Episode 2 - Coming up with the Cash!

All about getting the money you'll need to buy the house you love! We'll talk about strategies designed to help you save fast, and big! From automatic savings deposits, to getting a temporary second job, to even having a no-spend month, where you only pay for essentials and sock away the rest! Our expert guest is Laura Adams, award-winning author host of 'The Money Girl' podcast, and senior analyst at AceableAgent. Real Estate this Week with Stephen Gasque: The best real estate strategies out there - just for you!

 

 

Episode Transcript

(00:00):
Page 1. Show Open and Laura Adams - Intro

(00:01):
Welcome to Real Estate This Week! Hi again! I'm Stephen Gasque, and I am so glad you're here....as we help you nail it - no matter what kind of real estate you want to do!
Just you, me and the real estate guests in the country!
Today....we'll continue our special series about buying a home - with a big challenge - 'Coming up with the Cash!' Looking at the down payment, closing costs, and other things you'll need money for. We'll talk about how to get that cash - and hopefully? Get the house!
So let's get right to it!
Joining us now, is Laura Adams…..Senior analyst at the online real estate  education school Aceable Agent......and the host of the Money Girl Podcast...which, by the way, has been downloaded more than 44-million times!! Laura's also the award-winning author of several books, including ‘Money Girl's Smart Moves to Grow Rich.’
Laura welcome to Real Estate This Week!
Page 2. Laura Adams - Interview
Page 3. Laura Adams - Tag
Laura Adams…..Senior analyst at the online real estate  education school Aceable Agent......and the host of the Money Girl Podcast...downloaded more than 44-million times!! Laura's also the award-winning author of several books, including ‘Money Girl's Smart Moves to Grow Rich.’
Guitar Segue)
Page 4. Beyond the Basics - The Gift Letter!
And now it's time for "Beyond the Basics!" A special segment on Real Estate this Week, in which we bring your real estate knowledge to the next level.
So now, as we talk about coming up with the cash for the house, let's address a pretty common scenario. Your parents agree to help! Now that's one of the most generous things any parent could ever do…helping them with the down payment. It's really wonderful.
But it bears mentioning, there's a catch. A big catch. And it's called? The gift letter.
Say that you're getting a mortgage on the house you want to buy, and your parents agree to help you by giving you 5, 10 maybe $20,000 towards the down payment. Well, the lender will require your parents sign the gift letter.
It's a document that says that money is in fact a gift. Not a loan. And that you will not have to pay your parents back.
Now. That can be a really tough sell. Right after your parents are nice enough to give you money get that house,you then ask them to sign a letter saying the money is a gift. And you'll never have to pay it back.
Wow! That is one steep hill!
But here's why that's necessary. You see, when you get a mortgage, the lender will qualify you based on your current financial situation. Your income, your debts, and your credit score. OK?
And if your parents hand over $20,000, and then expect you to pay it back? That will change your debt to income ratio. Possibly so much, you won't qualify for the mortgage anymore. So lenders always require your parents or any other family member that gives you money for a house to certify - it's a gift and not a loan.
And even though it is a touchy situation, it happens all the time. And parents agree to sign the letter, all the time.

(00:22):
One time I asked a real estate professional - why. Why are parents so willing to not only give their kids money for a house, but also to sign the gift letter?
And he said something I'll never forget. In his view, he said the parents are delighted -  because they can't wait to get that kid  out of their basement!
Page 5. Tease to Next Week's Show & Show Close

Next time on Real Estate This Week (00:25):
"Getting the Best Mortgage!" We'll explain how to apply, what to expect, and how to make sure YOUR mortgage is the best and - the least expensive one for you! "Getting the Best Mortgage" is next time, on Real Estate This week. And until then, I'm Stephen Gasque, and thank you for listening!