Home Buying Part 2: Home Loan Types with Kyle Seagraves

Katelyn Magnuson: 00:00:15

Hey, welcome back to the podcast.

Katelyn Magnuson: 00:00:17

As a quick reminder, this is a mini season with guest Kyle Seagraves.

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Kyle Seagraves is a certified mortgage advisor, licensed loan originator,

Katelyn Magnuson: 00:00:26

and the owner of win the house.

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You love a YouTube channel with over a hundred thousand subscribers.

Katelyn Magnuson: 00:00:32

Kyle, welcome back.

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Pleasure to have you here.

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And today we're gonna be covering.

Katelyn Magnuson: 00:00:38

All things loans for home mortgages.

Katelyn Magnuson: 00:00:42

So I'm gonna let you just kick off from here.

Kyle Seagraves: 00:00:45

Cool.

Kyle Seagraves: 00:00:46

So there's several different types of loans and I think

Kyle Seagraves: 00:00:49

this can confuse people a lot.

Kyle Seagraves: 00:00:51

Um, but there's a couple main categories of loans, actually

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four main types of loans that most lenders throughout the us can offer.

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So each lender doesn't really offer their own specific type of loan.

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There's kind of a couple main categories.

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And once we learn those main categories, we can see where we fit into them

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and begin deciding, is this the right one for me or not in choosing

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the right loan can help you save.

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Tens of thousands of dollars by choosing the right one, the one that's the best for

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your situation and different loan types can benefit people in different ways.

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For instance, veterans have loans that can save the money on the down payment.

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Um, whereas people with lower credit scores can qualify for a

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loan and get into a home before they've built up their credit score.

Kyle Seagraves: 00:01:34

So.

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Four main types of loans.

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Um, there is one loan that's called a conventional loan, and then

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there are three government loans.

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So these are actually sponsored by and funded by the government.

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F.

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VA and U S D a and I'll run through these very quickly.

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And then there's a couple other, lesser used loans, but still can be

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really helpful in certain situations that will cover right after this.

Kyle Seagraves: 00:01:58

So first is a conventional loan and Caitlin, please interrupt me.

Kyle Seagraves: 00:02:01

And if I miss like any detail, or if you have question about it, conventional

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starts at a six 20 credit score.

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So we need that as a minimum to begin qualifying conventional's,

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uh, the most common type of loan.

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It's what most people are gonna use to get a mortgage.

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It's usually for 30 years, but you can go down to 10 years, 15, 20, 25.

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If you want to, most people take a 30 year conventional loan.

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It's gonna have the best options in terms of its interest rate and the mortgage

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insurance that's required with this.

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So the minimum down payment for first time buyer is 3%.

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Which a lot of people think it's 20 it's only three.

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So for instance, if you're looking at a $400,000 house, um, then

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you're gonna be looking at, $12,000 is the minimum of down payment.

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Um, on top of that, you do have closing costs with all types

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of loans that we'll cover.

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Uh, eventually.

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So 3% is the minimum.

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Um, however, if you have less than a 20% down payment on a conventional loan, you

Kyle Seagraves: 00:02:57

will be paying what's called mortgage insurance or PMI on a conventional loan.

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Specifically.

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This is private mortgage insurance.

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All this does is it protects the lender.

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In the event that you foreclose on the home.

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So if you don't make payments for a long time and the lender comes in and says, we

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need the home back, we need to sell it.

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They have that insurance that you're paying monthly to them, until you

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reach that 20% equity in your home, to protect them in that instance,

Katelyn Magnuson: 00:03:22

This is to protect the lender, should the value of the home

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potentially fluctuate during that time or drop below, you know, cause there

Katelyn Magnuson: 00:03:30

there's expected fluctuations in the market, but because you're a little bit

Katelyn Magnuson: 00:03:33

riskier borrower, potentially you are paying that insurance to them until you.

Katelyn Magnuson: 00:03:37

Get that certain amount of the house paid down and have equity established.

Katelyn Magnuson: 00:03:41

Correct.

Kyle Seagraves: 00:03:41

Absolutely.

Kyle Seagraves: 00:03:43

Yeah.

Kyle Seagraves: 00:03:43

And PMI is so much cheaper than a lot of people realize.

Kyle Seagraves: 00:03:47

Um, usually a good estimate for people is to look at 0.5% of

Kyle Seagraves: 00:03:52

the loan amount paid annual.

Kyle Seagraves: 00:03:54

So for instance, let's say we had a $400,000 house, uh, and we put 3% down.

Kyle Seagraves: 00:04:01

So we're taking out a loan for, uh, $380,000 doing this math.

Kyle Seagraves: 00:04:06

right here.

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I'm gonna tell you $388,000.

Kyle Seagraves: 00:04:08

If we looked at, uh, 0.5% mortgage insurance annually, that would be

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about $2,000 per year or $161 per.

Kyle Seagraves: 00:04:19

Obviously that adds onto the expense, but compared to the actual monthly cost

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of that loan is fairly insignificant, especially considering how long it

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might take you to save 20% down on something like a $400,000 house.

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Usually what ends up happening is the home is going to appreciate quicker.

Kyle Seagraves: 00:04:36

Uh, then you can save money for, because as the home continues to go open value

Kyle Seagraves: 00:04:40

each year, you're that down, payment's gonna become higher and higher and

Katelyn Magnuson: 00:04:44

Right.

Katelyn Magnuson: 00:04:45

And in the meantime, if you're owning the home, you're now building

Katelyn Magnuson: 00:04:47

equity as that value is increasing.

Kyle Seagraves: 00:04:50

Yes, absolutely.

Kyle Seagraves: 00:04:52

And for those who are more like investment minded, think of it in the same way that

Kyle Seagraves: 00:04:56

if you are going to, uh, buy stocks on a margin account, it works the same.

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You're expecting a higher return on your stock than you are

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paying interest on the loan.

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For that stock, so works the same way.

Kyle Seagraves: 00:05:08

Um, so you have the PMI six 20 is the minimum credit score.

Kyle Seagraves: 00:05:13

Ideally six 80 is gonna get you better interest rates.

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The top is gonna be seven 20.

