1
00:00:02,080 --> 00:00:05,640
Speaker 1: For many, the ultimate symbol of achieving adulthood is owning

2
00:00:05,680 --> 00:00:08,760
Speaker 1: your own home. A place that's all yours, where you

3
00:00:08,760 --> 00:00:11,760
Speaker 1: can paint the walls whatever color you want, or maybe

4
00:00:11,800 --> 00:00:14,480
Speaker 1: apply some shiplock. A place where you can update the

5
00:00:14,520 --> 00:00:17,479
Speaker 1: appliance is or change the lighting fixtures. A home of

6
00:00:17,520 --> 00:00:19,840
Speaker 1: your own where you can rip out those carpets and

7
00:00:19,920 --> 00:00:24,000
Speaker 1: expose those beautiful natural wood floors. Buying a home means

8
00:00:24,040 --> 00:00:27,800
Speaker 1: that you can finally put all of that HGTV knowledge

9
00:00:27,840 --> 00:00:31,800
Speaker 1: to good use. But there's a lot of financial responsibility

10
00:00:31,840 --> 00:00:35,080
Speaker 1: that comes with buying, and as a perpetual renter, buying

11
00:00:35,120 --> 00:00:38,560
Speaker 1: a home just seems so unachievable. According to a bank

12
00:00:38,640 --> 00:00:42,480
Speaker 1: rate survey, mortgage rates approximately doubled just in twenty twenty

13
00:00:42,520 --> 00:00:46,480
Speaker 1: two alone. But those rates aren't scaring everyone away. Based

14
00:00:46,479 --> 00:00:49,840
Speaker 1: on data from the twenty twenty three National Association of Realtors,

15
00:00:49,920 --> 00:00:53,840
Speaker 1: Buyers and Sellers Generational Trend Report, gen Z and millennials

16
00:00:53,880 --> 00:00:56,480
Speaker 1: made up thirty two percent of home buyers, and from

17
00:00:56,560 --> 00:00:59,680
Speaker 1: twenty fourteen to twenty twenty two, millennials accounted for the

18
00:00:59,800 --> 00:01:04,960
Speaker 1: law or just group of home buyers. I was always

19
00:01:05,040 --> 00:01:07,679
Speaker 1: under this misunderstanding that you needed to be able to

20
00:01:07,760 --> 00:01:10,800
Speaker 1: buy your home in full or at the very least

21
00:01:10,840 --> 00:01:13,800
Speaker 1: have something close to like thirty or forty percent for

22
00:01:13,880 --> 00:01:17,440
Speaker 1: your down payment cost. But according to the twenty twenty

23
00:01:17,480 --> 00:01:21,680
Speaker 1: two National Association of Realtors Profile of home buyers and sellers,

24
00:01:22,040 --> 00:01:24,320
Speaker 1: among those who took out a mortgage to finance their

25
00:01:24,360 --> 00:01:27,720
Speaker 1: home purchase, those buyers were typically only fronting out of pocket.

26
00:01:27,800 --> 00:01:31,039
Speaker 1: Six percent is a down payment. That seems like I

27
00:01:31,040 --> 00:01:33,800
Speaker 1: could actually achieve this a lot sooner than I imagined.

28
00:01:34,360 --> 00:01:37,040
Speaker 1: But first I should probably understand what an appraisal is.

29
00:01:37,840 --> 00:01:40,080
Speaker 1: So let's start taking notes, because this.

30
00:01:40,200 --> 00:01:43,480
Speaker 2: Is grown stuff.

31
00:01:46,680 --> 00:01:50,360
Speaker 1: Hello to all of our wonderful listeners, and a heartfelt

32
00:01:50,400 --> 00:01:53,200
Speaker 1: welcome back to grown Up Stuff How to Adult. In

33
00:01:53,280 --> 00:01:55,400
Speaker 1: every episode, we learn how to be a little bit

34
00:01:55,440 --> 00:01:58,040
Speaker 1: more grown up by tackling topics like buying a home,

35
00:01:58,080 --> 00:01:59,880
Speaker 1: which is what we're going to talk about today. I

36
00:02:00,080 --> 00:02:03,320
Speaker 1: am joined today by my dear friend and co host Matt.

37
00:02:03,840 --> 00:02:07,600
Speaker 1: I'm curious to know more about what your biggest questions

38
00:02:07,640 --> 00:02:08,880
Speaker 1: are about home buying.

39
00:02:09,320 --> 00:02:10,840
Speaker 3: I have a lot of questions about home buying, and

40
00:02:10,880 --> 00:02:13,400
Speaker 3: I think the home buying process is only getting more difficult.

41
00:02:13,560 --> 00:02:15,520
Speaker 3: You know, my brother and his wife just bought a

42
00:02:15,520 --> 00:02:17,880
Speaker 3: house in California, but they were looking for like two

43
00:02:18,400 --> 00:02:22,600
Speaker 3: years to find a house. And then it's getting so competitive,

44
00:02:22,639 --> 00:02:25,000
Speaker 3: not only in California but across the country. Because the

45
00:02:25,040 --> 00:02:27,560
Speaker 3: supply of houses is very small, the demand is very high,

46
00:02:27,600 --> 00:02:30,000
Speaker 3: and so people are kind of willing to do outrageous things.

47
00:02:30,000 --> 00:02:33,760
Speaker 3: People are like waving contingencies. One contingency example might be

48
00:02:33,800 --> 00:02:36,480
Speaker 3: like getting your home tested for like poisonous gases like

49
00:02:36,600 --> 00:02:39,480
Speaker 3: raidon and other stuff like that. Or they're like paying

50
00:02:39,600 --> 00:02:41,960
Speaker 3: hundreds of thousand dollars more above the asking price, or

51
00:02:42,240 --> 00:02:44,359
Speaker 3: you know, even in New York people are like bidding

52
00:02:44,360 --> 00:02:45,000
Speaker 3: on apartments.

53
00:02:45,000 --> 00:02:45,160
Speaker 2: Now.

54
00:02:45,160 --> 00:02:47,120
Speaker 3: It's like the housing situation is just getting a little

55
00:02:47,120 --> 00:02:49,200
Speaker 3: out of control. And so I definitely think that this

56
00:02:49,240 --> 00:02:53,720
Speaker 3: is muddied the even already muddy waters surrounding like the

57
00:02:53,760 --> 00:02:57,120
Speaker 3: home buying process. And so yeah, I feel like I

58
00:02:57,200 --> 00:02:59,600
Speaker 3: have a thousand questions about buying a home.

59
00:02:59,840 --> 00:03:03,840
Speaker 1: Oh I understand so very little, Like I don't know

60
00:03:03,880 --> 00:03:07,680
Speaker 1: what escrow means. I sort of understand the concept of

61
00:03:07,680 --> 00:03:09,040
Speaker 1: a mortgage a little bit.

62
00:03:09,200 --> 00:03:10,880
Speaker 2: I think it's kind of like rent is how I

63
00:03:10,960 --> 00:03:11,480
Speaker 2: understand it.

64
00:03:11,680 --> 00:03:13,720
Speaker 1: Yeah, but it's just like it goes to like a

65
00:03:13,760 --> 00:03:16,320
Speaker 1: piggy bank basically, and you're paying off like the cost

66
00:03:16,400 --> 00:03:17,360
Speaker 1: of the house. Right.

67
00:03:17,440 --> 00:03:21,000
Speaker 3: I can wrap my head around the piggy bank. But

68
00:03:21,080 --> 00:03:23,519
Speaker 3: no escrow, I think is like a period of time

69
00:03:24,440 --> 00:03:28,000
Speaker 3: or like a it's a bank account, that's something you're in.

70
00:03:28,240 --> 00:03:29,160
Speaker 2: People are always in.

71
00:03:29,360 --> 00:03:35,480
Speaker 1: Escrow, in escrow, right, right, But have no fear. We

72
00:03:35,520 --> 00:03:39,040
Speaker 1: are in excellent hands today with Vanessa Aragon. She is

73
00:03:39,040 --> 00:03:42,080
Speaker 1: a licensed real estate agent in Scottsdale, Arizona.

74
00:03:42,120 --> 00:03:43,320
Speaker 2: Thank goodness, Vanessa's here.

75
00:03:43,560 --> 00:03:46,480
Speaker 3: Vanessa was voted the most influential realtor.

76
00:03:47,160 --> 00:03:49,560
Speaker 2: Actually realtor, realtor.

77
00:03:49,840 --> 00:03:53,160
Speaker 1: There is no extra a after the real part.

78
00:03:53,320 --> 00:03:56,080
Speaker 3: It's just I don't know why I think it's this,

79
00:03:56,160 --> 00:03:57,520
Speaker 3: but I looked it up online and this is like

80
00:03:57,520 --> 00:04:00,320
Speaker 3: a miss like people say real litter. But even though

81
00:04:00,360 --> 00:04:03,040
Speaker 3: it's wrong, it is a thing that people say, realtor.

82
00:04:03,160 --> 00:04:05,200
Speaker 3: I'm going to cave in on myself like a dying star.

83
00:04:05,320 --> 00:04:05,680
Speaker 1: Realtor.

84
00:04:05,720 --> 00:04:09,200
Speaker 3: Sit with me, realtor real right, fuck, this is not loss.

85
00:04:09,000 --> 00:04:10,360
Speaker 1: Of meaning anyway, continued.

86
00:04:10,600 --> 00:04:15,880
Speaker 3: Vanessa was voted most influential realtor firm. Okay, Vanessa, No,

87
00:04:16,000 --> 00:04:18,080
Speaker 3: you did that. I did it, I know, but then I.

88
00:04:18,040 --> 00:04:18,560
Speaker 2: Thought about it.

