JB: Good morning and welcome to Triad Real Estate 911 with your host Jason Bramblett. I am JB, and for the next half hour we are going to be talking all things real estate. Well, we have got a little change of plans today. Of course, Jason Bramblett is usually here every Saturday. But Jason is out on assignment I guess you could say. So, sitting in for Jason is Brad Firestine.

Brad: No. Firestine.

JB: Firestine. I got it right after the second try. Sorry about that. But, of course, you have heard Brad here on the show a lot with Jason. And also, one of the brokers with Jason’s firm, Dave Held is on the show today with Caliber Home Loans. Hey guys, the cat is away, so the mice will place today. Right?

Dave: That is right.

JB: We welcome you both to the show.

Dave: Thank you very much.

Brad: Good morning.

JB: What are we going to talk about today? What is going to happen?

Brad: Well, we have Dave in the studio here today, and obviously, he is with Caliber Home Loans, and I do have to put a little legalese just to mention that Dave has an MLS number, and it is 88989.

Dave: Thank you, Brad. So now we get to talk to Dave.

JB: So now we are official, right?

Dave: Yes, we are official.

Brad: We are official. We are going to be discussing some things to do with mortgage lending and some of the experiences that I have had as a buyer’s agent through Jason Bramblett Real Estate. Jason is actually in New York today getting some knowledge from, I guess, over two hundred and fifty of the best people in the real estate industry, and he is going to be bringing all that information back to help all of us here in the Triad in everything real estate, which is great. I am actually a buyer’s agent with Jason Bramblett Real Estate. And in our firm, we actually separate representing the buyer from representing the seller. So, we have buyer’s agents and we also have seller, or I should say, listing agents who represent the seller. We do this because we want to make sure that the people that we are representing get everything they deserve from either side of the transaction. So, we make sure that there are no secrets that can be crossed to benefit one or the other. We do not want to create that conflict of interest. We just want to make sure that everyone’s personal and confidential information is kept that way. As a buyer’s agent, we always kind of want to stress to our clients to make sure that they have done the most important thing in a real estate transaction is to either find out if they are going to finance or if they are going to pay cash, and we usually ask that question up front. When I talk to somebody and say hmmm, how do you plan on paying for this home? Are you going to pay cash? And they usually go oh, ho, ho, ho, ho, cash? I wish. That is always the reaction.

JB: People deal in cash these days? I mean, really.

Brad: Every once in a while, I do get somebody who will say yeah, I am paying cash, and I just about fall on the floor. I am like wow, okay. I wish I could pay cash. But they usually say, yeah, no, I am planning on financing. And I ask if they have been pre-qualified or if they have talked to a mortgage lender, and nine times out of ten, they say, no I have not. But it is actually the most important step. It is probably, I think it seems to be one of the scariest steps in the real estate transaction. Dave, why do you think that is?

Dave: Well, from my perspective, they are anxious to speak with a real estate agent because the real estate agent is the key to the home, which is the tangible that they want to take away from this. Speaking with the mortgage person is less appealing because they realize we are going to ask a lot of personal questions, we are going to dig in, and then we are going to need them to gather up some docs for us and send them over. It is not as fun, and some people have a fear of rejection. So, if they have a little bit of doubt that they might not qualify, for some reason, they shelf that, and they want to go see the house anyway.

Brad: Right.

Dave: But you are very right. If they do not have the cash, then we really do need to have a conversation for a number of reasons. One, we want to know that they qualify, but also, what options do they have. What do these payments look like? How much money do they need to make this transaction happen? We want to put them in a payment that is comfortable for their life. I do not really want to create house-poor borrowers, and we cannot do that if we do not exercise good diligence. There are a lot of reasons why they should talk about financing before they get too far down the road.

Brad: Right. I have been in the situation, experience where someone will call me, and usually this is the way it goes, and they say hey, I am interested in this house on 123 Main Street. Can you go out and show it to me? I am like sure, sure. Not a problem. We have a conversation. I go out there. They love the house. I am like the next thing you have got to do is call Dave. I call you. Guess what? They do not qualify to get that home. So, then there is a disappointment. So that home may be at a certain price point, but they only qualify for half of that. It is better to do the due diligence up front and find out exactly what you can purchase and what you can look for rather than getting disappointed after you find the house of your dreams.

Dave: Yeah. Yeah.