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So you're not gonna get any better terms by having a 800 than if you had a seven

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20, they're gonna be the same thing there.

Kyle Seagraves: 00:05:27

Um, with the.

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With all loans, you're gonna have an appraisal.

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And appraisal is just where the lender says, okay, great.

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You wrote an offer to buy this home for $400,000.

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We need to make sure it's actually worth that.

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You can't go and get a loan for this much money and your home only be worth 200,000.

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So they're usually gonna send somebody out to the home or now with

Kyle Seagraves: 00:05:48

COVID there's a lot of, uh, what are called desk appraisals, where

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an appraiser doesn't even have to go to the home to find the value.

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But they're gonna figure out how much that home is worth.

Kyle Seagraves: 00:05:56

Conventional loans are the most lenient, compared to these other government loans.

Kyle Seagraves: 00:06:01

So they're not going to care as much, about, things like

Kyle Seagraves: 00:06:05

chipping paint or broken glass, where government loans would.

Kyle Seagraves: 00:06:09

So for instance, conventional loans are gonna be better for, uh,

Kyle Seagraves: 00:06:12

something like a foreclosed home than these other government loan types.

Kyle Seagraves: 00:06:17

Um, before we move on to like the government loans, uh, do you have

Kyle Seagraves: 00:06:20

any questions about the convent?

Katelyn Magnuson: 00:06:21

No.

Katelyn Magnuson: 00:06:22

I, I think that was a, I, we did a conventional on this last

Katelyn Magnuson: 00:06:24

home purchase, so I'm much more familiar with that now than I was.

Katelyn Magnuson: 00:06:27

And I found the process significantly easier compared to the FHA purchase

Katelyn Magnuson: 00:06:31

I had initially made when I was 1920.

Katelyn Magnuson: 00:06:34

So yeah, definitely love conventional, but for us it was a lot easier because

Katelyn Magnuson: 00:06:37

we'd, we had built up the equity at that time to use for our down payment.

Katelyn Magnuson: 00:06:42

We were able to get to 10% and I.

Katelyn Magnuson: 00:06:45

I think that it's a really common misconception that you have to have 20%,

Katelyn Magnuson: 00:06:48

cuz I know I've heard that float around a lot from our clients and especially

Katelyn Magnuson: 00:06:52

with the constantly appreciating home market can look like a lot of money

Katelyn Magnuson: 00:06:56

and it can feel very cost prohibitive to even dip your toe on the market.

Katelyn Magnuson: 00:06:59

And so I think that I know for us, our PMI was $138 a month,

Katelyn Magnuson: 00:07:04

which was just mean nothing.

Katelyn Magnuson: 00:07:06

We can blow 130, $8 relatively easily.

Katelyn Magnuson: 00:07:09

And so to make a home purchase accessible to us when our

Katelyn Magnuson: 00:07:12

home is now doubled in value.

Katelyn Magnuson: 00:07:14

Was well worth it for the two years that we paid it.

Katelyn Magnuson: 00:07:16

I

Kyle Seagraves: 00:07:17

Yeah.

Kyle Seagraves: 00:07:17

And we can add this in the show notes.

Kyle Seagraves: 00:07:19

I have a Google sheet calculator that does this and it's free.

Kyle Seagraves: 00:07:23

So you put in with the home, you're looking at buying and a couple

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other things, and it will show you how paying PMI is actually better.

Kyle Seagraves: 00:07:31

For you, because it'll show you how much appreciation you gain on that

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compared to the cost of, uh, the PMI.

Kyle Seagraves: 00:07:36

And it's gonna show you how it's actually a better strategy than saving up the

Kyle Seagraves: 00:07:40

money long term for the 20% down.

Katelyn Magnuson: 00:07:42

Right.

Katelyn Magnuson: 00:07:42

You know, taking three years

Kyle Seagraves: 00:07:45

yeah, so conventional is, uh, kind of the gold standard

Kyle Seagraves: 00:07:48

loan that we're going to be using.

Kyle Seagraves: 00:07:50

And most lenders in the us can offer a conventional loan.

Kyle Seagraves: 00:07:54

You don't need one specific lender for these loans.

Kyle Seagraves: 00:07:56

All these loans, most lenders can do.

Kyle Seagraves: 00:07:58

So, if you can't qualify for conventional usually because your,

Kyle Seagraves: 00:08:03

credit score is lower or you have a high debt to income ratio, this

Kyle Seagraves: 00:08:07

is the amount of debt that you have monthly compared to your gross income.

Kyle Seagraves: 00:08:11

Then people look at often a FHA loan and an FHA loan, uh, stands for

Kyle Seagraves: 00:08:16

the federal housing administration.

Kyle Seagraves: 00:08:18

And this is a program set up by HUD, uh, back in.

Kyle Seagraves: 00:08:23

It's like the sixties or seventies, um, to promote home ownership.

Kyle Seagraves: 00:08:27

And so a lot of people have this myth that it's a first time buyer loan because

Kyle Seagraves: 00:08:31

conventional loans used to be 20% minimum.

Kyle Seagraves: 00:08:34

That's why FHA was pushed as more of this first time home buyer.

Kyle Seagraves: 00:08:38

It's not like that anymore.

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FHA now is not geared towards first time home buyers.

Kyle Seagraves: 00:08:42

It's really geared towards people who have, uh, low credit score.

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Or really high debt income ratios.

Kyle Seagraves: 00:08:49

So FHA allows down to a 500 credit score, which is crazy low.

Kyle Seagraves: 00:08:54

Uh, but you need to put 10% down if you have anywhere between a 500 credit score

Kyle Seagraves: 00:09:00

and a 5 79 credit score, the minute you hit five 80 in your credit score, you

Kyle Seagraves: 00:09:05

can do three and a half percent down.

Kyle Seagraves: 00:09:07

Okay.

Kyle Seagraves: 00:09:08

So obviously the higher credit score that we have.

Kyle Seagraves: 00:09:11

The better, the interest rate is gonna be on an FHA loan.

Kyle Seagraves: 00:09:14

Um, ideally for an FHA loan, you wanna be at a six 40 credit score.

