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Everything First Time Home Buyers Need to Know from Credit to Closing · Healthy Happy Wise Wealthy

• 0:00
  Hi, everybody. I'm Mary Meyer, the host of Healthy, Happy, Wise, and Wealthy. And this
• 0:03
  is Podcast two. And as I'm doing, I am just
• 0:07
  starting. I'm doing the whole example of let's start a podcast
• 0:11
  and figure it out as we go. And I'm only doing that because of
• 0:14
  Erica. Otherwise, it's a really bad idea. But
• 0:18
  for this one, it works. Today, I'm so excited because I did
• 0:22
  ask three people, wonderful ladies that I know in Reno,
• 0:26
  Nevada, to help me discuss everything that
• 0:29
  you would need to know when you're buying your first home,
• 0:33
  including how to find a home. Can
• 0:37
  I afford a home? And all of you, touch on, can I
• 0:41
  afford a home, honestly? So Angie Salcido
• 0:44
  is the owner of Premier Credit Solutions.
• 0:48
  Angela Kluck is a Realtor with many years in that, and Jill
• 0:51
  Blessing Bonnet is a mortgage lender. So I do have
• 0:55
  a little history with real estate, because when I was in Atlanta, before I
• 0:59
  came to Reno, I was a Realtor and of course, got my
• 1:02
  real estate license in December of 2019, right before everything
• 1:06
  crashed. So that might really be a good place. Not
• 1:09
  crash, Covid. It felt like a crash. Prices went up, the
• 1:13
  ability to sell a property went down because no one had anything on the market.
• 1:16
  So that's what I guess I meant by that in terms of being a Realtor.
• 1:20
  But these. These industries are super challenging, in my opinion.
• 1:24
  I think there's. I've heard a lot of
• 1:27
  stuff about how, you know, it's easy to be a realtor or a
• 1:31
  mortgage lender. And I don't think people understand credit repair to know what to say
• 1:35
  about that. So I don't think it is. I don't think. I think they're very
• 1:37
  difficult industries to be in. And when you use any of
• 1:41
  these ladies, you better be nice to them, whether it's
• 1:45
  anyone else in the state, because this is not easy stuff.
• 1:48
  So if we can start, I just like you guys to kind
• 1:52
  of go and introduce yourselves and say what you do in summary,
• 1:56
  a little bit, how long you've been doing it. So, Angie, you're at the top
• 1:59
  of the screen. I'll have you start with credit repair. Well, hello there. I'm
• 2:02
  Angie with Premier Credit Solutions, and I've been in the business for
• 2:06
  about 14 years repairing credit, and I've
• 2:10
  helped over probably about 2, 500 people in Reno
• 2:14
  achieve home ownership. That's amazing. And you
• 2:17
  are national. You can work with anyone nationally also. I can. Yes.
• 2:21
  Yeah. Yeah. Okay. Awesome. Jill, introduce yourself for
• 2:25
  us. I'm Jill Blessing Bonnet. I work with Gateway Mortgage. I have
• 2:28
  been in the mortgage business for about 30 years.
• 2:33
  I like to say that I've seen the good, the bad and the ugly
• 2:36
  because it is somewhat of a roller coaster ride, this industry,
• 2:40
  but it's very rewarding and I love what I do. I love helping, putting.
• 2:44
  Putting people in homes. Yeah. And so where is your. Are
• 2:47
  you just in Reno or you can also. My office is in
• 2:51
  Reno. Yes. But we can lend in 40 states.
• 2:55
  Amazing. Okay, so pretty much almost nationally.
• 2:59
  Jill. Angela. Hello. Hello. I
• 3:03
  am Angela Kluck. I'm with ReMax Professionals here in
• 3:07
  Reno, Nevada. But my license allows me to
• 3:11
  cover the whole state of Nevada, but I specialize
• 3:14
  in northern Nevada. I've been in the industry off and on for the
• 3:18
  last 17 years. I was just adding up the
• 3:22
  other day. I've been in the back end
• 3:26
  doing transaction coordinatings for big teams. I've been a solo
• 3:29
  agent. I've been on teams, big teams.
• 3:33
  And now I'm back as a solo agent and I'm happy and I'm
• 3:37
  helping people with buying and selling homes.
• 3:41
  And that's what I love to do. Amazing. Well, I'm gonna
• 3:45
  keep you on for a second. So when you have a client who's maybe they're
• 3:48
  a young couple, so, so. And they want to buy a home,
• 3:53
  where do you, what do you, what's your initial like? Give me just a few
• 3:56
  top tips that you give them. So a majority
• 4:00
  of my clients that come in are online
• 4:04
  leads. And so initially
• 4:07
  I get them, they want to look at houses right away. And
• 4:11
  so it's kind of the back way to do things. But I honor that because
• 4:15
  I know that's where people start. That's what they want. They want the shiny object.
• 4:18
  So we go out and we look at homes and I show them one or
• 4:21
  two and then we delve into some questions,
• 4:25
  you know, financing, what's your goals with
• 4:29
  buying? And we just get into that whole gamut. And then
• 4:33
  I start switching them over to a lender,
• 4:36
  a great lender like Jill here, and we start going through their
• 4:40
  finances, what can they afford? And then if they need a little bit of credit,
• 4:44
  repair, a little bit of help, then that's where Angie comes in. So this is
• 4:48
  a whole team that's geared to help
• 4:51
  especially first time home buyers
• 4:54
  navigate buying a first time home. Yeah. So
• 4:58
  Jill, tell us, when you have a first time home
• 5:01
  buyer, what are some of the things that you would let them know
• 5:05
  about? What would you do?
• 5:09
  Well, what I do is
• 5:12
  initially, usually it starts out with a Phone call. I
• 5:16
  really like to get them in the office or do some kind of
• 5:20
  zoom where we can be face to
• 5:24
  face. I can show them some numbers. They get to know
• 5:27
  me, I get to know them. It's really important for me
• 5:31
  to, when I talk to them, I want to know what their financial
• 5:35
  goals are. It's not just necessarily about buying a
• 5:39
  house, but what are their long term goals, you
• 5:42
  know, how long do they think they're going to be in the house? What kind
• 5:46
  of payments do they feel comfortable with? I
• 5:50
  obviously have to talk about their credit and a lot of times
• 5:54
  that can be a hard stop if their credit score, you know,
• 5:57
  isn't where it needs to be, which is where Angie would come in.
• 6:02
  So we go over a whole gamut of things before they
• 6:06
  even start looking. Preferably just because I want to make
• 6:10
  sure that we're all on the same page and that they felt comfortable with
• 6:13
  everything. Because that's really the bottom line is that they have
• 6:17
  to feel comfortable regardless of what I say they qualify for. They're the ones
• 6:21
  that have to make the payment every month and they have to feel comfortable with
• 6:24
  that. Yeah, for sure. So, Angie, you get a young
• 6:28
  couple and there's some credit issues, like
• 6:31
  maybe what would you do? What's your first steps? And it might
• 6:35
  not be a young couple. Let's be honest. You know, plenty of people in their
• 6:39
  40s and maybe even older are still trying to buy their first. So it might
• 6:43
  not even be young. But yeah, yeah. So what I do is I
• 6:46
  get them on the phone, get them scheduled for a credit consultation. I'll pull a
• 6:50
  soft pull credit report just to kind of see where they're at with things
• 6:54
  and what needs to be worked on and then come up with a game plan
• 6:58
  if they need to remove inquiries or late payments or anything
• 7:01
  like that. Also, like pay down credit card debt.
• 7:05
  Just, you know, abcd, what, what we
• 7:09
  can do to get the scores up as fast as possible.
• 7:13
  Yeah. So how does that work with you? Like they have an initial
• 7:17
  consultation with you and then kind of. And you see there's some things to do.
• 7:20
  What's the next step? Next step is get them signed up with me so
• 7:24
  that we can work on any collections or inquiries or
• 7:28
  late payments they may have on their credit report. And then their homework will
• 7:32
  be to pay down their credit cards down to
• 7:35
  30%, which is 30% of the
• 7:39
  revolving limit. So, so say, I'll give you an example. So say
• 7:42
  there's a $500 credit card limit and they're
• 7:46
  maxed out usually that will like, decrease
• 7:50
  the credit scores anywhere from 50 to 80 points.
• 7:54
  So I advise them to pay it down to 30%
• 7:58
  so that it's not affecting the credit scores. And
• 8:01
  that will be kind of their homework. And if they need to establish
• 8:05
  credit, we can have like the husband or wife.