89
00:04:18,560 --> 00:04:22,640
Speaker 3: Okay, Vanessa was voted most Influential Realtor from twenty twenty

90
00:04:22,680 --> 00:04:25,440
Speaker 3: one to twenty twenty two and serves as an ambassador

91
00:04:25,480 --> 00:04:26,520
Speaker 3: for realtor dot com.

92
00:04:26,800 --> 00:04:30,159
Speaker 1: Her TikTok, which has nearly one hundred and forty three

93
00:04:30,160 --> 00:04:34,200
Speaker 1: thousand followers, is filled with helpful real estate advice for

94
00:04:34,279 --> 00:04:37,800
Speaker 1: both Spanish and English speaking home buyers and sellers. In

95
00:04:37,880 --> 00:04:40,640
Speaker 1: a recent post, Vanessa talks about how to apply for

96
00:04:40,640 --> 00:04:44,159
Speaker 1: an FHA loan that would potentially allow you to finance

97
00:04:44,320 --> 00:04:47,640
Speaker 1: one hundred percent of the purchase price of your home

98
00:04:48,040 --> 00:04:52,640
Speaker 1: without putting any money down. Matt, can I actually be

99
00:04:53,120 --> 00:04:54,720
Speaker 1: a home buyer for.

100
00:04:54,760 --> 00:04:57,440
Speaker 3: Zero money down? It sounds more than possible, But let's

101
00:04:57,440 --> 00:04:59,640
Speaker 3: see if we qualify. Yes, that would be amazing if

102
00:04:59,640 --> 00:05:02,359
Speaker 3: we did, and we're definitely going to find out what

103
00:05:02,440 --> 00:05:05,559
Speaker 3: an FHA loan is with Vanessa. But this is also

104
00:05:05,680 --> 00:05:08,360
Speaker 3: what she says is the biggest misconception about buying a home.

105
00:05:08,760 --> 00:05:11,320
Speaker 3: People don't think they can actually afford the down payment.

106
00:05:11,520 --> 00:05:17,640
Speaker 1: So true, Vanessa, thank you so much for joining us today.

107
00:05:18,200 --> 00:05:21,039
Speaker 1: I personally am not a home owner yet, but I

108
00:05:21,120 --> 00:05:23,719
Speaker 1: want to start off with like the very simple question

109
00:05:23,800 --> 00:05:27,640
Speaker 1: of what is the biggest misconception about buying a first

110
00:05:27,680 --> 00:05:30,160
Speaker 1: home that you encounter when you work with your clients.

111
00:05:30,760 --> 00:05:33,359
Speaker 4: Okay, first off, thank you so much for having me.

112
00:05:33,560 --> 00:05:36,520
Speaker 4: I was very, very excited and looking forward to being

113
00:05:36,560 --> 00:05:41,560
Speaker 4: on this show. I would say the biggest misconception still

114
00:05:41,640 --> 00:05:44,880
Speaker 4: is that you need twenty percent down to buy a house.

115
00:05:45,720 --> 00:05:47,000
Speaker 5: That's not always the case.

116
00:05:47,480 --> 00:05:51,320
Speaker 4: Yes, making a large down payment has its benefits. It

117
00:05:51,360 --> 00:05:56,479
Speaker 4: helps you secure sometimes a lower monthly payment, it helps

118
00:05:56,520 --> 00:05:59,480
Speaker 4: you get a better interest rate. But the reality is

119
00:05:59,520 --> 00:06:02,120
Speaker 4: that for a lot of people saving that kind of money,

120
00:06:02,360 --> 00:06:05,560
Speaker 4: it's hard. So it's important that they know that there

121
00:06:05,600 --> 00:06:09,479
Speaker 4: are other options that can give you the opportunity to

122
00:06:09,520 --> 00:06:12,720
Speaker 4: get in a house with a smaller down payment. Actually,

123
00:06:12,720 --> 00:06:16,799
Speaker 4: on average, first time home buyers are putting down six percent.

124
00:06:17,040 --> 00:06:17,560
Speaker 1: Oh wow.

125
00:06:17,640 --> 00:06:21,160
Speaker 4: So don't let the notion of this twenty percent keep

126
00:06:21,200 --> 00:06:23,400
Speaker 4: you from buying a house. Talk to a lender first,

127
00:06:23,480 --> 00:06:26,240
Speaker 4: find out the options you have and choose a down

128
00:06:26,279 --> 00:06:29,800
Speaker 4: payment that works for you, regardless of what anybody else has.

129
00:06:30,320 --> 00:06:32,880
Speaker 4: And if you have like a trusted realtor, they can

130
00:06:32,880 --> 00:06:35,200
Speaker 4: connect you with a lender that can help you begin

131
00:06:35,279 --> 00:06:38,880
Speaker 4: the process of applying for a mortgage, or at least

132
00:06:38,920 --> 00:06:42,560
Speaker 4: present you the options of what loan programs they have available.

133
00:06:43,320 --> 00:06:45,400
Speaker 1: That's great advice. Yeah, I want to talk about the

134
00:06:45,400 --> 00:06:47,920
Speaker 1: biggest pros and cons of buying a home or being

135
00:06:47,920 --> 00:06:51,679
Speaker 1: a homeowner. You know, I'm still renting, and the biggest

136
00:06:51,680 --> 00:06:54,280
Speaker 1: thing that I think about is like, oh, man, if

137
00:06:54,320 --> 00:06:57,200
Speaker 1: something breaks in my apartment, I can just call the

138
00:06:57,320 --> 00:06:59,560
Speaker 1: super yeah, and they can come fix it. So if

139
00:06:59,560 --> 00:07:02,680
Speaker 1: that's something you don't get with buying a home, but like,

140
00:07:02,720 --> 00:07:04,520
Speaker 1: what are you gaining and what are some of the

141
00:07:04,560 --> 00:07:06,279
Speaker 1: things like that that you might be losing.

142
00:07:06,800 --> 00:07:09,080
Speaker 4: It depends on the reason why you're buying. For a

143
00:07:09,120 --> 00:07:11,240
Speaker 4: lot of people, they might be looking at the benefit

144
00:07:11,320 --> 00:07:15,720
Speaker 4: of fixing long term housing expenses. You can control your rent,

145
00:07:16,080 --> 00:07:19,240
Speaker 4: but once you have your mortgage, your mortgage stays the same,

146
00:07:19,800 --> 00:07:23,880
Speaker 4: and they might be also looking to start building some equity.

147
00:07:24,120 --> 00:07:27,840
Speaker 4: So equity is basically the difference between the balance on

148
00:07:27,880 --> 00:07:32,040
Speaker 4: your mortgage and your home's market value. Okay, so that

149
00:07:32,360 --> 00:07:37,320
Speaker 4: difference it builds over time, but that equity adds to

150
00:07:37,440 --> 00:07:41,560
Speaker 4: your overall net worth, And unlike rent, you're not building

151
00:07:41,600 --> 00:07:43,200
Speaker 4: any wealth when you're paying rent.

152
00:07:43,360 --> 00:07:46,920
Speaker 5: You're paying somebody else's mortgage. So that's the difference.

153
00:07:46,960 --> 00:07:49,200
Speaker 4: When you own a home and you get to really

154
00:07:49,240 --> 00:07:52,120
Speaker 4: pay yourself every month, and of course you have tax

155
00:07:52,120 --> 00:07:53,400
Speaker 4: deductions and things like that.

156
00:07:54,000 --> 00:07:57,320
Speaker 1: Is there a checklist for people to consider before they

157
00:07:57,360 --> 00:08:01,360
Speaker 1: look into buying a home and to help them really determine,

158
00:08:01,360 --> 00:08:03,080
Speaker 1: like if their finances are where they need to be,

159
00:08:03,400 --> 00:08:06,160
Speaker 1: and if they're ready in other areas as well, like

160
00:08:06,200 --> 00:08:09,400
Speaker 1: if they're ready to take on home repairs, if they're

161
00:08:09,440 --> 00:08:11,520
Speaker 1: ready to take on kind of all the other things

162
00:08:11,520 --> 00:08:13,320
Speaker 1: that come with being a homeowner.

163
00:08:14,120 --> 00:08:16,680
Speaker 4: Anyone that's thinking about buying a house, the first up

164
00:08:16,720 --> 00:08:20,920
Speaker 4: they should take is to review their finances. Take a

165
00:08:21,040 --> 00:08:25,480
Speaker 4: hard look at your income, your savings, your debts, your

166
00:08:25,600 --> 00:08:31,040
Speaker 4: monthly expenses, and then start building a budget. Decide what

167
00:08:31,240 --> 00:08:36,640
Speaker 4: you're comfortable with paying or allocating towards your house in expenses,

168
00:08:37,000 --> 00:08:39,960
Speaker 4: not just your mortgage, but your house in expenses. Right

169
00:08:40,559 --> 00:08:42,360
Speaker 4: once you take a look at that, then you need

170
00:08:42,400 --> 00:08:45,960
Speaker 4: to look at how much funds you have to cover

171
00:08:46,559 --> 00:08:49,640
Speaker 4: the actual purchase of the home, cover your down payment,

172
00:08:49,800 --> 00:08:53,640
Speaker 4: your closing costs, or any other miscellaneous expenses like moving

173
00:08:53,720 --> 00:08:56,960
Speaker 4: expenses and things like that. If you determine that you're

174
00:08:56,960 --> 00:09:00,880
Speaker 4: ready and you're ready to move on past that. At

175
00:09:00,920 --> 00:09:04,880
Speaker 4: that moment, I would say that third step is assembling

176
00:09:05,400 --> 00:09:09,280
Speaker 4: the best team to represent you, starting with a very

177
00:09:09,320 --> 00:09:13,360
Speaker 4: good real estate agent. The realtor can help connect you

178
00:09:13,559 --> 00:09:16,600
Speaker 4: with a lender and other people that can join that

179
00:09:16,720 --> 00:09:18,880
Speaker 4: team that you need to help you with a purchase.

