[Music] [Music] uh up and tell us about that sure why not robert's brochure is in the package hello i'm robert garcia with farmers insurance and uh in lucas texas it's on the front side of allen texas so uh don't get it mixed up with lucas and alex but actually we we just we kind of mesh together i can throw rocks and get out but um oh right in front of the camera you want me to do that i like it there you go so my as you can see my life is run by redheads okay so um the one in the flower shirt that's my wife and so we co-own the business together so she makes sure everything runs good i just kind of smile and wave and i talk to everyone uh my goal though with insurance always is it's like um it's almost like we're like used car salesmen at times because there's a bunch of insurance companies out there right and my goal always with insurance is to make sure you understand what's covered there is there's a lot of coverages out there and there's a lot of coverages that don't even make sense or you don't even know what you have especially in your home the biggest thing we're seeing right now is um and i'm going to point to all the realtors and credit people is inflation so we're a 2×4 last year used to cost high where two by four last year used to cost three dollars it now cost nine so it's gone up three times so homes values are tripling they're going up by 150 so a home that used to cost 250 last year now is going to cost 400 000 so if you're underinsured your loan's not going to go through if you get insured and you're underinsured and the house burns down well they're only going to pay you for what you're insured for so the other difference whether it's 150 000 or not you're going to lose it so my thing my tagline whatever you want to call it is i don't want to treat you like a number or a policy i want to treat you like family so everyone that's in our agency i try to treat like family and that's that's how we run our business so thank you amber for having us so yeah so if i have a house uh-huh yes okay okay so what you built your house for 20 years ago might have been 150 000 right but that 150 000 house today is either going to be double or a little bit more so if you have an insured for 150 and it burns down to the ground you are going to be short because of the inflation and the prices going up in the market today so it's very important that you always make sure what your house is insured for um just because people don't realize it and there's a lot of companies out there that they'll put the value that you say your house is worth well it may you can't build it for those prices today unless unless you're your own personal builder which i mean data you might be a personal builder you're that you're that fantastic so for instance so if someone had a home like you said for 20 years did they need to contact you like maybe together yeah that would work so yeah no so the replacement costs on the on the home what we do what my agency does is a lot of agents what they do is they put it on autopilot and they expect you to just leave it on autopilot what i do is i when your home's renewing every single year a month before it renews i call you hey have you had some life changes did you win the lottery and just happen to put like gold toilets everywhere or whatever you want to do there's some people that do that like you'd be surprised there's never a dull moment and if you have money or if you come into money and you remodel the entire house you want your insurance to mimic the amount that you put into your home so um it's a very good thing that you go through your insurance every single year even your auto insurance um auto insurance is super important and it affects your home rates they give you some huge discounts with auto and home rates appreciate boston you're welcome so lisa k couldn't be here so i just want to um let you know i've done many many closings with their uh with superior title and abstract they are awesome they actually have a plan inside their office right over here off of preston very local they actually do their their full title and everything right there and they've always done great customer service and they do remote closing which is a wonderful thing for the buyer they can come to your place of work or whatever to do that notary of work in case you have a really tight schedule when it comes to closing so i just want to let you guys know that uh lisa kay just does an awesome job and superior thailand abstract pink big title companies actually make sure that the money that you bring to closing goes where it's supposed to go that everybody gets closed out and they also sell title insurance which basically means that the long long long person who says oh maybe like my ancestors own this house no they can't do that the title insurance will actually say okay this is all free and clear including any encumbrances on there are all taken care of by your title insurance so always get it is very important and the other thing is is that you don't want any claims they actually pay up your taxes to the date they make sure everything's settled out perfectly so you don't have anyone coming back saying hey i didn't get paid on this deal and i want you know to take over your house you don't have anything like that happen so that's what a title insurance does anybody have any other questions i'm not a title person but go ahead well all title insurance in texas is pretty much the same mostly it's going to be awesome customer service and then finding any problems before you get into into any issues with the contract because say um the seller has not paid something or maybe you know maybe there's like a problem with the survey or something like that well you want to make sure that you know all of this stuff up front because maybe you plan on putting a pool into your backyard and the there's not enough room to do it or your or your fence encompasses on somebody else you want somebody who's going to sit there and look at everything and say okay this is a good title to pass on and move to the next buyer that's basically what they're doing so it's going to be absolutely customer service but the title insurance will actually cost pretty much the same all the way across and then you want somebody who can expedite that title and title work and get it out pretty quick because once you're in a contract you know you don't want to sit there and find out hey this is not going to work for you once you're already in because you've wasted your auction money your earnest money's all in the title company you get your earnest money back if they can't do title you know if they can't clear title but you want to make sure you have somebody good it said in an escrow account and so when you put your money into the title company and actually auction money now goes to the title company as well still goes to the seller you don't get it back you do get a credit for it at closing but um the title company now handles all of that for you so basically that means that you're not giving your money unless it's a builder you're not giving your money actually to the seller you know so say you put a thousand dollars of earnest money down you want to make sure you can get it back if they can't give you title if you have an inspection and find out there's an issue you want to make sure that you can get your money back if there's not a problem so the title company handles all of that for you they put in an escrow account and if there's an issue you talk to your real estate agent they can get your escrow back as long as you're not in breach of your contract somehow absolutely so the title company they do now yes but i they do it prior to closing and you should um like whenever you have a listing it'd be a good idea if you think there's something on that title get it done before you actually get it on the market because if there's something that comes up then you've got a seller and a buyer and everybody's in contract it's a lot harder then yeah before you have somebody that has the knowledge of those things that can be proactive about it because sometimes they get the contract and they sit on it for seven days and they're like oh my goodness we're closing next week you know this is a cash deal it's going to be easy and then they find out that maybe this specific property has a house and an acre and then they thought that they had this 0.29 acres over here but then it turns out this 0.29 acres was never planted into the survey so then they really don't own it but they