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Speed up your hiring right now with Indeed, 10 00:00:33,960 --> 00:00:36,200 Speaker 1: and listeners of this show will get a seventy five 11 00:00:36,280 --> 00:00:39,440 Speaker 1: dollars sponsored job credit to get your jobs more visibility 12 00:00:39,600 --> 00:00:45,320 Speaker 1: at indeed dot com slash pod Katz thirteen. Just go 13 00:00:45,360 --> 00:00:50,120 Speaker 1: to Indeed dot com slash pod Katz thirteen right now 14 00:00:50,479 --> 00:00:53,040 Speaker 1: and support our show by saying you heard about Indeed 15 00:00:53,080 --> 00:00:57,400 Speaker 1: on this podcast. Terms and conditions apply. Hiring Indeed is 16 00:00:57,440 --> 00:00:58,240 Speaker 1: all you need. 17 00:00:58,960 --> 00:01:02,360 Speaker 2: So welcome university. Like I said, my name is Matt 18 00:01:02,400 --> 00:01:05,000 Speaker 2: Garland and I'm Les's number five A seven zero zero, 19 00:01:05,200 --> 00:01:07,520 Speaker 2: better known as MG the Mortgage God. Today we're going 20 00:01:07,600 --> 00:01:11,320 Speaker 2: to talk about first time home buyers. So let's get started. 21 00:01:11,440 --> 00:01:13,479 Speaker 2: Most people always ask me, yo, Matt, what I need 22 00:01:13,520 --> 00:01:15,440 Speaker 2: to get started to be a first time home buyer 23 00:01:15,520 --> 00:01:18,560 Speaker 2: or to buy a house. Everything starts with your mindset. 24 00:01:18,760 --> 00:01:21,520 Speaker 2: I say this all the time. Right, you have to 25 00:01:21,520 --> 00:01:25,400 Speaker 2: be prepared for home ownership, So ask yourself these questions 26 00:01:25,480 --> 00:01:27,280 Speaker 2: or your first time home buyers. Are you ready for 27 00:01:27,360 --> 00:01:32,520 Speaker 2: home ownership? What are your real estate goals? Okay? Do 28 00:01:32,600 --> 00:01:36,000 Speaker 2: you have the capital? Meaning do you have money? Right? 29 00:01:36,120 --> 00:01:40,080 Speaker 2: Most people want to be house rich and cash poor. 30 00:01:41,319 --> 00:01:43,880 Speaker 2: Never be house rich in cash for cash poor. I 31 00:01:43,880 --> 00:01:46,400 Speaker 2: don't care if you're getting one hundred percent financing. I 32 00:01:46,400 --> 00:01:49,400 Speaker 2: don't care if you're getting any home buyer grants. It 33 00:01:49,440 --> 00:01:52,520 Speaker 2: doesn't matter to me. You need to have some money saved. 34 00:01:52,840 --> 00:01:56,880 Speaker 2: How soon do you want to close? Have realistic expectations 35 00:01:56,880 --> 00:01:59,040 Speaker 2: on your time frame? Check out if you have a 36 00:01:59,080 --> 00:02:02,200 Speaker 2: current lease one does that least expire? If you're living 37 00:02:02,280 --> 00:02:05,200 Speaker 2: at home, how's that situation working out? Whatever the case 38 00:02:05,240 --> 00:02:09,359 Speaker 2: may be, have a realistic expectation for when you want 39 00:02:09,400 --> 00:02:12,959 Speaker 2: to close on your home. And number most importantly, are 40 00:02:13,040 --> 00:02:18,960 Speaker 2: your documents organized? This is key? Okay, keep your documents 41 00:02:19,040 --> 00:02:20,840 Speaker 2: organized every time. If you know you're going to buy 42 00:02:20,840 --> 00:02:24,600 Speaker 2: a house, you know, create a file, create a drop box, 43 00:02:24,720 --> 00:02:27,560 Speaker 2: a Google docs you know, start putting your pay stubs there. 44 00:02:27,600 --> 00:02:30,640 Speaker 2: Every time you get an updated bank statement, put your 45 00:02:30,680 --> 00:02:33,799 Speaker 2: bank statements in a file. You're doing, you get your 46 00:02:33,880 --> 00:02:37,440 Speaker 2: W tools, you're doing your taxes, you know, upload that 47 00:02:37,560 --> 00:02:40,200 Speaker 2: into a file and call a file like home ownership 48 00:02:40,200 --> 00:02:43,120 Speaker 2: file or something like that, and just start putting together 49 00:02:43,639 --> 00:02:46,840 Speaker 2: all your documentations so that way you guys are prepared 50 00:02:47,960 --> 00:02:52,560 Speaker 2: all right now, speaking of documentation, what do you need 51 00:02:53,000 --> 00:02:57,160 Speaker 2: to start the pre approval process? While you need your 52 00:02:57,200 --> 00:02:59,679 Speaker 2: last two years of W tools because we need to 53 00:02:59,720 --> 00:03:03,640 Speaker 2: show two year work history, last two years tax returns, 54 00:03:04,320 --> 00:03:07,440 Speaker 2: and really you want to provide tax returns if you're 55 00:03:07,480 --> 00:03:12,600 Speaker 2: self employed, if you have any rental income that you're collecting, 56 00:03:13,480 --> 00:03:16,440 Speaker 2: if you file like a ten ninety if you get 57 00:03:16,480 --> 00:03:19,600 Speaker 2: paid ten ninety nine, maybe you an uber driver or 58 00:03:19,760 --> 00:03:23,639 Speaker 2: a lift driver, a hairstylist, a barber, you know, anything 59 00:03:23,680 --> 00:03:26,280 Speaker 2: that you get like maybe you sell affiliate links, you 60 00:03:26,320 --> 00:03:31,920 Speaker 2: got digital marketing, online marketing sales, whatever you do right 61 00:03:32,000 --> 00:03:34,000 Speaker 2: that you get a ten ninety nine from and if 62 00:03:34,080 --> 00:03:36,800 Speaker 2: you file on your taxes, I need to see your 63 00:03:36,840 --> 00:03:40,480 Speaker 2: last two years of self employed ten ninety nine independent 64 00:03:40,520 --> 00:03:45,120 Speaker 2: contractor is considered self employed, So please remember that last 65 00:03:45,120 --> 00:03:48,240 Speaker 2: thirty days of pay stubs. Very key. So we need 66 00:03:48,240 --> 00:03:50,800 Speaker 2: thirty days full pay stubs. If you get paid weekly, 67 00:03:50,880 --> 00:03:53,360 Speaker 2: we need four pay stubs. If you get paid by weekly, 68 00:03:53,440 --> 00:03:56,520 Speaker 2: we need two pay stubs, all right. Last two months 69 00:03:56,520 --> 00:04:00,480 Speaker 2: are your bank statements or any assets that you are 70 00:04:00,600 --> 00:04:03,120 Speaker 2: using for the transaction. So if you're borrowing money from 71 00:04:03,120 --> 00:04:06,000 Speaker 2: a four to one K, we need the last quarter 72 00:04:06,160 --> 00:04:10,240 Speaker 2: statement they if you using your checkings and your savings account, 73 00:04:10,440 --> 00:04:13,240 Speaker 2: we need your last two months of your bank statements. Now, 74 00:04:13,280 --> 00:04:16,160 Speaker 2: those bank statements we need all pages. So now if 75 00:04:16,160 --> 00:04:18,080 Speaker 2: you know, if you look at your bank statements, it 76 00:04:18,120 --> 00:04:21,240 Speaker 2: may say page one to ten, right, and if that 77 00:04:21,360 --> 00:04:25,799 Speaker 2: tenth page is intentionally left blank, underwriting will still need 78 00:04:25,839 --> 00:04:30,200 Speaker 2: that tenth page, all right. So although it's blank, once 79 00:04:30,360 --> 00:04:33,400 Speaker 2: underwriting seas one of ten and we only provided none, 80 00:04:33,640 --> 00:04:36,479 Speaker 2: we need to see the ten all right, even if 81 00:04:36,520 --> 00:04:39,400 Speaker 2: it's blank. I know it's stupid, but that's just the rules, 82 00:04:39,600 --> 00:04:43,240 Speaker 2: all right. Copy of valid ID. If you are getting 83 00:04:43,279 --> 00:04:46,000 Speaker 2: any gifts. You can get gifts from a family member 84 00:04:46,120 --> 00:04:48,920 Speaker 2: or close friend, we need a copy of the gift letter, 85 00:04:49,279 --> 00:04:53,719 Speaker 2: all right, and we need to a complete