Kyle Seagraves: 00:09:19

Uh, that's gonna get you some better interest rate, uh, in terms there,

Kyle Seagraves: 00:09:24

but you can go down to a 500, um, FHA is more lenient in, uh, the time

Kyle Seagraves: 00:09:30

between something like a bankruptcy, uh, whether it be chapter seven

Kyle Seagraves: 00:09:34

or 13, um, or any late payments.

Kyle Seagraves: 00:09:36

Really, if you have issues with credit, FHA is gonna be the place to go.

Kyle Seagraves: 00:09:40

What people will often do is get that loan to get a house, and then

Kyle Seagraves: 00:09:44

they'll spend the next two to three years to work on their credit and

Kyle Seagraves: 00:09:47

refinance into a conventional loan.

Kyle Seagraves: 00:09:50

And the reason why is because FHAs big killer is its mortgage insurance.

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So FHA actually has two mortgage insurance types.

Kyle Seagraves: 00:09:59

Uh, there's an upfront mortgage insurance that usually is wrapped

Kyle Seagraves: 00:10:02

into your loan and then also a monthly mortgage insurance as well.

Kyle Seagraves: 00:10:06

Uh, so we already talk about conventional's PMI.

Kyle Seagraves: 00:10:10

FHA has mortgage insurance, and instead of PMI, they call, I P I don't know,

Kyle Seagraves: 00:10:15

to be more confusing, it's called a mortgage insurance premium instead

Kyle Seagraves: 00:10:18

of private mortgage insurance, but it's 0.8, 5% of the loan amount.

Kyle Seagraves: 00:10:22

So this is substantially higher than conventional.

Kyle Seagraves: 00:10:26

PMI, not only that, but conventional's PMI falls off or we can get it removed

Kyle Seagraves: 00:10:31

after 20% equity is built in your home FHAs mortgage insurance will

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never fall off unless you put 10% down.

Kyle Seagraves: 00:10:38

Then it falls off after 11 years confusing caveat there.

Kyle Seagraves: 00:10:42

But for most people.

Kyle Seagraves: 00:10:44

It will never fall off.

Kyle Seagraves: 00:10:45

And you do not wanna be paying that mortgage insurance for 30 years.

Kyle Seagraves: 00:10:50

Not only that there's also an upfront mortgage insurance cost, and

Kyle Seagraves: 00:10:54

this is 1.7, 5% of the loan amount usually added to the loan amount.

Kyle Seagraves: 00:10:59

So for instance, um, if we were looking at something like, let's say we're getting

Kyle Seagraves: 00:11:03

a $400,000 loan, um, we would be adding.

Kyle Seagraves: 00:11:08

Additional, uh, 1.7, 5% to the loan amount, which would be $7,000.

Kyle Seagraves: 00:11:16

So instead of taking a $400,000 loan, we get a $407,000 loan.

Kyle Seagraves: 00:11:21

Now for most people, they're like, oh, well, it's in the loan amount.

Kyle Seagraves: 00:11:23

I don't really care about it, but when it comes time to sell that's $7,000 that

Kyle Seagraves: 00:11:28

won't be in your pocket anymore, that gets, that eats away at your equity.

Kyle Seagraves: 00:11:33

Um, now on the flip.

Kyle Seagraves: 00:11:36

FHA allows a lot of people to get into homes who wouldn't be able to qualify.

Kyle Seagraves: 00:11:40

Otherwise.

Kyle Seagraves: 00:11:40

It was something like conventional loan.

Kyle Seagraves: 00:11:42

Um, also they allow higher debt income ratios.

Kyle Seagraves: 00:11:44

So if you have, uh, a lot of debt, maybe we need to look at some other

Kyle Seagraves: 00:11:50

things on the personal finance side, but it does allow you to get into an

Kyle Seagraves: 00:11:54

FHA loan, whereas you might not be able to, and this, this is helpful.

Kyle Seagraves: 00:11:58

When you're applying for a loan, you apply for, isn't always your full

Kyle Seagraves: 00:12:03

picture, the full picture of your financial situations, just a snapshot.

Kyle Seagraves: 00:12:06

You might be applying on your own, but you might also have a spouse who

Kyle Seagraves: 00:12:10

brings in the same amount of money as you or someone else in your household

Kyle Seagraves: 00:12:14

that brings in a lot of money.

Kyle Seagraves: 00:12:16

And it's not the full picture of your financial situation.

Kyle Seagraves: 00:12:19

It's only a snapshot of what you're showing the.

Kyle Seagraves: 00:12:21

So that's why I'm always very careful when you know, saying like, it's not just cuz

Kyle Seagraves: 00:12:26

you have high debt income ratio doesn't mean it's a bad thing just to the lender.

Kyle Seagraves: 00:12:30

It looks more,

Kyle Seagraves: 00:12:31

uh,

Katelyn Magnuson: 00:12:31

risky.

Katelyn Magnuson: 00:12:32

Cool.

Kyle Seagraves: 00:12:33

Yeah.

Kyle Seagraves: 00:12:33

Um, FHA on the appraisals are gonna be more strict about

Kyle Seagraves: 00:12:36

the, Quality of the home.

Kyle Seagraves: 00:12:38

They're really concerned about things like peeling, paint, uh, broken glass,

Kyle Seagraves: 00:12:42

um, anything, health and safety, as you know, as minimal as like, Hey,

Kyle Seagraves: 00:12:45

there, isn't a handrail on these three steps leading up to the house.

Kyle Seagraves: 00:12:49

I need you to put a handrail out there.

Kyle Seagraves: 00:12:50

I can't tell you the amount of times I've seen a real estate agent go out to a home

Kyle Seagraves: 00:12:53

with like, they just got back from Lowe's and they're like putting up one piece of

Kyle Seagraves: 00:12:57

two by four and nailing it into something.

Kyle Seagraves: 00:13:00

Um, They are more concerned with things like that.

Kyle Seagraves: 00:13:04

Um, before we jump over to VA and U S D a, uh, anything you

Kyle Seagraves: 00:13:07

wanted to touch on with FHA loans?

Katelyn Magnuson: 00:13:09

You, you just hit a nerve.