180
00:09:24,960 --> 00:09:27,559
Speaker 1: One of those expenses that people often forget to budget

181
00:09:27,559 --> 00:09:30,599
Speaker 1: for is utilities. And while you may be used to

182
00:09:30,679 --> 00:09:34,040
Speaker 1: paying for certain utilities as a renter like electricity and gas,

183
00:09:34,240 --> 00:09:37,240
Speaker 1: those expenses can grow once you own a home, like

184
00:09:37,320 --> 00:09:40,480
Speaker 1: paying for sewage, trash removal, and the other Upkeep will

185
00:09:40,520 --> 00:09:43,320
Speaker 1: dive more into utilities in an upcoming episode, but these

186
00:09:43,320 --> 00:09:46,840
Speaker 1: are important factors to consider when calculating your home buying budget.

187
00:09:49,720 --> 00:09:52,280
Speaker 1: How do we determine what our budget is for buying

188
00:09:52,280 --> 00:09:52,679
Speaker 1: a house?

189
00:09:53,200 --> 00:09:55,240
Speaker 4: You have to be disciplined enough that when you go

190
00:09:55,280 --> 00:09:59,520
Speaker 4: out shopping, even if the lender approves you for more

191
00:09:59,559 --> 00:10:02,720
Speaker 4: than what your budget is every month, you need to

192
00:10:02,800 --> 00:10:05,480
Speaker 4: remember that you have a budget for a reason, and

193
00:10:05,559 --> 00:10:07,600
Speaker 4: you don't want to be house poor, where all you

194
00:10:07,679 --> 00:10:10,079
Speaker 4: do is pay for your mortgage and then you can

195
00:10:10,120 --> 00:10:12,920
Speaker 4: no longer enjoy life and your lifestyle changes because you

196
00:10:12,960 --> 00:10:16,480
Speaker 4: can't afford it anymore. Okay, how you establish your budget

197
00:10:17,200 --> 00:10:19,040
Speaker 4: I mean, you have to make a list of all

198
00:10:19,080 --> 00:10:22,199
Speaker 4: your like I said, all of your expenses, right, and

199
00:10:22,480 --> 00:10:26,080
Speaker 4: maybe you need to shave off some expenses to allocate

200
00:10:26,120 --> 00:10:29,280
Speaker 4: more money towards housing expenses. Because when you're a renter,

201
00:10:29,400 --> 00:10:31,120
Speaker 4: you don't have to worry about mowing the lawn, you

202
00:10:31,120 --> 00:10:33,640
Speaker 4: don't have to worry about caring for the roof and

203
00:10:33,679 --> 00:10:36,440
Speaker 4: things like that. Right when you're a homeowner, everything is

204
00:10:36,480 --> 00:10:40,960
Speaker 4: your responsibility. So establish a budget by making a list

205
00:10:41,000 --> 00:10:43,840
Speaker 4: of all of the expenses you currently have, making a

206
00:10:43,880 --> 00:10:47,200
Speaker 4: list of the things that you will become responsible for

207
00:10:47,280 --> 00:10:50,760
Speaker 4: as a homeowner, and start determining, Okay, how much of

208
00:10:50,800 --> 00:10:53,719
Speaker 4: my income can I really allocate towards that.

209
00:10:54,520 --> 00:10:57,520
Speaker 1: So when we decide to approach lenders or the companies

210
00:10:57,600 --> 00:11:01,280
Speaker 1: or banks that provide the home loans, what paperwork will

211
00:11:01,320 --> 00:11:03,640
Speaker 1: we need to provide in order to apply for a loan.

212
00:11:04,440 --> 00:11:06,520
Speaker 4: To apply for the loan, you don't need a ton

213
00:11:06,559 --> 00:11:10,600
Speaker 4: of paperwork, But once you go under contract and they

214
00:11:10,640 --> 00:11:13,760
Speaker 4: begin to underwrite your loan, then you'll begin to provide

215
00:11:13,960 --> 00:11:18,559
Speaker 4: more documentation, at least the past two years of tax returns, paystubs,

216
00:11:19,000 --> 00:11:22,640
Speaker 4: bank statements, things like that that can show the lender

217
00:11:22,800 --> 00:11:26,000
Speaker 4: that you have an income that you have, your taxes

218
00:11:26,000 --> 00:11:29,560
Speaker 4: that you've been filing, and your bank statements to show

219
00:11:29,600 --> 00:11:32,320
Speaker 4: them that you have the funds to cover all of

220
00:11:32,360 --> 00:11:35,440
Speaker 4: the down payment and closing costs for the purchase. And

221
00:11:35,480 --> 00:11:37,559
Speaker 4: then the lender will tell you how much they can

222
00:11:37,559 --> 00:11:41,439
Speaker 4: give you, and the lender can run through some scenarios.

223
00:11:40,840 --> 00:11:45,400
Speaker 5: With you to show you what that monthly payment looks like.

224
00:11:46,240 --> 00:11:49,199
Speaker 4: So, say the lender approves you for three hundred thousand dollars,

225
00:11:49,400 --> 00:11:51,760
Speaker 4: the lender can tell you, hey, this is what your

226
00:11:51,760 --> 00:11:54,760
Speaker 4: monthly payment would look like if you spend three hundred thousand.

227
00:11:55,360 --> 00:11:58,400
Speaker 4: If that monthly payment is higher than your budget, maybe

228
00:11:58,400 --> 00:12:00,280
Speaker 4: you don't want to spend three hundred thousand, Maybe you

229
00:12:00,400 --> 00:12:03,600
Speaker 4: want to spend two hundred and fifty. So that's why

230
00:12:03,760 --> 00:12:06,120
Speaker 4: talking to a lender is so useful for buyers because

231
00:12:06,160 --> 00:12:09,079
Speaker 4: it'll give you just a clear picture of what those

232
00:12:09,120 --> 00:12:10,160
Speaker 4: figures look like.

233
00:12:11,120 --> 00:12:14,320
Speaker 1: So in that early process, we're getting pre approved for

234
00:12:14,400 --> 00:12:17,440
Speaker 1: the loan, right correct, That's important to do every single time.

235
00:12:17,440 --> 00:12:19,760
Speaker 1: I would assume like, you're not going into this process

236
00:12:20,000 --> 00:12:22,400
Speaker 1: without getting pre approved for a loan. Is that accurate?

237
00:12:23,200 --> 00:12:24,480
Speaker 5: For the state of Arizona.

238
00:12:24,960 --> 00:12:27,040
Speaker 4: You cannot submit an offer on a house if you

239
00:12:27,040 --> 00:12:30,960
Speaker 4: don't have a prequalification letter as a realtor. If you

240
00:12:31,160 --> 00:12:34,719
Speaker 4: come to me with a prequalification letter, I'm going to

241
00:12:34,800 --> 00:12:38,240
Speaker 4: take you more serious. I understand you've done your homework,

242
00:12:38,280 --> 00:12:40,920
Speaker 4: you've talked to a lender, you've already taken care of

243
00:12:41,000 --> 00:12:43,200
Speaker 4: those first steps. If you don't come with a prequel,

244
00:12:43,200 --> 00:12:44,840
Speaker 4: I'm still going to take you serious, but I know

245
00:12:44,920 --> 00:12:47,800
Speaker 4: I need to first get you connected with somebody so

246
00:12:47,840 --> 00:12:50,200
Speaker 4: that you can then get that prequel ready because we

247
00:12:50,280 --> 00:12:50,600
Speaker 4: need it.

248
00:12:51,120 --> 00:12:54,440
Speaker 1: Okay, So we're talking about loans here, and I just

249
00:12:54,520 --> 00:12:59,199
Speaker 1: heard something called an FHA, which is a Federal housing

250
00:12:59,320 --> 00:13:01,440
Speaker 1: loan type. Can you tell me a little bit what

251
00:13:01,480 --> 00:13:03,360
Speaker 1: that is and how it's different from some of the

252
00:13:03,400 --> 00:13:06,000
Speaker 1: other lenders that someone would go to for a loan

253
00:13:06,000 --> 00:13:06,480
Speaker 1: for a house.

254
00:13:07,040 --> 00:13:09,920
Speaker 4: The most common types of loans that a lender will

255
00:13:09,920 --> 00:13:15,319
Speaker 4: offer you are conventional or FAHA, and the conventional loan

256
00:13:15,679 --> 00:13:20,320
Speaker 4: requires that you have somewhat above average credit scores. The

257
00:13:20,400 --> 00:13:23,880
Speaker 4: FAHA is available for anybody that doesn't have that perfect

258
00:13:23,880 --> 00:13:28,800
Speaker 4: credit score and also offers phenomenal small down payment so

259
00:13:28,800 --> 00:13:30,559
Speaker 4: that you can still be able to buy a house.

260
00:13:31,080 --> 00:13:34,920
Speaker 4: FAHA will have some more restrictions that conventional want gives

261
00:13:34,920 --> 00:13:38,679
Speaker 4: you more freedom. There are hardly any or no restrictions

262
00:13:38,679 --> 00:13:42,360
Speaker 4: at all with those. You can also skip getting an appraisal.

263
00:13:42,640 --> 00:13:45,280
Speaker 4: With an FHA, you have to get an appraisal. So

264
00:13:45,360 --> 00:13:47,800
Speaker 4: there are some pros and cons you know, of doing

265
00:13:47,920 --> 00:13:51,040
Speaker 4: an FHA, but for a lot of people that FAHA

266
00:13:51,160 --> 00:13:52,320
Speaker 4: is really the only option.