it. Loan application. Now, 86 00:04:53,760 --> 00:04:57,760 Speaker 2: if I'm your lender, then Obviously, I'll send you that 87 00:04:58,400 --> 00:05:01,680 Speaker 2: online loan application, but any bank you go to, you're 88 00:05:01,720 --> 00:05:06,159 Speaker 2: going to have to complete an online loan application, the 89 00:05:06,200 --> 00:05:10,800 Speaker 2: pre approval process, let's go through it. So choosing a 90 00:05:10,880 --> 00:05:15,479 Speaker 2: lender very important, guys. And I want to say this 91 00:05:16,839 --> 00:05:21,600 Speaker 2: not trying to bash any of my fellow lenders, mortgage brokers, bankers, 92 00:05:21,640 --> 00:05:25,920 Speaker 2: because that's not the purpose of my content. For at least, 93 00:05:25,960 --> 00:05:29,760 Speaker 2: I try to encourage my entire industry. But you want 94 00:05:29,760 --> 00:05:32,600 Speaker 2: to make sure you don't pick a linda just because 95 00:05:32,640 --> 00:05:36,520 Speaker 2: you have a quote unquote banking relationship with that lender, 96 00:05:36,640 --> 00:05:38,800 Speaker 2: meaning you have your checking account there, you have your 97 00:05:38,800 --> 00:05:42,000 Speaker 2: savings account. You really need to be interviewing the loan 98 00:05:42,040 --> 00:05:45,400 Speaker 2: officer someone like myself because you're not doing business with 99 00:05:45,560 --> 00:05:48,159 Speaker 2: the bank per se. You're doing business with the person 100 00:05:48,200 --> 00:05:52,240 Speaker 2: that's in my chair, right, So you have to make 101 00:05:52,279 --> 00:05:56,520 Speaker 2: sure that that loan officer him or her understands your 102 00:05:56,600 --> 00:05:59,920 Speaker 2: real estate goals completely because your first deal can set 103 00:05:59,920 --> 00:06:03,200 Speaker 2: you up for your tenth deal. But it's very important 104 00:06:03,279 --> 00:06:06,240 Speaker 2: on how you execute your first deal, on how this 105 00:06:06,320 --> 00:06:08,640 Speaker 2: is all going to play out, all right, So make 106 00:06:08,680 --> 00:06:11,840 Speaker 2: sure your loan officer understands your real estate goals is 107 00:06:11,920 --> 00:06:15,279 Speaker 2: number one. Number two, does your loan officer have a 108 00:06:15,320 --> 00:06:18,640 Speaker 2: support team? Very important, especially in times right now where 109 00:06:18,680 --> 00:06:22,560 Speaker 2: you have interest rates at all time lows. You want 110 00:06:22,560 --> 00:06:24,960 Speaker 2: to make sure that loan officer is not a one 111 00:06:25,000 --> 00:06:28,200 Speaker 2: man band, so to speak, because you still don't want 112 00:06:28,240 --> 00:06:31,000 Speaker 2: your service levels to drop off just because they're busy. 113 00:06:31,360 --> 00:06:34,520 Speaker 2: You still want communication, So make sure they have some support, 114 00:06:34,960 --> 00:06:38,560 Speaker 2: whether they have assistance processes. These are questions you need 115 00:06:38,600 --> 00:06:41,960 Speaker 2: to you need to ask, you need to interview, and 116 00:06:42,240 --> 00:06:44,640 Speaker 2: how many years of experience that they have. Now this 117 00:06:44,760 --> 00:06:46,919 Speaker 2: is not a not to any of my new beasts, 118 00:06:47,279 --> 00:06:54,680 Speaker 2: right but when you're dealing with experience professional, you can 119 00:06:54,839 --> 00:06:57,240 Speaker 2: make sure. You have to make sure that they really 120 00:06:57,360 --> 00:06:59,600 Speaker 2: understand it goes in and they have a track history 121 00:07:00,200 --> 00:07:04,840 Speaker 2: of helping people accomplish their goals. So most of the time, obviously, 122 00:07:04,839 --> 00:07:07,280 Speaker 2: if you're dealing with someone who's new, they may not 123 00:07:07,360 --> 00:07:09,240 Speaker 2: have that experience, but they may be able to give 124 00:07:09,240 --> 00:07:11,200 Speaker 2: you all the time in the world that you need 125 00:07:11,560 --> 00:07:15,800 Speaker 2: versus someone like myself who may be experienced. All right, 126 00:07:16,480 --> 00:07:19,880 Speaker 2: but I always recommend work with experience loan officer because 127 00:07:19,880 --> 00:07:22,200 Speaker 2: they have a track history of closing deals. Because the 128 00:07:22,280 --> 00:07:25,880 Speaker 2: name of the game is closing. ABC always be closing, 129 00:07:26,800 --> 00:07:30,080 Speaker 2: all right. So the pre approval process the next steps 130 00:07:30,160 --> 00:07:33,080 Speaker 2: after you choose your linda, after you discuss your goals, 131 00:07:33,080 --> 00:07:35,680 Speaker 2: you got to run your credit and review your income documents. 132 00:07:35,680 --> 00:07:39,480 Speaker 2: That's what I do, right, determine what mortgage programs you 133 00:07:39,600 --> 00:07:43,160 Speaker 2: qualify for. Now, I'm going to keep it right there 134 00:07:43,200 --> 00:07:46,840 Speaker 2: for a second. Determine which mortgage programs you qualify for 135 00:07:47,280 --> 00:07:50,040 Speaker 2: is very important. There's a ton of programs out there, 136 00:07:50,040 --> 00:07:52,960 Speaker 2: but sometimes linders only want to give you one option. 137 00:07:53,760 --> 00:07:57,120 Speaker 2: Make sure that you guys are asking the lenda to 138 00:07:57,160 --> 00:08:00,200 Speaker 2: provide you all the options that you qualify for for 139 00:08:00,720 --> 00:08:05,920 Speaker 2: whether it's a conventional mortgage faha mortgage, whether it's thirty 140 00:08:05,960 --> 00:08:09,160 Speaker 2: year fixed, twenty year fix, whatever it is. That way 141 00:08:09,200 --> 00:08:13,520 Speaker 2: you can see the full picture. And always always always 142 00:08:13,560 --> 00:08:19,360 Speaker 2: remember there's a big difference between eligibility and affordability. Just 143 00:08:19,440 --> 00:08:23,680 Speaker 2: because of bank or lender or broker will approve you, 144 00:08:24,120 --> 00:08:27,880 Speaker 2: it does not mean you can afford that mortgage, So 145 00:08:28,120 --> 00:08:32,640 Speaker 2: choose wisely. Banks and loan offices like myself, we are 146 00:08:32,679 --> 00:08:35,440 Speaker 2: in the business to make loans and to sell money. 147 00:08:36,120 --> 00:08:38,400 Speaker 2: We will tell you your goals. We will tell you what 148 00:08:38,520 --> 00:08:40,520 Speaker 2: you have to do to accomplish your goals. We'll tell 149 00:08:40,559 --> 00:08:42,920 Speaker 2: you what you qualify for, we will close your loan. 150 00:08:43,360 --> 00:08:45,440 Speaker 2: But guess what, at the end of the day, you 151 00:08:45,480 --> 00:08:49,520 Speaker 2: are responsible for that mortgage payment. So please, please, guys, 152 00:08:50,400 --> 00:08:53,920 Speaker 2: it is very difficult. One of the scary things about 153 00:08:54,320 --> 00:08:58,840 Speaker 2: low interest rates is that it is so much easier 154 00:08:58,880 --> 00:09:03,840 Speaker 2: to overleverage because money is cheap, and now you might 155 00:09:03,920 --> 00:09:07,800 Speaker 2: bite off more than you can chew. Because let's just say, 156 00:09:07,920 --> 00:09:10,800 Speaker 2: for example, when the rates are higher, you may like 157 00:09:10,920 --> 00:09:13,720 Speaker 2: four percent, right, you may only be able to be 158 00:09:13,760 --> 00:09:16,560 Speaker 2: pre approved for four hundred thousand, But now at rates 159 00:09:16,600 --> 00:09:19,920 Speaker 2: are two point seventy five three percent, you can probably 160 00:09:19,920 --> 00:09:22,520 Speaker 2: get five hundred and fifty thousand, you know what I'm saying, 161 00:09:22,960 --> 00:09:26,080 Speaker 2: because of that dipping interest rates. So the very scary 162 00:09:26,440 --> 00:09:33,280 Speaker 2: thing about low interest rates is that people tend to overleverage. 