thought they did and here they are trying to sell a property that they don't own even though they do so then it but it's important for someone to know that things like that happen and try to get that taken care of and resolve before closing because it can get a little a little cloudy whenever there's things in that sense and then everyone's upset because they're emotional they're ready to close on their house and then they say i'm sorry we're not a good hat it's not gonna happen you know so you don't want those things to happen um during a transaction so it's great to have someone who knows how to handle those situations early on so they can make a smooth closing at the end yeah it's nothing like finding out that your seller thought that they didn't have anything on there except for their mortgage and then they have an irs loan and or an irs lien or something like that and they actually have to bring money to closing it's better to know everything up front absolutely so you don't leave the buyer kind of in a bad situation right because okay [Music] one more time it's awesome you guys [Music] so [Music] so [Music] awesome see that tells you everything you don't even need all right let's go all right this is about us here amber and myself there's a little bit more so we do this quickly okay okay tell them about you awesome well i'm amber boyd i'm the broker and owner of 41 real estate and um i as you can see i'm extremely hard-working and energetic i married my husband in 2011.
We have two little ones we're in the trenches with a two-year-old girl and a four-year-old boy um emma is the fireball i'm always having to chase her around and get her off the ledge she's gonna fall off the playground you know and eli is more of a laid-back one likes to play video games so i've got quite the polar opposites which is great um my husband and i we actually run a food truck on the side and we are having a lot of fun with that taking him to real estate events or just doing a lot of things in the community um mr robert can attest so we've got some pretty good food so i'm a little biased but he's good so we love to do things out in the event go ahead we have all kinds of stuff so we have um like like a split top sandwich where he does a like a chicken strip with different types of sauces on it all just homemade fries with you know all kinds of good stuff it's it's not probably the most healthy thing but it's delicious it's it's great yeah so it's called eddie ray street eats um he we opened last year and he's been doing a great job since it started um i know i'm no spring chicken but i have been doing real estate my entire adult life so i'm going on 11 years in the real estate industry and i open my own brokerage about five years ago at the ripe age of 25 and i just really am passionate about helping you know clients whether they're renting or purchasing there's no deal that's too small or too big for me to handle and just like with mr robert like we take these clients in and they're family to us so we whether we're trying to just help them with a temporary place because they're building something or you know they they need to sell a property for someone who's 82 years old and needs to get into a place where maybe they can just enjoy the rest of their life without having to worry about all that um so it's just something that's really important to me and i've just enjoyed being able to do something with my life that i can really impact people's lives with and i get to do that through real estate so it's a little bit about me and what i'm doing awesome okay so i've been married for 25 years to the same man and i love coffee i'm drinking coffee all the time i am a proud marine mama i am so proud of my son he's 23 at camp pendleton and um boo rock so say that um and i just uh had like he's actually home for 10 days and it's just been so awesome we have not seen him since cobin and it's just been it's been well over a year so it was really awesome um i have two other children one of them is a really good boulder i think his average is like over 200 he doesn't have a handicap anymore it's like 2 17 2 30.
Something like that he just graduated so i think i'm going to be an mp nester soon except he doesn't know how to drive so maybe not a taxi service for now yes yes unless i start charging him i can do uber there you go and then my other my other child is a wonderful artist she's very very talented and then just something about me you may not know i am actually a star trek fan and it's actually the original series this is something i actually have a degree in hamburgerology too because that's a whole other story but um yeah so original series and i love how captain kirk does is overacting i don't know why but you know man's almost 90. it's just that you know the songs he does you know when he sits there and he does like um hey mr raymond raymond it's like yeah i just have to google this kind of stuff on youtube it's funny so i've been doing real estate since 2004 before that um i managed the multi-million dollar company and it was mcdonald's i managed it for 20 years uh won a lot of people first awards and stuff like that before and um anyway it just seemed like a really good transition my husband was a loan officer at the time he told me uh laura he says you really need to get into real estate i work with a lot of really dumb agents you will fit right in and i was like is that a compliment or not oh my gosh and he was still married i was still married yes anyway so um so here i am a real estate agent and um awesome and i don't speak any spanish but i do know how to order a cheeseburger any way you want it in spanish so this is a little bit about us go ahead and tell them yeah so as we said i graduated from the big city of farmersville texas in 2008 in 2010 i was like hey let's do some real estate so i got my real estate license five years passed god put it on my heart to open my own brokerage had no business experience as far as owning a company but i was going to do it anyways and so i opened that and then in 2020 during a worldwide pandemic my brokerage literally quadrupled in size and we've expanded to four major markets and i think that's just it's super exciting to me the fact that we can take this company and my vision and grow it across the entire state of texas even during a pandemic so that's just something that's really proud that i was able to i have 60 agents across texas to work with us so i'm really proud of that thank you thank you and about me um obviously i mean i managed to make a restaurant for 20 years and then i got my real estate license and of course as soon as i did that my husband stopped doing mortgages so anyway and then in 2012 after uh the recession when things started to kind of get back into a normal progression again i started doing homebuyers seminars and i found out i really love to help people to you know get into their next phase of life i just really like to do that and then just recently i spent two months i've joined core one real estate i've known amber for a year now and uh we just actually are just like it's like we're always thinking each other's stuff that's really weird we definitely complete each other it's like we didn't even know we needed each other until she came on board i'm like where have you been all my life it gets pretty great it's crazy okay so tell them about your company so it's core win real estate i mentioned that we have um we covered collin county north dallas hunt county denton county pretty much literally of the major markets in texas we were established in 2015 and we are really community oriented and customer minded so again we just really take the approach of not just trying to get a customer out the door and into a house and collect a paycheck but we really want to impart a little bit of ourselves into their lives and hopefully make their their um their experience better okay so the buyers roadmap first off you want to meet with a real estate agent and the next thing you want to get pre-approved and we're going to let larry elaborate on that and searching for homes that's the fun part does anybody know what kind of market we're in right now are we in a seller's market or a buyer's market ding ding ding ding exactly exactly so in a seller's market unfortunately there is usually more than people more than one offer so you actually have to be very very competitive and very creative in how you do it love letters i wish they always work but they're not always working like they used to because