• 8:09
  Like if it's a husband and wife and one of them has stronger credit
• 8:12
  scores, we'll have the husband add his wife
• 8:16
  to the credit card as an authorized user. There's so many different
• 8:20
  scenarios that happen in my office where it's just, you know,
• 8:24
  looking at different things to raise the credit scores as
• 8:27
  soon as possible. But that's, that's where the initial
• 8:31
  consultation is, where it's just, yeah, this is what we need to
• 8:34
  do, you know, make sure the balances are below
• 8:38
  30% and, you know, keep it there. And then we'll go
• 8:42
  in and start removing collections, late payments and
• 8:45
  inquiries. Yeah, and that's so great. And I know you
• 8:49
  guys, you know, I've seen you, of course, you know,
• 8:52
  different. You're a favorite among realtors and mortgage lenders because it's
• 8:56
  like you're kind of the avenue to make it happen for everyone. And I think
• 9:00
  most people don't even know that is a thing you can do to repair your
• 9:03
  credit. I don't feel like that's as much of public knowledge as maybe it
• 9:07
  ought to be. So it's a very good service and anyone in the US
• 9:10
  can, can use you. So there you go. Get that credit
• 9:14
  repaired. Jill, so what it. So if someone comes to you
• 9:17
  and their, their credit's good, the
• 9:21
  money's good. Maybe they don't have a down payment enough
• 9:25
  money for that. Like, what are some. I know that's kind of a
• 9:29
  super challenging thing is like, I don't, I want to buy
• 9:33
  a house, but I don't have money for a down payment. So what, what would
• 9:35
  you say to that? Well, there's lots of options that people, even
• 9:39
  if they don't have money in the bank, there's other things they can do.
• 9:43
  There are down payment assistance programs here in Nevada.
• 9:46
  We've got some great down payment assistance programs
• 9:50
  where they can get money for down payment
• 9:53
  and closing costs.
• 9:58
  Statewide. Or are those federal? These
• 10:02
  are state programs here in Nevada that I'm talking about. They
• 10:06
  do have to have some of their own money, though. And I tell people that
• 10:09
  because you're going to have to have some money once you make an offer on
• 10:12
  a home, the realtor is going to want an earnest money
• 10:16
  deposit and that money is used to open escrow, that could be
• 10:19
  $1,000. And so they do have to have that
• 10:23
  money. And then a lot of times we have to collect for the
• 10:26
  appraisal that's paid, and that's another five to six
• 10:30
  hundred dollars. So they do have to have some of their own money just to
• 10:34
  kind of get the ball rolling, because they don't. They wouldn't get the down payment
• 10:37
  assistance funds until the end, until the closing.
• 10:41
  Right. Just in case someone doesn't know
• 10:45
  what an appraisal is, can you explain what that is and how that an
• 10:48
  appraisal. Is required on most loans? And that
• 10:52
  is a way that we, as the
• 10:56
  lender, we want to just make sure the value, what they're paying for the house
• 11:00
  is worth that. So the appraiser is going to go out, they're going to find
• 11:03
  comparable sales for, like, properties that have sold,
• 11:06
  preferably in the last six months and
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  justify that the purchase price is supporting
• 11:14
  the value so that they're not overpaying. Or if they're
• 11:18
  underpaying, that's a different story. But basically
• 11:22
  just to justify the value of the property. Yeah. And it feels like that's also
• 11:26
  a little bit of protection for the consumer because if they put in an
• 11:29
  offer for 400,000 on something, but other properties
• 11:33
  maybe only sold for 350 or
• 11:37
  375, that would be where it would be like you
• 11:41
  have to come up with a reason why it's actually worth that extra,
• 11:44
  extra money. But, Angela, what do you have to add to that in terms of,
• 11:47
  like, appraisals and getting that.
• 11:51
  Yeah. So from my end, what we see with appraisals
• 11:55
  is that reopens negotiations during the
• 11:58
  terms of the contract. Now, we know the lender is only
• 12:02
  going to lend on what the appraised value is.
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  If there's a gap, you know, there's. In certain markets, the
• 12:10
  seller can say, I want the price that you
• 12:14
  offered. So the buyers, they're asking the buyer to come
• 12:17
  in with that difference. Not a lot of buyers have that. So
• 12:21
  that could, you know, that could kill a deal.
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  Or, you know, the buy, the seller
• 12:29
  says, okay, this is what it appraised at. They can, sometimes they
• 12:32
  can contest that and say, here's the comps that we
• 12:36
  show supporting that value. And so
• 12:39
  sometimes the appraisers will look at that, and sometimes they don't.
• 12:43
  But we try. We try for our clients. And then
• 12:47
  that's the time when, if both parties cannot agree,
• 12:50
  then they. We part and we go our separate ways.
• 12:54
  Yeah. So we might even Be skipping ahead a little bit. I know we jumped
• 12:58
  into appraisals, so I asked about that. So I think once you.
• 13:01
  But that's like critical. So like there's this whole process, right? You got
• 13:05
  if your credit's not good, we need, you need to fix the credit.
• 13:09
  And then hypothetically the next step. Normally you're looking for properties
• 13:13
  and talking to a realtor first, but the next step is probably to find the
• 13:16
  mortgage lender and to make sure that
• 13:20
  you're really understanding if you have like a
• 13:24
  can't go above a 2000amonth budget, for example, that all
• 13:27
  the different things in that is only going to add up to
• 13:30
  2,000amonth. And then you talk to a realtor who's like,
• 13:34
  okay, for that amount of money, we have to look in this price
• 13:38
  point. And then, and then we kind
• 13:42
  of. You kind of go from there. But Jill, could you kind of talk to
• 13:45
  them about what might be some things in terms of like when they have their,
• 13:48
  their monthly payment and just maybe talk a little
• 13:52
  bit about like, you know,
• 13:56
  the other things. It's not just the mortgage, what's included. Yeah,
• 13:59
  yeah, yeah. And I wanted to touch back a little bit about down
• 14:03
  payment. They can also use
• 14:06
  401k funds if they have a 401k and
• 14:10
  gift money. If they have a relative, a family member that's willing to give
• 14:13
  them money for a down payment, that can be used as well.
• 14:17
  So there are some other things we can accept
• 14:21
  besides the down payment assistance programs. With regards
• 14:24
  to the mortgage payment in a mortgage, we as the lender are
• 14:28
  looking at the property taxes, homeowners insurance, like for fire
• 14:32
  or flood and then mortgage insurance. And
• 14:36
  when I am pre approving people, I'm estimating those three things because
• 14:40
  the property taxes and the homeowner's insurance is
• 14:44
  tied to the property. Basically it's going to depend on the property.
• 14:48
  But what we do is we take when the mortgage payment's made, the
• 14:52
  taxes and the insurance are included in that
• 14:55
  payment and then we take the taxes and the insurance and we put it in
• 14:59
  what's called an impound account. And then the taxes
• 15:02
  are paid and the insurance is paid for the borrower.
• 15:06
  And lenders prefer that because then they know those things
• 15:10
  are getting paid and they're being taken care of. You know, if someone doesn't keep
• 15:14
  the insurance up on the house and the house burns down, well, then that's the
• 15:17
  lender's collateral for the loan. Right. If the property
• 15:21
  taxes aren't paid, the county can then foreclose on the property
• 15:25
  and the lender's at a lect. And so they
• 15:28
  prefer to have those things impounded because then they know that they're getting taken care
• 15:32
  of and getting paid on time. So I don't know,
• 15:36
  people might not understand the word impounded. That doesn't mean they pay a
• 15:39
  bunch of tax up front necessarily. Well, yeah,
• 15:43
  we do. In escrow. We do have to collect a few months of taxes
• 15:47
  and insurance when we close
• 15:50
  escrow because we haven't been collecting from them all year.
• 15:55
  We have to make sure we have enough in that impound account when we close
• 15:57
  escrow to pay that next installment of taxes, let's say.
• 16:01
  So is it usually just like a year? Like they don't have to pay.
• 16:05
  Like, I just want to. I'm like, like
• 16:08
  I've, you know, bought and sold homes that I know you guys have and you're
• 16:11
  in this business. So it's like I want to kind of make sure it's so
• 16:14
  broken down for people that just have no idea. I remember trying to explain this
• 16:17
  to my teenagers before, way before, and
• 16:21
  they, they could not even. They're like, is
• 16:27
  smart and they're like, they, I think they just looked at me like I was
• 16:30
  crazy. I'm like, you
• 16:34
  guys have to understand this. They did not. I mean, so, but, but yeah, so
• 16:38
  there's like, you know, the property taxes, which are. You can find out what the
• 16:41
  property tax is, if it's an. In a, in a homeowner's
• 16:44
  association, which most are, then you can find out how much the monthly fees
• 16:48
  are. And that's just some kind of part of your planning. And then when you
• 16:52
  go to closing, it's going to be probably a few months or that
• 16:55
  year or something like that. You pay ahead of time for your closing cost. So
• 16:59
  usually your homeowner's insurance, you pay a year in advance.