267
00:13:52,800 --> 00:13:55,240
Speaker 5: Besides those two.

268
00:13:54,640 --> 00:13:57,880
Speaker 4: We have VA loans and those are available for anyone

269
00:13:57,920 --> 00:13:59,720
Speaker 4: who's served in the military.

270
00:14:04,280 --> 00:14:08,680
Speaker 1: FAHA stands for Federal Housing Administration and according to Nerdwallet,

271
00:14:08,760 --> 00:14:11,200
Speaker 1: you'll need a credit scorer north of five hundred in

272
00:14:11,280 --> 00:14:14,200
Speaker 1: order to qualify for an FHA loan, and the home

273
00:14:14,240 --> 00:14:18,080
Speaker 1: you're purchasing needs to be your primary residence. There's one

274
00:14:18,160 --> 00:14:19,920
Speaker 1: other term that I've always heard a lot when it

275
00:14:19,920 --> 00:14:22,520
Speaker 1: comes to home buying, and it can also impact your

276
00:14:22,520 --> 00:14:26,280
Speaker 1: monthly housing costs, and that's an HOA. I wanted to

277
00:14:26,280 --> 00:14:29,280
Speaker 1: find out more about these hyperlocal governing bodies and if

278
00:14:29,320 --> 00:14:31,360
Speaker 1: there's a reason to steer clear of a home with

279
00:14:31,440 --> 00:14:36,080
Speaker 1: an HOA so hoas.

280
00:14:36,160 --> 00:14:39,480
Speaker 4: I think it's subjective. Some people like them, some people

281
00:14:39,560 --> 00:14:43,160
Speaker 4: don't like them. But in some neighborhoods, I think they're great,

282
00:14:43,360 --> 00:14:46,280
Speaker 4: you know, if they have a community pool, the HOA

283
00:14:46,320 --> 00:14:48,880
Speaker 4: handles all of that. They take care of the common

284
00:14:49,000 --> 00:14:54,120
Speaker 4: areas like playgrounds. If it's a private community, you know,

285
00:14:54,160 --> 00:14:56,960
Speaker 4: and there is a security guard, they cover for those

286
00:14:57,000 --> 00:14:59,880
Speaker 4: expenses of paying for those people that work in any

287
00:15:00,000 --> 00:15:03,600
Speaker 4: any of the common areas. But hoas are it stands

288
00:15:03,600 --> 00:15:07,560
Speaker 4: for Homeowners Association and it's just a community of people

289
00:15:07,800 --> 00:15:13,360
Speaker 4: that they oversee everything in that community and sometimes they

290
00:15:13,360 --> 00:15:15,960
Speaker 4: have a say in what you can and cannot do

291
00:15:16,200 --> 00:15:20,160
Speaker 4: with your property, which is why some people don't like

292
00:15:20,280 --> 00:15:23,280
Speaker 4: to live in a home that has an HOA. I've

293
00:15:23,320 --> 00:15:25,880
Speaker 4: lived in a home that has an HOA and I've

294
00:15:25,880 --> 00:15:28,400
Speaker 4: been fine. I don't break the rules, but you know,

295
00:15:28,680 --> 00:15:32,720
Speaker 4: I feel like they just have some regulations and rules

296
00:15:32,760 --> 00:15:36,440
Speaker 4: that you have to follow, and so some people don't

297
00:15:36,440 --> 00:15:39,240
Speaker 4: want that limitation, especially when you're buying a house, right

298
00:15:39,280 --> 00:15:40,960
Speaker 4: they want to be able to do whatever they want.

299
00:15:41,360 --> 00:15:42,560
Speaker 5: But I don't mind them.

300
00:15:43,000 --> 00:15:45,480
Speaker 4: You know, I have clients that purchase home in hoas

301
00:15:45,520 --> 00:15:47,160
Speaker 4: and been happy with their purchases.

302
00:15:48,080 --> 00:15:50,520
Speaker 1: And then you mentioned like, oh, they're responsible for the

303
00:15:50,560 --> 00:15:53,880
Speaker 1: upkeep of many of those shared facilities. But part of

304
00:15:53,880 --> 00:15:56,080
Speaker 1: that also then comes with fees that everybody in the

305
00:15:56,080 --> 00:15:57,440
Speaker 1: community pays, right.

306
00:15:57,760 --> 00:15:58,320
Speaker 5: Great point.

307
00:15:58,400 --> 00:16:01,400
Speaker 4: Yeah, so when you look at a house with an HOA,

308
00:16:01,880 --> 00:16:06,040
Speaker 4: you want to become familiar with what that HOA fee

309
00:16:06,080 --> 00:16:09,320
Speaker 4: is and the frequency how often you're going to pay it.

310
00:16:09,720 --> 00:16:12,880
Speaker 4: For example, some ahoa's you pay it once a year.

311
00:16:13,000 --> 00:16:15,080
Speaker 4: It could be five hundred dollars, two hundred dollars, it

312
00:16:15,080 --> 00:16:18,320
Speaker 4: could be one thousand dollars. There are some HOA fees

313
00:16:18,360 --> 00:16:20,560
Speaker 4: that you pay every month. Could be one hundred bucks,

314
00:16:20,720 --> 00:16:23,920
Speaker 4: could be three hundred. So it all depends, right, And

315
00:16:23,960 --> 00:16:26,800
Speaker 4: I think that for some people it makes sense, you know,

316
00:16:26,840 --> 00:16:28,680
Speaker 4: to pay one hundred dollars or two hundred dollars a

317
00:16:28,760 --> 00:16:31,400
Speaker 4: month for an HOA that allows you to have a

318
00:16:31,400 --> 00:16:33,520
Speaker 4: community pool on a playground for your kids.

319
00:16:34,160 --> 00:16:36,160
Speaker 1: Let's say we've got all of our budget figured out,

320
00:16:36,200 --> 00:16:39,280
Speaker 1: we have that pre approval, and now we're going to

321
00:16:39,320 --> 00:16:41,440
Speaker 1: start looking for our home. How do we do this?

322
00:16:41,600 --> 00:16:44,600
Speaker 1: Where do we start? What are some things that you

323
00:16:44,640 --> 00:16:47,120
Speaker 1: always recommend to people that they look at when they're

324
00:16:47,200 --> 00:16:49,720
Speaker 1: viewing a home in person to make sure that they

325
00:16:49,720 --> 00:16:52,000
Speaker 1: don't get stuck with, you know, a lemon. I don't

326
00:16:52,000 --> 00:16:53,600
Speaker 1: know if you could apply that to houses, but like

327
00:16:53,800 --> 00:16:54,840
Speaker 1: you know that term.

328
00:16:55,600 --> 00:16:58,680
Speaker 4: Okay, So you start by partnering up with the realtor

329
00:16:58,720 --> 00:17:02,840
Speaker 4: who's going to help you find that dream home. They

330
00:17:03,000 --> 00:17:05,920
Speaker 4: usually will set you up on a search, and then

331
00:17:05,920 --> 00:17:09,600
Speaker 4: you're going to begin to get listings. When you like

332
00:17:09,640 --> 00:17:12,720
Speaker 4: a listing, they'll walk you through the homes, show you

333
00:17:12,760 --> 00:17:15,520
Speaker 4: the houses, give you a home tour. If there are

334
00:17:15,560 --> 00:17:20,520
Speaker 4: any significant noticeable defects. You'll have some days where you

335
00:17:20,520 --> 00:17:24,320
Speaker 4: can do your due diligence, like hiring an inspector, a

336
00:17:24,359 --> 00:17:28,160
Speaker 4: professional that can then come into the house and tell you, hey,

337
00:17:28,280 --> 00:17:31,680
Speaker 4: there's like this leak in the roof, right, you might

338
00:17:31,760 --> 00:17:34,560
Speaker 4: want to repair that before closing. You might want to

339
00:17:34,600 --> 00:17:37,520
Speaker 4: negotiate some of those credits from the seller. So when

340
00:17:37,520 --> 00:17:39,520
Speaker 4: you go to a house, focus on just looking at

341
00:17:39,520 --> 00:17:42,040
Speaker 4: the property. See if you like it the location meets

342
00:17:42,119 --> 00:17:46,120
Speaker 4: what you're looking for. If there's anything super noticeable, don't panic.

343
00:17:46,440 --> 00:17:49,200
Speaker 4: You will have the time to bring in an inspector

344
00:17:49,320 --> 00:17:51,719
Speaker 4: to make sure that you're not buying a bad house.

345
00:17:55,480 --> 00:17:57,600
Speaker 1: We'll be right back with more grown up stuff how

346
00:17:57,640 --> 00:18:05,919
Speaker 1: to adult. After a quick break, and we're back with

347
00:18:06,040 --> 00:18:12,480
Speaker 1: more grown up stuff how to adults. Okay, so let's

348
00:18:12,480 --> 00:18:15,000
Speaker 1: say we've put down the offer on the house, what

349
00:18:15,160 --> 00:18:18,439
Speaker 1: happens next, like, how are we submitting offers? How do

350
00:18:18,480 --> 00:18:21,000
Speaker 1: we know if we can negotiate? What does that all

351
00:18:21,040 --> 00:18:21,399
Speaker 1: look like?

