How to Save Money to Buy a House
Today. In this video, we’re going to talk about your income and your income needed to buy a house. Check it out.
Side Hustles – Gig Economy
Hi, I’m Rhonda Burgess and I’m a real estate broker here in Nashville, Tennessee. I’ve been a real estate broker for 22 years and my firm is Southern living Realty partners. This is the second video in the series I’m doing about what you need to do to to get ready to buy a house to qualify for a mortgage. Let me say this, they call it the gig economy. You know what? Everybody’s got their own, you know, get your hustle on whether you, you drive an Uber, you doing Uber eats. My hair girl does GrubHhub. I got DoorDash. Uber eats everything on my phone. You see, I ain’t missing no meals. But anyway, I say this to say that your side hustle income.
Mortgage Underwriters
It’s hard for underwriters to include it and to account for it because there’s no, let me give you an example. If you were working a part time job, if you have been working a part time job, a part time W2 job, you know your hourly, you clock in, you clock out. Okay? Let’s say you work in 20 hours a week, $10 an hour, okay? And you’ve been doing that for two years. You’ve received a W2 at the end of the year. Okay. Because you filled out a w four form, you’ve got paycheck stubs. So, and if you’ve been doing it for at least two years, I have a history as an underwriter that I can go off of and I can give you credit for that money.
Put Your Money in the Bank
I understand. You know, I told you I, I’ve always got my hustle on. I’ve drove Uber, I drove Lyft. Uh, I’m a travel agent on the side. I do whatever, you know, by any means necessary. Okay. But the way that you need to do it so that this money can count. I know like with, uh, excuse me, I know like with uh, Uber or Lyft, you can get, you get paid, you can get paid daily. Okay? What I strongly suggest that you do to get that money in to make that money count is put it in a savings or checking account religiously. The same one, not over here. I’m going to put $50 over here at the credit union. I’m going to put $50 at Regions. I’m put $50 at bank of America. No, no, no. Put it out in one account and just save as much as you can in that account when it all, when it’s all said and done.
Because when we get ready to account for your down payment money or your closing costs funds, we’re going to ask to see two months worth of bank statements. Okay. Back in the day, you know back before the market crashed, we used to have a whole bunch of bank statement loans where we could use, you know, 12 or 24 months worth of your bank statements showing you, making those constants deposits if you were self employed or had that, you know, side gig going on and we could count that money that way. Those bank statement programs are long gone, long gone.
Qualifying for a Mortgage
So what you’re going to have to do, you’re gonna have to do like what we call A paper. That’s people who are W2, you know, work religiously, all that good stuff. They worked there 40 hours a week. You’re going to have to keep that money, keep that money coming into that savings account or that checking account religiously and don’t touch it. Let it build up, okay?
Because then when we get ready to when we asked you for your two months worth of bank statements, because we want to see where your down payment money and or your closing costs money is coming from, where your earnest money deposit came from, where the money for the home inspector came from. We want to see all of this, right?
If it came from that account where you had all these multiple, multiple, multiple deposits from your side gig, there’s really nothing we can say about it.
Okay?
We’re not going to count it. We can’t count it as income like your w two job, okay? But this is how you can get that money in is by saving it and using it for your down payment. Your closing costs, your two or three months reserves because some loans are going to require you to have two months reserves, meaning you need to have, once every, once you close on your house, you still got to show in a bank account that you have at least two months principal and interest, mortgage insurance, taxes, and homeowners insurance.
This is how you get that gig money. Like I said, it’s not gonna count as your monthly income. You know, even though you may be bringing it home, you know, you make in $2,000 a month on that income, uh,
It’s not going to count because then you’re going to have to write off all your expenses and everything. You see what I’m saying? It’s just not gonna work. And if you don’t have a two year history of doing it, it’s not going to work. And a two year history of writing it off and showing all your money and then writing off all your expenses. Believe me as a self employed person, I know what I’m talking about. Taxes get on my nerves.
But anyway, but this is way you get that money in. Keep it in a specific account, deposit to the same account every day, every week, whichever way you get paid, which those side gigs, if you, if you catering on the side, put that money in the same account. You getting them checks from your customers, put it in there. If you getting CashApp, you’re taking CashApp, Zelle, whatever it is, Paypal, you’re getting money that way. You got the little square reader on your phone. Whatever your hustle is, you getting that money, make sure you put that in the same account every month. Be religious about it and that’s how you’re going to be able to get your side money and to help you when it comes to buying a house.
Again, my name is Rhonda Burgess and I’m a real estate broker here in Nashville, Tennessee. Um, please subscribe to the channel as I will be adding more videos in the coming days, all about buying a house, what you need to do, how you need to do it, however you need to work it.
Whether you’re buying a house in the Nashville area or anywhere, you know, around the country. If you need help with buying a house here in Nashville, I would love to help you, me and my partner are available to help you at any time.
If you’re in another city and state and you would like a referral to an agent who knows what they’re doing and can help you in your state, give me a call. I have friends and realtor friends and connections all around the country. I’d be glad to steer you to someone who’s gonna, you know, work hard for you.
Again, my phone number is (615) 554-0832. I do answer my phone. So be prepared for a telephone conversation. You can text me. Also, I prefer talking on the phone. Again, please subscribe to the channel and thank you and have a blessed day.