• 17:02
  And then we're collecting every month. Right. And then next year we would
• 17:06
  pay it because we've got enough in the impound account of escrow account to pay
• 17:10
  it as far as the taxes go. Now in Nevada, the
• 17:13
  taxes are paid quarterly. Every state's little
• 17:17
  different. You know, some states you pay them twice a year. So depending on when
• 17:21
  the next installment is due, that is how we determine how
• 17:24
  many months we need to collect. But it could be like three months of
• 17:28
  taxes. It's not going to be, you know, they're not going to be paying years
• 17:32
  in advance or anything like that. So it's just enough to
• 17:35
  make sure that when that next installment comes due, there's enough to pay
• 17:39
  them. Yeah. So like it's just included in your, your monthly
• 17:43
  payment then for the next. You know, when I lived in, in Georgia and in
• 17:47
  Tennessee and I think in Wisconsin, which is the places I've owned
• 17:50
  homes, I think it's annual. Oh, okay. Wow.
• 17:54
  It's. I don't think I even knew that. But Angie, back to
• 17:58
  you. So like, let's say they are like, okay, someone, they're in
• 18:01
  college, right. Or whatever. I don't know, they're young. What can
• 18:05
  you do, what can you do to build credit from the
• 18:09
  start? So it's kind of risky if
• 18:13
  we do unauthorized user. But I'll give you a scenario for
• 18:16
  my son. He was only 16 and I
• 18:20
  put him as an authorized user on my credit cards
• 18:24
  so that he could build some credit. And then essentially when he
• 18:28
  turns 18, we're going to start some credit cards. But he already
• 18:31
  has established credit history because he
• 18:35
  was piggybacking off of my two credit cards.
• 18:39
  So it gave him about a 10 year history because I
• 18:43
  put him on two credit cards. And now we can
• 18:46
  probably get him into a lower interest rate
• 18:50
  credit card because he already has established credit.
• 18:53
  Now if they don't have a parent that can, you
• 18:57
  know, add them, then what they can do is start a secured card and I
• 19:01
  have one on my website and you put $200 down
• 19:04
  and it's a 19.9 interest rate and then it reports to the
• 19:08
  credit after three weeks. So it's not score
• 19:12
  driven. But that's just a easy way to
• 19:15
  start building credit. And why do, I mean, you know,
• 19:19
  there's, there's people out there, of course, who say do all cash and never
• 19:23
  use credit, which can be a thing. But why, why, why do we need
• 19:27
  credit? You guys
• 19:30
  too? Well, so
• 19:34
  we have a report card when we're in high school and college. So
• 19:38
  like we get grades. Right. That's pretty much
• 19:41
  our, our history for as adults.
• 19:45
  That's like our report card. Credit is, is our report card. That's what I
• 19:48
  explained to my high school kids, what I'm teaching to them. I'm like, you
• 19:52
  are, are still going. To get a report card. This is your report card and
• 19:56
  it's tracking all of your payment history. It's tracking the, the
• 20:00
  years that you've had credit, all that stuff. So if you don't
• 20:03
  have anything on the credit report and you're, and you're showing like
• 20:07
  a zero, then you don't exist in our,
• 20:11
  in our world. And it's, it's, you can't rent an apartment,
• 20:15
  you can't get a car, you can't get
• 20:19
  college funds, all that stuff. So you,
• 20:22
  you have to exist on the FICO score. So
• 20:26
  isn't that crazy? Jill, is there a certain amount of time
• 20:30
  with mortgages they need to have a history of credit before you
• 20:34
  can give a mortgage? Not really. In fact, I recently had
• 20:37
  somebody who had, he
• 20:41
  had only just like a couple years and he had been told by another
• 20:45
  lender that that was a problem. And I said, I don't think
• 20:48
  so. And so I ran it and
• 20:52
  I got it into underwriting and we got him approved. So usually as
• 20:56
  long as there's a score, you know, because everything's real autom
• 20:59
  as far as underwriting goes, which is underwriting is the loan approval
• 21:03
  person. And the system that we use is automated. Everything's
• 21:07
  very credit score driven. So as long as there's a credit score
• 21:11
  that we should be fine. There usually isn't a necessary length of
• 21:15
  time. Yeah, that's very. Unless it's
• 21:19
  derogatory credit. Then we have bankruptcies and
• 21:22
  stuff. Then there has to be a certain length of time as far as how.
• 21:26
  Old they are, how old the bankruptcy is.
• 21:30
  Yeah, how old does a bankruptcy need to be? Usually
• 21:33
  depending on the loan type. So government loans, it's two years
• 21:37
  from discharge and then conventional loans is four years.
• 21:41
  Okay, so two years to four years.
• 21:45
  So Angie, anything to add to that? If
• 21:48
  someone has a bankruptcy, is there a way that you can speed it up to
• 21:51
  get it off there record or they just kind of have to wait it
• 21:55
  out. So I have worked with a lot of
• 21:58
  bankruptcies, have a lot of attorneys that work with
• 22:01
  me. So once they file the bankruptcy,
• 22:05
  can I kind of elaborate like what the attorneys do on my
• 22:08
  end? So they just basically file the
• 22:11
  bankruptcy and sometimes they will list the
• 22:15
  accounts individually on the credit report included in
• 22:18
  the bankruptcy. Well, that's not how it's supposed to appear on the
• 22:22
  credit. It's supposed to be attached to the public records,
• 22:26
  which would be bankruptcy. And then the account
• 22:30
  should be completely attached. So each, each account that was filed
• 22:33
  in the bankruptcy is a good, probably about 10 to 20 points
• 22:37
  depending on the year. But if they're, if they're
• 22:41
  individually on the credit report as included in the
• 22:44
  bankruptcy, it can hurt their credit score. So I can go in and
• 22:48
  remove that stuff. And a lot of attorneys file the bankruptcy and they're like,
• 22:52
  here you go, Angie, fix this. Because that's
• 22:56
  not, that's not a part of what they do. They don't work on the credit
• 22:59
  side. So that's, that's why I work with a lot of local attorneys here in,
• 23:03
  in town. So you remove different accounts from
• 23:06
  the, from the bankruptcy? Is that what you said? And then. Yeah,
• 23:10
  so it's listed on the credit report as included in the
• 23:13
  bankruptcy. Um, legally they should all be attached to the
• 23:17
  bankruptcy, which is a public record. And that's a good about 30
• 23:20
  points on their credit score. Wow. Okay. And a lot of times
• 23:24
  my bankruptcy attorneys will refer me clients because
• 23:28
  they don't have enough debt to file
• 23:31
  bankruptcy. So it's usually about,
• 23:35
  I would say, 10 to $20,000 in debt.
• 23:38
  But some people will go in and say, oh my gosh, I'm so overwhelmed. There's
• 23:42
  so much stuff reporting on the credit that I don't know what to do.
• 23:46
  And you know, it'll be a couple accounts and I'm like, I
• 23:50
  can help with that. I can help settling on those debts to where
• 23:53
  it's off of your credit report and you're not having that
• 23:57
  7 to 10 year bankruptcy on your, on your credit.
• 24:01
  Yeah, that's great to know. So if you're overwhelmed, you can call you to help
• 24:04
  with credit cards. Yeah, I would love to take a look
• 24:08
  at anybody's credit. I mean, anybody can use
• 24:11
  help. Yeah. Yeah, for sure. All right,
• 24:15
  let's circle back to Angela and kind of, we'll just kind of shift a little
• 24:18
  bit. So you have someone that comes to you and they're
• 24:22
  like, we think we can
• 24:25
  afford 500,000
• 24:28
  house. Can you show us some houses? So you
• 24:32
  might. At that point, you kind of did answer. Like you would go and you
• 24:35
  would, you would show them a few houses and then you would look at numbers.
• 24:39
  So then they come back, okay, I'm going to give you a scenario. So they
• 24:42
  come back. They've been looking online at houses that are 500,000,
• 24:45
  which is a reasonable amount. It seems like nowadays that used to be so much,
• 24:49
  but not anymore. And then it comes back that they can do,
• 24:53
  oh, close, but only 425.
• 24:56
  So they had their heart set on an
• 25:00
  area and there's nothing in that area that's at 425. So
• 25:03
  like, what do you say to them? What do you do? Yeah, I had a
• 25:07
  shopper like that a couple years ago, a young couple. They
• 25:11
  were techies and they worked from home and they love the
• 25:14
  whole idea of a big acre lot that their dogs could roam on.