163 00:09:34,000 --> 00:09:37,560 Speaker 2: Don't over leverage, guys, don't bite off more than control. 164 00:09:37,640 --> 00:09:39,920 Speaker 2: This is probably the most important thing that I can 165 00:09:39,960 --> 00:09:43,040 Speaker 2: tell you, especially we got elections coming up, We have 166 00:09:43,440 --> 00:09:46,760 Speaker 2: so many we got the Corona disease, we have so 167 00:09:46,880 --> 00:09:49,880 Speaker 2: many things. Stock market going crazy right now, we have 168 00:09:49,960 --> 00:09:52,840 Speaker 2: so many different things that are happening that no one 169 00:09:52,920 --> 00:09:56,520 Speaker 2: knows if and when a recession will come. So over 170 00:09:56,640 --> 00:09:59,520 Speaker 2: leveraging is a very scary thing, and that's something that 171 00:09:59,559 --> 00:10:02,560 Speaker 2: I'm paying attention to when I'm when I'm having consultations 172 00:10:02,559 --> 00:10:05,680 Speaker 2: with clients. So but it's your responsibility. You guys are 173 00:10:06,200 --> 00:10:09,280 Speaker 2: are adults at the end of the day. So you 174 00:10:09,400 --> 00:10:12,440 Speaker 2: got a man and woman up and make sure you know, 175 00:10:12,679 --> 00:10:15,400 Speaker 2: just because the bank can approve you for a mortgage 176 00:10:15,480 --> 00:10:18,800 Speaker 2: doesn't mean you can afford it. So sorry for the rent, 177 00:10:18,800 --> 00:10:21,160 Speaker 2: but I had to go there, all right. So now 178 00:10:21,200 --> 00:10:24,040 Speaker 2: after you discuss your terms for these programs, interest rates, 179 00:10:24,080 --> 00:10:26,959 Speaker 2: closing course, et cetera. Now you're pre approved and you're 180 00:10:27,000 --> 00:10:30,360 Speaker 2: ready to shot, all right, So let's just give you. 181 00:10:30,400 --> 00:10:33,760 Speaker 2: I'm gonna give you a quick snapshot now of the 182 00:10:33,800 --> 00:10:39,640 Speaker 2: blown programs and what's what you need to qualify for them. Now, 183 00:10:39,800 --> 00:10:41,800 Speaker 2: mind you, this is not a commitment for me to 184 00:10:41,880 --> 00:10:43,760 Speaker 2: lend to you, all right, I'm just giving you a 185 00:10:43,800 --> 00:10:48,640 Speaker 2: snapshot of the programs. For FAHA and FAHA two or 186 00:10:48,640 --> 00:10:52,000 Speaker 2: three K, your minimum credit scores a five eighty minimum 187 00:10:52,040 --> 00:10:55,200 Speaker 2: down payment is three point five percent of the purchase price. 188 00:10:56,880 --> 00:11:00,679 Speaker 2: The max seller's concession allowed is six percent. Now for 189 00:11:00,720 --> 00:11:04,520 Speaker 2: those of you who don't know. A seller's concession is 190 00:11:04,559 --> 00:11:08,920 Speaker 2: when a seller pays agrees to pay a portion of 191 00:11:09,120 --> 00:11:17,679 Speaker 2: the closing course. Sorry had the text home, is when 192 00:11:17,720 --> 00:11:20,040 Speaker 2: a seller agrees to pay a portion of a closing course. 193 00:11:20,559 --> 00:11:23,240 Speaker 2: So ultimately, at the end of the day, let's say 194 00:11:23,280 --> 00:11:25,920 Speaker 2: say if the sales price is one hundred K, then 195 00:11:26,040 --> 00:11:29,520 Speaker 2: six percent is six thousand that the seller will agree 196 00:11:29,600 --> 00:11:34,040 Speaker 2: to pay for. FAHA allows one to four family properties, 197 00:11:34,400 --> 00:11:37,960 Speaker 2: FAHA approved condos and mixed use properties. Now, for those 198 00:11:37,960 --> 00:11:40,880 Speaker 2: of you who don't know what mixed use properties are, 199 00:11:42,400 --> 00:11:45,439 Speaker 2: a mixed use property is typically when a commercial property 200 00:11:45,440 --> 00:11:49,000 Speaker 2: when you have residential on the top and commercial on 201 00:11:49,040 --> 00:11:52,720 Speaker 2: the bottom. Right, FAHA will allow you to purchase this 202 00:11:52,880 --> 00:11:56,520 Speaker 2: property as long as the total units don't total more 203 00:11:56,559 --> 00:11:59,840 Speaker 2: than four total units and the residential square footage is 204 00:12:00,040 --> 00:12:04,040 Speaker 2: at least fifty one percent of the square footage of 205 00:12:04,080 --> 00:12:06,880 Speaker 2: the building. All right, So for those of you who 206 00:12:07,080 --> 00:12:10,120 Speaker 2: are running your own business, maybe you have a restaurant, 207 00:12:10,240 --> 00:12:13,680 Speaker 2: a bar, you know, you have some sort of sales 208 00:12:13,720 --> 00:12:16,679 Speaker 2: business and you need a brick and mortar location. This 209 00:12:16,720 --> 00:12:20,840 Speaker 2: can be ideal for you if someone if someone doesn't 210 00:12:20,880 --> 00:12:24,480 Speaker 2: have that business, remember written out to commercial clients. The 211 00:12:24,480 --> 00:12:26,600 Speaker 2: rent is probably going to be more expensive than a 212 00:12:26,640 --> 00:12:29,319 Speaker 2: residential so that can be a good opportunity for you 213 00:12:29,440 --> 00:12:31,880 Speaker 2: to look for, all right, and they will allow you 214 00:12:31,920 --> 00:12:33,480 Speaker 2: to do it with three and a half percent down. 215 00:12:33,960 --> 00:12:37,840 Speaker 2: Your max loan amounts is based on the FAHA county 216 00:12:38,040 --> 00:12:41,839 Speaker 2: loan limits. Now, only thing you have to do if 217 00:12:41,840 --> 00:12:44,760 Speaker 2: you want to know what your FAHA county loan limits are, 218 00:12:45,480 --> 00:12:49,719 Speaker 2: google FAHA county loan limits for whatever county you live 219 00:12:49,760 --> 00:12:52,520 Speaker 2: in and they'll tell you from one to four family 220 00:12:53,000 --> 00:12:56,760 Speaker 2: what the max loan amount is. FAHA office fixed and 221 00:12:56,760 --> 00:13:01,320 Speaker 2: adjustable and adjustable mortgage rates, and f is only for 222 00:13:01,480 --> 00:13:04,400 Speaker 2: primary residents. I wish I could zoom in on this 223 00:13:04,520 --> 00:13:10,520 Speaker 2: camera right now. Primary residence only. Okay, it's not for 224 00:13:10,559 --> 00:13:13,880 Speaker 2: investment properties. You cannot use your LLC to purchase the 225 00:13:14,000 --> 00:13:17,800 Speaker 2: FAHA purchase the house using the FAHA loan. You can't 226 00:13:17,840 --> 00:13:22,160 Speaker 2: put the mortgage, the FAHA mortgage in your LLC. No, no, no, 227 00:13:22,160 --> 00:13:27,680 Speaker 2: no no. It is only for primary residents only. FAHA 228 00:13:27,880 --> 00:13:32,319 Speaker 2: does require a one year occupacy right, so that means 229 00:13:32,320 --> 00:13:34,160 Speaker 2: you have to live in that property for at least 230 00:13:34,200 --> 00:13:37,360 Speaker 2: twelve months, all right, and then if you want to 231 00:13:37,360 --> 00:13:40,760 Speaker 2: rent out you can. I just wanted to make that 232 00:13:40,800 --> 00:13:43,720 Speaker 2: clear because I get a lot of questions about that. 233 00:13:45,679 --> 00:13:48,320 Speaker 2: Let's move on to another program, conventional loans. You have. 234 00:13:48,920 --> 00:13:52,880 Speaker 2: This is the ideal programs for conventional loans where you 235 00:13:52,880 --> 00:13:55,400 Speaker 2: can put down at least three percent down payment. You 236 00:13:55,520 --> 00:13:59,040 Speaker 2: have Fanny Made Home Ready, Freddie Mac Home Possible. You 237 00:13:59,080 --> 00:14:02,000 Speaker 2: need a minimum of a twenty credit score. The down 238 00:14:02,000 --> 00:14:04,440 Speaker 2: payment could be between three and twenty five percent of 239 00:14:04,480 --> 00:14:08,959 Speaker 2: the purchase price max three percent selless concession is allowed. 