiana Watson to delve into the often-overlooked costs and fees associated with purchasing a home. As first-time homebuyers, we usually focus on the big-ticket items like the mortgage and property tax, but what about the other expenses that can catch us off guard? Quiana breaks it down for us!*Key Takeaways:*1. **Utility Costs**:Quiana emphasizes the importance of getting a statement of utility bills from the previous homeowner. Understanding these costs ahead of time can prevent unexpected expenses, especially when moving from a smaller apartment to a much larger home.2. **Homeowners Association (HOA) Fees**:The realities of HOA fees can be both beneficial and burdensome. While they help maintain neighborhood standards and can include utilities and amenities, they also add to your monthly expenses. Quiana points out that understanding what’s included in these fees is crucial before making a purchase.3. **Routine Maintenance & Home Warranties**:Owning a home means you're responsible for its upkeep. Quiana suggests investing in a home warranty to cover large expenses like H-Vac system replacements. Routine maintenance, such as gutter cleaning and pressure washing, should also be factored into your budget.4. **Mortgage Insurance**:Often misunderstood, mortgage insurance is required if you put down less than 20% on your home. Quiana clarifies that this insurance protects the lender, not you. However, once you've paid 20% of your loan principal, you can request to have this insurance removed.5. **Homeowner’s Insurance**:Quality matters. Many homebuyers opt for the cheapest insurance but, as Quiana advises, cheaper isn't always better. Proper coverage is essential, particularly if you've invested in upgrades. Always inform your insurer of significant changes to ensure you're fully protected.6. **Budgeting for the Unexpected**:Rashad Bilal adds the importance of having a well-thought-out budget that encompasses all potential costs, not just the mortgage. This foresight helps prevent financial strain and ensures you enjoy your new home without constant worry.*Expert Insights:*Quiana shares her professional experiences to highlight common pitfalls and offers practical advice to make the home buying process smoother. Her emphasis on value appreciation and ownership as primary reasons for entering real estate is a critical reminder for new homeowners.Whether you’re considering buying your first home or looking to understand more about the additional costs associated with homeownership, this episode is a must-watch. Budgeting accurately and having a strategy in place can make all the difference.*Join the conversation!* Share your thoughts and experiences with us in the comments. Have you encountered unexpected expenses in homeownership? How did you handle them?*Don't miss out on this essential advice! Make sure to like, subscribe, and hit the notification bell for more expert insights.*---*Hashtags:*#EYL #HomeBuyingTips #QuianaWatson #FirstTimeHomebuyer #HomeOwnership #Utilities #HOAfees #MortgageInsurance #HomeMaintenance #RealEstate #PropertyInvestment #HomeBudgeting #ExpertAdvice #FinancialPlanning #DreamHome---By covering all these essential topics, this clip aims to provide a comprehensive guide to help you navigate the complex world of homeownership with confidence and ease.Our Sponsors:* Check out Acorns: https://acorns.com/EYLAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

February 04, 2025

Is the American Dream Dead?

Is the American Dream Dead?

Earn Your Leisure

Welcome to the latest clip of Black Out with Ian & Rashad where hosts Ian Dunlap and Rashad Bilal dive deep into a topic that touches everyone's lives: Is the American Dream dead? 🏡💭From the foundational myths of upward mobility to the harsh realities of today's economic landscape, Rashad and Ian dissect the very fabric of what many believe to be the "dream." Rashad opens the discussion by recognizing the appeal of America for entrepreneurs and go-getters. Yet, he quickly transitions to a sobering critique of the societal norms that portray a middle-class life as the pinnacle of success. He argues that the idea of attaining the American Dream by simply working hard and climbing the economic ladder is a myth.Rashad highlights the structural issues within the mortgage system, explaining how the banking system manipulates the concept of homeownership. He points out how the vast majority of Americans are buying homes they can't afford, leading to catastrophic outcomes such as mortgage defaults and long-term debt. He underscores the fact that most Americans live paycheck to paycheck, making them one step away from financial ruin and even homelessness.Ian then shifts the focus to the broader implications of this crisis. He questions who the American Dream is really for and posits that while it may be dead for the average citizen, it's very much alive for financial institutions. Ian paints a stark picture of the middle class's erosion, driven by ever-increasing debts—from credit card bills to student loans.Both hosts draw a connecting line from individual debt to societal control, pointing out how actual wages have stagnated while the cost of living has skyrocketed. They reveal a troubling reality where most people can't afford basic necessities without relying on more debt, making the notion of the American Dream more of a nightmare for many.Join us as we explore these pressing questions and hear Rashad and Ian's unfiltered thoughts. This is a conversation you don't want to miss!*Timestamps:*00:00 - Intro00:13 - Ian's Opening Question: Is the American Dream Dead?00:52 - Rashad on Entrepreneurship in America01:57 - The Mortgage System and Middle-Class Myth03:09 - The Economic Strain and Homelessness Risk04:35 - Ian on Financial Institutions' Perspective08:08 - Final Reflections and Call to Action*Key Takeaways:*The myth versus reality of the American DreamThe financial traps embedded in the mortgage and credit systemsWhy the middle-class dream is more of a nightmareThe societal implications of indebtedness and stagnant wages*Hashtags:*#BlackOutPodcast #AmericanDream #EconomicReality #DebtCrisis #MiddleClass #FinancialFreedom #HomeOwnership #StudentLoans #EconomicDiscussion #IanAndRashadDon't forget to like, comment, and subscribe for more insightful discussions! 🚀Our Sponsors:* Check out Acorns: https://acorns.com/EYLAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

February 02, 2025

Is the AI Bubble About to Burst?

Is the AI Bubble About to Burst?

Earn Your Leisure

In Market Mondays, hosts discuss if the AI bubble is bursting due to recent market corrections of tech stocks like Nvidia, SMH, ASML, and TSM, the emergence of Deep Seek, a Chinese app company claiming advanced AI functionality at a lower cost. Skepticism regarding Deep Seek's capabilities arises, and investment experts express continued confidence in key player companies like Nvidia and AMD.

January 29, 2025

AI

Ask this episodeAI Anything

Earn Your Leisure

Hi! You're chatting with Earn Your Leisure AI.

I can answer your questions from this episode and play episode clips relevant to your question.

You can ask a direct question or get started with below questions -

Sign In to save message history