Jason Bramblett Real Estate Show Podcast 

 

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Jason:  And good morning, Triad.  I hope everybody is having a great day. It is a little brisk, a little chilly. Slid in some cool weather for us, but all in all, the sun is shining, and the rain is finally gone, which is awesome. So I hope everybody had got great plans and some fun stuff planned for the weekend.  At the top of that list should be, as always, buying a house and or selling one. Right?

Mikell:  Of course.

Jason: Absolutely.  Actually, joining me in the studio today Mr. Mikell Montgomery on the board doing what he does best.  Keeping me out of trouble.

Mikell:  Yes, sir.  Good morning, Jason.

Jason:  That is right.  That is right. So we are going to dig into some stuff, but first of all, Happy Easter to everybody.  If you are in the area, we did serve up some pretty good weather for you. I think there are a couple of Easter egg hunts out there.  Other than needing a jacket, you should have fun. Plenty of loot. I saw several churches out there already spreading out the joy.

Mikell:  Oh wow.

Jason:  They are getting ready for their Easter egg hunt.  Actually, I think Calvary Church out there on Pleasant Ridge Road, they have got about 25,000 Easter eggs they are doling out today.

Mikell:  Sheesh.

Jason:  I do not know what you guys have been doing all week, but the Easter Bunny has been very busy.  That is for sure. So Spring market is here. It is looking great, and if you have thought about selling your home, we need to talk. It is that time. Interesting this particular time of year, it is kind of like the kickoff to the home selling season, if you will. But this year is a little different.  The inventory is a little lighter than most. We did such a great job selling all these wonderful houses in the past I guess nobody wants to move right now, Mikell. They are all just kind of hunkered down and enjoying life. So we have got to get some folks out there to raise their hand and say hey, I want to take advantage of this.  It is time for me to maybe downsize, and or, well, if somebody is downsizing, somebody had got to upgrade. Right?

Mikell:  There you go.  

Jason:  It takes the pendulum swinging both ways. If you are considering buying a home actually you do not go anywhere.  We have pretty much dedicated this whole show to buying a house. Now a lot of times when I say that people that have bought homes are like I got this.  You might want to stay tuned because several things have changed. We did have this thing called, I do not know, a housing crash, and when that happened, a lot of the banks changed some of the procedures. The rules definitely were changed, and how you went about buying your last home is going to be a lot different than it is today for sure. You want to stay tuned. Grab a pen. Grab a paper.  Obviously, if you are driving, do not do any of that stuff. We are going to have this posted up on the web for you. You can go back, hit the podcast anytime. Go to the website Jason Bramblett dot com or you can always give us a call at the office, 553-0796. So we have got that coming up. If you are buying, do not go anywhere. Even if you have bought many, many homes, you want to stay tuned.  Plus a few of your email questions that came in this week. We are going to hit those and kind of dive into that.

So this week, the sponsor of the show is our awesome, awesome group of folks out there in Summerfield, North Carolina. Tabitha’s Furniture Nook. New little place.  It is a fun little place. They have got gently used and new furniture. So if you are in the market to buy some furniture for your new home or the home you are in, go check them out.  Cindy and her team they have got a great group of folks there, and 100% of the proceeds go to support the Tabitha’s House, which is a ministry helping women getting back on their feet that have basically suffered the experience addiction, abuse, and homelessness.  So it is a wonderful, wonderful thing. And if you have furniture that is gently used, not your junk, not your sofa out on your porch, give them a call. You can get in touch with them. But the address there is 4547 B Highway 220 in Summerfield. You cannot miss it. It is right next to the second only intersection in Summerfield. So it is easy to find. No problem. It is very simple to find. But go check them out. Tell them that Jason and the crew sent you up there, and they can really help you out. Get some stuff either offloaded or, if get rid of stuff, you need more.  Right?

Mikell:  That is awesome. That is awesome.  Getting back into it, so you know that I am interested in buying a house.

Jason:  Yep.

Mikell:  So tell me where to start.

Jason:  It is a process in which takes a plan.

Mikell: Okay.

Jason:  And like all things in life, if you do no have a plan, well guess what?  You still have a plan. It is like zero. It is still a number. Right?

Mikell:  Right.

Jason:  Which most people do not want to get to.  So if you do not have a housing purchasing plan or selling plan, no plan at all is still a plan. It is just one that you do not know what the result or the outcome is going to be.  So we would like to set folks up to succeed. So if you are in the market to buy, then you want to make sure you listen to up, especially, as I said, if you purchased in the past because things have changed.  Everything is kind of different than it was. So five years ago, a lot of different things started clicking with the real estate market and the lenders out there and the mortgage and the banks and those guys said okay, we have got to redo things differently this time.  Some of that was directed by our government. They had no choice. Right?