people have 10 to 15 offers so the best thing you can do is have a really good prequal be ready to go and i told somebody the other day they wanted to come see look at houses they were coming from out of town i said this is how it goes on friday they come on the market on saturday you can look on sunday they're calling for highest and best and they're not doing any more showings so you just have to be ready to go so the best thing you can do is get all your ducks in a row so when you're ready to make that offer on that dream home you're ready to go and will the market always be like this probably not it'll probably slow down so you know you can relax a little bit if you lose a few offers it's good experience it's important to have an agent who's creative in the offer process who's going to be communicative with the listing agent because you know you could just say let me go look at this house and then like let me just pop up this offer and type it up and you send it in and that's it you might not even call the agent to tell them hey i sent you this offer but if you were if your agent calls the listing agent and says hey my clients are really interested in this property what would i need to do to get the seller's attention you know what can i do to stand up apart yeah that they need a lace back okay um okay okay um okay and then um are you ready to buy do you have steady income do you have a low uh low to medium debt to income we'll let larry cover that he does it uh do you have cash for a down payment there's several different programs that are really awesome out there larry's going to go over some of those but maybe maybe you're going to want to do like a grant program or do a usda you still have to have some money for closing costs because the sellers are not paying closing costs anymore um so you'll need some good documentation larry's going to go over that with you and you need to make sure that you have a good work history with good good study income coming in like for instance if you're self-employed that's going to be very very difficult because most most self-employed people write off everything so that's good that's when you get into some creative stuff [Music] um larry can educate her yes he's a man yeah okay so yeah so the first thing you want to do um we're going to talk about the lender uh which larry will go into that but when we talk about home searching let me tell you the most important thing is location location location location if you want to sell this house later this is going to be really important that you're in the you know schools and that kind of stuff may not be important to you to you now but maybe there are in the future those things are going to be really really important the further out you get from dallas the more you can get for your money so if you're on a tight budget you might want to consider places like anna maybe even sherman sherman's actually becoming pretty hot now um how much square footage just because it's a 1200 square foot home doesn't necessarily mean it's going to be too small it's all in the floor plan absolutely how many bedrooms how many baths what kind of style you like what kind of features are you going to want to have a big backyard so your kids can play or do you not want any yard those kind of things and so um as far as we talked about the search the agent we have access to the mls we also use our network another thing we can do is find properties that are not on the market so for instance for sale by owners maybe something that's expired you want to have an agent that can be creative and finding that inventory that maybe it's not on the mls which has a lot of eyeballs on it so we have a lot of different ways to help find your dream home um as far as the customer you're able to access on our website you can see signs in the yard open houses model homes all kinds of good stuff as far as kind of how we define your property and then we have a lot of high-tech tools in the sense of being able to customize a search and make it send new properties as soon as it hits the market so that way you can call laura and say hey i found this house let's go right now i know it's midnight but hey let's get my slippers on we're going and you find and we're able to find them as soon as they come up so it's important to know that you have the tools out there to help find that even in a competitive market but make it when you make your offer make sure um it's the home that you guys want i know a lot of times we because the market is so crazy we just want to get a house and it's okay to have to settle a little bit there is no perfect home unless you're going to build it from scratch okay think about what the seller wants i've seen a lot of lease backs so you close on a house and maybe the seller's in it for a week sometimes longer earnest money needs to be about a percent of what you offer so if you're offering 200 000 you need about 2 000 in earnest money um the down payment amount will let larry cover that and then there's important dates that need to happen you want to get your inspections done as soon as you get the contract in place because you only have a short window of time to sit there and find out whether this house is for you or not if there's something wrong with it and the seller's not going to fix it and it's not you're not comfortable with it you want to be able to go okay i'm going to back out and find the next house and then also your offer you know right now everybody's doing highest and best but they can actually counter back they can actually decline your offer they can even not look at it and uh that's some of you you want to make sure your financing is the best financing put forward because if you're because what if the house doesn't appraise everyone almost everything's going above this price there's a lot of creativity that needs to happen in our offers right now that's why you need good agents absolutely and when you're getting what happens when your offer is accepted um within two days so there's a lot of sense of urgency once you get your contract accepted the earnest money and the option fee goes directly to the listing agent um we have the appraisal inspection things like that mr robert talked about home insurance and then we'll let mr larry again talk about the mortgage side of it which is really the most important part of buying a home yeah and the final walk through you basically want to make sure the house is in the same condition that you contracted in by the time you close so a lot of times they'll do a final walk through even if there's going to be there you know i know they're going to be moving and everything but i want to make sure that nobody sit there and take it off the back door or taking out stuff that we didn't know was going to you know you don't understand what i mean that's myself so there's closing costs as you can see you have the property appraisal is something that's prepaid as a for the buyer you have your home inspection there's processing fees of course underwriting all these little things that they can add up a lot of buyers are not familiar with so just keep in mind that just be prepared and when you have an awesome lender that's going to give you all that information ahead of time you can go into a contract with confidence knowing that you're not hopefully going to have a surprise and say oh my gosh i need six thousand dollars i thought this was going to be 2 000 and so it's just important to be prepared whenever you're i'm doing that closing yes so closing day it's your big day this is going to be real exciting it's about an hour to sit there and close i mean obviously you could do it remotely i do encourage you to go to the title company because they will go through all the paperwork they've got the experience the other people are just sometimes notaries so um you have to bring your identification everybody who purchases the property needs to be there if you're married and maybe you've actually um you're getting the loans only in your name your wife still has to come and sign on the data trust as well and then um make sure your down payment the money that you need to bring to closing actually has to be wired or it needs to come in to in with a cashier's check you can't just bring your checkbook in and write a check for ten thousand dollars they won't accept the title or take the bring a briefcase with the and then and your package also have all of our contact information our contact information is up here as well and we also yeah we