352
00:18:22,160 --> 00:18:27,160
Speaker 4: So everything is negotiable and depending on who you're working with,

353
00:18:27,240 --> 00:18:31,520
Speaker 4: your agent will advise you what they recommend you should

354
00:18:31,560 --> 00:18:34,720
Speaker 4: negotiate on that offer you're writing. When you write an

355
00:18:34,720 --> 00:18:37,919
Speaker 4: offer and you submit it over to a seller and

356
00:18:38,040 --> 00:18:41,560
Speaker 4: they accept that offer, then you go under contract and

357
00:18:41,640 --> 00:18:46,080
Speaker 4: you open escrow, and then we begin to fulfill all

358
00:18:46,119 --> 00:18:49,679
Speaker 4: of the conditions of that contract to make sure that

359
00:18:50,200 --> 00:18:53,880
Speaker 4: the home is clear to close. And then once you're

360
00:18:53,920 --> 00:18:57,200
Speaker 4: clear to close, the lender releases the funds. The title

361
00:18:57,280 --> 00:18:59,879
Speaker 4: company gets all the funds and they release then the

362
00:18:59,880 --> 00:19:02,879
Speaker 4: funds to the seller. They register the new name on

363
00:19:02,920 --> 00:19:05,800
Speaker 4: the title, and then you get the keys. So that

364
00:19:05,920 --> 00:19:09,600
Speaker 4: whole process is referred to as escrow, and that's what

365
00:19:09,680 --> 00:19:12,200
Speaker 4: follows once you get an offer accepted.

366
00:19:12,840 --> 00:19:16,159
Speaker 1: Now, I remember you told me once escro means it

367
00:19:16,200 --> 00:19:19,320
Speaker 1: could be a process, but it's also a company that

368
00:19:19,359 --> 00:19:22,240
Speaker 1: basically manages all of it them. Am I getting that right?

369
00:19:22,880 --> 00:19:27,199
Speaker 4: So escrow means two things. So escro before closing is

370
00:19:27,200 --> 00:19:31,480
Speaker 4: what I just I was just explaining escrow post closing

371
00:19:31,640 --> 00:19:35,399
Speaker 4: takes a completely different meaning. It's essentially a special account

372
00:19:35,440 --> 00:19:39,000
Speaker 4: that's set up by the lender, and this account is

373
00:19:39,200 --> 00:19:42,800
Speaker 4: used by the lender to pay for your tax and

374
00:19:42,920 --> 00:19:46,720
Speaker 4: insurance premiums on your behalf. So every time that you

375
00:19:47,359 --> 00:19:50,800
Speaker 4: send a monthly payment, part of that monthly payment adds

376
00:19:50,880 --> 00:19:54,840
Speaker 4: onto this ESCRO account, and then the lender goes into

377
00:19:54,880 --> 00:20:00,480
Speaker 4: that account to withdraw funds to pay those bills for

378
00:20:00,600 --> 00:20:01,600
Speaker 4: you when they're due.

379
00:20:02,200 --> 00:20:05,600
Speaker 1: Oh, good to know. Okay. You also mentioned insurance, and

380
00:20:05,920 --> 00:20:09,160
Speaker 1: earlier you mentioned closing costs, Like what are those costs

381
00:20:09,240 --> 00:20:11,919
Speaker 1: like roughly percentage wise and how do we figure it

382
00:20:11,920 --> 00:20:12,359
Speaker 1: all out?

383
00:20:13,000 --> 00:20:17,000
Speaker 4: Okay, So closing costs, to give you an idea of

384
00:20:17,040 --> 00:20:19,960
Speaker 4: how to calculate them, give or take. You can do

385
00:20:20,440 --> 00:20:23,560
Speaker 4: a rough calculation. It's two to three percent of the

386
00:20:23,600 --> 00:20:26,159
Speaker 4: purchase price. Just save about two to three percent of

387
00:20:26,200 --> 00:20:27,920
Speaker 4: the purchase price to cover.

388
00:20:27,760 --> 00:20:30,240
Speaker 5: For closing costs. Now, what they mean.

389
00:20:31,000 --> 00:20:34,000
Speaker 4: They are just a set of fees that are part

390
00:20:34,040 --> 00:20:37,879
Speaker 4: of every transaction, and both buyers and sellers have to

391
00:20:37,960 --> 00:20:41,639
Speaker 4: pay those fees to compensate all of the people that

392
00:20:41,680 --> 00:20:46,080
Speaker 4: facilitate the transaction for them. For example, there is a

393
00:20:46,119 --> 00:20:49,879
Speaker 4: title company involved and they are the mediator between the

394
00:20:49,880 --> 00:20:53,640
Speaker 4: buyer and the seller. They are responsible for doing an

395
00:20:53,720 --> 00:20:56,920
Speaker 4: extensive search on the title to make sure that there's

396
00:20:56,960 --> 00:21:01,240
Speaker 4: no leans on it. They're responsible for verifying previous tax

397
00:21:01,320 --> 00:21:03,680
Speaker 4: records to make sure that the taxes have been paid.

398
00:21:04,200 --> 00:21:07,720
Speaker 4: They are responsible for registering the title with the county.

399
00:21:08,400 --> 00:21:11,359
Speaker 4: And then you have a whole set of people behind

400
00:21:11,400 --> 00:21:14,840
Speaker 4: your lender or your bank or your union, whoever you're

401
00:21:14,880 --> 00:21:18,080
Speaker 4: working with. They have another group of people that have

402
00:21:18,160 --> 00:21:21,560
Speaker 4: to be compensated. There's a loan officer that took the application.

403
00:21:22,040 --> 00:21:26,720
Speaker 4: There is underwriters processors collecting all the documentation funders, right,

404
00:21:27,359 --> 00:21:29,840
Speaker 4: All of that group of people have to be paid, right,

405
00:21:30,280 --> 00:21:33,960
Speaker 4: So to compensate them, we have closing costs. And that's

406
00:21:34,000 --> 00:21:36,320
Speaker 4: why we're always going to have closing costs, because we're

407
00:21:36,359 --> 00:21:39,280
Speaker 4: always going to rely on those type of service providers

408
00:21:39,280 --> 00:21:41,280
Speaker 4: to help us with these type of transactions.

409
00:21:42,000 --> 00:21:44,440
Speaker 1: Okay, so with addition to these closing costs, what about

410
00:21:44,440 --> 00:21:47,000
Speaker 1: our realtor's cost What about the cost of the realtor

411
00:21:47,000 --> 00:21:49,280
Speaker 1: we're using to buy a home? Is that separate? Is

412
00:21:49,280 --> 00:21:50,800
Speaker 1: that included in closing costs?

413
00:21:51,600 --> 00:21:54,480
Speaker 4: Buyers and sellers, Yes, they both have closing costs, but

414
00:21:54,520 --> 00:21:57,680
Speaker 4: they have some different closing costs that applied to each.

415
00:21:58,119 --> 00:22:01,280
Speaker 4: So for example, the buyer who who's originating the loan,

416
00:22:01,680 --> 00:22:04,320
Speaker 4: he's going to be responsible for majority of those lender

417
00:22:04,400 --> 00:22:08,040
Speaker 4: costs and compensating that team of people that are responsible

418
00:22:08,080 --> 00:22:12,000
Speaker 4: for the loan. Now for the seller, they're responsible for

419
00:22:12,160 --> 00:22:17,160
Speaker 4: compensating both agents. So they pay the commissions of both agents,

420
00:22:17,320 --> 00:22:18,400
Speaker 4: the buyer's.

421
00:22:17,960 --> 00:22:22,480
Speaker 5: Agent and the listing agent. Okay, so as a buyer,

422
00:22:23,200 --> 00:22:26,600
Speaker 5: why wouldn't you use a buyer's agent. You know, you

423
00:22:26,640 --> 00:22:31,359
Speaker 5: don't pay for that the seller does. Yeah, because the seller.

424
00:22:31,000 --> 00:22:34,440
Speaker 4: Agrees on a commission right for the sell of their home,

425
00:22:35,200 --> 00:22:37,440
Speaker 4: and that commission is split into two.

426
00:22:37,960 --> 00:22:39,400
Speaker 5: Half goes to the agent that.

427
00:22:39,359 --> 00:22:42,000
Speaker 4: Brings the sale and the other half for the agent

428
00:22:42,040 --> 00:22:45,120
Speaker 4: that lists the home on the market. Which I want

429
00:22:45,160 --> 00:22:49,280
Speaker 4: to mention on this same topic that no, if you

430
00:22:49,359 --> 00:22:51,520
Speaker 4: go directly to a listing agent, that doesn't mean you

431
00:22:51,600 --> 00:22:54,280
Speaker 4: get a discount as a buyer, because people think, well,

432
00:22:54,440 --> 00:22:56,399
Speaker 4: if I go directly to the listing agent, can I

433
00:22:56,440 --> 00:23:00,479
Speaker 4: get a discount? No, you really don't, Okay, because that agent,

434
00:23:00,520 --> 00:23:03,960
Speaker 4: that listing agent is representing the seller. They are looking

435
00:23:03,960 --> 00:23:06,000
Speaker 4: to get the seller at the highest and most that

436
00:23:06,040 --> 00:23:08,480
Speaker 4: they can for that house. They're not being paid to

437
00:23:08,560 --> 00:23:11,840
Speaker 4: represent you, So you're going to end up doing is

438
00:23:11,920 --> 00:23:15,160
Speaker 4: exposing yourself, you know, and not having the right representation.

439
00:23:15,320 --> 00:23:18,639
Speaker 4: Somebody then negotiates, They're not going to negotiate for you, right,

440
00:23:18,960 --> 00:23:20,920
Speaker 4: you know, a listing agent's not going to negotiate the

441
00:23:20,960 --> 00:23:23,960
Speaker 4: best terms for you. At buyer's agent will, and guess what,

442
00:23:24,200 --> 00:23:25,359
Speaker 4: you don't have to pay for it.

