JB: Good morning and welcome to Real Estate 911 with your host Jason Bramblett. I am JB, and for the next thirty minutes we are going to be talking all things real estate. We remind you that we are live in the studio, so you can give us a call at 336-553-0796 if you have comments or questions for Jason. That is 553-0796. And we say good morning to the man who has always got a plan. His name is on the radio show, so we hello to Mr. Jason Bramblett. Good morning.
Jason: Good morning, sir. Hope everything is good.
JB: Everything is good. A little rocky start there, but we got it.
Jason: Well, hey, a button here. A microphone there. It is all good.
JB: You have got to love live radio.
JB: It’s wonderful.
Jason: It is what keeps people listening all these years. They are like what are they going to blow up now? Right.
JB: It is all good though. It is all good.
Jason: That is it. We have actually got lots of things happening in the real estate world. It has been a moving month, a week of changes, so we have got lots of things we are going to get here in front of you, but some of them could save you a couple thousand dollars, right?
Jason: Some can save you tens of thousands of dollars over the course of the ownership of your house. So, if you do not have anything to do in the next thirty minutes, you want to save a couple thousand bucks, I guess the better question is, is there anything you could be doing other than listening to us in the next thirty minutes so it could save you a couple thousand dollars.
JB: I cannot think of anything else I would rather be doing.
Jason: There you go.
JB: I am biased but come on.
Jason: You are kind of like here, so right?
JB: Well, I enjoy it. It is great, man.
Jason: We actually have at least eight people that listen every week.
JB: At least?
Jason: At least eight because they text me all the time and say, man, that was funny, or are you sure that is right?
JB: By the way mom, thanks, we appreciate you. I will be home soon.
Jason: That is right. Get the chicken ready, please. We have got some good stuff coming your way. We do want to save you some money because there are some things that are changing that could cost you definitely thousands and thousands of dollars. Get a pen, get a piece of paper, make some notes, and of course, we will archive this on our website, Jason Bramblett dot com, later. You can check it out right there. We have even done the service of transcribing it for you, so you can listen and read.
JB: Wow. That is high tech stuff.
Jason: I am telling you, right. What do they say? If you get it coming from a couple of different ways, you might remember it better?
Jason: We are educating everybody. So, you can listen and read it at the same time.
JB: Good deal.
Jason: Which is good. Yes, so anyway, then you do not want to go anywhere because I have got the Money Man is in the house today with me. Mr. Dave Held with Caliber Loans. He is going to be joining us, and he has got some pretty major things that are going to save you some big bucks. Why don’t we do this? We will just say hello to him now. Mr. Dave is here. He is, I actually read your card for the first time and I said, oh wow, you are the sales manager? Awesome, I did not know that. I have just known him as Dave the awesome mortgage guy that just does a great job for us. In the legal terms, he is also known as his MLS number 88989.
Dave: That is right.
Jason: That is like double o-seven in case you did not know that.
JB: He kind of looks like he could be a secret agent.
Jason: He does, right?
JB: He has got that look.
Jason: Even a black coat I like it. Tell us about the market because it has kind of been like all over the place.
Jason: It is just an up down sideways market right now.
Dave: We have seen amazing volatility, and it is, a long story short, it has resulted in higher interest rates. We, it has been going on for many weeks now, and anybody that watches the news is seeing these big spikes in the stock market. Mortgage rates are not, they trend somewhat in tuned with the stock market, but they are very different. Lately, what we have seen is resistance to follow the stock market. So, historically when the stock market drops, mortgage interest rates will tend to get a little bit better. This is very generic terms, but that is typically what happens, and when the stock market is going up, our rates will start to climb a little. Well, lately we have seen these huge drops in the stock market, yet every day when I look at my rates, prices are eroding. Just a little bit every day. There has been a day or two of pull back in the last few weeks, but minor. We continue to climb and go and go. It is inflation. That is how it shows its face.
Jason: Absolutely. I was looking at some of the numbers just from three weeks ago. Half a point pretty easily. Or a half of a percentage rate. I should use the non-realtor terms, right? So that way we could get the right things there. Hey Casey, what are you doing? He does not know that we are on the line right now?
JB: He wanted to say hello. Sorry about that. Casey says hello.