Katelyn Magnuson: 00:13:10

The first, like I said, the first one that I bought was with an FHA and it

Katelyn Magnuson: 00:13:13

was a foreclosed or bank bank on tongue.

Katelyn Magnuson: 00:13:15

Um,

Kyle Seagraves: 00:13:15

yeah.

Katelyn Magnuson: 00:13:17

And it was, it was wild, the things that they wanted to have.

Katelyn Magnuson: 00:13:19

And I'm, I don't know if this has changed in the meantime, but they

Katelyn Magnuson: 00:13:22

wanted to have a working dishwasher.

Katelyn Magnuson: 00:13:23

And to me that made no sense because you can hand wash dishes.

Katelyn Magnuson: 00:13:26

If I'm looking to buy a starter home, that's not a make or break,

Katelyn Magnuson: 00:13:29

but we had a, the deck was rotted.

Katelyn Magnuson: 00:13:31

And so they were like, well, there needs to be a rail and there's dry out here.

Katelyn Magnuson: 00:13:34

And just the differences in the inspections between that home

Katelyn Magnuson: 00:13:37

and that loan and our most recent one were like night and day.

Katelyn Magnuson: 00:13:40

Like they still pointed out everything that was, you know, of concern, but it.

Katelyn Magnuson: 00:13:44

It was a much less stressful process to not go the FHA route, but FHA

Katelyn Magnuson: 00:13:49

made it accessible for me at the time, which then made this purchase

Katelyn Magnuson: 00:13:52

accessible so grateful for it, but definitely loved the conventional more.

Kyle Seagraves: 00:13:56

FHA is more headache.

Kyle Seagraves: 00:13:58

Absolutely.

Kyle Seagraves: 00:13:59

And one of the big cons of going with something that's not a conventional

Kyle Seagraves: 00:14:03

loan is it can scare sellers.

Kyle Seagraves: 00:14:05

In a market where we're at right now, we're in a seller's market.

Kyle Seagraves: 00:14:08

Um, which means kind of the sellers have the control.

Kyle Seagraves: 00:14:10

So they get to be a little kind of picky and choosy about stuff because they're

Kyle Seagraves: 00:14:13

getting multiple offers on their home.

Kyle Seagraves: 00:14:15

Uh, there's likely gonna be a cash offer in there.

Kyle Seagraves: 00:14:17

There's likely gonna be a conventional offer in there.

Kyle Seagraves: 00:14:20

And when you come in with FHA, even though it's not a bad loan, there's

Kyle Seagraves: 00:14:23

nothing moral about these loans.

Kyle Seagraves: 00:14:25

They're not good or bad that they're just decisions that we're making

Kyle Seagraves: 00:14:27

about the financing that we're using.

Kyle Seagraves: 00:14:30

Sellers can perceive FHA as being bad and as being there might be issues, there

Kyle Seagraves: 00:14:34

might be problems with the appraisal.

Kyle Seagraves: 00:14:36

And unfortunately, a lot of sellers think that FHA loans

Kyle Seagraves: 00:14:39

mean that it's a bad borrower.

Kyle Seagraves: 00:14:41

That's oh, they don't handle money.

Kyle Seagraves: 00:14:42

Well, because they need FHA loan.

Kyle Seagraves: 00:14:44

When in reality, it's actually easier to get an FHA loan approved than a

Kyle Seagraves: 00:14:46

conventional like, it's a way like with, with FHA, you have way more leniency.

Kyle Seagraves: 00:14:52

If there's small differences in things, then conventional can be really.

Kyle Seagraves: 00:14:56

Um, so unfortunately that exists.

Kyle Seagraves: 00:14:58

It's something to keep in mind though, especially in a market like this.

Kyle Seagraves: 00:15:01

Um, so after FHA, you know, conventional is kind of the gold standard, uh, FHA is,

Kyle Seagraves: 00:15:08

Hey, we couldn't qualify for conventional.

Kyle Seagraves: 00:15:10

Then there's two other types of government loans and these have

Kyle Seagraves: 00:15:13

more specific use cases with them.

Kyle Seagraves: 00:15:15

Um, so you have a VA loan, uh, veterans administration.

Kyle Seagraves: 00:15:18

So this is only for, uh, veteran.

Kyle Seagraves: 00:15:22

So you can actually find your certificate of eligibility through the VA's website.

Kyle Seagraves: 00:15:26

And this is gonna tell you if you can qualify for home.

Kyle Seagraves: 00:15:28

Um, if it says $36,000 on there, that's the full amount of approval.

Kyle Seagraves: 00:15:32

It doesn't mean that you can only buy a $36,000 house.

Kyle Seagraves: 00:15:35

Uh, unfortunately VA has a very confusing things with

Kyle Seagraves: 00:15:37

entitlement that you can ignore.

Kyle Seagraves: 00:15:39

Um, ultimately with VA loans, there is no loan limit that got

Kyle Seagraves: 00:15:42

removed, uh, a year or two ago.

Katelyn Magnuson: 00:15:45

Oh, wow.

Kyle Seagraves: 00:15:45

can buy a home, you know, million dollars if you want to with a VA.

Kyle Seagraves: 00:15:50

Flood conventional and FHA.

Kyle Seagraves: 00:15:52

They do have loan limits set by county that we have to keep in mind.

Kyle Seagraves: 00:15:56

Uh, VA no loan limit, 0% down.

Kyle Seagraves: 00:16:00

It does have, uh, upfront mortgage insurance that they call a funding fee.

Kyle Seagraves: 00:16:05

Um, for most, uh, first time buyers with VA loans.

Kyle Seagraves: 00:16:09

It's 2.3% of the loan amount added to the loan amount.

Kyle Seagraves: 00:16:14

Uh, there is no monthly market insurance.

Katelyn Magnuson: 00:16:16

Okay.

Kyle Seagraves: 00:16:18

We can see already these things, these things start to

Kyle Seagraves: 00:16:19

get really a little confusing, but

Katelyn Magnuson: 00:16:22

the mortgage.

Katelyn Magnuson: 00:16:22

Insurance has different names though, for each of them.