also have the entire uh presentation in the packets as well so all right great all right good questions quick questions okay so uh thank you so that's how dng got started on the d my husband gary's the g not real independent but hey you know okay so the most important thing what what is what is a fico score what is that guys you know in the 50s hardly anyone was able to get credit okay you had to know somebody you had to be from the right side of the tracks right so this mathematician and an engineer built an algorithm all right so this scoring formula doesn't have anything to do with your race your religion your sexual orientation doesn't have anything it's an algorithm to see how likely you are to pay your debt so it can't see color they can't see it can't see income they can't see how you vote it it doesn't know if you're diabetic it doesn't know anything it's just an algorithm to tell the banks how likely you are to go ahead and pay your bank pay it back okay for the next okay ah okay so your credit score can save you a lot of time and money did you know did you know that your credit score is more important on your automobile insurance rate than your driving record all right did you know it affects your promotion at work your credit score is tied to everything everything is attached to that number okay uh romance all right so if you're if you're thinking about getting married full credit report on them it's the truth am i wrong i know i'm right okay anyway why are grits were so confusing all these numbers are all different okay fico the coca-cola in the credit score world that's who all these people want to be with camps okay so then kind of uh i'll just say bastard is good right they just added their own to make it so you see all the different all the different uh numbers here but basically they all managed to get into the same risk bucket now if you'll look at the brochure here okay on the back you'll see those colors those are basically wrist buckets you've got your poor you got your fare you got your good okay so these numbers will fall into this but the fico credit score that's the lending algorithm that's what the mortgage person does let's say you're with credit karma you pull your credit report and credit karma says you're at 650 you're like so you call these ladies so they send you to their their lender their lender does just pull on the same day and suddenly you're a 585 you're like what the heck it's a stronger algorithm okay does that make sense yes so because this is what's right oh wait no let's come back to questions because i got a lot of stuff but i may answer that question i may answer that question when you pull your own credit report it doesn't affect your credit score at all you can look at your credit report unlimited number of times it won't affect you now here's dealer if you're with anybody other than myfico that's myfico.com they have the lending algorithm in there so you can literally get a mortgage algorithm without a hard pull that's a big deal if you're not sure where your credit score is okay so i know i talked to lenders that i've never even heard of the oscars the oscar is a super data storage computer any creator that wants to report to the bureau has to upload all that raw data into the oscar right that's your experience you never have to pull the data what makes our system unique our system can read the code in the oscars so we know in raw data okay now here's some really important steps raw data data section paragraph now here's important information if you're looking to build your credit for while you're looking to get a house right that lender algorithm requires a minimum of three [Music] however if it's negative it hits you just as far so you've got to be careful can be a double-edged story um a good little mix is what two revolving and one installment of the 850 points available on first think of it like a teeter totter that lending hours and wants to see how you balance if you're maxed out it hurts you you go over the limit and get another slap if you're on zero it also lowers your credit so you need to balance it okay for the lender algorithm about 20 of the balance all right so if you've got a ten thousand dollar credit card you never okay now of all things being equal on two files the one with the ten dollar balance will have a higher credit score so how can i help my score increase don't close any credit cards don't push them to tell you friendly i'm getting ready for that okay keep all revolving dead to 20 of the card's limits and never zero an authorized user very slippery as well the only time i would really recommend being an authorized okay we'll come back if you owe more money on your student loans than you borrow refinance anytime you owe more than you're borrowing trouble okay and what's worse than a lot of times you have seven student loans they're all undetermined they're not helping you at all right because i almost guarantee you are more than you borrow so what i tell my clients is if you can pay it to me or as much as you want that's great pay it make it active because now active accounts okay now if you are one of those people that keeps getting these things in the mouth hey give us a chance to stop your insurance come over here [Music] i want you to get off of that okay go to optoutfreescreen.com pick the five years so you don't get anything because what happens is when a marketing company goes to the euro let's see all right they'll do a massive pull to try to fill that order okay that pool by itself is not cheap okay it's like it's like a drip and okay so this is the hard one we took the svr you basically put them through bullet points okay whatever is on your credit report must be 100 accurate regardless if the debt is owed there are [Music] under federal law any person who knowingly and willfully attains a credit report from a cra that's credit reporting agency under false pretenses i getting a credit report on an individual shall we find under title 18 united states code or in prison for not more than two years all right so actually have a conversation about this when you go buy a car you can test over the car i promise you on the back about three quarters of the way down called permissible purpose you give that company permission to do a hard pull every month until they see that you have personally everything you have so if you're one of those three other types of speaking parties that can be very dangerous for you okay because what happens because it's illegal they can go to jail and get fined they're not going to do it right companies are some figures and other [Music] during this investigation time this company can be borrowed from reporting to the bureau big and on their face right so it makes it all the way down to that only sales person that can be fired now right because all the time [Music] okay so after 180 days of no payments by law that creditor must stop charging [Music] when it gets to that point is [Music] the third the most common we find is that original predator will charge they charge that without because they get it and then what they do [Music] is i don't know if you've ever seen this on your credit report but you can tell by looking at this the same collection appearing again and again and again and again right when only one of those may be legal makes sense but on the bureau side you're getting meaning for every one of them okay go to the next one now that's bad the worst should be happening about say two and a half to five years [Music] and it okay so i when people call me credit repair i roll my eyes and this is this is one okay because credit companies have to assume your identity my sister needs a computer [Music] assistant so we offer education information use of a proprietary system attorneys have been working with what's almost 30 years now so when you hear the large class action lawsuit okay so the first 45 days the computer makes some food what you're saying second 45 days after violation most of our clients will be mortgaged um go to the next one so the next one we'll just you've got most of these inside your little inside your photo what are you going to go to the next one okay go keep going keep going so this is this part of this this client had been with the credit report now here's my opinion anyone that charges your monthly has no one simply is that okay oh i've already the first 45 days makes them two workers saying for the word of the law second 45 days goes after the violation of the computer already okay the their choice