Jason: He did. That is okay. The interesting thing is how quickly that has changed. Think about it, almost for a decade, our rates just maybe bounced a quarter to a half percent. We got so immune to no change, and it has been rapid fire here in the last month pretty much. It is something to keep an eye on because it does affect something kind of big, like your payment.
Dave: Your buying power.
Jason: Absolutely, so there is a ratio that you can look at for every point that the interest rates go up or every percentage it goes up, it is going to potentially lower the price range of the home that you are going to be able to purchase. If you are going to stay within your budget. Key word there is budget. Hopefully, you have one, and you are not just throwing darts out there. But we have that from time to time. Another thing that is going on that is kind of unusual for our market, we have not seen this, I was actually looking back. I think it was like sixteen years, the lack of inventory as low as it is right now. It is unbelievable how it has shifted and changed, and I was looking back at some of the archives, and it is going back fifteen and sixteen years to where we had an inventory this low. Kind of like right before that little thing happened in the market where it went boom, so kind of like that, it is just kind of weird. But at that time, we did not have interest rates as low as they are. I do not know. We will see where this little trifecta is going. But now, more than ever, you really have to have your ducks in a row and be prepared because you do not have fifteen options of houses anymore. I can remember we would have somebody just on the website looking for a $150,000, $160,000 house, you do a search and there would be like ninety-two that would match their criteria. And now you are lucky if you can find one. It is a different ball game. So, let’s just talk a minute. What does somebody need to do? What do they need to bring to you so that they are prepared? It is getting down to, I will give you an example this week, Dave. We had a house hit the market at like 8pm. We had agents making appointments the next morning at nine. It was already under contract, and all the appointments, at 8pm. So, people were going there at eight, nine, ten o’clock at night just to get in the door. So, if you are just showing up and thinking oh, I am going to go look at some houses and then I will go talk to the bank, hmmm, you are going to miss out on a lot. So, let’s run through with what are the criteria? What do they need to bring to you? What do they need to talk to you about to be ready to go?
Dave: They may not even need to bring anything to me. It depends on the complexity of their income and their background. But initially, we would start with a conversation. I will take down a lot of personal information about where you have lived for the last couple of years. Who do you work for? How much do you earn? What do you have in the bank? Really, we are always looking back two years. That is what mortgage lending is all about. Those are the things that are most important to us. Then generally speaking, I will pull a credit report, review it closely, compare their income and their debts, input some numbers regarding what is it they are interested in a property, kind of see where they stand, make sure they have the assets to make this all happen. We have another conversation where we dig in and I give them some more direction. Now, if they are self-employed or the bulk of their income comes from commission, we should be reviewing some income tax returns to make sure we are properly calculating income, and nobody is going to be surprised.
Jason: Right. Right. And when you said so again, I used the words points earlier. Not a lot of people understand points and percentage, so you said assets, and not everybody understands what an asset is either. So, excuse me, just because you have a car in your driveway does not mean it is an asset. Right, Dave?
Dave: That is right. From a mortgage standpoint, what we are interested in is your liquid assets, those things that are in checking, savings, money market. Also, what do you have in retirement vehicles as far as 401K, IRA, things like that. Non-liquid but still assets that you could put your hands on if you had to.
Jason: Right, and so they are wanting to make sure that there is some reserve. There is some water in the dam, behind the dam that if something went wrong, you could make the payments if need be. So those are the assets and the things that the bank is going to look at, and it is good business just to have that. I am a big advocate of Dave Ramsey. He calls it an emergency fund, right? You need to have some money set away in case something does not go just as you thought. Like you showed up for work one day and there just happened to be a different lock on there and they would not let you in. Right? So, you need to have a Plan B until you can go find another one of those jobs. It is just being prepared, but really just coming up with a plan, and those are the things that Dave is going to walk you through. It is kind of a worse case/best case scenario, but it is, let’s look at our calculated risk and make good decisions. Let’s don’t borrow every dollar that we can possibly borrow and create a crazy stressful situation, right? Let’s look at some smart lending practices and say, you may qualify for more than you are comfortable with borrowing. Most people do. It is good to have some, a thirty-thousand-foot view so you can look and see what that looks like on paper. I have always said there are two prices in real estate: the house and the mortgage, and the mortgage is the bigger number. We have got to make sure that fits your budget because that is the thing that happens every month that you have got to be prepared for. Now, you have got fixed rates products, you have got adjustable rate products, and so many people right now with the interest rates kind of going all over the place, they may steer away from an adjustable rate product, but some of them are fixed for a term, and some people I do not think realize that. Tell us a little bit about some of those products that you have.