• 25:18
  And we were looking in, looked at a house and in the 500
• 25:22
  range. And then we talked to their lender
• 25:26
  and their lender said, well, this is what you qualify for,
• 25:29
  425. And that was their max. And they said,
• 25:32
  no, we really want our payment to be X. So that even
• 25:36
  shrunk it down a little bit more. And so there were some properties
• 25:39
  that we looked at, but it happened to be a time when we were
• 25:43
  seeing multiple offers and just kept getting bid out
• 25:47
  and they decided that was too overwhelming for them
• 25:50
  and they took a backseat and waited
• 25:54
  a little bit. But that's what happens too.
• 25:59
  Well, let's say in a scenario though, they do want to move forward. I mean
• 26:02
  like, what kind of other things might you look at? Like, I
• 26:06
  mean, do you try to talk them into something that they can fix, like
• 26:10
  a fixer upper or a different part of the city or
• 26:15
  the idea of this is just your first home, it doesn't have to be your
• 26:18
  life. What kind of conversations might they, what kind of things might they
• 26:22
  consider if they can't get into the house they actually really want to get into?
• 26:27
  So there's a couple things that we can look at. I am great at
• 26:31
  looking at. I have the ability to say, they say they want a four
• 26:34
  bedroom. Okay, well how about if we see this
• 26:38
  three bedroom plus a den, maybe that works for their
• 26:42
  scenario. So I'm good at thinking outside the box and finding
• 26:46
  something that they didn't think would fit
• 26:50
  and then they end up loving it. So we can do things like
• 26:53
  that. And
• 26:57
  right now what we're seeing in our market is maybe
• 27:01
  a buyer says, I only want to go up to 400, but I always
• 27:05
  look just a little bit over 410 because maybe
• 27:09
  that's getting a good deal. If it's been sitting on the
• 27:13
  market for a little bit, maybe it's getting some credit
• 27:16
  back from the seller so that we can pay for some
• 27:20
  closing costs or pay down the interest
• 27:24
  rate, which Jill can speak on too. But those are little things
• 27:28
  that we see and that I'm helping with buyers right now.
• 27:32
  Yeah, thank you for that. And if any, I know you guys have all bought
• 27:35
  and sold homes. So like, you know, and you know, kind of. I
• 27:39
  know for me, like one things that I like to do
• 27:42
  when I, when I've either helped people buy a home and it's the tough. And
• 27:46
  it was the tougher market where there wasn't a lot on the market. One thing
• 27:49
  I did for a client once is there was a property they liked that was
• 27:52
  not on the market. It was just. But it was, had
• 27:56
  been listed and it's kind of like off market. For a little bit. So I
• 27:59
  called them and they were just trying to make some repairs to make it
• 28:02
  prettier. And so my. You know, and you can. And then
• 28:06
  I. I've done the same thing with myself for like the thing. The property's been
• 28:10
  on the market for a really long time. I get excited about that. For me,
• 28:13
  I get excited if it's been on the market for a long time because
• 28:18
  maybe that maybe they're hard to work with, but maybe also they're ready to lower
• 28:21
  the price and you can get in there and if it's off the market, but
• 28:24
  they're just making some repairs, maybe you can get the deal when no one else
• 28:27
  is there, or maybe just horrendously painted,
• 28:31
  you know, or has some just topical things. If people can
• 28:35
  look past that. I do feel like that's something that. Where they can maybe
• 28:39
  get the deal. But Angela, what do you think on that or anybody
• 28:42
  else? Absolutely. Absolutely. I've sold.
• 28:47
  I've helped buyers look for homes that weren't on the market, like
• 28:50
  for sale by owners. That's a great little niche that
• 28:54
  people don't think about. And as long as the
• 28:58
  for sale by owner is willing to work with the realtor on the
• 29:02
  buy end, they don't want to be represented. But I can represent the
• 29:05
  buyer and still make things work. So things like that.
• 29:10
  I'm always. If I see a house that
• 29:14
  is in contract, but maybe they're still allowing
• 29:18
  showings, I'm calling them up and I'm asking, how's that
• 29:21
  escrow looking? Is there a chance for us to be, you know, put
• 29:25
  in a backup offer? All those little things can
• 29:28
  help a buyer get in where they normally, you know,
• 29:32
  wouldn't? Yeah. Do you. Have you noticed. Are there.
• 29:36
  Do you have people who are like, show me
• 29:39
  the one that's a little more run down so I can get a deal so
• 29:43
  I can fix it. Does anyone come to you saying that or is that. From
• 29:46
  what I hear, everyone wants to kind of turnkey, but is there for anyone
• 29:49
  who is like, I'll take the deal. There's
• 29:53
  always investors out there looking. They reach out
• 29:57
  constantly. All day. I get text messages from
• 30:00
  investors that want that. You know, they're looking for that off
• 30:03
  market or something coming up soon, property
• 30:07
  that they can, you know, get a good deal on, fix it up
• 30:11
  and then put it back on the market. You know, I feel like it's
• 30:15
  like it's almost a thing of the past, but I just feel like that's something
• 30:18
  that I wish first time home Buyers would think about, especially if
• 30:22
  they know anyone who's handy or can find someone. Because it's
• 30:25
  like you can get into a home that needs some work done on it and
• 30:29
  then do the work. Yes. And I just feel, is
• 30:33
  that, does that feel like to you guys like a thing in the past too?
• 30:35
  Like. Yeah, I don't
• 30:39
  really hear that very often. But I do want to mention there are rehab
• 30:43
  loans that people can do if they do want to buy a fixer upper.
• 30:47
  Okay, tell us about that. They're a first time home buyer. I mean,
• 30:50
  FHA has them. Conventional loans have them where they could put.
• 30:54
  With FHA, they can put as little as 3.5% down.
• 30:58
  They can get the, they can get the cost for the repairs
• 31:02
  financed into the loan. Okay. They would
• 31:06
  have to have a good, you know, a good cost breakdown. Know what they want
• 31:09
  to do, know what kind of materials. Like let's say they want to redo the
• 31:12
  kitchen. You know, they'd have to know like what kind of countertops, what kind
• 31:16
  of appliances, stuff like that. Have to have a breakdown, have to have a
• 31:20
  contractor because the appraiser will go and give it a
• 31:23
  future value with all those repairs or improvements being done.
• 31:28
  So the appraiser needs to know, you know, what kind of quality materials
• 31:32
  are being used. But that's a great program.
• 31:35
  And back in like, you know, 2008, when there was a lot of
• 31:39
  foreclosures and things like that, those loans were actually
• 31:43
  a lot more prevalent, you know, because a lot of people were
• 31:46
  taking the cabinets with them when the home, their home got foreclosed
• 31:50
  or taking out the plumbing.
• 31:53
  2008, the crash, kind of when that was going on. Isn't
• 31:57
  that. Oh man, it's been a ride
• 32:00
  these many years, right?
• 32:04
  Yep, yep. But those ones were more prevalent back then
• 32:08
  and we do offer them now. And it's a
• 32:12
  great program. I honestly don't know why more people don't.
• 32:16
  Don't take advantage of it. Maybe they don't know about it. So
• 32:19
  FHA Federal Housing Authority, is that right? Yeah.
• 32:25
  Administration. Okay. And then I think there's. You have
• 32:28
  mortgage. They have explained that to
• 32:32
  them. The FHA versus Conventional. Let's do
• 32:35
  that. FHA is basically the government's backing the loan.
• 32:39
  They're insuring the loan for the lender. Okay. Same with like va, that would be
• 32:43
  veterans. Veteran VA has a rehab loan as well.
• 32:47
  So basically the government agency is ensuring the loan for the lender that if
• 32:51
  the borrower doesn't make the payments and the lender has to foreclose.
• 32:55
  FHA would come in, pay off the lender, they
• 32:58
  would foreclose on the house and sell the house. So it really
• 33:02
  helps alleviate the lender's risk for the
• 33:06
  loan. FHA is a more lenient when
• 33:10
  it comes to credit scores, debt to income ratios, things like
• 33:13
  that. They do require
• 33:17
  mortgage insurance, which again is an insurance for the lender, but the cost
• 33:21
  goes to the borrower. That's included in their monthly payment.
• 33:25
  But it's a way to help people get into homes that maybe don't have that
• 33:28
  A plus credit, you know, or maybe they're
• 33:32
  pushing their debt to income ratios a little bit higher.
• 33:35
  FHA will allow for those types of
• 33:39
  situations. Yeah, that's good to know.
• 33:42
  And lots of different situations. So like, honestly, like when I
• 33:46
  divorced and my credit was great, but like the,
• 33:49
  all the stuff it had, it had to be an FHA loan, which made me
• 33:52
  crazy or I had to wait and it was just, it's
• 33:56
  just like. So life change can cause those issues
• 33:59
  too. So. Okay, so people need to know you're going to pay whatever the,
• 34:03
  whatever the mortgage is, and then you're going
• 34:07
  to pay an HOA fee monthly and then you're going to
• 34:11
  pay property tax insurance monthly,
• 34:14
  which usually the mortgage lender or the company, not the lender
• 34:18
  yourself, but the company will collect that and then for
• 34:22
  you when it's time, and then you will have also.
