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Top 5 Questions to ask your lender before having them pull your credit · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Five questions to ask your lender.
• 0:02
  SPEAKER_00: Let's go ahead and get those down.
• 0:03
  SPEAKER_00: So whenever I refer you to somebody, or somebody else refers you to somebody, or you happen to be talking to somebody where you're going to be borrowing money to purchase real estate, here's some five questions.
• 0:14
  SPEAKER_00: Let me give you these.
• 0:15
  SPEAKER_00: Total cost, the rate, and the APR on a loan estimate.
• 0:20
  SPEAKER_00: Now, a lot of people are just going to tell you this over the phone.
• 0:23
  SPEAKER_00: You want to have something that you can look at, something you can read, something you can print out.
• 0:28
  SPEAKER_00: And I know, I know, I know.
• 0:29
  SPEAKER_00: I know you might be newer school, but you still want to have it.
• 0:33
  SPEAKER_00: You know why you want to have it?
• 0:35
  SPEAKER_00: It basically protects you in a way because now you have a hard copy of something that you might be able to hold somebody accountable for.
• 0:43
  SPEAKER_00: Next thing, rate lock, when, how long, and what it costs.
• 0:46
  SPEAKER_00: Interesting.
• 0:46
  SPEAKER_00: So whenever you're going to lock your rate, whenever you first talk with a lender, I'm not a lender.
• 0:51
  SPEAKER_00: I'm a real estate agent.
• 0:52
  SPEAKER_00: I've had other agents and lenders say, Connor, stay in your own wheelhouse.
• 0:55
  SPEAKER_00: You know what?
• 0:56
  SPEAKER_00: I'm going to throw it out there anyway.
• 0:57
  SPEAKER_00: This is what you need to do.
• 0:58
  SPEAKER_00: When a lender says, hey, hey, yeah, we can help you buy a house, absolutely, the interest rate's going to be um uh 6.5%.
• 1:07
  SPEAKER_00: Perfect, perfect.
• 1:07
  SPEAKER_00: So then you start looking, right?
• 1:09
  SPEAKER_00: You find the house, then you call back the lender, okay, ready to go.
• 1:11
  SPEAKER_00: And then you see the paper, and you're like, 7.5?
• 1:14
  SPEAKER_00: Why is it 7.5?
• 1:16
  SPEAKER_00: Oh, well, 6.5 was back then.
• 1:19
  SPEAKER_00: Today it's 7.5.
• 1:21
  SPEAKER_00: So understand that.
• 1:23
  SPEAKER_00: When you're talking to a lender and they give you all the uh, I was gonna say tongue in cheek, but that's not it, all the pillow talk about the loan.
• 1:30
  SPEAKER_00: And you know what, there's a lot of great lenders out there.
• 1:32
  SPEAKER_00: This doesn't mean to demean anyone, but they're gonna tell you what the prevailing rate is today, and then until they've looked at your credit, your profile, and all these other fancy things that make you who you are, then they're not really gonna know what that interest rate is.
• 1:46
  SPEAKER_00: And that's gonna require documents, things from you, tax returns, paycheck steps, all this fancy stuff, and they're gonna ask for it.
• 1:53
  SPEAKER_00: So that number they give you at the beginning, don't get too excited or thinking that that's gonna be what it is, because with that number, you should also get exactly what your all-in payment is.
• 2:04
  SPEAKER_00: If you're buying a house at this particular level, if they approve you for$800,000, what does all that look like?
• 2:10
  SPEAKER_00: And then if the area has an HOA or there's a Melowruse tax or there's something else, you want to have that factored in too, because the last thing you want to do is, you know, get that first mortgage payment, that first month you've moved in or month or 45 days or 60 days or whatever it is later, and say, oof, that's heavy.
• 2:29
  SPEAKER_00: I that was a lot more than I was expecting.
• 2:32
  SPEAKER_00: That sucks.
• 2:32
  SPEAKER_00: So don't put yourself there.
• 2:34
  SPEAKER_00: That's how that rate lock is.
• 2:35
  SPEAKER_00: Which loan program fits and what could change it?
• 2:38
  SPEAKER_00: Yeah.
• 2:38
  SPEAKER_00: So you're probably gonna be able to qualify for various loan programs.
