Refinance

How Do You Actually Buy a House?





Think you’re ready to buy a house? The path to get from here to there may seem confusing, but once you understand the steps and the people involved, you’ll be ready to make your first move!

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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.

Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Julia Lorenz-Olson & Andrew Matthews
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Andrew Orsak
Images by: Shutterstock
Music by: APM

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33 comments

  1. Jesus Christ I'm never going to get a house.

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  2. Finally. A video that helps me understand! But why are there so many middle men? It’s really hard to save up for a house and then you have to make payments for 15 to 30 years and pay taxes. It sounds like a lot of your money gets eaten up by middle men along the way.

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  3. wish yall videos were taught in schools.

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  4. Thanks I bought a house

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  5. My wife and I got lucky i guess….. we both had scores of 700, with very little money down, with no closing fees, and still got a beautiful home for 170K at 3.8%. So……. i guess thats pretty good.

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  6. Minch

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  7. I am broke as fck

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  8. You don't own a home. Bank owns it. You get tied to the house for next 10-20 years.

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  9. Great video! I will be sharing it with my students. I’m sure you’ll be getting some new fans soon.

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  10. It's funny that the house my parents sold closed on June 15th

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  11. Discuss this for homes subjected to bankruptcy court.

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  12. And don't think picking out a house to buy is just one square. That's a whole other game right there…

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  13. Great video!

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  14. Excellent video! Easy to watch!

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  15. His stache is pretty respectable

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  16. Can you do videos of condos?

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  17. Is it better to go with loan officer at lender company or directly bank?

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  18. Do a video about stocks and investing for europeans!! I can never get Ally Bank on the phone from the international line!

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  19. where I'm from, most regular people do all of these things themselves instead of hiring a realtor/loan officer/etc.

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  20. I'm ready to start saving up for a house.

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  21. What happened after you put down that 1% and find too many problems from the inspection and decide to walk out the deal? Do you get your money back?

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  22. My credit score is "0". and I don't have any credit cards. But I tell you what i have….. MONEY!!!!

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  23. The process can be annoying, but it's definitely a better idea than renting.

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  24. Thanks for making such a complicated process easier to understand! Like the board game concept!

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  25. Unless your line of business is real state, you don't HAVE to own a house.

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  26. Hey you all.
    We are in the XXI century.
    We rather go for "housing as a service" than a lifetime slavery loan.

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  27. It's facinating how different this process varies from country to country. In Norway, regardless of if it's a house or an appartment, you go to your bank first to get a statement on how much loan you can get.

    The seller is responsible for reporting any damages or faults on the item for sale, and has to produce a report, this is called a prospect. Most commonly, this is done in cooperation with a real estate company, that organizes public days where the item is open for inspection by all buyers. Any interested parties can also contact the real estate agent for a private showcase of the item.

    Then everyone who is interested puts their contact details on a paper, along with the finance statements. Anyone can make an offer, and as soon as that happens, everyone else on the list is notified. Then the bidding war starts, and when it cools down after people have dropped out, the offer is presented to the owner who can then accept or decline it. If accepted, papers are signed and the loan is granted.

    As a buyer, you have the report plus maybe one hour in the item, often together with others who are interested. The bidding wars are often over very quickly, so you don't have time to think much about it.

    I have spent more time considering what underwear to buy than my appartment. The system is very much in favor of the seller. You have no one to support you as a buyer, while the seller has professional support 99% of the time. You can complain if you encounter damages or other things that are not according to standards that are not in the report, but still.

    A week of access to the item sounds like a very good deal.

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  28. Don’t forget insurance! 🙂

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  29. Awesome!

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  30. Always thought you were supposed to find the house before taking out the loan

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  31. underwriter sounds like undertaker

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  32. Great production value and very informative!

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  33. Something school doesn't actually teach us

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