• 34:27
  Is it called PMI Mortgage Insurance?
• 34:30
  Yep, yep. What does that stand for?
• 34:33
  Well, PMI would be private mortgage insurance, and that would be
• 34:37
  with a conventional loan. Okay. Fha, it's just
• 34:41
  mortgage insurance. Okay. And so then they'd have a fee for that.
• 34:45
  And what is that? Maybe $200 a month?
• 34:48
  150. It's based on the loan amount, it's based on the loan amount, how
• 34:52
  much they're borrowing. And it's a
• 34:55
  little, little complicated in that there is an upfront mortgage
• 34:59
  insurance fee that they pay, which usually gets financed into the loan and
• 35:03
  then they pay it monthly. So it's just a percentage of the loan
• 35:07
  amount? Basically, yeah. So there's all these things we don't. I mean, you know,
• 35:10
  there's. And then there's electric bills and, and the repairs are on you.
• 35:14
  Like if you've been running for a while and now you own. Now if there's
• 35:17
  a roof repair, you get to do it. Right. Some have
• 35:21
  inch. Property insurance too. Those things sometimes
• 35:24
  that's. Is that usually required too? Is property insurance? Yeah.
• 35:28
  So the HOA dues, like if you're buying a condo or a
• 35:32
  planned unit development, and you've got HOA dues. Those are paid
• 35:35
  separately. Your homeowner's insurance would
• 35:39
  be included in the mortgage
• 35:43
  for fire or for flood. I feel
• 35:47
  like in this. In Georgia, they were. Because I had an hoa, I felt like
• 35:50
  it was rolled in. I think it was. But that's
• 35:53
  interesting. Maybe different states do it different ways, but.
• 35:58
  All right, everyone jump in on this question because they're all
• 36:02
  women with opinions.
• 36:06
  Do you buy in an HOA community or not? What do you think?
• 36:11
  Angela, we'll start with you.
• 36:15
  Yes. Sometimes those are
• 36:18
  starter homes. They're more affordable, even though they have those
• 36:22
  HOAs. And you have to really look at those
• 36:25
  amounts so they don't throw off a buyer's
• 36:29
  budget. But those are great places to start.
• 36:32
  My daughter, she's 33. That's where we started her. She got into
• 36:36
  a townhouse. She was there a few years, and
• 36:40
  then we traded her up into a single family
• 36:43
  home. And now she's a homeowner and she's
• 36:47
  33, and she's doing it all on her own.
• 36:51
  Yeah. Anyone else have an opinion on it?
• 36:56
  I live in a property that has HOA dues.
• 37:00
  Ours is really more of, like, a landscape maintenance, so they take care of
• 37:04
  the common areas, you know, that kind of stuff. They're not
• 37:08
  real strict. They don't enforce, like, parking, you know,
• 37:11
  and things like that. But I think I
• 37:15
  don't. I like them personally. Yeah. Angie,
• 37:19
  any opinion from you? Yeah. So my first house was
• 37:23
  In Sparks, no HOA. So I think the
• 37:26
  HOAs really protect your property. Like, the value,
• 37:29
  it increases the value because I went
• 37:33
  from, you know, not having an HOA
• 37:36
  to where people around me would not take care of their yards and stuff.
• 37:40
  So that kind of, like, decreases the value. And then, I mean,
• 37:44
  people don't want to live in a bad area. So when I bought my second
• 37:48
  house, I have an hoa, and they really maintain all of,
• 37:52
  like, you know, the yard work, all that stuff, and it looks so
• 37:55
  clean and pretty. So I really think it
• 37:59
  increases the value because, like, when. When people are
• 38:03
  looking in the surrounding area, they want to see that it's clean and neat and
• 38:07
  their property value is going to go up. So I really. I really like
• 38:11
  being in hoa and it's. And it's a set
• 38:14
  amount, so. But that's what I like
• 38:18
  versus not having an hoa, because my rental was
• 38:22
  not hoa and that my neighbor didn't keep
• 38:26
  up their yard. And, you know, some neighbors did and some Neighbors didn't.
• 38:29
  But in an hoa, you have to keep up, like the weeds and stuff
• 38:33
  like that. We are notorious for having weeds in Nevada.
• 38:37
  So even though it's a dry state, but when it gets
• 38:41
  sunny, all those lovely weeds come out
• 38:44
  for sure. Well, yeah, so I've had, I've had different
• 38:48
  opinions on this too, because, well, and I've owned places
• 38:51
  in different states, but when I bought in Georgia, that was the first time I
• 38:54
  had bought into a townhouse community. So I feel like everyone, like if you're, if
• 38:58
  you're brand new at buying, the thing to know is like, you have to
• 39:02
  really actually ask for the hoa, all the covenant and
• 39:05
  restrictions. So that's what you ask for, the covenant restrictions, and your realtor will know
• 39:09
  this stuff. But you, you look at it and see
• 39:12
  what's being paid for and what isn't. So you might have
• 39:16
  a pool, you might have a gate.
• 39:20
  It might, they might do the landscaping, they might not do the
• 39:23
  landscaping. So then you, you kind of, you roll it in. So for the townhouse
• 39:27
  community, it was the most expensive. I think I'd lived in one that was only
• 39:30
  like in Wisconsin, maybe $25 a month. And they
• 39:34
  didn't really do anything except for maybe send
• 39:38
  out notices if someone had too many weeds, right? If
• 39:42
  their lawn was too long, their grass was too long, then they got
• 39:45
  a notice. But then the one in Atlanta, which was an
• 39:49
  ho, which is a townhouse community, that covered
• 39:53
  exterior paint gutters, roof
• 39:57
  the streets because they, you know, the street repair. So if they had to make
• 40:01
  repairs in the streets, it covered the lights, cover the, the gate,
• 40:04
  it covered the pool, the tennis courts and the
• 40:08
  playground, right? So that was 400amonth. And so I
• 40:12
  think people look at that. And then of course, in Atlanta, too, there's a lot
• 40:15
  of high rises where people buying condos, and those can be up to
• 40:19
  800amonth. But single family homes, it depends on. If there's not a
• 40:22
  pool, then it might just be 25amonth, you know,
• 40:26
  so it's. I think that that's good to know too. Is there a lot of
• 40:29
  different levels and, and what that entails the most is going to be
• 40:33
  a condo. And these aren't really, I don't think, a thing in Reno, but they
• 40:36
  were definitely a thing in Atlanta. So. And those can be tricky
• 40:40
  because they, you know, you're. It
• 40:43
  can go up exponentially if not enough people have bought. So those can be a
• 40:47
  little bit scary too. But when with the
• 40:50
  townhouse one, people were saying that's way too much for
• 40:54
  a townhouse. I'm like, but I paid that on a single property when,
• 40:58
  if I had it repair my own roof now and
• 41:02
  do my own painting, you know, and that kind of thing. So,
• 41:05
  Angela? Yeah, I just wanted to touch on something that
• 41:09
  you just brought up is the covenant and restrictions, the
• 41:13
  CCNRs, the way that a
• 41:16
  plan, development or HOA
• 41:20
  maintains or the health of their.
• 41:24
  How they maintain the funds is very important. And they have to do reports
• 41:27
  on that every couple of years. And so
• 41:31
  when you get a copy of those, it's hundreds of pages and
• 41:35
  most people don't read it. But you should look at the
• 41:38
  financials in there that say
• 41:42
  how much reserves that community has, because that's very
• 41:45
  important. If they don't have the reserves to
• 41:49
  maintain the outside of the structures, it's a condo
• 41:52
  unit or the roofs, then
• 41:56
  you could be looking at an HOA hike, which we've just
• 42:00
  seen in the last couple years. HOA's for
• 42:03
  condo and townhouses nationally, but also here
• 42:07
  locally, they went up double, if not triple in some
• 42:11
  places. And so they just had to keep that
• 42:14
  reserve so that they could do those. Those
• 42:18
  items that the HOA takes care of. So most people don't
• 42:22
  look at that. They don't know to look at it, but that's very important is
• 42:25
  the health of hoa. So do they do. Because I do.
• 42:29
  They do special assessments for that kind of stuff in, in Nevada, because I
• 42:32
  know it's called like they gotta do this one big project
• 42:36
  and re. Re dig the gutters or something. I don't know. And so
• 42:40
  there's a special assessment. Is there something like that in Reno too, or no. Or
• 42:44
  Nevada? Oh, yeah. Sometimes there's special assessments that
• 42:47
  they'll do that they'll add on. A lot of times
• 42:51
  they'll say, you know,
• 42:55
  we're going to increase the HOA by X amount to cover this.
