Latest / Connor with Honor: AI, Real Estate and Real Life / Being a better competing home buyer in a sellers market November 2023

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Being a better competing home buyer in a sellers market November 2023 · Connor with Honor: AI, Real Estate and Real Life

• 0:02
  SPEAKER_01: Good day, everybody.
• 0:03
  SPEAKER_01: It is Connor McIver.
• 0:04
  SPEAKER_01: I do appreciate you tuning in.
• 0:06
  SPEAKER_01: We have Tim Slominsky here, great lender, not just based in Santa Clarita, where we both are, where I handle real estate in Southern California, but everywhere else as well.
• 0:14
  SPEAKER_01: So, Tim, welcome to the show.
• 0:16
  SPEAKER_01: Would you uh let us know the company and your best contact number, please?
• 0:19
  SPEAKER_00: Well, uh, good morning.
• 0:21
  SPEAKER_00: It's wonderful to see you again, Connor.
• 0:23
  SPEAKER_00: I'm uh Tim Slominsky.
• 0:24
  SPEAKER_00: I'm vice president of residential lending with Draper and Kramer Mortgage.
• 0:28
  SPEAKER_00: We are actually the oldest FHA lender in the United States.
• 0:32
  SPEAKER_00: Uh the company was founded in 1893.
• 0:34
  SPEAKER_00: So we've been around the block a couple days.
• 0:37
  SPEAKER_00: Um, best way to reach me is via cell phone, um, 805-907-6389.
• 0:44
  SPEAKER_00: And I actually pick up the phone.
• 0:46
  SPEAKER_00: What a concept! You don't get voicemail.
• 0:49
  SPEAKER_00: Uh, so look forward to hearing from everybody.
• 0:52
  SPEAKER_01: Very good, Tim.
• 0:53
  SPEAKER_01: Thanks so much for coming on.
• 0:54
  SPEAKER_01: I have uh a question regarding this market.
• 0:58
  SPEAKER_01: This market is very volatile, the properties don't last very long, even with the higher rates.
• 1:04
  SPEAKER_01: Buyers are still out there moving quickly, swip swapping or taking up or buying just the few that are left.
• 1:10
  SPEAKER_01: In that process, though, the sellers are encountering multiple offers.
• 1:15
  SPEAKER_01: So buyers have higher competition.
• 1:17
  SPEAKER_01: For today's QA with you, I wanted to talk about different types of pre-approval letters that might help the buyer establish a better position than just your run-of-the-mill garden variety one.
• 1:30
  SPEAKER_01: Would you tell our audience about that?
• 1:31
  SPEAKER_00: Sure.
• 1:32
  SPEAKER_00: Um, well, a pre-approval letter is just that.
• 1:35
  SPEAKER_00: It's just a letter.
• 1:36
  SPEAKER_00: What does it mean to you?
• 1:38
  SPEAKER_00: It says that, you know, we have done a cursory review.
• 1:42
  SPEAKER_00: Now, some people will do a pre-approval letter and it'll say, Bob and Mary are approved for$417,000, subject to underwriting approval.
• 1:54
  SPEAKER_00: My pre-approval letter is I actually reach out to the client, I do a complete loan application on the phone, I have a conversation with them, I run credit, I review credit, I address any credit issues.
• 2:08
  SPEAKER_00: But prior to me uh doing the pre-approval letter, um, I actually require that they send me their income documentation, their asset documentation.
• 2:21
  SPEAKER_00: Um, let's say it's an example of there's a thing called gift money.
• 2:26
  SPEAKER_00: The kids don't have enough money down, they're getting a gift from a relative.
• 2:32
  SPEAKER_00: Need to know who that relative is.
• 2:34
  SPEAKER_00: I need the first page of the bank statement that shows they have the assets in it to gift that money.
• 2:40
  SPEAKER_00: So, and a gift letter is strictly that.
• 2:43
  SPEAKER_00: It is a letter that everybody signs that says it's not repayable.
• 2:48
  SPEAKER_00: Okay, so we use those to in our qualification.
• 2:52
  SPEAKER_00: So once I have all that information, and if the client is proactive and they go online and do the application, I can they upload everything.
• 3:02
  SPEAKER_00: It takes them about 15 to 20 minutes of their time to upload that.
• 3:07
  SPEAKER_00: I'll have that.
• 3:08
  SPEAKER_00: I can have a pre-approval letter out within an hour to an hour and a half upon receiving everything.
• 3:16
  SPEAKER_00: Now, here's how some mortgage companies work.
• 3:20
  SPEAKER_00: Well, you know, I I'm gonna have to get back to you.
• 3:24
  SPEAKER_00: I need this, I need to, you know, I need this, I need this, I need that.
• 3:28
  SPEAKER_00: So, but you know, I can give you a pre-approval letter.
• 3:32
  SPEAKER_00: My pre-approval letter talks about the client.
• 3:36
  SPEAKER_00: It talks about the fact that they're a first-time home buyer, it talks about the fact that they've been on their job a certain number of years, and I also put down their credit scores.
• 3:48
  SPEAKER_00: The thing that I do in there is I let them know that I've I let the person who's receiving the letter that I've reviewed everything.