Mikell:  Okay.

Jason: You pass laws and say this is the way we are going to do it. But qualification has become a bigger deal than it has in the past. So as you can imagine, the days of fogging a mirror and getting a home loan are gone.  You just existing, breathing, and saying hey I have got a job, that is not going to be good enough anymore. You have got to do some more proof, if you will. The banks want to dig in a little bit further, and so you really have to make sure you have your ducks in a row especially if you are self-employed. Self-employed people, by nature, are creative. They are creative in all things, their businesses and their taxes. So we need to make sure that if you are self-employed you really want to be making sure you, one, filed your taxes, and two, you have got great, you have an accounting system.  You create a P&L, a profit and loss. Hopefully it is just a profit. I do not like P&Ls. I like P&P. Profit and Profit.

Mikell:  I like that.

Jason:  That is what we want.

Mikell:  That sounds good.

Jason:  Loss is no fun.  Loss is not something we want in business for sure. So they are digging deeper.  The banks, the mortgage lenders, and they are asking more questions. So here is what you want to do. Things that you may have forgotten, Mikell, when you put on your application, and this is where diligence comes in and you want to make sure you have got a good coach or somebody working with you.  An agent that is there to guide you through that, and also a good loan officer. Things that people just pay all the time, they kind of forget like student loans.

Mikell: Oh wow.

Jason:  Alimony.  Received and paid out both.  If you are getting money, that is probably a good thing. You should hopefully if you went through that scenario. But if you are paying out child support, that is a debt. That is something that they look at. That is something they are going to reduce your housing allowance by.

Mikell:  I can see a lot of people withholding that information.

Jason:  Some people –

Mikell: Not on purpose though.

Jason:  Absolutely. They just kind of forget about it. And so there are things out there like that new car that you just bought. Ooops, forgot about that.

Mikell: Yeah.

Jason:  Oh, is that already on the credit report?  I just got it three days ago. But those are the types of things. So you need to have all that out in front of the bank.  Why? It is going to come up, folks. There are no secrets. There is no hiding it. There is no way to get around it. It is going to be there just like your job.  They are going to verify it. They are going to verify right before closing, so when you get the loan, you want to make sure that you still have the same job two or three days before closing because if you decided to switch careers in the middle of getting a mortgage, you might be staying where you are at.  Unless you moved into the same field, different pay, something like that. But if you totally shift directions in your career, then they are going to want these lovely two years of verification that you are actually going to keep your job. Right? And so two years seems to be the benchmark that they are looking at.

So just slow down a little bit.  Think about what you need to get brought together.  A good lender can help you with that. We have multiple lenders that we work with, so if you need a good recommendation, you go to Jason Bramblett dot com or give us a call at 553-0796.   The thing that the, you just want to be clear in this picture. You want to be clear in what you are giving the bank. And remember, the bank is in the business to loan money. So when you walk in the door, the answer is yes. We want to do the loan.

Mikell: Awesome.

Jason: And so, the only thing that gets you to no is some of this missing data, some of this missing information and or well, some bad history. So you want to make sure that you are current on your payments.  I had a young lady call the office one year, and she was telling me all about this house. She wants to see it. It is great. I love it. I want to move in it. It is my house, my dream house, everything and all this.  I said, well, you qualify for a first-time homebuyer’s loan, an FHA loan has a little down payment. You do not have to have a lot of down payment. Everything sounded great. And I said well, one of the conditions is you have to be in your job for two years. She said I am good.  I said great. I said okay, the next thing is you have to be current on all your payments for the last twelve months, and her next response was all of them?

Mikell:  Oooooo.

Jason:  And yeah, just optionally the ones you want to pay are not, it does not work out that way, guys. So yes, you have to be current on all of them. I get this question a lot.  Why start with the loan? I want to start with the house. The house is the fun part. But remember this. The key to being successful and getting what you want is proper preparation. So you want to make sure you start out with the right reasons to buy, and you also want to start out with the right product.  And there are lots of loan products out there. Most people just assume the 30-year mortgage. But maybe a 15-year is really in your best interest, and it fits your budget, which is a phenomenal loan to get.

Mikell:  So are you saying basically see what your allowance is before house shopping?

Jason: Absolutely.

Mikell: Okay.

Jason:  The thing of it is the money an important piece.  You need to know how much upfront and you need to know how much per month.

Mikell:  Got ya.

