Latest / Connor with Honor: AI, Real Estate and Real Life / The sellers market and predatory lending practices how do you want to be your representative and who has your six when it comes to real estate

Transcript

The sellers market and predatory lending practices how do you want to be your representative and who has your six when it comes to real estate · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good everybody, Connor McIver.
• 0:02
  SPEAKER_00: As we close out January, today's January 30th, 2022.
• 0:05
  SPEAKER_00: We're going to do a little bit of real estate inventory recap.
• 0:09
  SPEAKER_00: We're also going to talk about some of the uh predatory lending practices I've seen out there lately.
• 0:15
  SPEAKER_00: Now, there are situations, I would suppose, when adjustable rate mortgages would be used or could be used or maybe even should be used, but they're really not for the faint of heart.
• 0:28
  SPEAKER_00: They're not for the novice.
• 0:30
  SPEAKER_00: And I'll be completely frank with you, I don't um really work with people where those types of uh mortgages, at least at this time, are gonna be super beneficial just because interest rates are still very, very low.
• 0:44
  SPEAKER_00: The word on the street, though, has to do with interest rates and they're they're rising lately.
• 0:48
  SPEAKER_00: So now we're above three, somewhere around three and a half.
• 0:51
  SPEAKER_00: It's gonna depend on the load product that you get.
• 0:53
  SPEAKER_00: It's also gonna be very credit dependent.
• 0:56
  SPEAKER_00: And a lot of people don't realize that because the first phone call they make maybe after the real estate agent, maybe the real estate agent doesn't give them the, for lack of a better word, the education about loans and lending and how the whole process works, how you're actually paying their fee with regard to origination.
• 1:14
  SPEAKER_00: And some lenders are gonna say, well, there's not gonna be any points, there's not gonna be any fees, there's not gonna be any of this.
• 1:20
  SPEAKER_00: But at the end of the day, you need to understand what you're reading because there may not be fees up front, but there could be a difference in interest rate.
• 1:29
  SPEAKER_00: There could be other differences in the loan product where they're able to recap this supposed loss by giving you the benefit of a credit up front instead of being up front with you and saying, hey, I'm gonna be charging you this amount to get you this loan because, well, that's just what my service fee happens to be.
• 1:46
  SPEAKER_00: When you're purchasing residential real estate, at least here in Southern California, and at least with me, you're not being charged anything by myself.
• 1:54
  SPEAKER_00: You're not being charged some sort of an office fee or an archival fee, or I've heard of desk fees and other sorts of realtor fees.
• 2:02
  SPEAKER_00: Whenever you're purchasing, I get compensated by the seller, no matter who the seller is.
• 2:07
  SPEAKER_00: So if the seller happens to be the uh listed with another agent, it doesn't matter.
• 2:12
  SPEAKER_00: The seller is gonna be building in both sides to the commission structure so that their agent, the one that they selected, to represent them in the sale of their home, and then the other agent, the one that you're gonna be hiring to buy a house, uh, that that agent's compensated.
• 2:28
  SPEAKER_00: So that's not part of what you pay to purchase real estate.
• 2:31
  SPEAKER_00: So the one thing you do pay, besides your part of escrow and your part of title, is going to be that lender.
• 2:37
  SPEAKER_00: So you need to choose that carefully and also understand when you're on the phone or when you're online looking for what this interest rate is going to be for you, that's gonna be FICO and credit score dependent.
• 2:49
  SPEAKER_00: In other words, if you have bad credit, then that interest rate is probably going to be up, and maybe if your credit is bad enough, it's gonna get to a point where you're unable, you are unable to finance real estate.
• 3:02
  SPEAKER_00: It happens that way.
• 3:03
  SPEAKER_00: So, as far as some of the predatory issues out there that go on, it's gonna be these uh teaser rates that are being promised.
• 3:11
  SPEAKER_00: So let's say you do have credit good enough to be able to purchase real estate, and I believe FHA loans are somewhere in the low sixes.
• 3:18
  SPEAKER_00: If you have low sixes as far as your FICO score, you're going to be okay to be able to finance.
• 3:23
  SPEAKER_00: But again, that interest rate isn't gonna be as low as somebody that's in the mid 700s or closer to 800 as far as a FICO score, and it maxes out somewhere over 800.
• 3:34
  SPEAKER_00: But again, when you're looking at uh that lender, after you talk with your agent, you should ask them, do you have any specific questions?
• 3:41
  SPEAKER_00: I should be, I should be asking the lender with regard to me getting a home loan and getting the best possible deal.
• 3:49
  SPEAKER_00: That's super important.
• 3:50
  SPEAKER_00: And if they don't have those questions to ask, or if they look at you like a deer caught in the headlights, I think it's important to reevaluate your position and potentially maybe switch it up.
• 3:59
  SPEAKER_00: And if you are here in Santa Clarita Valley, I'd love to be your realtor.
• 4:03
  SPEAKER_00: So when you're ready.
• 4:04
  SPEAKER_00: Locate real estate inventory in Santa Clarita, it is loosening up just a bit, but we're still stuck right around 130 active units for sale.
• 4:12
  SPEAKER_00: And of those, we have, well, actually 30 that are coming soon, so they'll be revealed over the next 21 days.
• 4:20
  SPEAKER_00: That's the rule with the coming soon listings.
• 4:22
  SPEAKER_00: You'll see those populated on some of the syndication websites.
• 4:25
  SPEAKER_00: They're packaged very pretty, and they give people a lot of incentive to continue to come back to those websites.
• 4:33
  SPEAKER_00: Again, be careful giving up your personal and private information.
• 4:35
  SPEAKER_00: It's gonna be sold to a bunch of agents that are paying for your information in the form of leads.
• 4:40
  SPEAKER_00: They get that and then they harass you until the end of time.
• 4:43
  SPEAKER_00: Be wary of that.
• 4:45
  SPEAKER_00: I'm Connor with Honor.
• 4:46
  SPEAKER_00: We are still very much in a seller's market.
• 4:48
  SPEAKER_00: I will be with you here this next week.
• 4:50
  SPEAKER_00: I know we're gonna be turning over right into February, January 30th, 2022, today.
• 4:55
  SPEAKER_00: When you're ready, reach out to me.
• 4:56
  SPEAKER_00: You can Google Connor with Honor and you'll find me online.
• 5:00
  SPEAKER_00: I do appreciate it.
• 5:01
  SPEAKER_00: I am with Compass Real Estate here in Santa Crita Valley.
• 5:04
  SPEAKER_00: I look forward to uh talking with you soon.
• 5:06
  SPEAKER_00: Have a great week, and I'll be back with another wonderful show very, very soon.
• 5:10
  SPEAKER_00: Be safe, please share, and we'll talk to you later.
• 5:12
  SPEAKER_00: Connor with Honor, over and out.