Latest / Connor with Honor: AI, Real Estate and Real Life / What you need to know about special buy down loan programs by the Fat to Fit Realtor Santa Clarita

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What you need to know about special buy down loan programs by the Fat to Fit Realtor Santa Clarita · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Everybody, welcome to your real estate update.
• 0:02
  SPEAKER_00: We're going to do this here March 24th, 2023.
• 0:07
  SPEAKER_00: We're going to go ahead and log into the board, see what's going on there.
• 0:10
  SPEAKER_00: Lately, as far as interest rates go, they popped up a little bit.
• 0:13
  SPEAKER_00: I guess that debago in San Jose kind of created some issues.
• 0:17
  SPEAKER_00: Then uh the government, through maybe other banks having rumors of potentially them failing as well.
• 0:25
  SPEAKER_00: Yeah, interest rate went up a little bit.
• 0:27
  SPEAKER_00: So that's where that is.
• 0:29
  SPEAKER_00: Uh rumors still pretty strong, though, that it's going to be coming down.
• 0:32
  SPEAKER_00: We'll have to wait and see what that happens.
• 0:34
  SPEAKER_00: All I tell my clients is if you are buying something, some real estate, make sure that you're doing it knowing that you're good to go on your payment as interest rates are now.
• 0:48
  SPEAKER_00: Let's say you're going out to buy a piece of residential real estate and they're giving you some other loan program besides a 30-year fix.
• 0:58
  SPEAKER_00: And I'll give you an example of that.
• 0:59
  SPEAKER_00: Let's say for the first couple years, they're going to readjust your interest rate so your payment's less.
• 1:07
  SPEAKER_00: So instead of six, let's say they're going to make it four and a half.
• 1:11
  SPEAKER_00: It's called a three, two, one buy down.
• 1:14
  SPEAKER_00: It's a loan program, basically.
• 1:16
  SPEAKER_00: But usually the buyer doesn't have a lot of impact with it, except for the fact of the matter, for those two years, you're going to have a lower than normal payment.
• 1:25
  SPEAKER_00: And those little points, those little interest points, they add up quite a bit when you're talking about, you know, a million bucks, seven or a thousand bucks, whatever it may be.
• 1:33
  SPEAKER_00: So they do build up.
• 1:35
  SPEAKER_00: So just be weary.
• 1:36
  SPEAKER_00: Whenever you start to get out there and you're considering buying real estate, know what your all-in payment is going to be.
• 1:42
  SPEAKER_00: And also, if if they are going to give you that kind of a credit and for the next couple of years save you some money, that's great.
• 1:49
  SPEAKER_00: And you know, maybe that'll work great for you.
• 1:51
  SPEAKER_00: But just understand that you need to set aside that difference.
• 1:54
  SPEAKER_00: So when your payments start after those two years are up, or you refinance before then, whatever, maybe at least you have that money saved.
• 2:03
  SPEAKER_00: You're not just going out there and using it for other things, then getting used to that.
• 2:07
  SPEAKER_00: And then all of a sudden, after two years, if the interest rates don't change, then all of a sudden your payment goes higher, and what a mess.
• 2:16
  SPEAKER_00: So just watch out for that.
• 2:17
  SPEAKER_00: As far as real estate goes on the seller front, about 200 listings.
• 2:21
  SPEAKER_00: I'm I'll run that number right now.
• 2:28
  SPEAKER_00: And the listings that are uh going to be coming up.
• 2:31
  SPEAKER_00: This is gonna be all residential, all of Santa Clarita Valley Cities.
• 2:35
  SPEAKER_00: So Castilla, Canyon Country, New Hall, Saga, Stevenson Ranch, and Valencia.
• 2:40
  SPEAKER_00: I have a saved search here, so you'll be able to see, or I'll actually be able to put that up.
• 2:46
  SPEAKER_00: So right now, active daily results.
• 2:50
  SPEAKER_00: So I'm running all residential, everything active or coming soon.
• 2:54
  SPEAKER_00: So these are properties that are not under contract.
• 2:57
  SPEAKER_00: These are actually what's currently for sale.
• 3:00
  SPEAKER_00: Uh, some of the online systems are gonna show you properties that are under contract, not actually available for sale right now.
• 3:07
  SPEAKER_00: So watch out for that.
• 3:08
  SPEAKER_00: If you're out there searching the Zillows and the Trulias and stuff like that, just make sure what you're looking at.