the creditors choice is they can either correct the file [Music] okay that stands for independent association of professionals we're not attorneys that's [Music] the next one ah the next one so this one is actually work on the back this is what's on the back of the brochure this is a real client and you just don't have them because numbers okay so he went from a poor credit score to a good credit score now that was based on a 37 year old person with 200 000 alone that should be different than interest go ahead and let me go to the next one okay so for everyone that's here tonight if this is something you want to look at or do when you go to our website dmg credit if you put hbs oh i put half price i told you 300 it's half price so you're totally out of pocket 600 when gary and i got this opportunity i want to give you two people [Applause] and we'll answer we'll uh have the whole payless to answer questions at the end okay uh so i'll try and make this quick because i gotta use the restroom right i've been drinking a lot of coffee um questions loan officers should ask before taking an actual 1003 or a mortgage application that's the code 1003 right so basically before i have you fill an application i should ask you a few questions first i should interview i should sort of uh have like a primer conversation to see if it makes sense most loan officers are doing this to protect their their their uh their costs because it does cost money to pull credit but sometimes it's better to protect your credit than to pull it uh you know uh arbitrarily like i want to know what you're working with if i know that there's no way you're going to qualify me point your credit might actually hurt your credit and we would do that needlessly right i would tell you you know what credit is probably the last thing you worry about you worry about this this and this and then we'll look at your credit right so these are questions that i ask my clients if i can before they pull a pull they give me their mortgage applications now sometimes people see my application online they fill it out no problem i'm gonna pull it anyways but if i have a chance i want to uh sort of give it an opportunity to protect your credit okay so i should bring my credit score yeah and that's a very advanced that's a that's a that's probably like an indeed class right or uh a conversation but the truth matters what you find is not the same as what i find because we are actually doing uh actual inquiries to the bureaus like we're asking them hey can you please provide me this client's information and we're paying for that information so they give it to us what you guys find you're not paying for it that's not an inquiry okay i'm sorry so that means uh it depends they're doing everything right but all of a sudden they come to you all they say you tell me oh no i can't find these guys after this i'm fine because i come to you and they come to you it's like oh you like obliviously [Music] my suggestion just so you guys understand if you really want to know where you're at you do talk to me and let me pull your credit because ultimately what i see is what matters these guys but you know what i disagree with but when you hear my story will you be sympathetic to me of course of course i have to be because it matters um basically whenever you decide to uh apply for a mortgage you're partnering up with us okay because it's a partnership you get a house we get a commission right so it's a partnership so i need to know within the partnership what i'm partnering up with so i definitely have to be sympathetic to what you're what you are working with and what you want to accomplish that's actually one of the first questions i asked so what are we trying to accomplish here what what is your goal right but i didn't i have i asked a lot more questions but i'm kind of uh highlighting the main questions and why i asked it okay so work history uh why is work history important because you got to pay for the mortgage right you have to be able to have some sort of proof or documentation or something that we can depend on to make a decision if we can lend you money because we're using two years of your history to make a 30-year bet okay so basically i'm gonna loan you money that i'm asking you to pay for 30 years i'm only asking for two years of information yeah i'm saying and why is too important two is important because we need to see consistency okay so let's say you make a million dollars one year and you make zero the next year there's no consistency i'm not gonna qualify okay but if you make fifty thousand dollars one year and fifty thousand next year that's consistent that's two years without two years i don't know what's consistent i only have one year there's nothing to compare it to that's why two years is important okay so i need two years important so that's why work history is important income per month why is that important because of course it helps me determine your buying power okay if you make a thousand dollars a month you can't get a thousand dollar mortgage it's not gonna happen but if you make four thousand dollars a month then a thousand dollar mortgage might work out okay so that's why i asked that question in reality i'm going to want to actually look at your pay stubs and actually do the calculations but i want to know your opinion as to what you think you make it's especially important when it comes to self-employed okay so again i need your work history if you're w2 or you're a salary hourly it's a little bit easier to determine how much you actually make right but if you're self-employing your commission it's a little bit harder okay because some people don't uh report everything some people uh have have uh losses because you know they own a business you know maybe maybe you drive a car maybe an uber driver right you've been doing for two years make this much money over but then you gotta pay for your car you gotta pay for maintenance you gotta pay for gas et cetera et cetera et cetera right so someone put a little bit a little bit more difficult but i will ask those questions and the question is are you w-2 are you self-employed self-employed okay you know what we're going to stop talking about it do you have two years or you're great is it all your taxes okay great no more conversation i need to look at your taxes right away that's basically what's going to come down to it there's no conversation you're not going to have where i can actually know what you're making i have to look at your taxes whereas if you're w2 you're a salary an hourly i can probably do the math on my calculator okay you have a question real quick two years two years what you're doing and how much you're making period right so i'll give you an example of what what two years mean let's say you uh were a skydiver for one year and the next year you decide to become a masseuse those are two different jobs uh it might not work out i mean it would be an underwriter question right but let's say you sold cars for one year and then you sold airplanes for the next that might work i don't know i can look at it right payment history for what kind of payment history what do you mean this is about work history so i don't know you might pay me a little different history it's actually okay for example so therefore could that be it's easier bottom line commission is easier than self-employed if that's what you're asking if it's from a company it's a lot easier the reason why because normally when a company pays you a commission and the question she asks is commissioned with a different commission and and and self-employed and a w-2 salary right the reason why commission is still easy to calculate because i have a record of it i can ask your company i can do a voe verification of employment i call your boss say hey listen this person says she makes this much she gets this much in bonus and this much commission do you confirm that okay great does this do you think this is going to continue yes okay great if the answer is no then we're in trouble [Music] the bottom line is if i have a record of it it's easy if i don't it's impossible most people who have a business and i'm gonna say most people and this month from my experience most of you have a business have a really creative really really good cpa that writes everything off so they're making a hundred thousand dollars but on paper they're making ten thousand dollars you can't avoid paying taxes guys if you wanna improve income you gotta pay taxes on the income yeah i'm saying