Katelyn Magnuson: 00:16:24

That's really wonder.

Kyle Seagraves: 00:16:25

it's, it's awful.

Kyle Seagraves: 00:16:27

And you know, what's funny on YouTube is I see a lot of, a lot of people

Kyle Seagraves: 00:16:29

making YouTube videos are real estate agents, and they'll be like, FHA is PMI.

Kyle Seagraves: 00:16:33

And I'm like, you have no, you don't know what you're talking about IP.

Kyle Seagraves: 00:16:36

So stay in your lane.

Kyle Seagraves: 00:16:38

Um, VA has the funding fee.

Kyle Seagraves: 00:16:41

This is based on, uh, how many times you've used it, your down

Kyle Seagraves: 00:16:44

payment and also your service.

Kyle Seagraves: 00:16:46

Uh, now what's really nice about VA loans is if you have 10% or more

Kyle Seagraves: 00:16:52

service connected disability, uh, you do not have to pay the funding

Kyle Seagraves: 00:16:55

fee, which is a lot of money saved.

Kyle Seagraves: 00:16:58

If that's the instance, VA loan is insanely great.

Kyle Seagraves: 00:17:02

0% down, no monthly mortgage insurance and no funding fee,

Kyle Seagraves: 00:17:05

no upfront mortgage insurance.

Kyle Seagraves: 00:17:07

If you have a service connected dis.

Kyle Seagraves: 00:17:09

Also VA loans have usually historically lower rates compared

Kyle Seagraves: 00:17:14

to all the other types of loans.

Kyle Seagraves: 00:17:16

Um, this is just because the, the VA has just been so, uh, great at negotiating

Kyle Seagraves: 00:17:21

benefits on behalf of veterans.

Kyle Seagraves: 00:17:24

Um, now everything else with the appraisal on all the government

Kyle Seagraves: 00:17:29

loans are very similar.

Kyle Seagraves: 00:17:30

FHA VA, U S D a very similar appraisals there.

Kyle Seagraves: 00:17:35

Um, U S D.

Kyle Seagraves: 00:17:37

Also has a very specific use case.

Kyle Seagraves: 00:17:40

Um, U S D a is only for rural areas.

Kyle Seagraves: 00:17:44

Now this doesn't mean farmland doesn't have to be a farm.

Kyle Seagraves: 00:17:48

Um, and in fact it actually can't be a working farm.

Kyle Seagraves: 00:17:52

Uh, it's a specific population requirement and you can actually

Kyle Seagraves: 00:17:55

just Google U S D a property eligibility, and you can look at a map.

Kyle Seagraves: 00:17:59

For most people, if you extend your commute by around 15 minutes,

Kyle Seagraves: 00:18:03

you'll be in a S D a eligible area.

Kyle Seagraves: 00:18:05

Um, so USC is great.

Kyle Seagraves: 00:18:07

Goes all the way down to a 500 credit score.

Kyle Seagraves: 00:18:10

However, it's best to have a six 40 and above.

Kyle Seagraves: 00:18:13

If we have a six 40 on a credit, six 40 on U S D alone, we can use the automated

Kyle Seagraves: 00:18:18

underwriting software, um, which we talked about in the credit episode.

Kyle Seagraves: 00:18:22

Uh, the automated computer system for approving loans is a lot easier than

Kyle Seagraves: 00:18:27

if someone has to manually review.

Kyle Seagraves: 00:18:29

Five hundred's a minimum six 40 is gonna be a lot better, but 0% down, no matter

Kyle Seagraves: 00:18:34

what credit score we have, U S D a does have an upfront mortgage insurance.

Kyle Seagraves: 00:18:39

They call a guarantee fee.

Kyle Seagraves: 00:18:41

Everyone calls things differently.

Kyle Seagraves: 00:18:43

Um, this is often 1% of the loan amount added to the loan amount, and then

Kyle Seagraves: 00:18:47

also monthly mortgage insurance for the life of the loan that will never

Kyle Seagraves: 00:18:51

come off of 0.3, 5% of the loan amount.

Kyle Seagraves: 00:18:54

This is usually, uh, On par or cheaper than conventional's PMI, but we are paying

Kyle Seagraves: 00:19:01

it for the life of the loan as well.

Kyle Seagraves: 00:19:04

Um, so U S D a node loan limit just like a VA loan, but it does have an income limit.

Kyle Seagraves: 00:19:12

Not only is it an income limit, it's actually a household income limit.

Kyle Seagraves: 00:19:16

So even if someone is not on the loan with you, if they're in the home, what

Kyle Seagraves: 00:19:21

trips up a lot of people is if they have a parent living with them and that parent.

Kyle Seagraves: 00:19:26

Earns disability or whatever income they have that actually has to be

Kyle Seagraves: 00:19:29

counted on the loan, uh, in the loan limit, even if they're not on the loan.

Kyle Seagraves: 00:19:35

So anybody above 18 who's earning income will be counted in that loan limit.

Kyle Seagraves: 00:19:39

And that loan limit usually, uh, is fairly.

Kyle Seagraves: 00:19:44

Restrictive for a lot of people.

Kyle Seagraves: 00:19:46

It depends on the county, but it's often around $80,000 and for a household, uh,

Kyle Seagraves: 00:19:52

that can be tough because anybody above 18, who is earning, uh, money there.

Kyle Seagraves: 00:19:57

So those are the four and it can be really confusing cuz it's

Kyle Seagraves: 00:20:00

like, oh my gosh, there's so much.

Kyle Seagraves: 00:20:01

And there's all these different things, but it's actually really easy to begin

Kyle Seagraves: 00:20:04

seeing from the high level view of would I even do qualify in general, U

Kyle Seagraves: 00:20:09

S D a am I gonna buy in a rural area?

Kyle Seagraves: 00:20:11

You need to look up that map to see first.

Kyle Seagraves: 00:20:14

If no cool.

Kyle Seagraves: 00:20:15

Well, I don't even have to consider it.

Kyle Seagraves: 00:20:17

VA, are you a veteran?

Kyle Seagraves: 00:20:19

No, I'm not.

Kyle Seagraves: 00:20:19

Okay.