Jason:  Just because you are paying $1500 a month in rent or $500 a month in rent does not equal out always the same to that is what I can afford in a mortgage.  Other things that mortgages have and when you own a home have that you do not have as a renter are these things called taxes. And these things called insurance. So insurance, taxes, homeowner’s association dues, all these things factor into your reoccurring payments and reduce the amount that you can borrow. So with rent, it is rent. One payment, one deal. That is it.  And maybe you have some renter’s insurance. Hopefully you have some renter’s insurance. But with a mortgage, you have other factors in there. Not only do you have the principle and interest of the loan, if you are buying in a subdivision, you may have that HOA, and of course, you are going to pay the government because you love those sidewalks that we get to walk on. Right?  And they are not free. They do not fall down from the sky. They actually, somebody had to put them there and somebody had to pay for them. But we, as humans, just do not make good decisions when we start out with excitement. The excitement part is, go find the house. That is fun. That is exciting. That is what we all want to do.

Mikell: Yeah.

Jason:  The problem is we get too excited and we do not make good decisions. This is where the hold my beer videos started on YouTube.  People got excited, and they are like hey man, hold my beer. Watch this. Right? And you have seen those videos. Usually something very bad is going to happen after that (indiscernible)

Mikell:  That is true.

Jason: We do not want you to have that kind of experience when you are getting ready to purchase your home.  So making good, solid financial decisions that are not emotionally charged, puts you in the right place. And remember, the mortgage is the most expensive piece or part of buying a house.  The house is the little number. You will not see that in full until you get to the closing and you look at the disclosure, and it has in there principal and interest and a total. The total is a little different than what you are paying for the house.  Depending on your interest rate, it could be significantly different. When I started selling real estate, interest rates were probably 9%, and so, at 9% it is almost three times the amount you paid for the house when you look at the interest over 30 years.

Mikell:  Oh wow.

Jason:  So you did not think you were buying a $300,000 house, but when you got to the closing table and looked at the interest over 30 years, holy cow, it adds up quick.  So rates being a little better than they are today. It is not quite that shocking. We do not get people about fainting or passing out as we used to, but it is something you need to pay attention to. Looking at the money is the key to making a good financial decision when you are buying a house.  We are going to make a good financial decision right now. We are going to take a break. Go pay some bills. Got to go pay the Easter Bunny for all the eggs he is slinging around the Triad, but we will be back here in just a minute. You are listening to the Jason Bramblett Real Estate Show.

And you are back live listening to the Jason Bramblett Real Estate Show.  I hope everybody is having a great weekend. So we have been talking about that whole home-buying process and why it is important to get that loan, get that pre-approval and start with the best foot forward.

Mikell: And you were talking about it and I think that now that I think about it, it is actually important because beside the taxes and the mortgage, you also want to have money for maintenance as well.

Jason:  Absolutely.

Mikell:  I was just thinking about that during the break. That is an important part.

Jason:  Absolutely.  Even though your home could be made of brick, it does crack and there are things that do happen and there are maintenance things.  There are moving parts on your house like your heating and cooling. In July, you will really want to have that air conditioner working.

Mikell: Yes.

Jason:  I can assure you.

Mikell: Yes.

Jason:  Just like heat is important. It is all about setting yourself up for success.  One of the things that our team is doing to win this market and winning some of our buyers are getting homes that are very competitive is because we are doing the due diligence up front to make sure that they are ready to go, to make sure that they are well, we could easily prove to the seller that our buyer can actually do what they say they can do.  They can actually make this offer and close on your home assuming you have presented your home properly and it is exactly as you represent. But so many times we see people go out there and they want to just do the house thing first. And this is not really for first-time homebuyers. This particular issue has probably more to do with ego than anything else.  We have folks that will call our office and are like well, I bought three houses, Jason. Well, that is great, but you did not buy them this week. And things change and qualifications change, and debt-to-income ratios change and the way that banks look at your credit profile has changed. So lots of different things. Here is the big one. You go out and find the house.  Right? It is the one, and you are not there. You are not ready. The only thing you know is you like it and you want to make an offer. But it showed five times today, and the other four people are ready to go. Letter in hand, approved, money in the bank, ready to take action, and you are not. Now, if you are the seller of a house, who are you going to look at? You are going to look at the guy that says I can actually buy your house or are you going to look at the guy who can actually prove?

Mikell: It is that expression money talks.

Jason: Money talks, and the fact is that it is backed up by a third party. This is what we call paper ready.  You are ready to go. Those are the ones. Those are the buyers that are winning it over. And the seller does not want to wonder about if.  If is not the word you want to hear when you are selling your home. Right? If I can do this. No, you show me you can do this, and then we will agree to the price and terms, and then as a seller I will start packing my stuff.  Right? But if buyers are getting beat out left and right in this market because it is a fast-paced market. In my opinion, if you do not have an approval, you really do not even have an offer.

Mikell: Right.  Right.