240 00:14:09,360 --> 00:14:12,640 Speaker 2: One to four families and Fanny May Approve condos are allowed. 241 00:14:12,920 --> 00:14:14,920 Speaker 2: The max loan amounts is based on the Fandy May 242 00:14:14,960 --> 00:14:17,720 Speaker 2: loan limits or again, just google Faning May Loan limits 243 00:14:17,720 --> 00:14:20,080 Speaker 2: and they will tell you the loan limits for your area. 244 00:14:20,240 --> 00:14:25,600 Speaker 2: Fixed or adjustable rates, interest rates, primary residents, second homes, 245 00:14:25,600 --> 00:14:32,080 Speaker 2: and investment properties are allowed with Fanny May with conventional loans. Now, 246 00:14:33,000 --> 00:14:34,560 Speaker 2: let's I'm gonna do a little bit of deep dive 247 00:14:34,600 --> 00:14:38,680 Speaker 2: into this one. So one to fourth family they do allow, 248 00:14:39,520 --> 00:14:42,960 Speaker 2: but Fanny May Home Ready. If you're buying a two 249 00:14:43,040 --> 00:14:47,200 Speaker 2: to four family or duplex, triplex aquad like some folks 250 00:14:47,280 --> 00:14:50,880 Speaker 2: call it, then you will have to put down fifteen 251 00:14:50,960 --> 00:14:54,840 Speaker 2: percent even if it's on the occupied and if it's 252 00:14:54,840 --> 00:14:58,400 Speaker 2: an investment property, you have to put down twenty five percent. 253 00:14:59,040 --> 00:15:03,040 Speaker 2: With Freddie mac Home Possible, you can potentially put down 254 00:15:03,120 --> 00:15:07,400 Speaker 2: five percent on a duplex, triplex quad But with any 255 00:15:07,480 --> 00:15:12,760 Speaker 2: of these programs, they are income based programs, so we 256 00:15:12,800 --> 00:15:15,120 Speaker 2: would have to determine basically, and you can just probably 257 00:15:15,120 --> 00:15:19,760 Speaker 2: google it right go to Google freddiemac Home Possible income 258 00:15:19,840 --> 00:15:22,920 Speaker 2: limit and then there'll be a map that will come 259 00:15:23,000 --> 00:15:26,680 Speaker 2: up and you punching your address or the zip code 260 00:15:26,640 --> 00:15:29,280 Speaker 2: of where you're looking to buy, and then the system 261 00:15:29,320 --> 00:15:33,200 Speaker 2: will tell you the maximum income you can make to 262 00:15:33,240 --> 00:15:36,560 Speaker 2: be qualified for this loan. So they use eighty percent 263 00:15:37,080 --> 00:15:41,040 Speaker 2: of the AMI. The AMI stands for Area Media income. 264 00:15:41,120 --> 00:15:44,920 Speaker 2: So let's just say, for example, the AMI is one 265 00:15:45,040 --> 00:15:49,640 Speaker 2: hundred thousand dollars of income. They only use eighty thousand 266 00:15:49,680 --> 00:15:52,920 Speaker 2: income to qualify, So if you make eighty five thousand dollars, 267 00:15:53,120 --> 00:15:57,120 Speaker 2: you automatically don't qualify for this program. Another thing I 268 00:15:57,160 --> 00:15:59,160 Speaker 2: want to tell you guys about this if you're using 269 00:16:00,120 --> 00:16:03,080 Speaker 2: a if you're losing a conventional loan you want to 270 00:16:03,080 --> 00:16:06,320 Speaker 2: buy a multi family, if you are a first time 271 00:16:06,400 --> 00:16:10,600 Speaker 2: home buyer, conventional loans will not allow you to use 272 00:16:10,640 --> 00:16:14,800 Speaker 2: rental income to help you qualify. Let me repeat that, 273 00:16:15,000 --> 00:16:18,360 Speaker 2: if you are a first time home buyer, conventional loans 274 00:16:18,400 --> 00:16:23,280 Speaker 2: will not allow you to use potential rental income from 275 00:16:23,320 --> 00:16:27,200 Speaker 2: those units to help you qualify for the mortgage. The 276 00:16:27,240 --> 00:16:29,960 Speaker 2: only program right now that will allow a first time 277 00:16:30,000 --> 00:16:33,160 Speaker 2: home buyer to use rental income to help you qualify 278 00:16:33,520 --> 00:16:38,520 Speaker 2: is an FAHA loan. All right. FAHA will lose seventy 279 00:16:38,560 --> 00:16:43,200 Speaker 2: five of the gross rental income from those apartments to 280 00:16:43,280 --> 00:16:46,200 Speaker 2: help you qualify. So let's just say you're collecting one 281 00:16:46,200 --> 00:16:49,480 Speaker 2: thousand dollars a month in rent. FHA will use seven 282 00:16:49,520 --> 00:16:53,480 Speaker 2: hundred and fifty dollars to help you qualify. Now, this 283 00:16:53,520 --> 00:16:55,600 Speaker 2: is what I want to tell all your first time 284 00:16:55,600 --> 00:17:00,280 Speaker 2: home buyers. These guidelines for conventional just changed at the 285 00:17:00,360 --> 00:17:03,280 Speaker 2: end of twenty nineteen. I have a video on my 286 00:17:03,360 --> 00:17:06,000 Speaker 2: YouTube page mg DE Mortgage God. You can go check 287 00:17:06,040 --> 00:17:10,560 Speaker 2: that out too, but basically stayed in these new guidelines. 288 00:17:11,240 --> 00:17:15,199 Speaker 2: When you see programs starting to change guidelines like this, 289 00:17:15,359 --> 00:17:19,119 Speaker 2: that means at some point everyone changes their guidelines to 290 00:17:19,200 --> 00:17:20,280 Speaker 2: kind of match with the other. 291 00:17:21,640 --> 00:17:23,879 Speaker 3: This episode is brought to you by P and C Bank. 292 00:17:24,280 --> 00:17:27,040 Speaker 3: A lot of people think podcasts about work are boring, 293 00:17:27,240 --> 00:17:31,080 Speaker 3: and sure they definitely can be, but understanding of professionals 294 00:17:31,160 --> 00:17:34,439 Speaker 3: routine shows us how they achieve their success little by little, 295 00:17:34,800 --> 00:17:38,440 Speaker 3: day after day. It's like banking with P and C Bank. 296 00:17:38,920 --> 00:17:41,720 Speaker 3: It might seem boring to save, plan and make calculated 297 00:17:41,760 --> 00:17:44,840 Speaker 3: decisions with your bank, but keeping your money boring is 298 00:17:44,880 --> 00:17:48,199 Speaker 3: what helps you live or more happily fulfilled life. P 299 00:17:48,320 --> 00:17:53,160 Speaker 3: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly 300 00:17:53,200 --> 00:17:55,840 Speaker 3: Boring since eighteen sixty five is a service mark of 301 00:17:55,880 --> 00:17:58,680 Speaker 3: the P ANDC Financial Service Group, Inc. P and C 302 00:17:58,840 --> 00:18:05,119 Speaker 3: Bank National Association member fdic Erners. 