• 42:58
  Or it's just going to be for five years. That X
• 43:02
  amount is going to go up just for five years to cover this project.
• 43:06
  So different things like that. And you can. They
• 43:10
  can. If they're, if they're going to sell within that time frame,
• 43:14
  they can choose to pay that assessment off at a
• 43:18
  closing or pass that on to the next
• 43:22
  buyer. Yeah. So a lot of stuff to
• 43:26
  consider for sure in all of this.
• 43:29
  Angie, let's go back to you. So
• 43:34
  what would you. You have a son who's, you know, how is he?
• 43:37
  16? He's gonna be 18 this month.
• 43:43
  He's turning 18 on the 21st.
• 43:47
  So I kind of. And you guys all have kids, so like for your
• 43:50
  kids, you're like, why,
• 43:54
  when should they buy? Like, is it a, when is a good time to
• 43:58
  consider purchasing? Like do the, do the mom angle
• 44:01
  for me. Well, I mean I look
• 44:05
  at, well, Jill's perspective
• 44:09
  would be, you know, try to get them prepared as soon as
• 44:12
  possible because you know, once they get into the market, they're
• 44:16
  constantly building equity for themselves.
• 44:20
  But they do have to have like, you know, some time, time frame
• 44:24
  on the job, you know, make sure they have at least two years
• 44:27
  history and got some stuff saved up, a bank account,
• 44:31
  all that stuff. I just went through all this with my son, got him set
• 44:34
  up with a bank account, made sure he's getting direct
• 44:37
  deposit just so that it's just so much smoother for
• 44:41
  Jill to do her job, track
• 44:45
  everything thing and, and make sure that they, you
• 44:48
  know, are having all their income go into their account
• 44:52
  and stuff like that. And they can do student, student accounts
• 44:56
  which, you know, their, their parents can co sign for, which I did
• 45:00
  for my son. And then just made sure he had
• 45:03
  Social Security, his, you know, just preparing him for
• 45:07
  life. And you just,
• 45:11
  just got a car. Yeah, yeah. So you just put the word
• 45:15
  equity. So equity is something that is. Explain,
• 45:19
  explain. Angie, I'll let you do. Since you're doing this. What is
• 45:23
  equity and why does it, why does it matter? Why do we buy
• 45:26
  versus rent? Like why, why would you. So,
• 45:30
  so if we're renting, everybody's renting. And where
• 45:33
  is that money going? Not to
• 45:37
  you, not going to you. It's either paying,
• 45:41
  you know, the rental companies, you know, if
• 45:45
  you're, you're paying for an apartment, but if you are
• 45:48
  just basically paying somebody, it's
• 45:52
  not, you're not building equity in anything. You're just basically
• 45:56
  throwing your money away. I know everybody's got to start somewhere,
• 45:59
  but if you were able to build equity in a house
• 46:03
  and you're making those mortgage payments on time each year,
• 46:07
  that property value is going to go up and Angela will attest to this.
• 46:11
  Reno's growing. A lot of
• 46:14
  people, a lot of my clients should have got into the market a long time
• 46:18
  ago, but they didn't. And now they're seeing the rise.
• 46:21
  You know, I bought my first house at 2,
• 46:24
  260,000 and then I bought my, my second house at
• 46:28
  619,000. So there's the difference.
• 46:32
  2016 to 2022, look how
• 46:35
  much equity was gained in, in the first property and, and
• 46:39
  now the second property and, and we're just, I mean, I went
• 46:43
  to EDAWN and they said that they're. We're gonna just grow. We're like the
• 46:46
  fastest growing city, 80 percentile
• 46:50
  in all of the United States. So,
• 46:54
  yeah, it's huge. It's huge. We're becoming a major
• 46:57
  tech company and we have no state taxes.
• 47:01
  So I moved here from San Diego and I gave myself a raise when I
• 47:05
  moved here. So no state, California
• 47:08
  taxes. But yeah, I mean, that's. You're building
• 47:12
  constant equity. Even if it's a condo, a townhouse,
• 47:16
  you know, you're not paying essentially somebody else's mortgage.
• 47:19
  You're. You're actually putting value into
• 47:23
  something that you are paying for. Yeah. And
• 47:27
  EDAWN is the economic development of Western Nevada, I've heard.
• 47:30
  So we do get a lot of people coming from
• 47:34
  California because of the tax rates. And of
• 47:37
  course, everyone's just trying to save, you know, to live.
• 47:41
  But. So, Jill, could you talk a little bit?
• 47:45
  So also. So start with saying as a mom, what you would recommend
• 47:48
  for your child and when to do it. And then also maybe say something
• 47:52
  about like how they would do it now because it's gone
• 47:56
  up so much since 2020. Well, I have
• 48:00
  two children and I would say, you know, when
• 48:03
  they were established with their job situation and their
• 48:07
  income and they could afford the monthly
• 48:10
  payment, I would encourage them to do it as soon as they
• 48:14
  could. If I was able to help
• 48:18
  them with the down payment, I would, because I think it's so
• 48:21
  important to what Angie
• 48:25
  said for them to start building equity. You know, equity
• 48:29
  is the value of the home minus what you owe on the
• 48:32
  mortgage. The difference is your equity. And once you get
• 48:36
  that first home under your belt, which I tell
• 48:40
  most of my first time homebuyers, the first home is going to be the hardest
• 48:44
  to get, you know, because you're usually scraping every penny for that
• 48:47
  down payment. You're scared about that mortgage
• 48:51
  payment, but once you get that first one under your belt,
• 48:55
  it's a stepping stone for the next house, you know, because you built
• 48:58
  that equity, you could sell that house and use that
• 49:02
  equity now for your down payment on the next house and so
• 49:06
  on. Or maybe you keep that first house as a
• 49:09
  rental property or something and you use your
• 49:13
  own savings for a down payment on the next house. But once you get that
• 49:17
  first house, it really opens up a lot of doors
• 49:20
  for the next one. I would encourage
• 49:24
  both of my children, when I felt like they were settled with good
• 49:28
  jobs and could make the payments,
• 49:31
  to do it as soon as. They could yeah, that's great.
• 49:35
  Angela, what do you have to say on that? You've been through it. You said
• 49:38
  yes? Yep. My. My oldest daughter.
• 49:42
  That's what we did. I planted that little seed and I said, you need to
• 49:46
  be a home buyer, a homeowner.
• 49:50
  And it took her a couple years, and then she finally said,
• 49:53
  okay, Mom, I think I'm ready. And we delved in. We got her that starter
• 49:57
  home. And I tell buyers this,
• 50:02
  buy what you can afford. If it's a smaller home,
• 50:05
  if it's a fixer upper, if it's a condo,
• 50:09
  get in, get your foot in, gain that equity, and then use
• 50:13
  that as a stepping stone. And we did that for my daughter
• 50:17
  and my other two kids. I'm just getting them
• 50:20
  ready, making sure. Getting their credit going
• 50:25
  and making sure they are able to be financially
• 50:29
  responsible before I put them in that situation. But
• 50:32
  again, I'm planting the seed.
• 50:36
  It's not, you know, it isn't the, you know, easiest thing when,
• 50:40
  when properties went up in value so fast. And it's also
• 50:43
  not easy for me, looking back at the price I sold it at
• 50:47
  versus the price they are today. There's, you know, there's that, too.
• 50:52
  I have that. But I have a son and his wife are trying to, you
• 50:55
  know, they're thinking about getting their first home, too. So it's like, I. I know
• 50:58
  the. The pain of that and how challenging that can be.
• 51:02
  So, okay, another mom question. And plus, all your experience.
• 51:05
  So they've been renting, but they don't have skill sets. They don't
• 51:09
  know how to fix a leaky faucet or a
• 51:13
  toilet. They have no idea what to do if a roof starts leaking.
• 51:17
  They've never put their hands in the dirt to. To do, I don't know,
• 51:21
  you know, any landscaping. I
• 51:24
  mean, you know, all that kind of stuff. So let's. Angela,
• 51:28
  I'm going to go back to you. So what would you tell
• 51:32
  them would be, first of
• 51:35
  all, how do they find. Okay, I'm asking you this. How do they find
• 51:38
  people? What do they do? Can they do some stuff on their own? What do
• 51:42
  they do? What do you think? They can definitely do some things on their
• 51:45
  own. I mean, YouTube is out there. You
• 51:49
  can find a million things on YouTube that help people
• 51:53
  fix up and do things. Now
• 52:05
  look for that home they, you know, we have. We're a resource for
• 52:08
  them. They can lean on us to say, hey, who do you know that does
• 52:12
  landscaping? Hey, who do you know that can help me fix my
• 52:15
  roof? And also when I'M helping a buyer.