• 2:42
  SPEAKER_00: You want to find out why one is better than the other, as far as what your lender's saying, and then ask somebody else.
• 2:48
  SPEAKER_00: Maybe a real estate agent if you trust them enough.
• 2:50
  SPEAKER_00: Even if the real estate agent refer you to the lender, hey, what is this all about?
• 2:54
  SPEAKER_00: What why should I do this instead of that?
• 2:56
  SPEAKER_00: Or why is this actually better?
• 2:58
  SPEAKER_00: Why are they pushing it?
• 2:59
  SPEAKER_00: A lot of times, people are pushing things because they got something to sell.
• 3:04
  SPEAKER_00: Sometimes people push things because they they make a little bit more cream, a little bit more money.
• 3:09
  SPEAKER_00: So you want to find out if that's in fact the truth.
• 3:11
  SPEAKER_00: 30-year fixed is kind of a good thing.
• 3:14
  SPEAKER_00: I like a 30-year fixed mortgage.
• 3:16
  SPEAKER_00: There's other types.
• 3:17
  SPEAKER_00: There are adjustable interest rate mortgages.
• 3:20
  SPEAKER_00: Watch out for that.
• 3:21
  SPEAKER_00: You got to find out and read all the small print.
• 3:24
  SPEAKER_00: And there's all sorts of variations therein.
• 3:26
  SPEAKER_00: There's loans that require 20% down.
• 3:28
  SPEAKER_00: There's loans that you can get in for almost no money down, depending on what type of format it is.
• 3:33
  SPEAKER_00: And that's not just a veterans administration loan, ladies and gentlemen.
• 3:37
  SPEAKER_00: You can get in with nothing down on a USDA loan.
• 3:40
  SPEAKER_00: Are there properties in Santa Clarita that would fit the criteria of being able to be lended on by the U.S.
• 3:45
  SPEAKER_00: Department of Agriculture?
• 3:47
  SPEAKER_00: Yes, they do exist.
• 3:48
  SPEAKER_00: Just make sure you don't get conned in anything.
• 3:51
  SPEAKER_00: Make sure whatever people are telling you, you get it in writing.
• 3:54
  SPEAKER_00: Which loan program fits?
• 3:55
  SPEAKER_00: Oh, yeah, yeah, I got that.
• 3:56
  SPEAKER_00: Oh, well, that's not bad.
• 3:58
  SPEAKER_00: Um, and also what could change it?
• 4:00
  SPEAKER_00: What happens?
• 4:01
  SPEAKER_00: Is this loan program temporary or is it something that's gonna continue to go on?
• 4:06
  SPEAKER_00: And then any change you're going to do in your financial wherewithal, make sure you tell the lender, folks, especially if you're in escrow, even if you got a$100 JC Penny card and you're thinking, God, I really wish I could wipe that out and you find a$100 bill on the street, then you're gonna go pay off that JC Penny card because how in the heck could that even hurt your ability to borrow or anything?
• 4:30
  SPEAKER_00: And you go and you pay it off.
• 4:32
  SPEAKER_00: And if you didn't bless that with a lender, all of a sudden you might become not financiable.
• 4:37
  SPEAKER_00: Well, why?
• 4:38
  SPEAKER_00: Why would that be?
• 4:38
  SPEAKER_00: Well, maybe JCPenney gets you paying that off.
• 4:41
  SPEAKER_00: JCPenney says, Yeah, you know what?
• 4:43
  SPEAKER_00: This guy hadn't really been great for us.
• 4:45
  SPEAKER_00: We're gonna go ahead and cut his credit down instead of$100 credit or$500, we're gonna whack it down to$50.
• 4:51
  SPEAKER_00: That's what his credit limit's gonna be.
• 4:53
  SPEAKER_00: Well, that's not gonna help your FICO score, I wouldn't think.
• 4:56
  SPEAKER_00: That's probably gonna hurt it.
• 4:57
  SPEAKER_00: And that might overall impact your ability to purchase.
• 5:00
  SPEAKER_00: I know it doesn't make any sense.
• 5:02
  SPEAKER_00: You're telling me, just make sure whatever you're going to do, if you're gonna go out and buy that Ford Raptor, that$150,000 truck because it's got conganas, that's fine.