JB: It can be a disappointment, too, because in one way, it might be kind of a wakeup call. Hey, this is what we have got to get our house in order, no pun intended, before we go to this next step. Actually, it could be kind of a helpful thing for them, and they can come back and see you in a little bit.

Dave: There are times when it is very disappointing. When it is, you have folks that have their eyes set on a certain price point, and then when I dig in and work on it, and we are way out of ballpark, and man, the disappointment in their voice whenever I am talking to them about it afterwards, I feel bad. Of course, I did not create the situation, but I do feel bad. Who wants to see people disappointed?

JB: Right.

Brad: Right.

JB: And again, maybe it could be a wakeup call, and they did not realize that they were kind of in this boat, and now they know what they need to do to correct this and move onto the next level.

Dave: Right.

Brad: Right. I think there is also kind of a misconception, too. They may have known somebody who had a bad experience with a previous mortgage or something along the line where they are going to be scared to go that extra step. But it really is not that big of a deal. It really is not. They will talk to you. Why don’t you kind of explain, maybe a little bit, of the moment I call you up and say Dave, I am thinking about buying a home, and I want to find out about getting a loan.

Dave: That is often how the conversation starts. From there, I just start to ask some discovery questions. I want to get a feel for where they think they want to live, what type of price point they are interested in, what kind of payment is appealing to them, and what kind of cash do they want to invest in making this happen. So those are some of my first questions so that we can have a talk about where we are trying to get to. I am going to ask their permission to go ahead and ask some real personal information. I can do this over the phone in less than ten minutes with somebody. I need to know who you are, where you live, who you work for, how much you earn, and what you are working with in your assets. Your bank accounts, your retirement funds, whatever they may be. I can then hang up the phone, work on that, prepare some scenarios, contact them back in say thirty to forty-five minutes if I am uninterrupted, which is kind of a joke, but reach back out to them and we can talk about some scenarios. Sometimes folks are a little more complicated than that, and they might be self-employed, or a large portion of their income comes from commissions or something that is variable, and in that case, I am more than likely going to ask for some income documents so that I can figure out exactly what is their qualifying income. I might want to see two years of tax returns and some paystubs so then I can do some math myself and make sure that we are not setting ourselves up for disappointment.

Brad: Right. It simply starts with a ten-minute conversation.

Dave: It starts with a short conversation. I do not bite.

Brad: Right. Right. But after that, after things are going along smoothly, things are starting to, everything is going to, the client wants to move forward. Seriously, how much time does the client really need to invest initially in getting their information to you?

Dave: I guess it would depend on how organized they are, but it is not that much that we need. Generally speaking, you are needing your most recent paystub, possibly some W2’s or tax returns for two years, two months of bank statements, copy of their ID. Some people are certainly much more complicated than others, but generally speaking, that is it. We need the income and assets. I am already going to have the credit report by that point in time if I have their permission to obtain it. So, I can see the debts. I do not have to put them through chasing a bunch of stuff down. It is really quite easy.

Brad: Basically, probably within an hour

Dave: I would say less.

Brad: Less than an hour’s worth of your own time just to get that information together. And I cannot tell you how many times I have been dealing with buyers and oh my gosh, I cannot do this for you. You have to get all this information out to Dave or whoever your mortgage lender is just to find out if we are going to be able go through with this transaction. I do not know why it just seems so hard.

Dave: Some folks are daunted by it, but it is really not very big. I try to lighten it and help them understand that look, if you just help me here for a few minutes, I will take it from here. It is on me.

JB: Hey guys, let me just jump in here and remind everybody you are listening to Triad Real Estate 911 with your host Jason Bramblett. Brad and Dave are in for Jason today, and if you want to join our conversation or maybe you have a question for Brad and Dave and something you hear, and you have a question, we are live in the studio. Give us a call, (336)553-0796, (336)553-0796 if you want to join the conversation or if Brad and Dave can answer a question for you.

Brad: I also should, because I imagine Jason is listening to the show through I Heart Radio right now.

JB: He is sleeping right now.

Brad: You think so?

JB: He might be.

Brad: Oh yeah, right. He does not sleep. He is in the office at like four in the morning.

JB: Oh, he is listening probably. He will text you later or something.

Brad: But if you have any questions for us as far as Jason Bramblett, you call us at 553-0796. That is our office number, or you can go to Jason Bramblett dot com and get some further information.

JB: Right.

Brad: I Heart Radio is fantastic.

JB: It is.