443
00:23:28,800 --> 00:23:32,280
Speaker 1: So while the seller is usually responsible for compensating both agents,

444
00:23:32,480 --> 00:23:35,720
Speaker 1: inspection costs are the responsibility of the buyer and it's

445
00:23:35,840 --> 00:23:38,080
Speaker 1: not something you want to skip as it's an important

446
00:23:38,160 --> 00:23:40,000
Speaker 1: chance to make sure the home is not filled with

447
00:23:40,119 --> 00:23:43,120
Speaker 1: unexpected repairs that you'll be on the hook for after signing.

448
00:23:43,720 --> 00:23:46,480
Speaker 1: An inspection can also be a helpful negotiating tool for

449
00:23:46,520 --> 00:23:48,560
Speaker 1: those repairs that need to happen before you move in.

450
00:23:48,960 --> 00:23:52,560
Speaker 1: Fairly straightforward, right, But then there's also an appraisal, And

451
00:23:52,680 --> 00:23:55,280
Speaker 1: to be honest, I've always been confused about the difference

452
00:23:55,280 --> 00:23:58,679
Speaker 1: between an appraisal and an inspection. I asked Vanessa to

453
00:23:58,720 --> 00:24:01,320
Speaker 1: explain what these two days are and why they're so

454
00:24:01,480 --> 00:24:08,400
Speaker 1: essential for buyers. You mentioned inspections and appraisals, and this

455
00:24:08,480 --> 00:24:11,560
Speaker 1: is an area where I get so confused because I

456
00:24:11,600 --> 00:24:14,000
Speaker 1: honestly don't know the difference. Explain to me a little bit.

457
00:24:14,560 --> 00:24:19,200
Speaker 4: Okay, So an inspector gets hired in the beginning process

458
00:24:19,520 --> 00:24:22,520
Speaker 4: of buying a home. You have a certain amount of

459
00:24:22,600 --> 00:24:25,280
Speaker 4: days when you can do your due diligence.

460
00:24:25,480 --> 00:24:27,120
Speaker 5: You bring anyone.

461
00:24:26,720 --> 00:24:31,760
Speaker 4: And everyone that can help you check the home for defects,

462
00:24:32,000 --> 00:24:35,760
Speaker 4: find mold, make sure the pool is working, make sure

463
00:24:35,760 --> 00:24:37,040
Speaker 4: the roof is in good condition.

464
00:24:37,200 --> 00:24:40,439
Speaker 5: Right, those are inspectors. They come in to check the home. Okay.

465
00:24:40,640 --> 00:24:43,679
Speaker 4: You pay for those out of pocket, and that is

466
00:24:43,680 --> 00:24:47,720
Speaker 4: an expense that you usually will pay for upfront. So

467
00:24:47,840 --> 00:24:51,640
Speaker 4: besides your downpayment, your closing costs, you pay for an inspection.

468
00:24:52,280 --> 00:24:53,800
Speaker 5: The inspection cost.

469
00:24:53,880 --> 00:24:57,840
Speaker 4: Roughly five hundred to six hundred ish just to get

470
00:24:57,880 --> 00:25:03,600
Speaker 4: a residential home inspected. And the appraiser is actually hired

471
00:25:03,680 --> 00:25:06,560
Speaker 4: through the lender. Okay, they have a third party that

472
00:25:06,600 --> 00:25:09,760
Speaker 4: they go to and they hire this appraiser to come

473
00:25:09,800 --> 00:25:12,919
Speaker 4: in and do a valuation of the property. And the

474
00:25:13,000 --> 00:25:16,159
Speaker 4: reason they do this is because as the lender, they

475
00:25:16,200 --> 00:25:20,280
Speaker 4: are not gonna lend you more than you need to

476
00:25:20,359 --> 00:25:22,800
Speaker 4: buy the home. Right Like, they're not gonna lend more

477
00:25:22,840 --> 00:25:24,200
Speaker 4: than the home is worth either.

478
00:25:24,920 --> 00:25:26,880
Speaker 5: So if the home is worth four.

479
00:25:26,760 --> 00:25:30,440
Speaker 4: Hundred thousand dollars, they're gonna lend you only four hundred

480
00:25:30,440 --> 00:25:33,600
Speaker 4: thousand dollars. If John Smith wants to pay more than

481
00:25:33,640 --> 00:25:35,800
Speaker 4: four hundred thousand dollars, they're gonna have to come out

482
00:25:35,800 --> 00:25:37,840
Speaker 4: with that out of pocket, right.

483
00:25:38,760 --> 00:25:41,760
Speaker 5: Yeah. So that's why we have those appraisals.

484
00:25:42,000 --> 00:25:47,040
Speaker 4: And the appraiser goes out to the property sometime in

485
00:25:47,080 --> 00:25:51,800
Speaker 4: the middle of the buying process and they put together

486
00:25:51,880 --> 00:25:55,440
Speaker 4: our report that they then send to the lender letting

487
00:25:55,440 --> 00:25:58,520
Speaker 4: them know, hey, it passed appraisal, it came back at value.

488
00:25:58,560 --> 00:26:00,240
Speaker 5: They give them what that value is.

489
00:26:00,720 --> 00:26:03,960
Speaker 4: The best case scenario is that the appraisal comes back

490
00:26:04,160 --> 00:26:08,879
Speaker 4: above purchase price. Oh okay, because that's instant equity for you. Yeah,

491
00:26:08,920 --> 00:26:11,520
Speaker 4: because you're paying less than what the house is worth.

492
00:26:12,000 --> 00:26:16,600
Speaker 4: But the problem is when the appraisal comes under purchase price,

493
00:26:17,000 --> 00:26:19,520
Speaker 4: because then you're paying more for the house and what

494
00:26:19,640 --> 00:26:24,359
Speaker 4: it's worth. So then the lender says, hey, mister Smith,

495
00:26:24,720 --> 00:26:27,679
Speaker 4: we're not going to give you what you're paying for it.

496
00:26:27,880 --> 00:26:30,480
Speaker 4: So either you come up with the difference or you

497
00:26:30,600 --> 00:26:33,399
Speaker 4: really negotiate the price with the seller.

498
00:26:33,640 --> 00:26:34,960
Speaker 5: And that's what a lot of people do.

499
00:26:35,359 --> 00:26:37,520
Speaker 4: So when you get that appraisal, if it's not a

500
00:26:37,560 --> 00:26:41,000
Speaker 4: purchase price and it's under what you're offering, they'll just

501
00:26:41,040 --> 00:26:44,320
Speaker 4: renegotiate with the seller, and most often than not, the

502
00:26:44,359 --> 00:26:46,760
Speaker 4: sellers are very understanding and they'll reduce the price.

503
00:26:47,359 --> 00:26:50,359
Speaker 1: Okay. That's good to know. Okay, so you're not necessarily

504
00:26:50,400 --> 00:26:52,840
Speaker 1: stuck in that moment with being like, oh, I have

505
00:26:52,880 --> 00:26:54,359
Speaker 1: to figure out how to come up with this X

506
00:26:54,440 --> 00:26:55,679
Speaker 1: number of dollars.

507
00:26:55,720 --> 00:26:58,520
Speaker 5: Correct. This is why this is the safety net for buyers.

508
00:26:59,040 --> 00:27:03,080
Speaker 4: So that and you go into buying a house, you

509
00:27:03,160 --> 00:27:05,520
Speaker 4: know that, Hey, for any reason, you know this house

510
00:27:05,560 --> 00:27:08,399
Speaker 4: does not appraise or it doesn't come back at the

511
00:27:08,440 --> 00:27:11,800
Speaker 4: price that you're paying for it, you can renegotiate. If

512
00:27:11,840 --> 00:27:14,800
Speaker 4: you don't come to terms and there is no meeting

513
00:27:14,800 --> 00:27:17,560
Speaker 4: of the minds, you can walk away, get your earnest

514
00:27:17,560 --> 00:27:19,880
Speaker 4: money back, and go about your business.

515
00:27:20,160 --> 00:27:22,040
Speaker 5: You will not be in breach of contract.

516
00:27:22,400 --> 00:27:24,520
Speaker 1: That's good to know because that was actually my last questions, like,

517
00:27:24,560 --> 00:27:26,520
Speaker 1: what is the latest point we could say this is

518
00:27:26,560 --> 00:27:28,480
Speaker 1: not the house for me anymore, I don't want this.

519
00:27:29,080 --> 00:27:32,240
Speaker 4: Probably around the time of the appraisal. Okay, that's like

520
00:27:32,800 --> 00:27:37,800
Speaker 4: the last exit sign. That I feel buyers have you know,

521
00:27:38,040 --> 00:27:41,200
Speaker 4: because after the appraisal, at that point, I mean the

522
00:27:41,359 --> 00:27:44,040
Speaker 4: lender is going to begin underwriting process to get you

523
00:27:44,080 --> 00:27:47,320
Speaker 4: clearer to close. But up until that point, you know,

524
00:27:47,359 --> 00:27:49,159
Speaker 4: you can still say, hey, no, this is not the

525
00:27:49,160 --> 00:27:52,159
Speaker 4: house I want, walk away, cancel the contract and move on.

526
00:27:52,920 --> 00:27:53,160
Speaker 5: Now.

527
00:27:53,280 --> 00:27:56,119
Speaker 1: Is this also the situation in which we can negotiate repairs?

528
00:27:56,200 --> 00:27:58,200
Speaker 1: And then what are an appraiser ever come back out

529
00:27:58,240 --> 00:28:00,359
Speaker 1: after like major repairs have been done to it house?

530
00:28:01,040 --> 00:28:01,879
Speaker 5: Excellent question.