Dave: Adjustable rate mortgages always have a period of time where the money is fixed. So, whether that be three years, five years, seven years, for that run, that money, that rate is not going to change, and it is consistent. Then there are set limits on how it can change when it changes. Some people buy homes and know that they are not going to be there for a really long time. If someone is going to be in a home for five years, that is their track record, they might choose a five-year ARM because let’s say interest rates are a half percent lower than a thirty-year fixed. It is still a thirty-year loan, and that rate is not going to change for five years. They only need the money for five years. That is a good idea for that person. Somebody that is going to be there a long time and has intentions of paying the mortgage for a long time is probably not going to choose an adjustable rate when we are in an increasing rate market.
Jason: Right. Right, that is a gamble you may not want to take or really need to. If you know you are, I have had some folks like this is it. This is the last place that I am going to live, and if that is it, then okay, maybe look at, hopefully, if that is the case, then maybe you can even do a fifteen-year fixed and save a tremendous amount of interest. But some of these adjustable rates, especially some of the five and seven-year, the discount on the percentage can be pretty significant. So, it could be really good. And again, if you know you are going to be somewhere for that five or seven years and that is about it, or you are going to upsize or downsize, whichever it may be, it may be an option for you. But that is what I like about working with Dave is he gives you it is just one product for everybody, right? You have got to look at the situation, and that is where you have got to also come to the table and give the truth and the facts, right? So here is our plan. We do not plan on being here for thirty years. Okay, good. This is probably not the best way to go.
Jason: But that information will save you thousands of dollars, just little bitty tweaks with the right loan product is huge.
Dave: There are a lot of loan products, and there are lots of ways to structure each individual loan product. The value that we try to provide is really digging in and asking a lot of questions that make people think sometimes. Sometimes they do not even know the answer right then. That is okay. We are going to have a follow up conversation and figure it out because they might need that money for a very short period of time. Then there is a certain way I am going to structure that to reduce their costs. They might need it for a really long time, and then there is a better strategy there. But, again, the adjustable rates. Sometimes it is good. Sometimes it is not. I have got to ask a lot of questions. I need some honest feedback so that I have a feel for what do you see in your life. Where are we going with this? How can I best help you?
Jason: Absolutely. And the other thing is we will be able to help you take your online assessment of what you receive from wherever in the Cloud and compare that to reality. We will make sure that we have a good apples-to-apples comparison because there is a lot of fruit salad out there on the Internet right now. What I am seeing people get from online is basically, I will not say it is a bait and switch, but it is, they did not, it is not a person they are speaking with. It is stuff you are putting in the computer software program that spits out X. The problem is it did not ask you all the other pertinent questions, and so sometimes that makes it look really, really good, but it is not really real and or factual and or there could be a whole lot of fees behind that that really adjust up your rate, and you are missing that, right? It is always good to have a couple different things to look at, but then you are truly comparing like kind to like kind. That is one thing that Dave does very well is he can logically show you why the two are different even though one may feel better in rate, you are going to get hammered in fees when you get your itemized deduction, right? Because, guys, at the end of the day, it is the cost of money is the cost of money. Right? You have just got to make sure you have the right person to walk you through that and educate you on that. Let’s do this. Let’s take a quick time out. Go pay some bills. We are going to come back. We are going to talk a little bit more about the cost of that more sense of urgency. Get you better prepared so that you do not go out there and find a dream house and you were not ready to go and it went away. So we will have that and more coming right back. Plus, how about eight thousand bucks in grant money? Could be coming your way.