303 00:18:05,119 --> 00:18:05,520 Speaker 2: What's up? 304 00:18:05,600 --> 00:18:08,080 Speaker 3: You ever walk into a small business and everything just 305 00:18:08,240 --> 00:18:11,400 Speaker 3: works like The checkout is fast, the receipts are digital, 306 00:18:11,920 --> 00:18:14,920 Speaker 3: tipping is a breeze, and you're out the door before 307 00:18:14,920 --> 00:18:19,080 Speaker 3: the line even builds. Odds are they're using Square? We 308 00:18:19,240 --> 00:18:21,760 Speaker 3: love supporting businesses that run on Square because it just 309 00:18:21,800 --> 00:18:25,040 Speaker 3: feels seamless. Whether it's a local coffee shop, a vendor 310 00:18:25,080 --> 00:18:27,360 Speaker 3: at a pop up market, or even one of our 311 00:18:27,400 --> 00:18:31,040 Speaker 3: merch partners. Square makes it easy for them to take payments, 312 00:18:31,280 --> 00:18:34,960 Speaker 3: manage inventory, and run their business with confidence, all from 313 00:18:35,080 --> 00:18:38,480 Speaker 3: one simple system. If you're a business owner or even 314 00:18:38,600 --> 00:18:42,120 Speaker 3: just thinking about launching something soon, Square is hands down 315 00:18:42,119 --> 00:18:44,479 Speaker 3: one of the best tools out there to help you start, 316 00:18:44,880 --> 00:18:48,400 Speaker 3: run and grow. It's not just about payments, it's about 317 00:18:48,440 --> 00:18:50,879 Speaker 3: giving you time back so you can focus on what 318 00:18:51,080 --> 00:18:54,720 Speaker 3: matters most ready. To see how Square can transform your business, 319 00:18:55,000 --> 00:18:59,600 Speaker 3: visit Square dot com backslash go backslash eyl to learn 320 00:18:59,640 --> 00:19:04,919 Speaker 3: more that Square dot com backslash, go backslash euyl. Don't wait, 321 00:19:05,160 --> 00:19:07,960 Speaker 3: don't hesitate. Let's Square handle the back end so you 322 00:19:08,000 --> 00:19:11,200 Speaker 3: can keep pushing your vision forward. 323 00:19:11,840 --> 00:19:14,240 Speaker 2: The one is doing and it's all based off of 324 00:19:14,359 --> 00:19:21,040 Speaker 2: risk analysis. So right now, FAHA allows this still, but 325 00:19:21,480 --> 00:19:26,439 Speaker 2: conventional doesn't. So with that being said, that means you 326 00:19:26,520 --> 00:19:31,200 Speaker 2: need to get on it and do not wait because 327 00:19:31,920 --> 00:19:35,880 Speaker 2: everything about this industry, about the mortgage business, is all 328 00:19:35,920 --> 00:19:41,399 Speaker 2: about timing, all about timing. The market does not wait 329 00:19:41,440 --> 00:19:46,000 Speaker 2: for you. Okay, it does not wait for you. Let's 330 00:19:46,000 --> 00:19:48,320 Speaker 2: go on to VA loans Via Loans minimum five eighty 331 00:19:48,359 --> 00:19:53,200 Speaker 2: credit score, one hundred percent financing with no PMI six 332 00:19:53,440 --> 00:19:56,320 Speaker 2: up to six percent sales concession allowed. One to four 333 00:19:56,440 --> 00:20:01,840 Speaker 2: family VA approved condos allowed, and it's for primary residents only. 334 00:20:01,880 --> 00:20:07,680 Speaker 2: With a one year requirement for primary residence. Again, VA 335 00:20:08,440 --> 00:20:11,240 Speaker 2: does not allow first time home buyers to use rental 336 00:20:11,320 --> 00:20:15,040 Speaker 2: income to help you qualify unless you can prove that 337 00:20:15,119 --> 00:20:21,320 Speaker 2: you have prior rental property management. Okay. So and in 338 00:20:21,359 --> 00:20:23,720 Speaker 2: most cases, if you're a first time home buyer, you're 339 00:20:23,760 --> 00:20:25,920 Speaker 2: not going to have that type of experience. So you're 340 00:20:25,960 --> 00:20:27,840 Speaker 2: going to have to be able to qualify on your 341 00:20:27,880 --> 00:20:30,399 Speaker 2: own That's why for me in all honestly, if someone's 342 00:20:30,400 --> 00:20:33,480 Speaker 2: looking to buy a multifamily and if they can't qualify 343 00:20:33,840 --> 00:20:37,879 Speaker 2: on their own income, then FHA is the ideal program 344 00:20:38,280 --> 00:20:43,800 Speaker 2: for that multifamily buyer. All right, So now we got 345 00:20:43,840 --> 00:20:48,320 Speaker 2: a little bit of information about the programs. You know 346 00:20:48,359 --> 00:20:50,240 Speaker 2: what it takes to get pre approved, you know with 347 00:20:50,359 --> 00:20:54,000 Speaker 2: documents that you need. Now, congratulations, you went out shopping 348 00:20:54,000 --> 00:20:56,280 Speaker 2: with your real to. You saw one hundred and fifty 349 00:20:56,280 --> 00:20:59,320 Speaker 2: thousand houses, you hated them all except for the one 350 00:20:59,359 --> 00:21:02,120 Speaker 2: you fell in love with it. Now, congratulations, you put 351 00:21:02,160 --> 00:21:07,280 Speaker 2: in the offer, and now you have you're in contracts. Now, 352 00:21:08,200 --> 00:21:12,680 Speaker 2: So in some states, every state operates differently. I'm based 353 00:21:12,680 --> 00:21:15,359 Speaker 2: here in New York. So in New York, the process 354 00:21:15,480 --> 00:21:18,520 Speaker 2: is you put in the offer, what's real to. The 355 00:21:18,600 --> 00:21:20,639 Speaker 2: realtor puts in the offer what the seller's real to. 356 00:21:21,480 --> 00:21:25,200 Speaker 2: They accept the offer, and then we do a home inspection. 357 00:21:26,000 --> 00:21:30,919 Speaker 2: After the home inspection is completed, then the contracts are 358 00:21:30,960 --> 00:21:33,720 Speaker 2: sent to the attorneys. Then the bi goes meets with 359 00:21:33,800 --> 00:21:37,520 Speaker 2: the attorney. The attorney they signed contract, they give their 360 00:21:37,520 --> 00:21:41,359 Speaker 2: down payment check. Then the seller, the buyer's attorneys sends 361 00:21:41,400 --> 00:21:43,879 Speaker 2: the contract over to the seller to seller signs and 362 00:21:43,920 --> 00:21:49,040 Speaker 2: now your congratulations, you have a fully executed contract. In 363 00:21:49,119 --> 00:21:54,200 Speaker 2: states like Georgia, there's no attorneys, there's the realtors take 364 00:21:54,200 --> 00:21:55,879 Speaker 2: care of this. And in a lot of states, you know, 365 00:21:55,960 --> 00:21:57,800 Speaker 2: Florida is a real to state, I believe. I think 366 00:21:57,880 --> 00:22:00,960 Speaker 2: Texas is also the sort of several states out there 367 00:22:00,960 --> 00:22:04,000 Speaker 2: where they there's no attorneys. Is not attorney states. So 368 00:22:04,119 --> 00:22:06,440 Speaker 2: now when you make your offer, your offer is actually 369 00:22:06,520 --> 00:22:08,959 Speaker 2: you signing a contract and it's handled by your real too. 370 00:22:09,480 --> 00:22:11,879 Speaker 2: And then once you make your offer, you have a 371 00:22:12,000 --> 00:22:15,720 Speaker 2: due diligence period. Some places are different, you know, I've 372 00:22:15,760 --> 00:22:20,080 Speaker 2: seen due diligence periods be five days, two weeks, ten days, 373 00:22:20,359 --> 00:22:23,080 Speaker 2: whatever case may be. All of that is negotiated between 374 00:22:23,080 --> 00:22:27,119 Speaker 2: you and the real estate agents. But that's the typical process, 375 00:22:28,280 --> 00:22:31,760 Speaker 2: So check with your local realtor to determine what in 376 00:22:31,800 --> 00:22:35,000 Speaker 2: your state, what that process look like. But if in 377 00:22:35,080 --> 00:22:37,040 Speaker 2: any event, you're still going to get you're going to 378 00:22:37,119 --> 00:22:39,480 Speaker 2: need a home inspection. If you're an attorney of state, 379 00:22:39,480 --> 00:22:41,719 Speaker 2: you're going to meet with an attorney to sign contract. 