• 3:56
  SPEAKER_00: And I also let them know they can call me seven days a week to answer any questions.
• 4:01
  SPEAKER_00: So upon me issuing a pre-approval letter, and you as the realtor sending in your offer with the pre-approval letter, what do I do that's different?
• 4:11
  SPEAKER_00: I pick up the phone, I call the listing agent, I introduce myself.
• 4:16
  SPEAKER_00: And in many cases, I know many of the realtors here in the Santa Clarita Valley, they know me.
• 4:21
  SPEAKER_00: Um, but even if I don't know them and it's out of state, realtors get blown away by the fact that you, as a loan officer, are actually making a phone call because there's very little interaction with the 1-800 loan guy.
• 4:38
  SPEAKER_00: The 1-800 loan guy doesn't really know who they are, who the family is.
• 4:43
  SPEAKER_00: So that's a little bit different.
• 4:45
  SPEAKER_00: And then if there's a situation to where I've actually gone out to meet the clients, I may meet them at my office, I may meet them at a Starbucks, I may meet them at home.
• 4:55
  SPEAKER_00: I educate them, I let them know what they need to do in the simplicity of it.
• 5:00
  SPEAKER_01: I've been uh selling real estate out here since 98.
• 5:04
  SPEAKER_01: I know you've been in the lending world a lot longer than that.
• 5:06
  SPEAKER_01: However, in all that time, I've had only two occasions when a buyer's lender had called me over the phone regarding an offer the buyer's agent had submitted.
• 5:17
  SPEAKER_01: So it's very uncommon.
• 5:19
  SPEAKER_00: Yeah, it definitely is.
• 5:21
  SPEAKER_00: You know, the the the new world is, you know, the the I I'm I was talking to my wife about this last night, you know, all the new newest little gimmicks or you know, uh toys, AI.
• 5:36
  SPEAKER_00: Everybody is now an AI expert.
• 5:39
  SPEAKER_00: And it's like you know, and this program is only gonna cost you$16.95 and$275 a month, and we guarantee results.
• 5:49
  SPEAKER_00: Okay, great.
• 5:51
  SPEAKER_00: You know, so uh the old school of picking up the phone and being relational, you know.
• 5:57
  SPEAKER_00: I mean, Connor, you and I have one thing going for us, you have a little less hair than me, but we got gray hair.
• 6:03
  SPEAKER_00: We've been around, you know, for a while.
• 6:05
  SPEAKER_00: So we've earned the that gray hair from our experience, and that experience is an asset to the client because we know how to navigate.
• 6:17
  SPEAKER_00: A lot of people that are new in it and are just l working on technology don't understand the intricacies.
• 6:24
  SPEAKER_00: You actually just heard me on a phone with a lender and you were chuckling because you, as the realtor, don't hear what I deal with on a daily basis.
• 6:34
  SPEAKER_00: And come lender.
• 6:36
  SPEAKER_01: Linda, I thought it was a sailor.
• 6:39
  SPEAKER_01: I never heard so many curse words in like a volley of two or three minutes.
• 6:43
  SPEAKER_00: And I've seen a lot of curse words, so that's well, I didn't mean to, you know, but it's you know, and I I make it about the I make it about the client because if what you heard was like, this is about the client, it's not about you and I.
• 6:56
  SPEAKER_00: That's right.
• 6:57
  SPEAKER_00: Like, it's about the client.
• 6:58
  SPEAKER_00: We're we're putting the client at risk.
• 7:00
  SPEAKER_00: So let's very happy.
• 7:02
  SPEAKER_01: Yeah, you weren't very happy at all.
• 7:06
  SPEAKER_01: So as you stood up for your client, yeah.
• 7:09
  SPEAKER_00: I I I thought my delivery was pretty good.
• 7:11
  SPEAKER_01: It was good, it was very good.
• 7:13
  SPEAKER_01: So, talking about people maybe not living up to their word, uh, not too long ago, and I don't know if you saw this on the wire, but now there's a lot of this advertising.
• 7:21
  SPEAKER_01: It says this this is mortgage companies advertising or or mortgage brokerages.
• 7:26
  SPEAKER_01: If you buy now, we will refinance for you, you for free later.
• 7:32
  SPEAKER_01: I think it's I think it's free, yeah.
• 7:33
  SPEAKER_01: So they'll give them a free rifle refinance later when rates drop, if they do drop.
• 7:39
  SPEAKER_01: So besides the if they do drop thing and teasing people into buying, at least in that regard, besides that, tell me it seems like gimmicky to me.
• 7:51
  SPEAKER_00: Well, I've never seen anything for free.
• 7:57
  SPEAKER_00: And there's in business, there's cost, right?
• 8:01
  SPEAKER_00: There's a cost of doing business.
• 8:04
  SPEAKER_00: Um, there's a cost to put on the lights, there's a cost to pay health insurance, there's a cost to pay a salary.
• 8:11
  SPEAKER_00: Um, in this particular program, and it's some of the uh big companies, I'm not gonna name any of them, but uh some have initials GR, uh, some have, you know, um uh they do a lot of advertising on uh golf golf uh events, and what they're saying is yes, we'll do we'll refinance your property at no cost to you.