Kyle Seagraves: 00:20:20

Well, we can't even consider it.

Kyle Seagraves: 00:20:21

We don't have to worry about it.

Kyle Seagraves: 00:20:22

Then we look at conventional or an FHA.

Kyle Seagraves: 00:20:25

Do I have a credit score?

Kyle Seagraves: 00:20:26

That is six 80 and above conventional is gonna be my first choice.

Kyle Seagraves: 00:20:29

If I have a credit score that's below six 80, I'm then gonna explore FHA.

Kyle Seagraves: 00:20:35

So those are the four main types.

Kyle Seagraves: 00:20:37

Yeah.

Kyle Seagraves: 00:20:37

The four main types that most lenders have.

Kyle Seagraves: 00:20:39

Um, and it, I know it does get confusing.

Kyle Seagraves: 00:20:42

You don't have to go into the nuances until you're like, these

Kyle Seagraves: 00:20:44

are the two that I'm looking at.

Kyle Seagraves: 00:20:46

Um, on top of that, there are couple different other more creative options.

Kyle Seagraves: 00:20:51

Uh, you have things like jumbo loans.

Kyle Seagraves: 00:20:54

So for instance, conventional loans do have a loan limit and

Kyle Seagraves: 00:20:58

this is gonna change by the county.

Kyle Seagraves: 00:21:00

Um, so for instance, like a home in Nashville is gonna have a higher

Kyle Seagraves: 00:21:02

loan limit than in Dayton, Ohio.

Kyle Seagraves: 00:21:05

Um, So if you're going above the loan limit, if you're looking at a house that

Kyle Seagraves: 00:21:09

is, let's say $900,000, likely gonna need something called a jumbo alone.

Kyle Seagraves: 00:21:16

Jumbo loans usually require larger down payments.

Kyle Seagraves: 00:21:19

Um, what's frustrating about jumbo loans is that there

Kyle Seagraves: 00:21:22

isn't a standard set of rules.

Kyle Seagraves: 00:21:25

So conventional loans, FHA VA, U S D a all have literally a rule

Kyle Seagraves: 00:21:29

book called a handbook, usually several thousand pages each.

Kyle Seagraves: 00:21:34

Jumbo loans.

Kyle Seagraves: 00:21:35

Every lender is gonna have different rules for their jumbo loans.

Kyle Seagraves: 00:21:38

There's not one national set of guidelines, so all the rules can change.

Kyle Seagraves: 00:21:44

Um, jumbo loans usually start around 10% down, sometimes 20% and often

Kyle Seagraves: 00:21:50

want a really high credit score.

Kyle Seagraves: 00:21:51

Six 80, sometimes seven 20 to get a jumbo loan and jumbo loans are

Kyle Seagraves: 00:21:56

gonna be a lot more restrictive on the income that you can have and the

Kyle Seagraves: 00:22:01

amount of debt that you can have as.

Katelyn Magnuson: 00:22:03

Are we seeing more jumbo loans or the necessity for

Katelyn Magnuson: 00:22:06

more jumbo loans as house prices have been increasing, because

Katelyn Magnuson: 00:22:09

while you were just talking, I looked it up for where we live and.

Katelyn Magnuson: 00:22:14

it is shockingly low for our county.

Katelyn Magnuson: 00:22:16

We are not that far from hitting jumbo loan category and we are not one of

Katelyn Magnuson: 00:22:20

the most expensive houses in the area.

Katelyn Magnuson: 00:22:21

So it just kind of got me thinking, have we seen a surge

Katelyn Magnuson: 00:22:24

in jumbo loans because of that?

Kyle Seagraves: 00:22:27

Yeah.

Kyle Seagraves: 00:22:28

Uh, not from any data that I've seen.

Kyle Seagraves: 00:22:30

And the main reason why is because the conventional loan limits

Kyle Seagraves: 00:22:33

increase, uh, usually every year.

Kyle Seagraves: 00:22:35

So between this year and last year, it actually increased 18%, uh, which

Kyle Seagraves: 00:22:39

is pretty on track with what around home values have been appreciating.

Kyle Seagraves: 00:22:42

So now it's 647,200 is for most of the.

Kyle Seagraves: 00:22:48

Then there are what are called high balance areas where that

Kyle Seagraves: 00:22:50

loan limit is actually raised to accommodate some of these more,

Katelyn Magnuson: 00:22:54

Right.

Katelyn Magnuson: 00:22:54

Like San Francisco, LA New

Kyle Seagraves: 00:22:56

Yep.

Kyle Seagraves: 00:22:57

Yeah.

Kyle Seagraves: 00:22:57

And some of those go up to 900,000, uh, for a single family home.

Kyle Seagraves: 00:23:01

So, um, I haven't seen jumbos increas demand because the conforming conventional

Kyle Seagraves: 00:23:07

loan limit has been increasing with it as.

Kyle Seagraves: 00:23:09

So you have jumbo loans.

Kyle Seagraves: 00:23:10

you also have bank statement, loans, bank statement loans are a little

Kyle Seagraves: 00:23:13

bit newer, uh, on the scene recently.

Kyle Seagraves: 00:23:16

Um, or at least in popularity and bank statement, loans are for primarily

Kyle Seagraves: 00:23:21

self-employed borrowers and self-employed people usually right off a lot.

Kyle Seagraves: 00:23:26

Um, and they, their income.

Kyle Seagraves: 00:23:29

Their personal income on their personal tax return.

Kyle Seagraves: 00:23:31

Usually isn't the best indication of the actual money coming into the company.

Kyle Seagraves: 00:23:34

I know for myself, obviously I have a business account and a personal account.

Kyle Seagraves: 00:23:38

And even though money is always going from my business to personal,

Kyle Seagraves: 00:23:42

to being spent, it doesn't, I don't always just throw money into my

Kyle Seagraves: 00:23:46

personal account immediate immediately when it comes into the business

Katelyn Magnuson: 00:23:49

Mm-hmm

Kyle Seagraves: 00:23:50

but it's the same money but lenders don't view it that.