380 00:22:42,240 --> 00:22:45,320 Speaker 2: They're going to and then once your contract is executed, 381 00:22:45,680 --> 00:22:48,480 Speaker 2: your real to your attorney or you the buyer, are 382 00:22:48,480 --> 00:22:51,119 Speaker 2: going to now email that contract to your lender. The 383 00:22:51,240 --> 00:22:54,840 Speaker 2: lender is now going to finish the loan application, and 384 00:22:54,880 --> 00:22:57,199 Speaker 2: they're going to disclose the loan to you, meaning when 385 00:22:57,240 --> 00:22:59,080 Speaker 2: they disclosed a loan to you, they're going to provide 386 00:22:59,119 --> 00:23:04,040 Speaker 2: you all the documentation, all that initial documentation, it's like 387 00:23:04,080 --> 00:23:06,240 Speaker 2: one hundred pages, and you're gonna have to sign your 388 00:23:06,280 --> 00:23:09,679 Speaker 2: life await basically, and within that documentation, you're gonna have 389 00:23:09,720 --> 00:23:13,040 Speaker 2: what's called the loan estimate, and the loan estimate. The 390 00:23:13,119 --> 00:23:16,520 Speaker 2: loan estimate or l E is going to break down 391 00:23:18,640 --> 00:23:21,080 Speaker 2: or your costs, your terms, what type of loan you have, 392 00:23:21,200 --> 00:23:24,560 Speaker 2: your mortgage payment, et cetera, et cetera. Right, and I'm 393 00:23:24,600 --> 00:23:26,639 Speaker 2: going to break down more towards the end, I'm going 394 00:23:26,720 --> 00:23:30,040 Speaker 2: to break down the CD, which is the closing disclosure, 395 00:23:30,240 --> 00:23:32,080 Speaker 2: and that's one of the most that's the most important 396 00:23:32,080 --> 00:23:35,159 Speaker 2: thing you need to see, all right. So after we 397 00:23:35,320 --> 00:23:38,679 Speaker 2: disclose to you, you e signed all of the documents, 398 00:23:38,760 --> 00:23:40,639 Speaker 2: then you have to pay for your appraisal so that 399 00:23:40,720 --> 00:23:44,360 Speaker 2: the lender can order the appraisal. Appraisal fees varies from 400 00:23:44,359 --> 00:23:47,240 Speaker 2: different states. Single families can be anywhere from four to 401 00:23:47,320 --> 00:23:50,880 Speaker 2: fifty to five to fifty. Duplexus can be anywhere from 402 00:23:50,920 --> 00:23:53,240 Speaker 2: six fifty to eight hundred. It just all depends on 403 00:23:53,280 --> 00:23:57,880 Speaker 2: the sales price in your location. And then the settlement 404 00:23:57,920 --> 00:24:01,239 Speaker 2: agent or the attorney will order the tider report. Now, 405 00:24:01,280 --> 00:24:04,159 Speaker 2: the tile report consists of so many documents, is just 406 00:24:04,240 --> 00:24:07,639 Speaker 2: basically given the report of the house. If it's a 407 00:24:07,680 --> 00:24:10,399 Speaker 2: new construction home, then the tider report is not going 408 00:24:10,440 --> 00:24:13,639 Speaker 2: to contain too much information. But the settlement company or 409 00:24:13,680 --> 00:24:18,919 Speaker 2: the attorney will order that tile report, all right. So 410 00:24:19,560 --> 00:24:21,520 Speaker 2: after you do all of this, you choose your loan 411 00:24:21,920 --> 00:24:25,399 Speaker 2: program with the lender. You just discuss the loan estimate 412 00:24:25,520 --> 00:24:27,959 Speaker 2: you e sign. Like I just said, you discuss your 413 00:24:28,040 --> 00:24:31,880 Speaker 2: rate locks now right now, guys, like I said earlier, 414 00:24:32,000 --> 00:24:34,560 Speaker 2: interest rates are right now at the lowest that I've 415 00:24:34,560 --> 00:24:38,280 Speaker 2: ever seen it in my career. If you are looking 416 00:24:38,320 --> 00:24:41,320 Speaker 2: to purchase a home, you need to step on it 417 00:24:41,400 --> 00:24:43,600 Speaker 2: right now. Tax money is about to start coming in. 418 00:24:44,040 --> 00:24:47,080 Speaker 2: You guys need to get serious with this. Because I have, 419 00:24:47,200 --> 00:24:49,119 Speaker 2: and I've been doing this almost eighteen years, I have 420 00:24:49,240 --> 00:24:51,320 Speaker 2: never seen interest rates this low. The money is the 421 00:24:51,400 --> 00:24:55,399 Speaker 2: cheapest that has ever been. Take advantage. Do not waste time. 422 00:24:55,800 --> 00:24:58,000 Speaker 2: You don't have time. Don't be waiting for the bottom 423 00:24:58,320 --> 00:25:01,280 Speaker 2: to come. No one has a crystal ball. No one 424 00:25:01,320 --> 00:25:04,400 Speaker 2: knows when the bottom is going to come. Right, So 425 00:25:04,840 --> 00:25:08,600 Speaker 2: kick it into gear and lock in. All right, you 426 00:25:08,600 --> 00:25:11,880 Speaker 2: pay for your pre titles ordered. Now your loan goes 427 00:25:11,920 --> 00:25:17,680 Speaker 2: into underwriting for initial approval. Underwriting, let's talk about the underwriter. 428 00:25:18,040 --> 00:25:21,080 Speaker 2: The role of the mortgage underwriter. They are responsible for 429 00:25:21,200 --> 00:25:24,520 Speaker 2: analyzing your risk to determine if the terms of your 430 00:25:24,560 --> 00:25:28,600 Speaker 2: loan are acceptable. This required mortgage underwriters to look closely 431 00:25:28,680 --> 00:25:33,560 Speaker 2: out of applicants employment and financial history before approving alone. 432 00:25:34,160 --> 00:25:37,440 Speaker 2: Now the role of the underwriter, right, They're looking at 433 00:25:37,440 --> 00:25:42,040 Speaker 2: your income documentation and verifying everything to make a decision. 434 00:25:42,560 --> 00:25:45,280 Speaker 2: Underwriting decisions that they can make us either approve with 435 00:25:45,359 --> 00:25:51,440 Speaker 2: conditions denied, suspended or fine or approve equal CTC, which 436 00:25:51,440 --> 00:25:55,560 Speaker 2: we love, all right. They review appraisals to make sure 437 00:25:55,600 --> 00:25:58,440 Speaker 2: the appraisals are clean. They're reviewing the titles to make 438 00:25:58,440 --> 00:26:00,959 Speaker 2: sure the tidle reports are clean, that there's no issues, 439 00:26:00,960 --> 00:26:06,040 Speaker 2: there's no permits, there's nothing that can hinder their investment. 440 00:26:07,920 --> 00:26:09,800 Speaker 2: So I want to really, I really want to dig 441 00:26:09,840 --> 00:26:14,520 Speaker 2: deep into this right now, right when you're talking about 442 00:26:14,920 --> 00:26:20,920 Speaker 2: the underwriter. Your underwriter can make or break you, all right, 443 00:26:22,600 --> 00:26:25,720 Speaker 2: if if, and it's all based off how you put 444 00:26:25,720 --> 00:26:28,679 Speaker 2: in the loan. See the underwriters, they don't know you, guys. 445 00:26:29,560 --> 00:26:33,119 Speaker 2: A loan officer's job is to get you approved. And 446 00:26:33,160 --> 00:26:35,480 Speaker 2: I tell people this all the time. My job is 447 00:26:35,480 --> 00:26:39,800 Speaker 2: to get you approved. An underwriter's job is to decline you, 448 00:26:39,880 --> 00:26:43,440 Speaker 2: so to speak. They have to sign off on your loan. 449 00:26:44,320 --> 00:26:46,760 Speaker 2: If you guys follow me, you've probably heard me say 450 00:26:46,800 --> 00:26:49,639 Speaker 2: pre approval letters are garbage. And the reason why I 451 00:26:49,640 --> 00:26:53,440 Speaker 2: say it is because a loan officer is actually giving 452 00:26:53,480 --> 00:26:57,399 Speaker 2: you a pre approval, not the underwriter. Up front, that 453 00:26:57,480 --> 00:27:01,560 Speaker 2: pre approval letter doesn't mean anything, right, it's really honestly 454 00:27:02,160 --> 00:27:06,840 Speaker 2: not worth the paper that is printing on all right, 455 00:27:07,520 --> 00:27:12,320 Speaker 2: because that loan officer can't make an underwriting decision. Okay, 456 00:27:13,359 --> 00:27:17,119 Speaker 2: So when your file goes just because you are preapproved, 457 00:27:17,840 --> 00:27:22,520 Speaker 2: it does not mean that the underwriter, the underwriter cannot 458 00:27:22,520 --> 00:27:25,560 Speaker 2: decline you. Right, And y'all see, this is live. I'm 459 00:27:25,560 --> 00:27:27,560 Speaker 2: in my office, I got my man Manny Bac can't 460 00:27:27,560 --> 00:27:29,800 Speaker 