• 3:13
  SPEAKER_00: A lot of the times as well, people say, Oh, I want to contact the the agent has a listing.
• 3:18
  SPEAKER_00: Good luck with that.
• 3:19
  SPEAKER_00: Um, it's gonna be difficult to find the actual listing agents listed on Zillows.
• 3:24
  SPEAKER_00: Some in some cases, that is that is the way it is.
• 3:27
  SPEAKER_00: A lot of cases, though, that system's being built in order to generate leads for real estate agents.
• 3:34
  SPEAKER_00: So the agents that are paying more are getting more.
• 3:36
  SPEAKER_00: That's kind of how I guess that's life, right?
• 3:40
  SPEAKER_00: When you're looking at a listing on there, therefore you might see that this particular listing listed for sale by this agent isn't actually the agent of record.
• 3:49
  SPEAKER_00: That might not be a bad thing, though, because now you have your own agent working with the other agent.
• 4:00
  SPEAKER_00: And usually it's it's a they get along, it's a get-along type relationship.
• 4:05
  SPEAKER_00: But every once in a while, and especially if one of the agents is trying to do something that they should that shouldn't be done against the buyer or the seller, depending on which side they are.
• 4:17
  SPEAKER_00: Uh, not their side though, but the other side.
• 4:19
  SPEAKER_00: So let's say there's something that needs to be disclosed, for example, and the agent representing the seller is telling the seller not to.
• 4:26
  SPEAKER_00: Let's hide it from the buyer, that sort of thing.
• 4:28
  SPEAKER_00: Well, that's a problem.
• 4:29
  SPEAKER_00: That's why it's good to have your own agent, because if that ends up happening, it gets discovered, agent's gonna come to you right away and say, hey, listen, this is what's going on, Jack.
• 4:37
  SPEAKER_00: You need to watch out for this, and we need to go speak to the powers that be and bring this to everybody's attention, or whatever the most correct solution would be.
• 4:47
  SPEAKER_00: We'll we'll implement and use that.
• 4:49
  SPEAKER_00: But that's where the inventory is, that's what we're running.
• 4:51
  SPEAKER_00: We're running everything in Santa Creta Valley, all residential real estate.
• 4:56
  SPEAKER_00: So condominium, townhome, duplex, quadruplex, triplex, whole nine yards.
• 5:02
  SPEAKER_00: And the results are these, ladies and gentlemen.
• 5:05
  SPEAKER_00: 219 hasn't changed for the last few days.
• 5:08
  SPEAKER_00: 219 active, uh actually coming soon and active listings.
• 5:12
  SPEAKER_00: 13 of the 219 are coming soon listings.
• 5:16
  SPEAKER_00: That's uh if you look at that online and you see it, the coming soon is basically a property that isn't being shown as of yet.
• 5:24
  SPEAKER_00: Uh, sometimes it's used as a seller tactic to build an interest list.
• 5:28
  SPEAKER_00: And other times maybe the seller's not ready to actually have the property viewed for sale and wants to kind of see, you know, kind of get a feel what's going on.
• 5:36
  SPEAKER_00: And how many people might be interested getting some kind of feedback from his agent?
• 5:40
  SPEAKER_00: Oh, yeah, God, I've gotten so many phone calls on your property, or yeah, been crickets, chief.
• 5:45
  SPEAKER_00: Haven't heard a thing.
• 5:46
  SPEAKER_00: But whatever it is, sometimes that's how that is being used.
• 5:50
  SPEAKER_00: Is there a case that you might actually be able to get into the property, look at it early?
• 5:54
  SPEAKER_00: Depends.
• 5:55
  SPEAKER_00: It's gonna depend on how good your agent is and how uh sweet of a tongue they have when they start to ask these questions and see if it's possible.
• 6:04
  SPEAKER_00: Sometimes it is.
• 6:05
  SPEAKER_00: Most of the time, though, the seller does need that time.
• 6:07
  SPEAKER_00: So make sure that that's of course honored.
• 6:09
  SPEAKER_00: And when you're looking online, a lot of the systems as well.
• 6:12
  SPEAKER_00: I'll give you this update also.
• 6:14
  SPEAKER_00: I've been seeing where the uh values of properties have been really different.