Kyle Seagraves: 00:23:55

So if you are self-employed and you have a smaller company where you

Kyle Seagraves: 00:23:59

have a lot of control, your finances, usually your writing off a lot, and

Kyle Seagraves: 00:24:02

your personal in income might not be a good indication of how much

Kyle Seagraves: 00:24:06

money you actually do have access to.

Kyle Seagraves: 00:24:09

Um, and so for a lot of self-employed people, I shouldn't say a lot for a

Kyle Seagraves: 00:24:13

good amount of self-employed people.

Kyle Seagraves: 00:24:14

They run into an issue where they can't qualify for a loan because

Kyle Seagraves: 00:24:17

their personal income, uh, is too low to qualify for a mortgage.

Kyle Seagraves: 00:24:21

Even though their actual income that they see every day can

Kyle Seagraves: 00:24:25

absolutely qualify for a loan.

Kyle Seagraves: 00:24:27

In that instance, we can't use tax returns, uh, to qualify for a

Kyle Seagraves: 00:24:32

mortgage cuz the income would be too low to support the mortgage payment.

Kyle Seagraves: 00:24:36

Um, so there is a program called bank statement loans where a lender will

Kyle Seagraves: 00:24:42

look at 12 to 24 months of either personal or business bank statements

Kyle Seagraves: 00:24:48

and average the deposits into your.

Kyle Seagraves: 00:24:51

Then, what they'll usually do is they'll use an expense ratio depending

Kyle Seagraves: 00:24:55

on what type of industry you're in.

Kyle Seagraves: 00:24:56

So for instance, if you're a real estate agent, they might look at 12 months of

Kyle Seagraves: 00:25:00

your business bank statements, average.

Kyle Seagraves: 00:25:03

Those let's say the average comes out as $200,000 of all your deposits.

Kyle Seagraves: 00:25:09

Um, they're gonna look at those monthly.

Kyle Seagraves: 00:25:11

So that would be your, uh, 200,000 divided by 12, um, would be $16,600 per.

Kyle Seagraves: 00:25:19

For real estate agents, they're usually using a ratio around 90%.

Kyle Seagraves: 00:25:23

So they'd act like you have 10% expenses per month.

Kyle Seagraves: 00:25:26

So they would say that you could then qualify using $15,000

Kyle Seagraves: 00:25:31

per month as your income.

Kyle Seagraves: 00:25:33

Um, for other industries that might be 50%, uh, anything below 50%, they

Kyle Seagraves: 00:25:39

would usually ask for, um, something like a profit and loss statement to.

Kyle Seagraves: 00:25:44

Figure out what your actual expenses are.

Kyle Seagraves: 00:25:46

So ultimately though, if you can't qualify as a self-employed person with

Kyle Seagraves: 00:25:49

a normal commercial loan or FHA or anything like that, you can look at

Kyle Seagraves: 00:25:53

bank statement where they would treat your income a little bit differently.

Kyle Seagraves: 00:25:56

And this is nice because there's no write offs on a bank statement.

Kyle Seagraves: 00:25:59

Uh, they're only looking the gross income and then some expense ratio.

Kyle Seagraves: 00:26:04

Uh, then there's also another program.

Kyle Seagraves: 00:26:06

Uh, it's U it's not really a separate program.

Kyle Seagraves: 00:26:09

It's kind of think of it like an add-on to a loan called down payment as.

Kyle Seagraves: 00:26:14

Same thing with like with jumbo, there isn't one big rule book and one

Kyle Seagraves: 00:26:18

program about down payment assistance.

Kyle Seagraves: 00:26:20

It's usually all given on like a local level.

Kyle Seagraves: 00:26:22

So usually counties or states have, uh, down payment assistance programs and down

Kyle Seagraves: 00:26:28

payment assistance programs are basically any program that helps pay all or some

Kyle Seagraves: 00:26:34

of your down payment are closing costs.

Kyle Seagraves: 00:26:36

So usually there's some limits in there.

Kyle Seagraves: 00:26:38

And then often there is an income limit as well.

Kyle Seagraves: 00:26:41

Most of the time programs are designed where, uh, there might be a county

Kyle Seagraves: 00:26:45

program that says we wanna help out, uh, lower income individuals qualify

Kyle Seagraves: 00:26:49

for a home, um, without having to pull all the money outta their pocket.

Kyle Seagraves: 00:26:53

Um, however, they're gonna put a limit on that.

Kyle Seagraves: 00:26:55

So somebody making 200,000, can't just be like free money.

Kyle Seagraves: 00:26:58

Thank you.

Kyle Seagraves: 00:27:00

uh, down payment assistance though.

Kyle Seagraves: 00:27:01

Um, what we have to keep in mind is there often are some.

Kyle Seagraves: 00:27:06

Strings attached to it.

Kyle Seagraves: 00:27:08

It usually isn't just free money, have fun with it.

Kyle Seagraves: 00:27:11

So these are all dependent on the program.

Kyle Seagraves: 00:27:15

It's best to talk with a loan officer and say, Hey, do you have

Kyle Seagraves: 00:27:16

access to down payment assistance programs that you can tell me about?

Kyle Seagraves: 00:27:20

Um, that's gonna be the easiest access to finding these programs, uh, rather

Kyle Seagraves: 00:27:24

than just kind of a Google search.

Kyle Seagraves: 00:27:25

That's not gonna send us in a very solid direction.

Kyle Seagraves: 00:27:28

So with these programs, you can have things like higher interest rate.

Kyle Seagraves: 00:27:31

Um, there could also be a potential of you have to be in

Kyle Seagraves: 00:27:34

home for a certain period of time.

Kyle Seagraves: 00:27:36

Um, there are some down payment assistance programs that say, uh, let's

Kyle Seagraves: 00:27:40

say it says you have to be in there for five years and then it's fully forgiv.

Kyle Seagraves: 00:27:44

But if you sell within three years, you have to pay back the full amount.

Kyle Seagraves: 00:27:47

Some say you only have to pay back partial amount.

Kyle Seagraves: 00:27:49

Um, so there can be all these little things that happen.