531
00:28:02,080 --> 00:28:05,200
Speaker 4: So the times when on appraiser is sent out or

532
00:28:05,240 --> 00:28:08,640
Speaker 4: an inspectors sent out, it's when you have an FHA loan.

533
00:28:09,080 --> 00:28:12,359
Speaker 4: Sometimes you may have an inspector go back out to

534
00:28:12,400 --> 00:28:14,480
Speaker 4: the house or somebody may be sent back to the

535
00:28:14,520 --> 00:28:17,880
Speaker 4: house to make sure that whatever was inspected that wasn't

536
00:28:17,920 --> 00:28:20,800
Speaker 4: meeting those guidelines of that loan has been corrected.

537
00:28:21,080 --> 00:28:22,080
Speaker 5: That's when that happens.

538
00:28:22,119 --> 00:28:27,359
Speaker 4: Okay, And for repairs, when you're doing that inspection and

539
00:28:27,600 --> 00:28:30,960
Speaker 4: the inspector's sense you are report with all of the

540
00:28:31,000 --> 00:28:33,440
Speaker 4: crazy things they found in the house, you're going to

541
00:28:33,480 --> 00:28:35,160
Speaker 4: have a period of time when you're going to sit

542
00:28:35,160 --> 00:28:37,479
Speaker 4: down with your agent and you're going to review all

543
00:28:37,520 --> 00:28:40,920
Speaker 4: the findings and decide what you want to request as

544
00:28:40,920 --> 00:28:44,960
Speaker 4: a repair from the seller. Sometimes the sellers don't want

545
00:28:44,960 --> 00:28:47,200
Speaker 4: to deal with it, so they'll give you a credit

546
00:28:47,560 --> 00:28:48,959
Speaker 4: for you to take care of it, you know, on

547
00:28:49,000 --> 00:28:52,760
Speaker 4: your own. Some sellers are very prideful and they want

548
00:28:52,760 --> 00:28:55,040
Speaker 4: to do it themselves, and they just want to hand

549
00:28:55,040 --> 00:28:57,760
Speaker 4: you the home in the best possible condition that they can,

550
00:28:58,280 --> 00:29:00,600
Speaker 4: and they'll do it themselves and take care of it

551
00:29:00,640 --> 00:29:01,320
Speaker 4: before closing.

552
00:29:01,880 --> 00:29:04,280
Speaker 1: Okay, so now let's say we're at closing. Let's say

553
00:29:04,280 --> 00:29:07,680
Speaker 1: we've gotten through this. What exactly happens at closing? What

554
00:29:07,760 --> 00:29:09,160
Speaker 1: exactly is the process?

555
00:29:09,520 --> 00:29:12,040
Speaker 4: One more thing that happens in the process, it's a

556
00:29:12,080 --> 00:29:16,240
Speaker 4: final walkthrough. During this final walkthrough, usually about three days

557
00:29:16,240 --> 00:29:19,440
Speaker 4: before closing, you go to the home one more time

558
00:29:19,520 --> 00:29:21,880
Speaker 4: with your agent and you walk the property to make

559
00:29:21,920 --> 00:29:25,000
Speaker 4: sure that all of those repairs that the seller agreed

560
00:29:25,040 --> 00:29:28,560
Speaker 4: to make they've been made. If for any reason, there

561
00:29:28,640 --> 00:29:31,840
Speaker 4: is a significant repair that didn't happen, you still have

562
00:29:31,920 --> 00:29:35,280
Speaker 4: those three days to try to negotiate something right, to

563
00:29:35,360 --> 00:29:36,840
Speaker 4: try to find a solution.

564
00:29:37,240 --> 00:29:38,440
Speaker 5: If you don't.

565
00:29:38,280 --> 00:29:41,040
Speaker 4: Because the seller agreed to fix something and they didn't

566
00:29:41,080 --> 00:29:44,280
Speaker 4: fix it, then you can still walk away because you

567
00:29:44,320 --> 00:29:46,840
Speaker 4: can validate that they had agreed to do something and

568
00:29:46,880 --> 00:29:49,400
Speaker 4: they didn't do it. So even if it's three days

569
00:29:49,440 --> 00:29:52,240
Speaker 4: before closing, but you know, if seller is in breach

570
00:29:52,280 --> 00:29:56,400
Speaker 4: of contract by not correcting some of those repairs, you

571
00:29:56,440 --> 00:29:59,640
Speaker 4: can still walk away and cancel contract. Okay, Now, let's

572
00:29:59,640 --> 00:30:03,160
Speaker 4: assume that nothing's wrong. You went through your final walkthrough

573
00:30:03,680 --> 00:30:07,240
Speaker 4: the houses in great condition, all the repairs have been corrected.

574
00:30:07,920 --> 00:30:11,400
Speaker 4: Then you know, your title company will contact you to

575
00:30:11,440 --> 00:30:15,920
Speaker 4: schedule you for signing, and then on the day of signing,

576
00:30:16,240 --> 00:30:19,160
Speaker 4: you show up to your title company or wherever you

577
00:30:19,200 --> 00:30:23,080
Speaker 4: agree to sign documents and you then sit down with

578
00:30:23,160 --> 00:30:25,960
Speaker 4: the lottery and they review all of your it's so

579
00:30:26,080 --> 00:30:29,920
Speaker 4: many documents you're gonna give your autograph about one hundred

580
00:30:29,960 --> 00:30:33,320
Speaker 4: times just in less than thirty minutes. And so they

581
00:30:33,320 --> 00:30:36,160
Speaker 4: go through all the paperwork, you sign your your documents,

582
00:30:36,240 --> 00:30:39,960
Speaker 4: and then those documents are then sent over to title

583
00:30:40,200 --> 00:30:43,560
Speaker 4: and you know, they complete the process and then hopefully

584
00:30:43,560 --> 00:30:45,400
Speaker 4: by the end of that day, you're gonna have the

585
00:30:45,480 --> 00:30:46,240
Speaker 4: keys to your house.

586
00:30:47,000 --> 00:30:49,880
Speaker 1: That's amazing, So okay, so once you go through closing,

587
00:30:50,560 --> 00:30:52,040
Speaker 1: then you're like good to move in.

588
00:30:52,760 --> 00:30:54,960
Speaker 5: Yeah. Once you get the keys to your house, you're

589
00:30:55,080 --> 00:30:56,280
Speaker 5: pretty much good to move in.

590
00:30:57,000 --> 00:30:59,080
Speaker 1: So Vanessa, you know, we've talked a lot about all

591
00:30:59,080 --> 00:31:01,600
Speaker 1: of the many things kind of I don't want to

592
00:31:01,640 --> 00:31:03,400
Speaker 1: say secret, but the tricky stuff that we don't think

593
00:31:03,440 --> 00:31:06,680
Speaker 1: about that also goes into buying a home or being

594
00:31:06,680 --> 00:31:11,640
Speaker 1: a homeowner more specifically, like homeowner's insurance and then home warranty.

595
00:31:12,560 --> 00:31:14,200
Speaker 1: What are the difference between these two things?

596
00:31:15,000 --> 00:31:15,360
Speaker 5: Okay?

597
00:31:15,440 --> 00:31:20,480
Speaker 4: So homeowner's insurance is what's going to protect the structural

598
00:31:20,560 --> 00:31:24,880
Speaker 4: damages to a home in the event of fire, tornadoes,

599
00:31:25,560 --> 00:31:31,080
Speaker 4: natural disasters. Okay, but they don't protect you against the ac.

600
00:31:31,400 --> 00:31:32,640
Speaker 5: Breaking down, got it.

601
00:31:32,680 --> 00:31:34,960
Speaker 4: They don't help you if the appliance is breakdown, You're

602
00:31:34,960 --> 00:31:37,040
Speaker 4: gonna need home warranty for that.

603
00:31:37,240 --> 00:31:38,640
Speaker 5: Okay, So then home.

604
00:31:38,480 --> 00:31:43,440
Speaker 4: Warranty basically covers all of the appliances or maybe if

605
00:31:43,440 --> 00:31:45,600
Speaker 4: you need a plumber to come in and check something.

606
00:31:46,120 --> 00:31:47,480
Speaker 5: That's what home warranties for.

607
00:31:48,240 --> 00:31:53,200
Speaker 4: Unlike home warranty, homeowner's insurance is required by the lender,

608
00:31:53,280 --> 00:31:55,240
Speaker 4: and they're going to require and ask you to get

609
00:31:55,280 --> 00:31:56,240
Speaker 4: one before closing.

610
00:31:56,960 --> 00:31:57,240
Speaker 5: Okay.

611
00:31:57,280 --> 00:31:59,160
Speaker 1: So there's a stat out here right now that says

612
00:31:59,160 --> 00:32:02,040
Speaker 1: forty percent of home owners say that buying a home

613
00:32:02,320 --> 00:32:04,800
Speaker 1: was the most stressful event in their life. Do you

614
00:32:04,880 --> 00:32:07,000
Speaker 1: have any advice for those going through this process to

615
00:32:07,000 --> 00:32:08,160
Speaker 1: make it less stressful.

616
00:32:08,800 --> 00:32:10,760
Speaker 4: Working with the right people can go a long way,

617
00:32:11,480 --> 00:32:15,480
Speaker 4: and you know, we have systems, we have a book

618
00:32:15,480 --> 00:32:17,680
Speaker 4: of business to refer you to, so that you don't

619
00:32:17,680 --> 00:32:21,600
Speaker 4: have to stress finding an inspector or finding the right lender.

620
00:32:21,880 --> 00:32:24,760
Speaker 5: The other thing I would say too, is asking a

621
00:32:24,800 --> 00:32:25,640
Speaker 5: lot of questions.

