HOME BUYER ‘101’ COURSE
Before you start, please watch this short video on the no BS approach we take.
Get straight answers and more to every step of the home buying process.
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Before Purchasing a 🏡
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Finding The Right Mortgage Specialist
How to find the right mortgage specialist to guide you forward and reach your needs & goals.
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The Process Matters!
Did you know that most lenders don’t give you a full pre-approval, let alone a full blown consultation. The right process matters and will make the difference!
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BONUS: Pre-Approval (Magazine)
Download and access more information on the proper process and what to expect.
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The Pre-Approval Process
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Initial Discovery Call (with a lender)
Introduce your lesson with an optional, short summary. You can edit this excerpt in lesson settings.
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The Loan Application (via phone)
You should be taking a phone application with the lender. Online applications are for lack of a better term, garbage.
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Submitting Your Documents
For a true pre-approval, all documents are 100% necessary. Find out some tips to make submitting them much easier.
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In-Depth Consultation
By far, the most important step in the process!! Believe it or not, 99% of buyers never get the consultation we believe is so necessary.
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BONUS CONTENT: My Credit Card Worksheet
Download and use to take control of your debts and finances. If you fail to plan, you should plan to fail. We don’t want this to happen!
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BONUS CONTENT: CalHFA vs GSFA (side-by-side)
Too many people get sold a program (“nurse” , “first responder” program, etc.). In California, CalHFA & GSFA are the two largest down payment assistance programs out there. Get a never before seen side-by-side comparison!
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The New Home 🔎
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The Do's & Don'ts when home searching
Let’s discuss what to do, and what not to do when looking for a home. This all comes down to one final “credit refresh” at closing.
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How to Stay one step ahead!
Does your lender stay one step ahead of each decision by working with your realtor? You should always “know before you go”…!
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Submitting an offer on a 🏠
Find out more on submitting an offer, contingency periods and what the lender & agent does on the back end.
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The Escrow Process
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Your Initial Deposit and Contingency Period Protection
Learn about the multiple ways your initial deposit is protected. Loan, appraisal, inspection and seller disclosures are all contingencies to protect you.
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The First 3 days of Escrow (moving fast)
Learn about the importance of moving fast in the first three days of opening escrow on your new home. It will set you up for a smooth process the whole way through!
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The Home Appraisal
Understand what an appraisal is for in the eyes of the lender. What are the state required “health & safety standard? If the value comes in low (below your offer price), find out how you’re protected.
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The Conditional Loan Approval
As mentioned before, if you perform a full pre-approval upfront with the lender, this part of the process is smooth as butter. If you go with a lender who gets minimal paperwork up-front and do a quick “pre-qual” then this could spell major problems, once underwritten.
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Can a Seller Cancel on Me?
Although it is very rare, there are only two ways that a seller can cancel on the buyer. But, you would know up-front if there was a chance for this to happen. Sounds crazy, but this is a major concern for many.
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The Last Week of Escrow
The last week of escrow is all about collecting any final loan conditions needed and issuing your Closing Disclosure. Once all items have been satisfied, the lender will be able to send out the closing documents for you to sign.
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Bonus Topics
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TOPIC: What is a Debt-to-Income Ratio?
When qualifying for a new home, depending upon the program, everyone’s financing lives and dies in a “box” we call debt-to-income. Understand what it is and some inside info on calculations.
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TOPIC: Student Loans
When qualifying for a new home it all depends upon which program you use (Conventional, FHA, VA, Jumbo) that dictates how a lender must qualify you with student loan debt. It’s not as bad as you may think!
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TOPIC: Co-Signed Installment Accounts
When qualifying for a new home it all depends upon which program you use (Conventional, FHA, VA, Jumbo) that dictates how a lender must qualify you with student loan debt. It’s not as bad as you may think!
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TOPIC: Down Payment Assistance (in CA)
One of the the largest mis-advertised programs in the lending world comes from down payment assistance. In this video we take a deep dive and hit you straight with the facts.
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Meet The Beard
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Meet The Beard ✳
‘ In lending, you’re either being sold or educated. ‘
For too many years I have seen homebuyers get sold or misled from others in the mortgage industry.
I find great joy in removing the mystery of the PROPER BUYING PROCESS and outlining a plan for each client to reach their goals.
Seeing the moment my clients fully understand how it all works and knowing they are making the best decision for their family is the best feeling in the world.
Q&A FAQ
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Simply put, it’s someone who has not owned a property within the last 3 years. Go figure…
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Honestly, it starts with just a open phone call. We will answer every single question you may have, outline the process, discuss the documentation needed and more.
From our side of the table, I really just want to get to know your needs, goals and budget in order to outline a path to success within your means.
No sales, no BS from us.
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This may not be what you want to hear, but the only benefit to being a first-time buyer is the option to use one of the down payment assistance programs out there, if you qualify and they allow you to reach your new home goals.
More importantly, you may think there are dozens, if not hundreds of DPA programs available. The truth is there are only a handful.
No money is free money. The funds given to you by the state must be repaid upon sale or refinance of the first mortgage (ie when rates come back down).
More importantly, most buyers are sold a “nurse program” or a “first responder program” when really it’s something else.
When in a buyer’s market, if you can come in with the minimum required (3% or 3.50%) down payment, often times you can get the seller to cover all/most of your closing costs and avoid “DPA” and repaying later down the line.
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FHA Financing is very lenient, Conventional loans are VERY credit score and employment history sensitive. Let’s break it all down Below:
Interest Rates:
FHA: Usually 0.50% LOWER then Conventional
Conventional: Usually 0.50% HIGHER than FHA
Min Credit Scores
FHA: 580 FICO
560 FICO w/ 10% down payment
Conventional: 620 FICO
Allowable Debt-to-Income
FHA: 55.99%
Conventional: 49.99%
Monthly PMI:
FHA: Same for all:
3.50% down: 0.55%
5.00% or more: 0.50%
Conventional:
FICOS 620-720 = Very high monthly PMI
FICOS 721-760 = Lower PMI than an FHA loan
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YES!
In most cases we can get your pre-approval in place while working on your scores, so you know where you will land.
More Importantly:
Would you rather “work on credit” blind, or have a seasoned professional in your corner helping?
With the pre-approval in place (pending higher scores), it will allow you to know:
How much money you need to save up.
Get in front of an clean up any items that may need to be addressed.
By the time your credit scores are where they need to be, you will have everything in place. Too often we get told by clients, “I’ll call you when my credit is higher”. When that time comes, a new issue arises which we could have addressed months prior, but now are delayed another month or three.
We are here to help!
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We cannot tell you what’s best for you, but what I can tell you is:
A retirement account is a “volatile investment vehicle” (tied to the stock market in most cases).
With the stock market 15+ years over-due for a correction (large drop), when that day comes, you could lose 25% - 45% of your retirement balance.
At that point, you might as well have used it to your benefit.
When pulling from a retirement account, that money is being placed in a “forced savings account” (your home’s equity).
Money on money: A '“normal” real estate market appreciates 4.50% annually. 2008 - 2019 the average YoY appreciation was 8.50% - 15.00%.
That is not a bad return on your money if looking at it from an investment point of view!