but that's what i'm seeing the most and that's why this conversation is very difficult and that's why i told you how many questions got asked when i asked someone are you w2 or at some point some point okay you know what don't worry a question about seven point have you been two years okay great and your tax returns right now no more conversations too complicated there's too many what is this and that and left and right i do your tax returns give it to you right now otherwise [Music] believe me for my employees [Music] [Music] and what you just did right now is what we need because absolutely yeah it's such a it's such a convoluted system that you need advocates like ourselves but yes the system is very convoluted very complicated that's why you need professionals to help you because we are even ourselves even even us have a hard time understanding everything we don't know everything at the time i have to ask someone else right so that's why self-employment no more questions let me see your tax returns that's it because you're not gonna talk for like an hour and we're not gonna and we're not gonna know the answer you know what i'm saying because i need to see the numbers okay so w-2 let's go on to the next one let's go on the next question some boy no more conversations let me look at your tax returns okay next question credit scores this is a funny question she talked about it and he talked about it um when i asked person credit scores i'm asking them not to call them out but just to see how far they've gotten into the process maybe they've done some research maybe they apply with another mortgage person because sometimes i'll ask them what's your credit score it's like oh the last lender the last winner i tried applied to told me i got a 640 but they didn't give me a loan i was like wait a lender then you apply for mortgages yeah then i know that that number is accurate because all lenders across the country maybe maybe in the world i don't know but cross country we all use the same system so if a lender in california pulled their credit as a 640 yesterday i'm gonna see a 640 as well period okay we use the same system it's called fico four five and two okay we all use the same system but if i ask them what's your credit score and they go oh it's a 700 okay where'd you get that credit karma that's what i'm like i don't know that's gonna be correct okay but i'm gonna write it down i'm gonna write it in my notes that you got you can give us 700.
Because i already know i'm gonna have a prepare a conversation where when i pull your credit and instead of being the 700 that's 650 and you're going to blame me for it you'll be like well my clothes are 700 you said 650 you must have lowered my score no not true it's just that you were fed bad information yeah i'm saying so that's why when i had this conversation i'm going to prepare i'm like listen i'm glad the credit card says you have a 700 i don't know that's what we're going to see because there that's an inquiry obviously you're getting information from a consumer credit where there's no inquiry you didn't pay anything for it for the most part so it can't be completely accurate what i do is i ask inquiries from the bureaus who own your information the ones who who are basically selling it off and i inquire and i pay for the information and they give me the true information that we all lenders have agreed to use to grade people on their mortgages okay then i asked how much do you pay monthly on a credit card debts car notes and student loans when i ask that question i'm asking you what do you pay or what are you obligated to pay for the liabilities every single month a phone bill electricity bill those are not debts those are services you're constantly paying month by month and if you stop paying you stop getting but a debt is something you owe period you got to pay it no matter what just like when you go buy a new car just like when you buy something from cons a furniture or a microwave whatever right or if you have student loans you owe that money you have to pay it back that's what i'm concerned about because that's what's going to be on your credit report and that's what's determined on your debt to income ratio okay debt to conversions how much money you're making versus how much you are obligated to pay on your credit report okay there is a percentage that all loan uh companies uh all investors they all have a certain expectation normally the number is around 40 okay 42 43 45 40 is a good number to be at okay 50 that's a little bit more riskier there are some programs that allow that but for the most part 40 is the right number so if you want to do the math in your head real quickly if the amount of money that you're making versus the amount of money that you have in debt is already at 40 you're not buying a house okay go ahead i'm sorry if if the amount of money you make divided by the amount of money you owe on your credit report is 40 you're not buying a house period because you're already at 40 bti before you have a house and forty percent of the maxim bill that you have total you know i'm saying now if you're at ten percent then you have 30 percent debt income ratio to play with so you can actually do the math and figure out how much house you might be able to afford on a monthly basis but the way i try to help people understand how much they can afford if they can even afford a house is just do the death income ratio calculation right now without a house meaning you don't have a mortgage payment yet if it's already at 40 you're not going to be able to buy a house period go ahead well then that's easy that's easy it's about 30 it's about 30 on the front end 30 on house alone okay they won't really go above that so basically the way you calculate it is you want to know what your monthly payment can be in terms of a house right because that was that's what determines your purchasing power 30 yeah 30 income yes yeah so let's say you make ten thousand dollars then that's three thousand dollars you're allowed to put into a mortgage payment you can search online how much does 3 000 a month buy in in this market and let you know what the purchase price is about okay it's a good way to kind of reverse engineer your expectations but in reality you should talk to someone like me okay but i'm just kind of giving you some math to work with okay um so that's what that's a good question credit scores just just be real quick about it 580 is the minimum uh for the most part to get an fha at 3.5 down most lenders are not doing that right now because of coven and everything else they've actually increased their they called overlays they've increased their overlays to about a 620 to 640 okay then by um what i work for we still do 580s a lot of us because we still service our own loans we warehouse our own money you know we're a direct lender so we're allowed to we're willing to take a little more risk because most of the loans uh that lenders uh loan out they are loaned for they actually take that loan and they sell it to the secondary market like wells fargo chase whoever right so they basically package the loan after they buy the house and then they sell it off and get their money back to go do another loan okay i'm saying um there's expectations these investors have for a loan to be for something they're willing to purchase we call it being sellable right so that's why they have these guidelines it must be a 580 credit score the debt to immigration went through this much the half would be like this okay that's a good loan we're going to go and buy that from you guys okay he's buying debt like we talked about right um we're going to risk the fact that it might not sell meaning like let's say we take a riskier loan and the investors are willing to buy it well we can we have the abilities to to service it ourselves yeah i'm saying so that's why we don't have overlays is what we call it which is a an extra restriction on top of what's already uh uh agreed upon by fannie and freddie okay so favorite phrase it actually wouldn't go down to 500 credit scores we won't go below 500.