622
00:32:25,960 --> 00:32:28,080
Speaker 4: I feel like a lot of people are fearful to

623
00:32:28,120 --> 00:32:31,440
Speaker 4: call the agent to ask questions once they go under contract.

624
00:32:31,600 --> 00:32:35,120
Speaker 4: Don't be afraid call your agent if something is keeping

625
00:32:35,120 --> 00:32:38,600
Speaker 4: you up at night, or you are doubting an offer

626
00:32:38,680 --> 00:32:39,560
Speaker 4: or anything at all.

627
00:32:39,640 --> 00:32:40,760
Speaker 5: Right, I feel like a lot of.

628
00:32:40,760 --> 00:32:44,000
Speaker 4: People get so stressed because they just don't know what's

629
00:32:44,040 --> 00:32:48,880
Speaker 4: going on. So maintaining good communication with the client I

630
00:32:48,920 --> 00:32:52,560
Speaker 4: think can alleviate some of that stress. Of course, there's

631
00:32:52,680 --> 00:32:55,840
Speaker 4: gonna be roadblocks around along the way and things that

632
00:32:55,880 --> 00:32:59,640
Speaker 4: are going to happen, but majority of things are fixable.

633
00:32:59,680 --> 00:33:01,560
Speaker 5: My jo or do things we can figure out as

634
00:33:01,560 --> 00:33:03,960
Speaker 5: a team. It doesn't have to be stressful.

635
00:33:04,280 --> 00:33:06,760
Speaker 4: So I think it's just essential that you find an

636
00:33:06,760 --> 00:33:09,239
Speaker 4: agent that you trust to do what they need to

637
00:33:09,280 --> 00:33:12,480
Speaker 4: do and have your best interest at heart and make

638
00:33:12,560 --> 00:33:15,600
Speaker 4: this a very smooth and seamless process.

639
00:33:16,400 --> 00:33:19,120
Speaker 1: Well, Vanessa, you sound like you're the right person for

640
00:33:19,160 --> 00:33:21,960
Speaker 1: the job, and thank you, thank you so much. I

641
00:33:22,040 --> 00:33:25,080
Speaker 1: honestly feel like I know way more about buying a

642
00:33:25,120 --> 00:33:29,200
Speaker 1: house than I did before good and I feel less

643
00:33:29,240 --> 00:33:32,880
Speaker 1: stressed about the prospects of potentially doing it someday. So

644
00:33:33,360 --> 00:33:34,240
Speaker 1: thank you so much for that.

645
00:33:34,720 --> 00:33:36,440
Speaker 4: No, thank you for having me. It was it was

646
00:33:36,440 --> 00:33:38,160
Speaker 4: a pleasure. I had a lot of fun.

647
00:33:38,680 --> 00:33:40,800
Speaker 1: So, Vanessa, where can people find you if they want

648
00:33:40,800 --> 00:33:42,240
Speaker 1: to reach out with questions or if they're in the

649
00:33:42,280 --> 00:33:44,120
Speaker 1: Arizona area, So.

650
00:33:44,280 --> 00:33:47,400
Speaker 4: You can find me on social media. I have all

651
00:33:47,520 --> 00:33:51,920
Speaker 4: of the different platforms. I'm more known on TikTok, so

652
00:33:51,960 --> 00:33:53,680
Speaker 4: you can find me. Look me up on TikTok. I

653
00:33:53,680 --> 00:33:56,880
Speaker 4: have a lot of useful educational content on there for

654
00:33:57,000 --> 00:33:59,800
Speaker 4: both buyer sellers, and I have it in Spanish too,

655
00:34:00,480 --> 00:34:02,360
Speaker 4: So if you don't know where to begin, look me

656
00:34:02,440 --> 00:34:06,920
Speaker 4: up on TikTok Vanessa Aragon va n e SSA at

657
00:34:06,960 --> 00:34:10,360
Speaker 4: agon r g O N Realtor and you'll find me

658
00:34:10,680 --> 00:34:11,480
Speaker 4: perfect great.

659
00:34:11,680 --> 00:34:19,719
Speaker 1: Thank you so much, A huge thank you again to

660
00:34:19,800 --> 00:34:21,960
Speaker 1: Vanessa for joining us on the show. Here are some

661
00:34:21,960 --> 00:34:24,640
Speaker 1: of the major points that I learned from Vanessa. Today,

662
00:34:24,719 --> 00:34:26,759
Speaker 1: you can make a down payment as low as six

663
00:34:26,840 --> 00:34:30,080
Speaker 1: percent or sometimes lower on a home you want to purchase.

664
00:34:30,560 --> 00:34:33,360
Speaker 1: FHA loans can be a great option to finance a

665
00:34:33,400 --> 00:34:37,000
Speaker 1: primary residence with a super low down payment. However, you'll

666
00:34:37,040 --> 00:34:39,480
Speaker 1: need to make a credit score minimum to qualify, and

667
00:34:39,560 --> 00:34:42,360
Speaker 1: remember that with a lower down payment, you're looking at

668
00:34:42,440 --> 00:34:45,840
Speaker 1: higher monthly mortgage payments. Set aside two to three percent

669
00:34:45,920 --> 00:34:49,280
Speaker 1: of the home price for your closing costs. An inspection

670
00:34:49,480 --> 00:34:51,560
Speaker 1: is an out of pocket expense for the buyer that

671
00:34:51,680 --> 00:34:53,839
Speaker 1: happens early in the process that allows them to check

672
00:34:53,880 --> 00:34:55,600
Speaker 1: out the home and really know what they're in for

673
00:34:55,680 --> 00:34:59,080
Speaker 1: in terms of repairs. The appraiser is hired through the

674
00:34:59,200 --> 00:35:02,280
Speaker 1: lender to turn how much you actually need to borrow

675
00:35:02,320 --> 00:35:05,160
Speaker 1: to buy the home. The appraisal is also the last

676
00:35:05,160 --> 00:35:07,480
Speaker 1: opportunity to walk away from a house that you've made

677
00:35:07,480 --> 00:35:11,000
Speaker 1: an offer on. And Finally, escro means two different things

678
00:35:11,000 --> 00:35:13,440
Speaker 1: when it comes to real estate. First, it means the

679
00:35:13,480 --> 00:35:16,120
Speaker 1: account in which all of your deposits are held during

680
00:35:16,160 --> 00:35:19,279
Speaker 1: the home buying process. Second, it's the account that your

681
00:35:19,360 --> 00:35:21,680
Speaker 1: lender creates to hold the money that's going to cover

682
00:35:21,760 --> 00:35:25,440
Speaker 1: the costs of property taxes and your homeowner's insurance, the

683
00:35:25,440 --> 00:35:28,000
Speaker 1: funds of which are taken out of your mortgage payments.

684
00:35:28,440 --> 00:35:31,120
Speaker 1: That's all for today's episode, Matt, I am a legit.

685
00:35:31,200 --> 00:35:32,640
Speaker 1: Go out and see what kind of loan I can

686
00:35:32,719 --> 00:35:34,920
Speaker 1: qualify for. After talking to Vanessa.

687
00:35:34,760 --> 00:35:36,920
Speaker 3: I know it's like, if only I knew these things

688
00:35:36,920 --> 00:35:39,480
Speaker 3: when my current apartment was up for sale ten years ago,

689
00:35:39,640 --> 00:35:41,799
Speaker 3: I would have a lot of equity in this place

690
00:35:41,840 --> 00:35:42,080
Speaker 3: by now.

691
00:35:42,080 --> 00:35:43,200
Speaker 2: And I know I know what that means.

692
00:35:43,520 --> 00:35:47,000
Speaker 1: Yeah, exactly. But on a brighter note, let's talk about

693
00:35:47,040 --> 00:35:49,800
Speaker 1: what is next up on grown up Stuff How to Adult?

694
00:35:50,200 --> 00:35:51,799
Speaker 2: Next up is utilities.

695
00:35:52,120 --> 00:35:55,280
Speaker 3: What's included, how they work and tips to better understand

696
00:35:55,320 --> 00:35:57,120
Speaker 3: your usage and save money.

697
00:35:57,360 --> 00:35:59,759
Speaker 1: Great, and maybe I can figure out how the hell

698
00:35:59,840 --> 00:36:02,319
Speaker 1: I I'm still using more energy than my neighbors even

699
00:36:02,360 --> 00:36:03,200
Speaker 1: when I'm out of town.

700
00:36:03,400 --> 00:36:05,719
Speaker 3: We'll find out in two weeks. On the next grown

701
00:36:05,760 --> 00:36:07,000
Speaker 3: up Stuff, How do adult?

702
00:36:07,280 --> 00:36:09,640
Speaker 1: And remember you might not be graded in life, but

703
00:36:09,680 --> 00:36:12,440
Speaker 1: it never hurts to do your homework. This is a

704
00:36:12,480 --> 00:36:15,160
Speaker 1: production from Ruby Studios from iHeartMedia.

705
00:36:15,200 --> 00:36:17,960
Speaker 2: Our executive producers are Molly Sosha.

706
00:36:17,480 --> 00:36:20,759
Speaker 1: And Matt Stillo. This episode was engineered by Matt Stillo.

707
00:36:20,760 --> 00:36:22,400
Speaker 2: And written by Malli Soshia.

708
00:36:23,160 --> 00:36:27,400
Speaker 3: Special thanks to the Ruby team at iHeartMedia, including Ethan Fixel,

709
00:36:27,600 --> 00:36:32,320
Speaker 3: Rachel Swan, Krasnov, Amber Smith, nikiath Swinton, Sierah Kaiser, Sierra Spreen,

710
00:36:32,640 --> 00:36:39,080
Speaker 3: and Andy Kelly,