• 5:13
  SPEAKER_00: But just make sure you bless that with your lender before you do it, because it could be that it's gonna impact your financial ability to purchase.
• 5:21
  SPEAKER_00: And I'll tell you what, I've seen it happen many times.
• 5:24
  SPEAKER_00: Many times people go out and get that get that uh credit card from Pottery Barn because they want to buy some fancies for their house because they got to put stuff in it, right?
• 5:32
  SPEAKER_00: You're buying something.
• 5:33
  SPEAKER_00: Well, go out there and you finance that and you get that credit card and it wipes you out.
• 5:38
  SPEAKER_00: You can't purchase anymore.
• 5:39
  SPEAKER_00: So now all of a sudden you don't close and you stay a renter.
• 5:42
  SPEAKER_00: Please be careful with that.
• 5:43
  SPEAKER_00: What your timeline and track record of closing on time?
• 5:46
  SPEAKER_00: Not a bad question.
• 5:47
  SPEAKER_00: You know, how you close it, how's that working?
• 5:49
  SPEAKER_00: There's some lenders out here in Santa Clara where they got a great reputation.
• 5:53
  SPEAKER_00: Maybe not as far as closing on time, but they do close.
• 5:57
  SPEAKER_00: And that's kind of an issue.
• 5:59
  SPEAKER_00: So you want to kind of explore that a little bit.
• 6:01
  SPEAKER_00: Why is that important?
• 6:02
  SPEAKER_00: Well, your rate's only going to last for a certain period of time.
• 6:05
  SPEAKER_00: Then that rate has to be renewed, and that usually costs money.
• 6:09
  SPEAKER_00: So that might be a question to ask for.
• 6:11
  SPEAKER_00: Also, here's an here's a good one.
• 6:13
  SPEAKER_00: This is going outside the five, but let's say you're an escrow and the world is shining on you and interest rates come down in that first week, you're an escrow.
• 6:21
  SPEAKER_00: Is the lender going to adjust your interest rate if you happen to fit the profile to that new rate that just came out that might save you a couple hundred bucks a month?
• 6:31
  SPEAKER_00: Good thing to ask.
• 6:32
  SPEAKER_00: You never know.
• 6:33
  SPEAKER_00: And then also, what could still derail my approval?
• 6:36
  SPEAKER_00: If you're gonna go in with a lender, give them all your information, come to Jesus on everything, and then they're gonna tell you you're approved for the loan, what could mess that up?
• 6:44
  SPEAKER_00: I talked about the Raptor, you know, the truck, that's good.
• 6:47
  SPEAKER_00: I talked about Pottery Barn.
• 6:48
  SPEAKER_00: I talked about paying off a JCPenney card, all of that stuff.
• 6:51
  SPEAKER_00: You gotta just make sure your lender blesses it and make sure they reply to you in writing.
• 6:56
  SPEAKER_00: If you get them on the phone and Tony says, hey, no problem, Jack, you're good to go.
• 7:01
  SPEAKER_00: You can do whatever you want.
• 7:02
  SPEAKER_00: You're clean, you got a wonderful bill of health, don't even have to worry about it.
• 7:06
  SPEAKER_00: Follow that up to Tony with an email.
• 7:08
  SPEAKER_00: Hey, Tony, it's Clyde.
• 7:10
  SPEAKER_00: Did I say that was the name?
• 7:11
  SPEAKER_00: Anyway, Tony, it's so-and-so.
• 7:13
  SPEAKER_00: I appreciate you taking my call today.
• 7:15
  SPEAKER_00: Just wanted to verify I heard everything right, and then you send them the email, ship it off, make sure they respond, then you go out and have fun with it.
• 7:23
  SPEAKER_00: There's liability there, huge.
• 7:25
  SPEAKER_00: And you need to make sure that you got some kind of accounting order, peckability, whatever you call it, to make sure that you're not alone in the world when the problem starts to happen.
• 7:36
  SPEAKER_00: I'm Connor with Honor.
• 7:38
  SPEAKER_00: Thanks for watching.
• 7:38
  SPEAKER_00: Enjoy Santa ClaritoOpenhouses.com.
• 7:41
  SPEAKER_00: It's a it's a passion project, and I'm Connor with Honor.
• 7:45
  SPEAKER_00: We'll see you in the next one.