• 52:19
  I suggest sometimes a home warranty and home warranty
• 52:23
  helps with some minor repairs for that
• 52:27
  first year. And I think it's totally worth it to get a home
• 52:31
  warranty for a first time buyer. And they're already,
• 52:34
  you know, scraping pennies to get in. That home
• 52:38
  warranty can be a lifesaver and help them get some repairs done.
• 52:42
  Yeah. Can you explain a little bit more like how much that would cost, how
• 52:45
  they find it, what it covers, that kind of thing? Yep. So their realtor
• 52:49
  is going to help them with different. They're. There's about a
• 52:52
  handful of home warranty companies out there.
• 52:56
  I like to use ones that have local reps in town.
• 53:00
  So if we have questions, we can go to them and ask
• 53:03
  them, hey, what does this cover? You know, can you help my
• 53:07
  clients with this? And so I like to use those kinds
• 53:11
  of home warranties, but basically they're a one year
• 53:14
  insurance that you can add into your loan
• 53:17
  fees and it covers, it can
• 53:21
  cover roofs, it can cover appliances, it can
• 53:25
  cover leaks, things like that. So your
• 53:29
  H vac system, a lot of them would have rekeys
• 53:33
  in there and they cost anywhere from 500
• 53:36
  to 700 depending on. There's different tiers
• 53:40
  of options that they, that they offer
• 53:44
  per year. Per year. It's for the first year
• 53:47
  most of the time. They'll allow you to renew it if you haven't had too
• 53:51
  many claims. I just want to make sure they knew it wasn't per
• 53:54
  month. No, no. Yeah, it's a one time
• 53:58
  fee. Yeah, the one time fee for sure. Okay,
• 54:01
  Jill, so your kid is in a house and they're
• 54:05
  like, ah, the rim is leaking.
• 54:08
  Mom, what do I do?
• 54:12
  Call a roofer.
• 54:17
  Get a bucket.
• 54:22
  Let me call Angela and find out who she recommends for a roofer.
• 54:29
  Oh, that's so true. That's so true. Like any. Do you, what did I mean,
• 54:33
  you have any advice for that? Kind of like the transition between
• 54:37
  you're renting and you just call the office versus you own.
• 54:41
  And now you, you call.
• 54:45
  My own self. When I, when I was,
• 54:50
  well, I was married before we bought a house. He was very handy. But then
• 54:53
  I got divorced and I had a house and I used my home warranty a
• 54:56
  lot. I had, I
• 55:00
  had a bathtub once that was leaking from the second story down into my
• 55:04
  kitchen. I had toilet
• 55:07
  problems, a dishwasher. I mean
• 55:10
  I've used my home warranty a gajillion times. So I
• 55:14
  personally recommend them because I feel like for Someone like me
• 55:18
  who's not handy. It's kind of like a savings account almost. It's
• 55:21
  like insurance that if something goes wrong, I can call
• 55:25
  them. So I highly recommend home warranty.
• 55:29
  Now, I don't know if a roof would be included in a home warranty.
• 55:33
  Angela might know better. Yeah, you
• 55:37
  can add that. Oh, okay.
• 55:41
  Yeah, add on. So I would probably
• 55:44
  recommend to my kid that they had one and keep it,
• 55:48
  you know, especially after the. Especially for the first year, until you get
• 55:52
  to know the house and make sure that it's, you know, running okay and
• 55:56
  everything's running okay. I have one currently on my current house as well,
• 55:59
  so. Yeah, that's great. Angie, back to you.
• 56:03
  So I'm going to ask a question like. Okay, so at least three of us
• 56:06
  here as single women have bought homes. And, Angela, I don't know if you've ever
• 56:09
  done that. Yes.
• 56:14
  Okay, single woman. What do you. And you're like,
• 56:18
  I'm gonna buy a house. I don't need no man.
• 56:22
  I'm just kidding. That's
• 56:25
  right. I'm a boss
• 56:30
  man can fix this and move the furniture.
• 56:34
  And then, you know, life is like. No, life is. Life is
• 56:37
  lifing. So go ahead and put a blanket underneath
• 56:41
  your furniture, and then just pull the blanket and then.
• 56:46
  And I don't know all the things we do with women,
• 56:49
  but, Angie. Okay, so when you're buying a house as a single
• 56:53
  woman, what were the most important things you looked at? Like, what was
• 56:57
  on the top of your list for what you needed? What I needed
• 57:01
  was low maintenance yard. I hate doing
• 57:04
  yard work, so I. I went with
• 57:08
  the already scaped yard. And
• 57:12
  I did get a home warranty, too, because I did not know how to
• 57:16
  fix anything. I did a lot of YouTube, so.
• 57:20
  And I. And I had handymen. Like, a lot of my.
• 57:23
  A lot of my clients are handymen. And so I just
• 57:27
  made sure I knew who I could use and trust because
• 57:31
  I was a single woman. So you don't really want, like,
• 57:35
  anybody in your house. But I did use my home warranty
• 57:39
  a lot, too. So, you know,
• 57:42
  I just. I just made sure that I had the resources to
• 57:46
  make sure I was able to repair things. Yeah. So
• 57:50
  I luckily have a lot of people in the industry. I know a plumber. I
• 57:53
  know electrician, so. And then, you
• 57:57
  know, I know a lot of realtors that are connectors, too, as well.
• 58:02
  A lot of. A lot of good people, too. Resources.
• 58:05
  Yeah. Which is another thing. Especially if you're moving to a new city, which
• 58:09
  I've done that so many times now too. So you do. This is another
• 58:13
  reason why you want a realtor. And they're, they should get paid
• 58:16
  probably three times as much as what they get paid
• 58:20
  sometimes. I don't know. You know, be nice
• 58:23
  to realtors. Okay. And, and lenders, like, they do not get
• 58:27
  paid until there's a sale. Like, you know, how many months and years they
• 58:31
  can work with you. And you're might not even be nice to them. And they're
• 58:34
  not, they're doing that for free until they get, you know, the sales done. And
• 58:37
  then they just have one chunk of money. And this is tough. These are tough
• 58:40
  businesses. Mortgage too. And then, you know, Angie over here running her own
• 58:44
  business. Listen, right? None of
• 58:48
  this is easy.
• 58:51
  I don't know. Okay, Angela, tell us, for the people
• 58:55
  that have not bought a home yet, what are the most pricey
• 58:59
  things? And so they're, they put an offer. First
• 59:03
  of all, can, let's just do all the terminology. So they're looking for a home
• 59:06
  and then they make an offer. So let's, we haven't talked about
• 59:10
  that. Go tell them what happens when you make an offer and what that means.
• 59:15
  So when you find a home, you locate it. You've got the lender,
• 59:19
  you got the pre approval letter from the lender, you're ready to rock and roll.
• 59:22
  We start shopping. You find a house that you like
• 59:26
  and your realtor is going to help you put an offer together.
• 59:30
  It's going to have a lot of different components in it,
• 59:34
  but that's where your realtor is kind of walking you through the
• 59:37
  steps and you put your offer in. If you're the only
• 59:40
  offer, you're just kind of negotiating
• 59:44
  terms with the seller and the other
• 59:47
  agent. And then hopefully you get into contract.
• 59:51
  That means the seller and the buyer have agreed on terms and
• 59:55
  you are in contract. The contract goes
• 59:59
  to the title company. The title company opens an escrow,
• 1:00:03
  and then the buyer says in the terms
• 1:00:07
  of the contract they put in how much they were going to
• 1:00:11
  put in their stake. That's their earnest money
• 1:00:14
  deposit. The earnest money deposit is part of your down payment.
• 1:00:18
  So your realtor helps you put all that into place.
• 1:00:22
  And within a couple days of the contract
• 1:00:25
  being accepted, that earnest money has to be deposited to keep the
• 1:00:29
  contract going. Then
• 1:00:32
  you're ordering inspections. The lender's doing their part
• 1:00:36
  in getting the appraisal going and making sure
• 1:00:40
  all the other documents for the loan are
• 1:00:45
  put together. And so a lot of working
• 1:00:49
  pieces that go in in the background that the Buyer doesn't
• 1:00:52
  always see, but the lender and the realtor are working hand
• 1:00:56
  in hand to get the ball rolling.
• 1:01:00
  So you order those inspections and you see what is the integrity of the
• 1:01:04
  house. Everything looks good. There might be some minor
• 1:01:08
  repairs. And then once those inspections are
• 1:01:11
  done, you're asking the
• 1:01:14
  seller for some repairs, for some
• 1:01:18
  credits for those repairs, or you say, hey, everything looks good.
• 1:01:22
  These are little things I can handle. And you move to the next step.