JB: Alright. Stay with us. We will be right back. (in/out music)
Jason: Welcome back. Triad Real Estate 911 Jason Bramblett, your host here. Joining me today Dave Held with Caliber Loans, and we were talking about getting pre-approved, different mortgage products, but really the key thing we want to make sure you understand is the market is different than it has been in a lot of years, like fifteen to sixteen years. We have this shortage of homes, so now, more than ever, you want to be pre-approved and ready to go to make sure that you are in a position to make a good offer that potentially could get accepted. I can assure you, if you do not have a pre-approval letter, owners have four other options on a lot of homes especially in that under two-fifty price range. Your offer, it may get somewhat looked at, but it is not going to get taken very seriously if you do not have your ducks in a row. There are lots of different ways that pre-approval letters are written though.
Jason: I have seen some that it is basically like we have had a warm and fuzzy conversation, and if what you told me is true, we will give you a loan. Yeah, those are not worth much, guys.
Jason: You want to make sure you are working with someone that is asking you the right questions so you can get a letter that actually has some substance to it that is going to make an owner feel good about taking their home off the market when they may have four, five or six different opportunities or other options out there. So, it is something to think about. One thing that with this pre-approval is making sure that you spend the, what are we talking, Dave? A fifteen or twenty-minute conversation probably?
Jason: It is not like this is a blood sample and a spotlight on you, right? This is pretty painless.
Jason: Even so painless you just go to your website to get started, right?
Dave: You can certainly. You can go to my website, apply with Dave now dot com. Fill it out any time day or night if that is your thing. Or we can speak, or we can meet in person. I am all about whatever your comfort level is. I work with people that just want to do, do not want to talk to me. They just want to go to the website. I am okay with that. We will communicate by email if that is how we have to do it. I also have other folks that will not do anything but in person business, and I am okay with that.
Jason: There is something out there for everybody, as they say, right? But those things are key, and it is not, right now with the way the market is, it is not going to be just go online and go to the big box and you answer three questions and they spit you out some generic letter. You can do that, but I can tell you if you are bringing an offer on one of my properties, it probably is not going to get taken very seriously. We are starting to see those, and we see it mainly from the Cloud-based type lenders. But the local ones that we get from local people, local lenders that are right here in our community, which is where I would want to invest my money, keeping it local and working here, they are just different quality. It is just a better letter for you to get the house, and that is the key. One thing that we talked about, I stuck my foot in my mouth. I said an eight thousand dollar grant was coming. There is a program coming. I am just going to call it the program. I will let Dave tell you about it because he knows more about it than I do. But it is kind of exciting. We do not have all the details, but it is right around the corner.
Dave: It is right around the corner, and it is very exciting. Just to clarify. It is not a grant. It is what is called Down Payment Assistance. Most of the details have been unveiled, although there are some that they are still holding back. What we know is that this is a product being offered through North Carolina Housing Finance Agency. It is going to be eight thousand dollars to be used for down payment or closing costs or a combination. It is going to be available in all one hundred counties in North Carolina. It is going to be available for new and existing homes. It is pretty exciting. It allows for a sales prices limit up to $250,000. It opens up the opportunity for a lot of folks.
Jason: It does for sure, especially for some of you guys that have this little pet Chihuahua called Sallie Mae that has hindered you a little bit, and so, maybe it has hindered you from saving enough money to have the minimum down payment. You make enough but you just cannot seem to get the snowball rolling. This is not a bad little start to a snowball right here.
Jason: You put this together with your tax return and this program and hey, this is looking pretty good for some folks to be able to get introduced into home ownership. We are going to have more information obviously as we get more detail and it becomes officially live, if you will. We will definitely have Dave back on the show when that happens for sure. But I want to make sure in the meantime if people want to get more information about that, and here is the thing, most of everything we have talked about, you are still going to have to do in order to find out the details on this program when it is ready. So why not get ahead of the curve? You can have that conversation this week with Dave or this weekend. What is the best way to reach you? Website and then phone number, Dave.
Dave: My website is apply with Dave now dot com and my telephone is 336-337-3210.
Jason: Very good. You can always go to Jason Bramblett dot com and shoot us an email. And if you did not get that, we will get that forwarded over to Dave for you. Anyway, guys, be proactive. Get out there and dig in. There is some great stuff for you out there in the Triad. There are some great homes out there, but you have got to be ready to take advantage of them. We will be back next week here live right at 94.5. We will see you and everybody have a great, great weekend.