• 8:37
  SPEAKER_00: Well, the cost involved it includes the following: you have a processing fee, you have title and escrow fee.
• 8:46
  SPEAKER_00: Okay, those are costs now in a refinance situation.
• 8:54
  SPEAKER_00: We buy money and sell money, we call it par.
• 8:59
  SPEAKER_00: So if I am doing a loan for you, I can do a no-cost loan for you, covering your processing fee, entitled an escrow fee.
• 9:11
  SPEAKER_01: So building it into the loan kind of a thing, like putting it in the case.
• 9:15
  SPEAKER_00: I'm charging you, I charge you a higher rate to do that.
• 9:17
  SPEAKER_01: Okay, okay.
• 9:18
  SPEAKER_00: They're doing the same exact thing.
• 9:21
  SPEAKER_00: You know, they're doing exactly the same thing as I would do.
• 9:25
  SPEAKER_00: It's just that's their pitch up front.
• 9:28
  SPEAKER_00: Okay.
• 9:29
  SPEAKER_00: Now, um they're not telling you that, well, if your credit scores drop, you know, they're not telling you that we're just gonna, you know, there's no guarantee that they're gonna get it done.
• 9:42
  SPEAKER_00: They're just telling you we will do it.
• 9:44
  SPEAKER_00: But there's, you know, if you look at the fine print, if you've ever like, you know, if you're up at five o'clock in the morning and you're watching the news and you see that ad, just put it on pause and go down, you know, go to the TV and read the fine print.
• 9:58
  SPEAKER_00: And the fine print will tell you that is subject to credit approval, you know, based on, you know, uh certain credit criteria.
• 10:06
  SPEAKER_00: So um I tell my clients that if you do come back to me, I will work with you on the fees.
• 10:13
  SPEAKER_00: I don't guarantee that I'm gonna do it for free.
• 10:16
  SPEAKER_00: The fees that are not uh that we as a lender can't assume, or if we do assume those, would be your property tax, your interest impound account.
• 10:30
  SPEAKER_00: Okay, can be thousands of dollars.
• 10:33
  SPEAKER_00: So we can't really assume those things.
• 10:35
  SPEAKER_01: Wait within within the lending process and the fees that are charged, could somebody potentially maybe build in, say, part of this agreement to do it for free, and we've already established it it isn't, but for free, would be you have to do it in six months or it's void, or another thing, you the lender gets to choose when that rate drops when to do the refi, or you have to do it when it goes to five percent or whatever.
• 11:02
  SPEAKER_01: Is could they build that bake that stuff into it?
• 11:04
  SPEAKER_00: Those requirements they do have they do have definitive time frames in that.
• 11:09
  SPEAKER_00: Okay, okay.
• 11:10
  SPEAKER_01: So it's not like forever.
• 11:11
  SPEAKER_00: No, no, and here's what I do when rates drop, you're on my phone call.
• 11:18
  SPEAKER_00: I'm gonna call you up and say, hey, rates, you know, I can drop your rate a half percent, let's do it.
• 11:23
  SPEAKER_00: Okay.
• 11:24
  SPEAKER_00: It's purely numbers.
• 11:26
  SPEAKER_00: You know, I can cover, you know, I can cover your processing fee.
• 11:32
  SPEAKER_00: Okay.
• 11:33
  SPEAKER_00: Um you'll be you know, you'll be responsible for title escrow impounds.
• 11:38
  SPEAKER_00: Okay.
• 11:39
  SPEAKER_00: May need may not need an appraisal, okay, because it may have enough equity where we get an appraisal waiver, but there is now a new guideline to appraisal waiver.
• 11:54
  SPEAKER_00: They still have to send an appraiser out to view the property to make sure it's still there.
• 12:01
  SPEAKER_00: So there's a fee involved in that.
• 12:03
  SPEAKER_00: So there's nothing again, there is nothing for free.
• 12:06
  SPEAKER_01: More case law out of Missouri.
• 12:09
  SPEAKER_01: No, it's anyway.
• 12:10
  SPEAKER_01: Yeah, perfect.
• 12:11
  SPEAKER_01: Tim, thank you so much.
• 12:13
  SPEAKER_01: I I appreciate you coming on to the show.
• 12:15
  SPEAKER_01: We'll have uh, we're gonna do this next time.
• 12:17
  SPEAKER_01: We're gonna talk about other things on the lending front.
• 12:20
  SPEAKER_01: So, you buyers out there that are looking to finance real estate or even people that own refi or invest, really a good contact point is Tim.
• 12:27
  SPEAKER_01: He is uh very transparent.
• 12:28
  SPEAKER_01: Just come on to the show and he says it for real, even if it could uh upset a few people.
• 12:33
  SPEAKER_01: So thank you for coming on, Tim.
• 12:34
  SPEAKER_00: Thanks, my friend.
• 12:35
  SPEAKER_00: Have an amazing day.
• 12:37
  SPEAKER_01: You as well, brother.
• 12:38
  SPEAKER_00: Be well.