• 1:01:26
  Next step would be appraisal, making sure the appraisal
• 1:01:29
  comes back, the lenders ordering that and getting that ready for the
• 1:01:33
  buyer. And maybe there's some CC and
• 1:01:36
  rs, the seller's ordering the CCNR package
• 1:01:40
  so that the buyer has enough days to
• 1:01:44
  look at those documents and make sure they agree with all those covenant and
• 1:01:47
  restrictions and what the HOA does.
• 1:01:51
  So a lot going on. And that's just the staff.
• 1:01:55
  So there's a lot I want to, I do want to break it down a
• 1:01:57
  little bit farther. So, you know, the thing about, I think people do need to
• 1:02:01
  know is this whole thing is a legal process. So when, when you say
• 1:02:04
  you go through and you put in an offer, the offer is a legal
• 1:02:08
  document. So if it's accepted, then you're
• 1:02:12
  legally bound to the terms. And the earnest money
• 1:02:15
  is, if you break those deals, you lose the money. So, and they're going to
• 1:02:19
  require so much, they might, they might say, well, there's no way we're going to
• 1:02:22
  take your, your offer and turn it into a contract
• 1:02:26
  without us knowing. If you break it, you're not out something so
• 1:02:30
  that you're not just putting in offers and contracts on four or five different
• 1:02:34
  homes and just maybe you'll buy something. So this is all a
• 1:02:38
  very legal process. So when you, when you put that offer in, if they
• 1:02:41
  say yes now you're bound. And you said, we will give you $3,000
• 1:02:45
  tomorrow to ensure it's usually right. That. Isn't that right around
• 1:02:49
  there? We like to see about 1% of the purchase price is
• 1:02:52
  what we tell buyers. Okay. Some more than usually nowadays.
• 1:02:56
  Okay. So, you know, it might be, you know, but maybe
• 1:03:00
  it could be less. It just depends on, you know, what. Whatever they do. So
• 1:03:03
  you have to have that money available and ready the next day to, to put
• 1:03:07
  in for a down payment or not a down payment, but the. Earnest
• 1:03:10
  money, we call it your skin in the game.
• 1:03:14
  Yeah, yeah. So it's just, And
• 1:03:18
  I guess that is the money. You certainly do need that up front
• 1:03:22
  in order to make sure that, you know, and maybe they don't. If they have
• 1:03:25
  no money and it's a zero and there's a zero money down, do they
• 1:03:28
  still question. Do they still need earnest money?
• 1:03:32
  Yep. That's what I was saying before is they do have to have some money
• 1:03:36
  up front for the earnest money and for the appraisal
• 1:03:40
  sometimes too. Okay. So earnest money is the money that you
• 1:03:44
  say, I am bound to this. If I change my mind, I lose this money.
• 1:03:47
  So skin in the game, your earnest money. This is a contract. It's
• 1:03:51
  legal. So I think I was asking that.
• 1:03:55
  There's other. Let me go over the legal stuff then. So the appraisal isn't.
• 1:03:58
  Isn't legal. The appraisal is information. Right. So you.
• 1:04:02
  Information. And the lender can look at the appraisal too, right? The
• 1:04:06
  lender gets the appraisal. Oh, yeah, yeah. We. We order the appraisal. We order it
• 1:04:09
  from a. We have approved appraisers that we use that we will
• 1:04:13
  accept appraisals from. We rotate who we order them
• 1:04:16
  from. The buyer gets a copy because they paid for it, and
• 1:04:20
  of course, we have a copy because it's. It's for the loan.
• 1:04:24
  Yeah. So the appraisal. So the, The. The mortgage lender
• 1:04:28
  is looking to see if there's something that would cause it to not
• 1:04:32
  be worth what they think it's worth. And the. The
• 1:04:36
  inspection and the appraisal both. Right. So the inspection
• 1:04:40
  would be, oh, you have termites, and
• 1:04:44
  the whole house is about to fall down, so.
• 1:04:47
  Or there's a crack in the foundation. Or shoot.
• 1:04:51
  Oh, that's one of you guys whose battery is low.
• 1:04:55
  Who dares?
• 1:05:01
  Okay. This is good, though. This is good stuff. So. So they might find
• 1:05:05
  something that's expensive, you know, that they're. They're like, this has to get. And then
• 1:05:08
  they might say, this has to get fixed before we close. Yes,
• 1:05:12
  correct. And so all of those things, your.
• 1:05:17
  The appraisal, the loan, your
• 1:05:20
  inspections, those are all what we call contingencies in the
• 1:05:23
  offer. And there's a lot of contingencies built into the
• 1:05:27
  offer on top of those things. And it's to safeguard
• 1:05:31
  the buyer and the seller, too, but mostly the buyer, so
• 1:05:35
  that if something comes up, the loan doesn't come in the way
• 1:05:38
  they want, or I'm sorry, the appraisal doesn't come in the way you want it
• 1:05:41
  to. There's repairs. Something comes up with the
• 1:05:44
  inspections, and both parties don't agree
• 1:05:47
  on who's fixing it, how much, what the actual
• 1:05:51
  damage is. Then that's where
• 1:05:55
  buyer and seller can say, okay, we can't agree here.
• 1:05:58
  Let's back out. And the buyer's able to walk away without losing
• 1:06:02
  their deposit. Yeah, that's
• 1:06:06
  great. We're slightly losing, Angela. So
• 1:06:09
  listen, if anyone, if you guys have
• 1:06:13
  questions and you're, you're wanting to buy something and you have
• 1:06:17
  more questions, we want to give some information, call one of these ladies and they
• 1:06:20
  could maybe refer you to someone in a different state if they can't help you
• 1:06:24
  or just, you know, these are, this is good information. You need all of these
• 1:06:27
  people to make it happen. So
• 1:06:31
  I think to sum up, give everyone, give like one little piece of
• 1:06:34
  advice for someone. Like, like
• 1:06:37
  why, why do this? Why, why go buy a house? Is it
• 1:06:41
  going to make you. I'm going to go back to the podcast name. Is it
• 1:06:43
  going healthier, happier, wiser and wealthier?
• 1:06:47
  Yes, yes, all the above. Well, why,
• 1:06:51
  why though? Why does it make you all those things? Because you're building
• 1:06:55
  equity and you're setting up for your future
• 1:06:58
  and you're, you're not throwing your money away. You're actually building
• 1:07:02
  equity in a home and, and able to upgrade
• 1:07:06
  houses. You know, family, families grow and all that
• 1:07:09
  stuff. So get out there and buy a house. Yeah.
• 1:07:13
  If you can, we'll get you prepared.
• 1:07:17
  All right, Jill, Angela, any, any thoughts on that? Last minute thoughts. I agree
• 1:07:21
  with Angie. I think, you know, you're building your, you're building
• 1:07:24
  wealth and whether or not you keep that house and use
• 1:07:28
  it, you know, as a stepping stone for the next house or whatever, I mean,
• 1:07:32
  real estate is an investment that is proven for years
• 1:07:36
  that it continues to go up in value. It may not be a straight line
• 1:07:39
  up sometimes. It may be, you know, more of a roller coaster
• 1:07:43
  sometimes, but it consistently goes up. Yeah.
• 1:07:47
  And then, yeah, you can get so much back when you sell it then.
• 1:07:50
  Yeah. Angela, I say get your foot in the
• 1:07:54
  door. Can you hear me? Yeah, I'm here. Get your
• 1:07:58
  foot in the door. Pictures going in and
• 1:08:02
  out. So we're going to enjoy that. You're
• 1:08:06
  like, listen, I'm over this. There's sunshine and I'm basking
• 1:08:12
  well. And I agree. And I think it can make you like, you know, healthy
• 1:08:15
  and happy because you, you have control over, you know, filtering your water
• 1:08:19
  and filtering your air and you know, what you use for,
• 1:08:23
  you know, non toxic, you're not gonna. Get, you're not gonna get rental
• 1:08:26
  increases too. That's, that's a big thing in Reno. A lot of
• 1:08:30
  people get those rental increases as soon as their contract is
• 1:08:34
  up. And you know, your mortgage is going to stay the same
• 1:08:38
  payment as long as, like, the taxes are, are still the
• 1:08:42
  same in this, in the area. Don't quote me on that. So. And
• 1:08:46
  when it's your house, you can make your own. You know, you can paint
• 1:08:49
  the walls lime green if you want to. Right. Right.
• 1:08:53
  It's your space. It's your yard. It's yours to do what you want to
• 1:08:57
  do. Yeah. Go be fancy with it. For sure. Well, you guys are all very
• 1:09:00
  wise women. Thank you so much for being here tonight, and
• 1:09:04
  I love you for having us. Yeah, you're welcome. And I will see you
• 1:09:08
  guys all again very soon. So. All right. Love you.
• 1:09:11
  Bye.