Okay well there's exceptions okay but that's a little bit complicated information uh or a conversation just know that 580 is where you want to be at now some people think if you have a 580 credit score you're going to qualify automatically that's not the way it works 580 is where you have to be in order to even be considered okay so you have a 579 it doesn't matter if you're a millionaire it doesn't matter if you have all the money in the world 579 you're not going you're not going fha uh with a 3.5 down so it's i consider it a hard stop not a qualifier right so when people ask me you know what i need to qualify well you need at least 580 to not be qualified is the way you should look at it okay it's a hard stop for fha conventional 620 but more than likely if you have a 620 you end up on fhf okay uh because the underwriter system which i describe it as sort of like a uh algorithmic robot mortgage god that knows about all mortgages and systems and all the different loans and when you put the information into the underwriter system then it spits out an answer approved or needs work or refer what you know there's different terminologies ineligible whatever but we need to get approved eligible and the robot god determines that after we submit a loan based on the structure that we set up meaning credit scores how much you make how much funds you have job history things of that nature right so 620 is a hard stop for a conventional museum at 619 you're not going to condition at all but in the 620 you have a chance of going conventionally and if you do then uh you might actually want to consider both options fha or tremendous because conventional might be higher higher rates right it might be tougher you'll have to pay more uh uh in in rate costs they call it discount points to qualify these are nature so 620 is kind of iffy but at least 6.2 qualified for conventional now if you want the best rates meaning where the rates are going to be the lowest or you actually see an um you actually see a benefit to buying a 680 is going to be about where you want to be okay save saving plus okay um all right moving on the next question i asked okay go ahead it all depends it all depends you actually might end up with a better rate rpk than conventional because you have a high score for everything you have a low score for a convention if that makes sense right plus fha has other fees so maybe the rate's lower with fha but it actually cost more because of the mortgage insurance whatever which uh you know fha has upfront mortgage insurance which actually might make it more expensive yeah i'm saying so it really depends it's there's no hard or fast answer to that question yeah but it doesn't make a difference you still have more insurance until i think 17 years yeah actually the the the weird nuance is if you put 10 down after 17 years you can drop mortgage insurance but most likely you're not going to do that most likely you're fha and then i'm going to call you two years later and refinancing into convention because your credit scores will be better you have equity etc so i mean i'm not saying it doesn't happen but more than likely you're not going to go 30 years of fha if that makes any sense okay because you can get more insurance and your scores are better etcetera etcetera right okay so next question uh this is actually the third question i asked because i asked about the job asking the credit score the next question is do you have funds prepared for a home purchase okay and someone goes uh you're not ready to buy a house okay if i ask you do you have fun set aside for closing good creatures you're not ready you need about yes i have ten percent yes i have five percent yes i have five thousand just have three down you need to be confident you need to know because if you don't know you don't know what you're getting yourself into buying a house is very expensive okay it's going to take money out of your bank account and it's going to be also stressful so what situation you want to be in where you're going your your bank has been cleared and you're stressed at the same time you want to be in that situation you want to go in comfortably you want to go in smooth and and prepared okay so when i ask this question i'm asking for two reasons number one i want to know how prepared you are and number two i want to know what kind of conversation you want to have is this going to be me coaching you as a first-time homebuyer that hey you might not be ready to buy a house or is this me telling you hey you know what i'm glad you have 5 000 you might need about another 6 000 school right so it depends on how the answer how i treat the rest of the conversation okay so if someone goes well i don't really have anything set aside i'm hoping for zero zero down you know uh down payment assistance you're still not prepared because there's no such thing as a no money out of pocket loan it doesn't it simply doesn't exist you're gonna pay something you're gonna pay for an appraisal you're gonna pay for closing costs something's gonna come out of your pocket period okay or coming out of someone's pocket for the most part okay you can't buy a house with no money in the bank it's basically what i'm saying okay uh so another question has a 401k or savings for whatever reason i ask this question and a lot of people don't or i don't ask this question i ask you a fund set aside and people say they don't have any funds but they don't tell me they have a 401k or they have a savings okay so that's why i'm bringing it up okay so i have people tell me yeah i got about two thousand dollars in the bank which is not enough for anything but they have a 401k with 30 000 okay well then you have the funds you have more than enough funds to close but i had to dig that out of them yeah i'm saying so i think most people don't realize that a 401k is a strong option to to to use as funds right it's almost like in their mind they forgot they had it or they think it's like something that they can't get into until they actually retire which is simply not true 401k is used all the time for down payment in fact they encourage it by giving you tax breaks and benefits to using the 401k to buy a house it's one of the best reasons to use a 401k okay so i'm only bringing it up because a lot of people don't realize that but in reality it doesn't matter because most people don't have a 401k okay all right so again when i ask for funds okay i need to know at least you have three for 3.5 percent now for fha at least five percent down for conventional there's a secret convention i call it secret not because no one talks about it it's because no one knows about it it's called the home ready which is only three percent down but it's conventional there's a certain stipulation behind it like you can't make too much income things of that nature and that's another conversation but i just want you to know that there is a convention where you put only three percent down okay va which is a loan for veterans or people that are in the military that's zero percent down if no one here is in the military then this conversation doesn't mean anything okay usda is zero percent down the reason why that's relevant is because we're literally ten minutes away from usda territory prosper is all usda right so basically if you're willing to buy and prosper you can qualify possibly for a zero percent down loan there's a few things that matter how many people live in the house meaning you have children do you have like a brother living there etc etc etc right but for the most part if you have a 640 plus credit score you don't make too much income you have a lot of kids usda is a great option okay it's a little bit more complicated a little bit more work but worth it to not put anything down okay uh and again we talk about closing costs closing costs a lot of people forget about this a lot of people forget that you got to pay for processing underwriting you got to pay for uh an appraisal uh inspection uh you have to um possibly buy down the rate there's things that come along with buying a house title right you have that title you have the money to put into escrow like your future taxes and your future insurance right and the ladies actually trying to talk about closing costs the reason why i'm telling my closing costs now and emphasizing it because people forget about it they're like yeah i got three percent down okay what about closing costs oh uh i was hoping for you know well how much was the cost now it's all pretty much the same across the board anywhere between two to five thousand dollars right so three point five percent down plus two to five thousand dollars you're pretty good so that's when people ask me how much do i need to put down or how much do i need to have set aside to buy a house i go about ten percent even though we have a three percent that three point five percent down even though we have a five percent down and even though