Brad: It is awesome. I thought about it the other day because I am like you know what? How many radios do I have in my house? I have got a clock radio next to my bed. I have an old boom box that is in my back porch.

JB: Boom box? Wow.

Brad: It has no batteries, and I do not even know where the plug is to plug it in.

JB: You just aged yourself.

Brad: Yeah, I know. I remember the days when your self-worth or status in life was dictated by the type of stereo system you had and how large your speakers were.

JB: Right. Now they have the new boom boxes like the Alexa and the things like that that talk back to us.

Brad: That is exactly what my wife is listening to us on today. This little cylindrical tube sitting on my mantle. You can actually go into homes and I can kind of date the homes by going in and seeing the cutouts and the built-ins for the entertainment systems. Now you do not need that. You can hang a TV on the wall like a picture. But I think maybe now might be a good opportunity for a break. What do you say, JB?

JB: Absolutely. I will tell you what. We will take a quick break and once again, if you would like to join in on the conversation, (336)553-0796. But we will take a quick timeout. You are listening to Triad Real Estate 911, and we will be right back. Stay with us right here on ninety-four five, WPTI. (in/out music) Welcome back to Triad Real Estate 911. I am JB, and of course, we have got some guest hosts in here today for Jason Bramblett. We have got Dave Held here and Brad Firestine.

Brad: Correct.

JB: Got it right. Jason is out of town today, but he has got two of his colleagues in here, and they are doing a fine job. And once again, if you have got a question for Dave or Brad today, you can give us a call at (336)553-0796. So far, we are having a great time. The cat is away, and the mice are playing.

Brad: That is right. That is right. And I am Brad Firestine with Jason Bramblett Real Estate, and to my right is Dave Held with Caliber Home Loans. We are talking about mortgages today and talking about what buyers need to do in order to obtain a mortgage to purchase a home, if they need to go that route. So, we were talking about getting prequalified. We were talking about getting your things together and getting to Dave. So technically Dave, how long does that whole process take?

Dave: Generally speaking, the conversation that we have over the phone or in person, if necessary, takes probably less than ten minutes for me to obtain the particulars I need to go to work on it. Generally, I can get back with somebody in thirty to forty-five minutes and review some options that they have. If they have, something is complicated about their income structure possibly, I may request some documents before we issue a preapproval letter, and then that way I can take the time to review their income and make sure that we are working from an accurate figure and that there is no disappointment as a result. If that happens, we add a little bit of time to the scenario so that I can go through that stuff. But again, not very long.

Brad: Right. Right. So initially, once they get all their paperwork, all their documentation, where does it go from there?

Dave: There is a difference between being prequalified and preapproved. These words get used interchangeably. They really do not mean the same thing. So prequalified is where we start. Prequalified is where I obtain that information verbally. I obtain a credit report, and we take it from there. So that prequalified is a very light, casual beginning approach. We have not verified anything other than the credit report. It is all verbally. But generally speaking, it is enough for us to be able to move forward at that point in time. They can get on with making an offer on a property if that is where they are at in the process. To actually take it a step farther, there is a lot of value in being preapproved versus prequalified. What we mean by that is now we are actually going to request their income documents. We are going to request their bank statements. Anything particular to them that is relevant to the loan approval process, we will ask for that stuff. And when we receive it, I will review it and make any updates that I need to make to their information. And then we can convert that prequalification to preapproved because now, we have actually seen the documentation that we were verbally talking about before. Now, I have verified whether or not it is sufficient. So, preapproved actually carries a little bit more weight. They can make a stronger offer when they have taken that step. Their agent can make a stronger offer because there is confidence.

Brad: That is where I wanted you to go with that. Because as a buyer’s agent, especially in the market the way it is today, and it is just so, so competitive. I practically feel like I should wear running shoes and track pants to work because you more or less have to run out to that listing as soon as it pops up just to get the advantage over someone else that may be looking at that same style or type of property. I have seen it over and over again. We go to the table with an offer, and if you have, you can have, the seller can look at these offers, and maybe there are multiple offers, and one has a preapproval, one does not, it could be identical as far as the offer. The guy that has got the preapproval is looking pretty good because the seller is going we know this guy has got money. So, we are going to the ability to get it. That is the way it goes. Even if the other offer is even stronger or maybe even a better offer, without that preapproval letter, it does not really hold a lot of weight.