Jason:  You might as well just call them and say here is what I think I can do because that is basically what you have done.  The only thing you have done is you have put it in writing. No seller is out there looking for the if kind of maybe, kind of seem, sort of, might be able to do this buyer.  No. I am not packing a box for that person. I want to know when you come and bring and offer that you are backed up by the bank. You have it in writing, and they said hey, as long as your house appraises for X, we are going to move forward with the loan. That is what the seller wants.  They just want to be able to back up what you said you are going to do. That is it. Pretty simple. That is what they are looking for in today’s world, if you will.

Mikell: Let me ask you something. Is there anything else I can help get my offer to the top of the pile for the seller?

Jason: Yeah because there are, in this day in certain price ranges, there is a pile.  So there are competing offers. Yeah, one, obviously like we said, be ready to go. But there are several other things that we utilize are tools to help our clients get their offer accepted is tell them about yourself.  Tell them a little story about who you are. Most sellers out there have built amazing memories in their house. They have either got the kids growing and they have got all the little heights marked off on the door. And Johnny was whatever, four feet tall when he was this age.  Or Grandma does if it is Grandma’s house. And the grandkids and they built this legacy kind of thing in this house, and they want that to continue. They want it to go on to the next folks. We were just in a multiple offer situation, and the couple that we were working with has two small kids.  They wrote a great little letter about what they do and where they are from. Two small kids and the listing agent called me and said well, it worked. Nailed it. Not even considering anybody else.

Mikell: Wow.

Jason: It was not even really about the money. It was about they wanted to carry on all the joy, love, all the fun times that they had in that house for 30 years.   They had owned it. They just wanted to share that with somebody else.

Mikell:  So if I have kids I should use them?

Jason:  Use them.  Absolutely.  Absolutely. Not only do you use them to get the house, you use them to help clean the house.

Mikell: Awesome. Awesome.  

Jason:  Absolutely.  You have got to earn, you have got to put a little elbow grease into that thing every now and then. But the thing about it is people want to do business with people.  And they like to know a little bit about you. Now there are sometimes when that does not work. There are some sellers that are very transactional, and they are just like look, I do not care who you are. I want the money.  Okay, so it is not going to work in those situations. It is pretty few.

Mikell: Okay.

Jason:  This is a very emotional decision on the seller and the buyer’s part, and most all of them are going to actually want to know, it is almost one of the first questions we get from every single seller after they get some feedback on the house. Well, what do you know about them?  Who are they? Well, you are not going to be living there, so what do you care? But they do care. They do care who it is. They do care who is going to buy their house. Why? I have no idea. It is a psychological thing. It is something that is just in us, and usually it goes back to the great memories.  The great memories that we have had, we want to share those. We hope that whoever buys our home actually shares in that same benefit that we had. The other thing you can do to get ready or get your offer may be pushed to the top is consider letting the seller stay after closing. This is not a popular thing in North Carolina, but it is in most every other state in the United States.  Buy the house and let the seller stay for two weeks and give them that time to move out.

Mikell:  Okay.

Jason:  It gives them great confidence in that hey, I do not even have to, if I can pack my house in two weeks, just what do I not have to do?  I do not even have to do anything at all until I have that check in my hand. And when I have that check in my hand here is one thing that I do know. My house is sold. I do not own it anymore because I have the money. Right?  And so there is great peace to a seller especially if they can get out of the house in two weeks, and a lot of can. Even starting from zero. They do not even have to do anything until they want to. Because the biggest frustration in real estate is when you have got a deal put together and all of a sudden you get a week out from closing. The seller has already made an offer on another house.  They have already packed up their entire home. Everything is moving forward, and then all of a sudden, we have got a hiccup.

Mikell:  Oh.

Jason:  And then the whole deal blows up unfortunately.

Mikell:  Yikes.

Jason:  Because something changed.  Sometimes something changes and it was not the buyer’s choice like hey, I went into work today and they said guess what, nobody works anymore.  We closed the department. We closed the company, and or we sold it.

Mikell: That would definitely be your worst nightmare.  

Jason: Yeah, especially when you think you are staying there for the rest of your career and you just put an offer on a house and everything is rainbows and unicorns and all of a sudden, somebody ate all the fruit out of your Lucky Charms. Right?

Mikell:  Yes.

 

Jason:  And it is not fun anymore.  Lots of moving parts to buying a house.  So in the Triad, if you are thinking about moving, you need to reach out to us.  Jason Bramblett Real Estate. Go to Jason Bramblett dot com. Give us a call at the office at 553-0796.  That is 553-0796. And head on up there to Tabitha’s Nook. Get some furniture or drop some off. Make sure it is in good quality, and we will see you back here next week.