2: throwing out the garbage right now as we speak. So 461 00:27:29,840 --> 00:27:33,280 Speaker 2: this is how we do it at a university. Is live? 462 00:27:33,600 --> 00:27:42,879 Speaker 2: All right? Money distracting me? All right? I had to 463 00:27:42,880 --> 00:27:44,800 Speaker 2: get a laugh out of that. I'm too serious. I 464 00:27:44,840 --> 00:27:50,000 Speaker 2: can't hold it no more. All right, let me get 465 00:27:50,040 --> 00:27:53,520 Speaker 2: out the business. So the underwriter, right, they don't have 466 00:27:53,640 --> 00:27:57,400 Speaker 2: to approve that loan. Just because your loan officer gave 467 00:27:57,400 --> 00:28:01,360 Speaker 2: you that letter doesn't mean anything. So very important. That's 468 00:28:01,359 --> 00:28:04,080 Speaker 2: why I scroll from the beginning of the process. I said, 469 00:28:04,600 --> 00:28:07,760 Speaker 2: don't pick a Linda just because you bank with them, 470 00:28:08,640 --> 00:28:11,280 Speaker 2: that doesn't mean anything. That loan office is the person 471 00:28:11,320 --> 00:28:13,720 Speaker 2: that you are working with. And that person is the 472 00:28:13,720 --> 00:28:15,840 Speaker 2: one who's telling you, yes, you can go by this home. 473 00:28:16,160 --> 00:28:18,040 Speaker 2: But if they're not experienced, if they don't know what 474 00:28:18,040 --> 00:28:21,920 Speaker 2: they're doing, they can mess things up, like calculate your 475 00:28:21,920 --> 00:28:24,800 Speaker 2: income wrong, hold store of things that I'm not going 476 00:28:24,840 --> 00:28:27,440 Speaker 2: to get into and that's what can cause the underwriter 477 00:28:28,080 --> 00:28:33,199 Speaker 2: to decline you. Another thing is that underwriters pretty much 478 00:28:33,240 --> 00:28:36,439 Speaker 2: do a background check. And I tell people this all 479 00:28:36,480 --> 00:28:38,560 Speaker 2: the time, was done in the dark, will come out 480 00:28:38,560 --> 00:28:42,960 Speaker 2: in a light, right, don't hide nothing from your loan officer. 481 00:28:44,080 --> 00:28:48,120 Speaker 2: Your loan officer, we don't have the technology up front 482 00:28:48,120 --> 00:28:51,440 Speaker 2: on a sales capacity to do that background check or 483 00:28:51,480 --> 00:28:55,920 Speaker 2: that that that forendsic diagnosis of you like the underwriting 484 00:28:55,960 --> 00:28:58,680 Speaker 2: apartment does. So they're going to know if you had 485 00:28:58,840 --> 00:29:01,160 Speaker 2: pre if you don't disclose your loan application that you 486 00:29:01,240 --> 00:29:04,120 Speaker 2: own the property and it's been you had a foreclosure 487 00:29:04,200 --> 00:29:07,040 Speaker 2: or a short sell or a bankruptcy, or you have 488 00:29:07,400 --> 00:29:10,600 Speaker 2: the faulted student loans. We're going to find that out 489 00:29:10,760 --> 00:29:13,760 Speaker 2: once it gets the underwriter, and the only thing you're 490 00:29:13,760 --> 00:29:17,400 Speaker 2: going to do is kind of delay your own process here, 491 00:29:17,880 --> 00:29:22,320 Speaker 2: all right, So very important if you had any derogatory 492 00:29:22,400 --> 00:29:24,920 Speaker 2: credit events in the past, any of the things I 493 00:29:25,040 --> 00:29:27,840 Speaker 2: just named, make sure you're very clear and upfront with 494 00:29:28,760 --> 00:29:31,720 Speaker 2: upfront about it with your loan officer so that way 495 00:29:31,760 --> 00:29:35,360 Speaker 2: they can tell you what to do, because ultimately it's 496 00:29:35,400 --> 00:29:38,880 Speaker 2: going to come out anyway, and it could honestly put 497 00:29:38,920 --> 00:29:42,160 Speaker 2: you behind the eight ball and get your loan decline. 498 00:29:43,520 --> 00:29:45,600 Speaker 2: So that's really the role of the underwriter is to 499 00:29:45,720 --> 00:29:49,840 Speaker 2: make sure that if they're issuing issuing what's called a 500 00:29:49,920 --> 00:29:55,120 Speaker 2: loan commitment, that that commitment is valid and the bank 501 00:29:55,480 --> 00:30:00,640 Speaker 2: won't suffer any losses behind improving your loan. I hope 502 00:30:00,680 --> 00:30:04,600 Speaker 2: that makes sense, all right, So what does the underwriter 503 00:30:04,880 --> 00:30:07,320 Speaker 2: look for. They're looking at your credit score, They're looking 504 00:30:07,360 --> 00:30:12,040 Speaker 2: at your credit history. Large deposits, So your credit score again, 505 00:30:12,320 --> 00:30:15,640 Speaker 2: we went through the minimum credit score for faha VA 506 00:30:15,800 --> 00:30:21,120 Speaker 2: five to eighty six, twenty four conventional. Your credit history 507 00:30:21,600 --> 00:30:24,200 Speaker 2: very important. Do you have collections accounts? Do you have 508 00:30:24,280 --> 00:30:26,400 Speaker 2: charge offs? Do you have repossessions? Do you have the 509 00:30:26,480 --> 00:30:28,720 Speaker 2: fault of student loans? Are you paying your student loans 510 00:30:28,720 --> 00:30:32,280 Speaker 2: on time? Are your student loans deferred or not? You know, 511 00:30:32,320 --> 00:30:36,320 Speaker 2: we're looking at all of that information. All right. Large 512 00:30:36,320 --> 00:30:39,560 Speaker 2: deposits into your bank account, this is a big thing. People. 513 00:30:39,600 --> 00:30:43,600 Speaker 2: You can't be moving mattress money into your account day 514 00:30:43,640 --> 00:30:46,800 Speaker 2: after you go. You try to sign a contract. That 515 00:30:46,880 --> 00:30:49,000 Speaker 2: doesn't work. If you have mattress money, it needs to 516 00:30:49,000 --> 00:30:51,640 Speaker 2: be seasoned in your bank account for at least two months. 517 00:30:52,040 --> 00:30:56,160 Speaker 2: All right, You can't just be making large deposits, large withdraws. 518 00:30:56,280 --> 00:30:59,560 Speaker 2: Underwriters going connect that. If you have a lot of 519 00:31:00,240 --> 00:31:03,880 Speaker 2: what they call it overdrafts, right, underwriting will look at 520 00:31:03,880 --> 00:31:07,440 Speaker 2: that and they will say, why you negative? I got 521 00:31:07,440 --> 00:31:11,560 Speaker 2: to remember, if you can't manage your personal finances, if 522 00:31:11,640 --> 00:31:14,320 Speaker 2: you can't manage like a cell phone bill, a cable bill, 523 00:31:14,360 --> 00:31:17,800 Speaker 2: a car note, what makes you think an underwriter wants 524 00:31:17,840 --> 00:31:21,120 Speaker 2: to approve you for two hundred three hundred four hundred thousand. 525 00:31:21,960 --> 00:31:25,240 Speaker 2: You know what I'm saying. An underwriter uses discretion just 526 00:31:25,280 --> 00:31:27,959 Speaker 2: because you meet the guidelines. If they're not comfortable with 527 00:31:28,000 --> 00:31:30,240 Speaker 2: your loan, if they feel like you're a risk because 528 00:31:30,280 --> 00:31:36,040 Speaker 2: of your history, they will decline you period. Just want 529 00:31:36,040 --> 00:31:39,480 Speaker 2: to be clear about that, all right. Another thing I 530 00:31:39,520 --> 00:31:41,440 Speaker 2: wish I knew how to highlight on this. For those 531 00:31:41,440 --> 00:31:43,680 Speaker 2: who know me know I'm not good with this PowerPoint stuff, 532 00:31:43,720 --> 00:31:46,080 Speaker 2: but I highlight it there. I hope you guys see 533 00:31:46,120 --> 00:31:51,120 Speaker 2: that occupacy fraud. They looking for this stuff. Guys don't 534 00:31:51,120 --> 00:31:53,720 Speaker 2: call me and tell me, Hey, I want to buy 535 00:31:53,760 --> 00:31:56,800 Speaker 2: this fah loan. I want to buy this house use 536 00:31:56,840 --> 00:31:59,080 Speaker 2: an fah loan. But I live in New York and 537 00:31:59,080 --> 00:32:02,680 Speaker 2: I'm buying it in Kansas, Like, what are you talking about? 