Dave: Well, I will tell you from my perspective, there are a lot of times in this market when there are multiple offers, and the listing agents are helping the sellers make a decision on which one they should accept. I field a lot of calls from listing agents asking me if I have obtained documents from said buyer already. And while I cannot give the buyer’s personal information out, I can answer that question whether I have received documents or have not received documents. They are a lot more willing to accept a buyer’s offer when that buyer has already taken the initiative to send the lender the documents and we have reviewed them. When I say no, nothing yet. We just pulled the credit and we had a conversation, that is not as strong.

Brad: Right. Right.

Dave: And they check. I will tell you they check. They call me all the time. Sometimes they ask questions that I am not allowed to answer, and they should not ask

Brad: Right.

Dave: But I can answer whether or not I have obtained borrower documents and whether or not it is a preapproval or a prequalification.

Brad: Sometimes you hear the term non-clean loans. So maybe I guess expand on that a little bit for me.

Dave: Well, yeah, that is just jargon I guess, if you will. So, a clean loan would be something that is very vanilla. There is a salary, a strong credit score, minimal debts, assets been in the bank a long time. It is just very typical and fits in the box. Non-clean could be somebody with multiple jobs over the last couple of years and different pay structures. Maybe a little too much debt at the moment and they intend to pay some things off to qualify. Maybe the funds that they need for closing are going to be a gift from a family member and they are not in possession yet. There are a number of things that can muddy the water, but as long as we ask a lot of discovery questions and really dig in on the front end, we can nip that stuff.

Brad: Right. Right. And I know we have worked with you and you have talked to us on numerous occasions, you work really well with trying to make sure that that client is taken care of and that those issues are resolved in order to achieve the final goal and get them into that home that they are hoping to get into.

Dave: Yeah, it is best to do it as soon as possible.

Brad: Right. Right. And that is a good point because after the fact, I have gone out and made the offer. I have shown the home. We put it into play. You actually take a lot of time after the fact, and we work together. You are constantly in contact with me letting us know what is going on in the process. You are very involved. You are actually, I would say more involved after the offer is made in a real estate transaction than even I am as a buyer’s agent. So, I do have a lot of work to do, but you probably have more contact with the client after the fact.

Dave: Yeah. My team and me.

Brad: Yeah.

Dave: It takes a team. We have different roles within the organization, but of course, I am extremely involved in the front end with the preapproval process, the loan structuring. Once the contract comes in, setting everything up, and getting the borrower all the next steps. Exactly what needs to happen and when it needs to happen so that we can perform. Then my team gets involved when they start sending everything back in, and I kind of watch from a little bit of a higher view. But I am involved with every loan every day.

Brad: Right. And a good point to bring up is that you are local. You are here. You are in the Triad. You can sit face-to-face with a client as opposed to calling an eight hundred number or applying on a website. Give me the advantages of working with a local guy like you.

Dave: Well, I think real estate is local in the first place. We have three offices here in the Triad. We are in Kernersville, Greensboro, and High Point. I am the sales manager of this area, so I am involved in all three of these markets daily, and when I say real estate is local, there are things that occur in the market that only somebody in that market could be privy to or understand or be able to work with. Our appraisers are also local, and that is also very important. When you possibly go to a national company or an eight hundred number or a dot com, a lot of times they have arrangements with appraisal management companies, and appraisers will come from different markets to appraise a property in this market and that kind of arrangement. And that does not make much sense because appraisers really should be local. You get local appraisers when you work with a local lender. You also have the ability, like you said, some folks want to do business face-to-face.

Brad: Right.

Dave: I am a huge fan of face-to-face, and I will meet somebody in any of my three offices just about any time if we have an appointment. You cannot get that kind of service when you are dealing with the internet or the eight hundred number.

Brad: And I think, too, and I have dealt with local, well you call the eight hundred number and they do not know about local things that are going on, especially with NC housing programs that are available to them. Well, it looks like we are getting close to the end.

JB: Yeah, we are about ready to wrap it up. Any final statements or do they need to contact you guys?

Brad: Yeah, Dave, what is a good contact?

Dave: The best way to get me is either on the telephone at 337-3210 or you can visit my website at Apply with Dave Now dot com.

Brad: Okay, good.

JB: And Brad?

Brad: And I should give out Jason’s information since he is paying for the show today. You can reach us at the office at 336-553-0796. Definitely contact us also at Jason Bramblett dot com. We have made it through the show, Dave.

Dave: Absolutely.

Brad: Thank you, JB.


JB: Thank you very much. It was a great show. We will talk to you next week. Everybody have a great weekend.