we have a three percent down uh mortgage loans i still think you need to have at least 10 percent in order to go safe right plus we don't want to make you cash for that's the worst thing that we're going to do to you is put you in a mortgage and your bank account says zero right we don't want that we want to have reserves right so even though we tell you you need to have ten thousand dollars we only need seven thousand of it because we want to have three thousand in the bank when you close so you can make your mortgage payments or you can buy furniture you have you don't have to eat ramen right so that's why we might need more than what you actually are using towards actually getting to the house okay student loans this is another question and i'm glad um the credit expert mentioned it because student loans uh the reason why it's important because a lot of people are in deferment meaning they're not paying anyone it's income based or whatever they're you know they're still in a situation where they're allowed to profit from zero some cases we can use that zero as the payment but in most cases it's gonna be one percent right so what i mean by that is if you have a million dollars in student loans we have to hit you every single month for a one percent of a million right which is like what like ten thousand or something like that that means you have ten thousand uh uh a monthly debt added to your definition you're not by anything yeah i'm saying so that's why someone's very important i'm gonna ask you also i'm gonna ask you are they in forbearance because they're in for bears you need to get out of it because forbearance is basically you see it on paper you can't afford to pay your student loans if you can't afford to pay your student loans how can you afford a mortgage yeah i'm saying so you need to be out of forbearance in the student loans and the reason i'm bringing this up because i see this a lot lately in the last 12 months where people had their student loans in forbearance and sometimes it was done automatically like by the company not by you you didn't ask for it it was done by them and because of that uh we have to wait but we have to get modified before we can qualify them for a mortgage application right uh so like i said the purpose forbearance and uh income-based payment meaning whatever you're making versus the zero percent for that zero percent is kind of a uh a general number in some loan products it could be 0.5 right or half of a percent whatever okay red flags okay so this one and hopefully i'm not going to too far ahead uh maybe i'm about five minutes past so i'm almost finished red flags is a very general general general question uh so the last part of the question i go do you have any red flies that you want to volunteer and then what do you mean by that do you have money owed to the irs are you being sued by somebody are you in the middle of a divorce you know have you been divorced has there been a bankruptcy has there been a foreclosure do you owe back child support lots of things that people i guess don't think about so i bring it up to hopefully get it out of it because again if someone says oh yeah i owe like a billion dollars in child support you're not qualified for anything i don't care if you make a million dollars a month i don't care if your credit score is 800.
You're not qualifying for anything actually someone got mad at me but i told him that did say they said oh i got a bunch of back child support i go well then you can't qualify until you get caught up on that it's like what if i have perfect credit i'm like it doesn't matter you're from credit you owe money to the government you're not you're not getting a mortgage and he got mad at me because they found something google but they were wrong okay um so that's why i asked these questions because again i'm trying to protect credit like i told that gentleman there right if you have back child support and you're not going to get uh hurt on it there's no sense that you applying for emotion with me because i don't care what your credit uh report says you're not buying a house because the background support is going to stop you okay it's part of the guidelines if you don't have they call it a cavers which is a search it's like a background search if you don't have the clear cavers you're definitely not confident for any government loans that's usda va or fha you're out you're out of the box for that one if it's not a clear cable clear and the clear capabilities could be something as simple as a student loan that you owe right if it's on there you're not going anywhere you're not buying anything okay um and for the most part conventional same thing if you own back taxes to the irs and you don't get current you don't plan to pay them you're not buying a house you have to get current you have to have some sort of payment plan in place right they're very very strict about that kind of stuff right but if you do have red flags i don't want to answer questions about that it's just too much just call me we'll talk about it okay and that's why i have that answer all right so you can contact me larry lee three two six two six two one nine three my information should be already in your folders you can just google me if you forget everything you lose that larry the mortgage guy you'll probably find larry the mortgage guy in frisco you'll find me okay all right thank you very much any questions for anybody yes there's absolutely income limit and there's actually a way to check that you can probably google it and go what is the income limit for usda and they'll actually probably lead to a website we actually put your information on the official usda site and then it can determine but yes usda the reason why usd is very complicated because it determines a lot of different things like the area uh the age of your children how many children you have or who's who has a job there is there anyone with a disability you know are you paying uh talk um child care there's lots of different variables that determines whether or not you so let me put it this way you might make a hundred thousand dollars but according to usda you only make sixty thousand dollars because of all the children you have it gets adjusted based on the information provided so the answer is yes but it's impossible to tell you what it is it's a matter of opinion right i've heard that some people like to do it that way but in reality it's better for you to go to the loan officer in my opinion because we at least export every option yeah i'm saying maybe usda is not the best option for you maybe uh fha yeah i'm saying so um if i say that you're better off on usda you can go ahead and decide to go and direct it to them and talk to yourself and then you decide which way is the best one but i would implore you to not just go straight for usda i would import you to talk to a lender to at least look at everything and tell you whether or not you'll see a good option if that makes sense any other questions and i want to emphasize for you guys and i'm pretty sure they will follow up as well this is not like hey nice to meet you i'll see you later peace out we're trying to start a conversation we're trying to start a relationship with you do you always ask questions later if so if you leave here and you're like man i should have asked you know amber this question just reach out to us we're giving you information to do that in fact we want you to do that because we're trying to earn your business we're trying to make you our clients obviously so we want to do whatever we can to earn it that means being available to answer questions by all means that's what we do anyways so please realize that this is just the beginning and not you know the last time that we plan to see you hopefully we see you guys at home uh at least by 2020 too that's the goal at least there's actually three participants on the call let me see if they ask any question don't ask they're just quiet oh i'm sorry if the quality of the sound wasn't that good uh honestly the guys are kind of spread out you guys can see if if i didn't wasn't balled down trying to create the presentation i would push all the chairs up closer when i do a presentation for myself all the chairs are all the tables over here they're always right here you know what i'm saying that way i don't have to yell to talk to them and if they ask a question the mic can hear them my wife always tells me i'm too loud anyways if someone wants in the back and chill that's cool [Music] you