538 00:32:02,760 --> 00:32:06,280 Speaker 2: That's an investment property. You can't do that, right, I 539 00:32:06,320 --> 00:32:08,960 Speaker 2: can see fraud they are looking for that. Trust me, 540 00:32:09,080 --> 00:32:11,320 Speaker 2: you don't want the FAHA police knocking at your door. 541 00:32:12,800 --> 00:32:16,840 Speaker 2: Appraisal meeting, meeting the program guidelines. Every program has different 542 00:32:16,840 --> 00:32:19,000 Speaker 2: guidelines of what they see they want to see in 543 00:32:19,000 --> 00:32:24,160 Speaker 2: their appraisals. Underwriters looking for child support very important. If 544 00:32:24,200 --> 00:32:28,440 Speaker 2: you are have child support on your credit report, and 545 00:32:28,440 --> 00:32:32,240 Speaker 2: I've seen it so many times where folks are behind 546 00:32:32,320 --> 00:32:35,240 Speaker 2: eight ball and child support now showing up as a collection. 547 00:32:36,000 --> 00:32:37,840 Speaker 2: They're not going to lend to you until that child 548 00:32:37,880 --> 00:32:42,520 Speaker 2: support is either in good standing or paid off. So 549 00:32:42,960 --> 00:32:48,160 Speaker 2: very important, folks. If you have also IRS debt, that's 550 00:32:48,200 --> 00:32:50,960 Speaker 2: not the indoor be all. As long as you are 551 00:32:51,000 --> 00:32:53,640 Speaker 2: in the payment arrangement and you can document your payment 552 00:32:53,760 --> 00:32:57,080 Speaker 2: arrangement with the payment arrangement from the I R S 553 00:32:57,520 --> 00:33:02,880 Speaker 2: and you can show on time payment, then no worries. 554 00:33:03,200 --> 00:33:05,080 Speaker 2: It's just that money. It's just going to be included 555 00:33:05,200 --> 00:33:07,600 Speaker 2: nt your debt to income racial. The same with child support. 556 00:33:07,880 --> 00:33:10,960 Speaker 2: If you pay child support alimony, that will be included 557 00:33:11,080 --> 00:33:18,240 Speaker 2: into your debt to income racial ratio. All right, here's 558 00:33:18,240 --> 00:33:23,720 Speaker 2: a big thing. Verification of employment. Man, this should be 559 00:33:23,760 --> 00:33:27,840 Speaker 2: so self explanatory, but I gotta keep always saying this. 560 00:33:28,760 --> 00:33:35,080 Speaker 2: Don't quit your job the day before closing. We meaning lenders, 561 00:33:35,440 --> 00:33:41,080 Speaker 2: will do a verification of employment three within ten days 562 00:33:41,080 --> 00:33:45,320 Speaker 2: of closing. I have had verifications of employments done the 563 00:33:45,440 --> 00:33:49,560 Speaker 2: day of closing. And guess what, mister Jones doesn't no 564 00:33:49,640 --> 00:33:52,720 Speaker 2: longer works here. They quit a week ago. You call 565 00:33:52,800 --> 00:33:55,880 Speaker 2: mister Jones, why you quit? Because I hate my job. 566 00:33:56,200 --> 00:33:59,120 Speaker 2: I just wanted to use it for the house. Well, 567 00:33:59,280 --> 00:34:02,240 Speaker 2: guess what, you can't get a house now you have 568 00:34:02,280 --> 00:34:05,800 Speaker 2: no job. Don't quit your job. It just doesn't make 569 00:34:05,840 --> 00:34:09,759 Speaker 2: any sense. Discrepancy is an address again, that goes to 570 00:34:09,800 --> 00:34:13,080 Speaker 2: occupacy fraud. You're using all these different addresses. They're gonna 571 00:34:13,120 --> 00:34:16,319 Speaker 2: look up these addresses and see who owns these homes. Right, 572 00:34:16,400 --> 00:34:19,040 Speaker 2: I've seen it happen when people don't disclose on a 573 00:34:19,080 --> 00:34:21,200 Speaker 2: loan application. But we see you on a credit report. 574 00:34:21,320 --> 00:34:24,959 Speaker 2: Come to find out you own six properties. They're gonna 575 00:34:24,960 --> 00:34:27,080 Speaker 2: look for that stuff was done in the dark, will 576 00:34:27,120 --> 00:34:30,759 Speaker 2: come on a light, all right. So now, once you 577 00:34:30,880 --> 00:34:35,719 Speaker 2: pass the underwriting stage, you got your loan commitment, all right? 578 00:34:36,600 --> 00:34:39,320 Speaker 2: You know what conditions you need. Conditions are just basically 579 00:34:39,880 --> 00:34:42,319 Speaker 2: you know the underwriting mate wants I want to let 580 00:34:42,320 --> 00:34:45,600 Speaker 2: an explanation. Maybe because you got a lot of different addresses. 581 00:34:46,400 --> 00:34:49,000 Speaker 2: If you got large deposits, they're gonna want you to 582 00:34:49,040 --> 00:34:55,160 Speaker 2: source those deposits. Another common condition is if you're getting 583 00:34:55,160 --> 00:34:58,400 Speaker 2: gift funds, you need to show the gift money coming 584 00:34:58,440 --> 00:35:02,120 Speaker 2: in coming from your don coming to you. So once 585 00:35:02,160 --> 00:35:04,640 Speaker 2: you meet all the conditions that the underwriter needs on 586 00:35:04,680 --> 00:35:08,239 Speaker 2: that long commitment, then we go into my favorite thing, 587 00:35:09,320 --> 00:35:14,040 Speaker 2: which is clear to close. Hallelujah. We are cleared to close. 588 00:35:14,520 --> 00:35:19,439 Speaker 2: We are through the underwriting process. Life is good, all right. 589 00:35:19,880 --> 00:35:22,560 Speaker 2: Now you sign the next steps. After you get that 590 00:35:22,600 --> 00:35:25,479 Speaker 2: clar to close, you sign a closing disclosure the CD, 591 00:35:26,440 --> 00:35:29,360 Speaker 2: you set the closing date in time, and then you 592 00:35:29,400 --> 00:35:32,360 Speaker 2: do your final walkthrough of the house. Right. 593 00:35:33,520 --> 00:35:37,200 Speaker 4: An illegal alien from Guatemala charged with raping a child 594 00:35:37,200 --> 00:35:41,000 Speaker 4: in Massachusetts. An MS thirteen gang member from El Salvador 595 00:35:41,239 --> 00:35:45,400 Speaker 4: accused of murdering a Texas man of Venezuelan charged with 596 00:35:45,440 --> 00:35:49,360 Speaker 4: filming and selling child pornography in Michigan. These are just 597 00:35:49,440 --> 00:35:53,160 Speaker 4: some of the heinous migrant criminals caught because of President 598 00:35:53,239 --> 00:35:56,840 Speaker 4: Donald J. Trump's leadership. I'm Christy Noman, the United States 599 00:35:56,840 --> 00:36:01,640 Speaker 4: Secretary of Homeland Security. Under President Trump, attempted illegal border 600 00:36:01,680 --> 00:36:05,239 Speaker 4: crossings are at the lowest levels ever recorded, and over 601 00:36:05,280 --> 00:36:08,520 Speaker 4: one hundred thousand illegal aliens have been arrested. If you 602 00:36:08,560 --> 00:36:12,440 Speaker 4: are here illegally, your next you will be fine nearly 603 00:36:12,520 --> 00:36:16,520 Speaker 4: one thousand dollars a day, imprisoned, and deported, you will 604 00:36:16,560 --> 00:36:20,200 Speaker 4: never return. But if you register using our CBP home 605 00:36:20,239 --> 00:36:23,640 Speaker 4: app and leave now, you could be allowed to return legally. 606 00:36:24,000 --> 00:36:28,720 Speaker 4: Do what's right. Leave now. Under President Trump, America's laws, 607 00:36:28,920 --> 00:36:31,360 Speaker 4: border and families will be protected. 608 00:36:31,440 --> 00:36:33,600 Speaker 2: Sponsored by the United States Department of Homeland Security.