• 6:20
  SPEAKER_00: The variables that are involved, when you have the online systems telling you what a piece of property is worth versus looking into the actual system and comparing apples to apples, doing a hard pull of all the recorded property sales within the last 180 days, comparing those with other properties that are very, very close and very, very similar to yours, also within close proximity.
• 6:42
  SPEAKER_00: So we not only have time, we have location, and then we have type, which type breaks down in a lot of different fields.
• 6:50
  SPEAKER_00: And that's going to be in reference to what properties are being compared with yours.
• 6:54
  SPEAKER_00: Are they all still stick-built framed type stucco covered houses?
• 7:00
  SPEAKER_00: And all pretty much same year built, uh, within a couple two, three hundred square feet on the plus or the minus side of your residence's square foot.
• 7:10
  SPEAKER_00: Look at bedroom, bathroom, couch.
• 7:12
  SPEAKER_00: You know, exact matches are great, all the way down to the half baths and three-quarter baths, if that was documented correctly.
• 7:19
  SPEAKER_00: So that's really, really good.
• 7:20
  SPEAKER_00: So you put all that data together and then you start looking at those sold properties, and then you look at other variables, what type of financing is being allowed.
• 7:29
  SPEAKER_00: In some areas, you're gonna have financing that's gonna correspond to FHA products for loans, VA products being maybe a primary market in a particular area, or conventional loans being primarily used.
• 7:42
  SPEAKER_00: If we're talking about comping out a condo or a townhome, sometimes those don't allow the FHA and VA loans to be used on the properties because they've lost their lost their certification in some in some respects.
• 7:56
  SPEAKER_00: Now, those certifications don't mean there's something wrong with it.
• 7:59
  SPEAKER_00: It just hasn't been applied for, and the community hasn't been vetted by the government administration that oversees those loans.
• 8:07
  SPEAKER_00: So they haven't gone and they haven't, you know, done their site search and all the stuff with regard to the property to be able to bless it.
• 8:13
  SPEAKER_00: A lot of the properties that you'll see that are townhome condo with the homeowners associations that are involved, a lot of times they can actually qualify for VAFHA, it just hasn't been applied for for whatever reason.
• 8:25
  SPEAKER_00: And for some other reasons, they're not allowed to have that kind of financing, depending on owner occupancy versus tenant occupancy, the way that the properties are structured.
• 8:34
  SPEAKER_00: It could be the way the way it's held.
• 8:37
  SPEAKER_00: Um it could be that the the actual funds on hand for the homeowners association isn't enough to protect the building.
• 8:46
  SPEAKER_00: That number has to meet some kind of a threshold when they do those studies.
• 8:50
  SPEAKER_00: But it still doesn't mean it's a bad investment.
• 8:52
  SPEAKER_00: You'll get all that if you're purchasing townhomes, condominiums when there is an HOE.
• 8:57
  SPEAKER_00: You'll get all that in the discovery period during your uh escrow time frame, or you should.
• 9:03
  SPEAKER_00: You should really pretty much know a lot about any property you're trying to purchase.
• 9:08
  SPEAKER_00: Same thing on the selling side of it, a seller is obligated with that disclosure and getting all the information out there so a buyer has everything that they need to make the right decisions when it comes to purchasing residential real estate.
• 9:21
  SPEAKER_00: And on the seller side of it, it protects them as well, right?
• 9:23
  SPEAKER_00: You don't want to have a have had a problem in your house and not disclose it to a buyer in case something in the future is going to cause that buyer harm.
• 9:32
  SPEAKER_00: And uh we don't want that.
• 9:34
  SPEAKER_00: All right, everybody, ladies and gentlemen, this is your real estate update, Connor with Honor, Fat to Fit Realtor.
• 9:38
  SPEAKER_00: Uh, not a clever sign in the back.
• 9:39
  SPEAKER_00: I did torch off 135 pounds of uh body fat.
• 9:43
  SPEAKER_00: This has been an update though, and I want you to please share when you have a chance and hit the bell there to subscribe to me as well on YouTube.
• 9:50
  SPEAKER_00: And if you're not on YouTube, haven't seen all you have to do is Google Fat to Fit Realtor, and you'll see the YouTube channels and Connor with Honor and all that blah blah blah.
• 9:58
  SPEAKER_00: Thanks for watching.
• 9:58
  SPEAKER_00: Be well.
• 9:59
  SPEAKER_00: We'll talk to you soon.