Kyle Seagraves: 00:27:52

There are even some programs that are really intense, and this is the

Kyle Seagraves: 00:27:56

minority that actually can require things like community service along

Kyle Seagraves: 00:28:00

with, uh, receiving the assistance.

Kyle Seagraves: 00:28:03

So that's all across the board on what happens with down payment assistance.

Kyle Seagraves: 00:28:07

Just know that it does exist.

Kyle Seagraves: 00:28:09

Often down payment assistance is used with an FHA.

Kyle Seagraves: 00:28:14

There are very few down payment assistance programs that

Kyle Seagraves: 00:28:17

work with conventional loans.

Kyle Seagraves: 00:28:19

So just something to keep in mind.

Kyle Seagraves: 00:28:20

Um, so if we're looking at FHA, that is an option I personally would not

Kyle Seagraves: 00:28:25

use a down payment assistance program.

Kyle Seagraves: 00:28:27

If I can afford the 3% down conventional, because I don't wanna hire interest

Kyle Seagraves: 00:28:31

rate if I can afford the down payment.

Kyle Seagraves: 00:28:34

So I have not found a lot of down payment assistance programs to be beneficial long.

Kyle Seagraves: 00:28:39

Because of some of the strings attached with them, there are programs

Kyle Seagraves: 00:28:42

out there that can be really good.

Kyle Seagraves: 00:28:44

But there are a lot more programs that I think are gonna cost you

Kyle Seagraves: 00:28:46

a lot more money than are gonna save you money in the long run.

Katelyn Magnuson: 00:28:50

Right.

Katelyn Magnuson: 00:28:50

That makes total sense.

Katelyn Magnuson: 00:28:51

And also I think the popularity of bank statement loans are, I'm

Katelyn Magnuson: 00:28:56

gonna say due to TikTok cause.

Katelyn Magnuson: 00:28:57

I've seen them pop up all over my TikTok.

Katelyn Magnuson: 00:29:00

Yes.

Katelyn Magnuson: 00:29:01

Um, it's been really interesting.

Katelyn Magnuson: 00:29:02

I didn't even know that they existed.

Katelyn Magnuson: 00:29:04

Intel TikTok kept talking about them about six months ago.

Katelyn Magnuson: 00:29:07

So

Kyle Seagraves: 00:29:07

Unfortunately, the, the strategy of like real estate agents and

Kyle Seagraves: 00:29:11

lenders is always just like, did you know, it's always sited around, like we

Kyle Seagraves: 00:29:16

can get you in a home immediately, no matter, like, it's always like, did you

Kyle Seagraves: 00:29:19

know, we can do that and we can do this.

Kyle Seagraves: 00:29:20

And we can do that.

Kyle Seagraves: 00:29:20

It's like very car sales kit, salesy, like, yeah, these

Katelyn Magnuson: 00:29:22

we can do all these obscure things and, but are

Katelyn Magnuson: 00:29:25

they actually the right fit for you?

Katelyn Magnuson: 00:29:26

Yeah.

Kyle Seagraves: 00:29:27

all . Yeah.

Kyle Seagraves: 00:29:28

These all like not a problem.

Kyle Seagraves: 00:29:29

Not we can do that, not a problem.

Kyle Seagraves: 00:29:30

It's like, ah, that's not

Katelyn Magnuson: 00:29:31

No credit, low credit.

Katelyn Magnuson: 00:29:33

You have the, yeah, it just sounds, yeah.

Katelyn Magnuson: 00:29:35

Like one of those salesy things,

Kyle Seagraves: 00:29:36

will say, and I wasn't sure if we should include this in

Kyle Seagraves: 00:29:39

the credit episode or this, uh, if you don't have a credit score, you

Kyle Seagraves: 00:29:43

still can qualify for all these loans.

Kyle Seagraves: 00:29:47

And you might wanna jump back to the credit episode where we talked

Kyle Seagraves: 00:29:48

about, uh, the adding trade lines.

Kyle Seagraves: 00:29:51

Um, you can, but no credit and, and bad credit are not the same thing.

Kyle Seagraves: 00:29:58

Bad credit.

Kyle Seagraves: 00:30:00

You still have a credit score.

Kyle Seagraves: 00:30:01

You can't get rid of it.

Kyle Seagraves: 00:30:02

No credit.

Kyle Seagraves: 00:30:03

Like absolutely no credit at all is very different.

Kyle Seagraves: 00:30:06

And you still can get something like a conventional loan with no credit.

Katelyn Magnuson: 00:30:10

no, I think that's great to add in there.

Katelyn Magnuson: 00:30:12

Um, so a couple of questions for you that I know I've heard tossed around a lot

Katelyn Magnuson: 00:30:16

when, and this might go into our timing a little bit here on our next episode.

Katelyn Magnuson: 00:30:21

When should someone, or should someone we're gonna say, should shop around

Katelyn Magnuson: 00:30:26

for loans or shop around for, you know, people to work with and how

Katelyn Magnuson: 00:30:30

do they know when they found the right person or the right company?

Kyle Seagraves: 00:30:34

Yes, shop around way sooner than you expect.

Kyle Seagraves: 00:30:37

or at least begin the applying If you're even remotely considering buying a house,

Kyle Seagraves: 00:30:42

do it now, because what most of the time happens is people are like, oh, I'll do it

Kyle Seagraves: 00:30:45

a week before I'm ready to start buying.

Kyle Seagraves: 00:30:47

But then they like that day.

Kyle Seagraves: 00:30:49

They're like we found the house.

Kyle Seagraves: 00:30:50

Once you're in that mindset, you're in that mindset, you

Kyle Seagraves: 00:30:52

can't really get out of it.

Kyle Seagraves: 00:30:54

You're not gonna slow yourself down.

Kyle Seagraves: 00:30:55

Most people can't.

Kyle Seagraves: 00:30:56

So if you're looking at buying, let's begin the, the mortgage

Kyle Seagraves: 00:30:59

conversation way earlier.

Kyle Seagraves: 00:31:02

because we can always update the approval.

Kyle Seagraves: 00:31:04

Right.

Kyle Seagraves: 00:31:05

there's zero risk in applying with a mortgage lender.

Kyle Seagraves: 00:31:07

So at least apply and just begin seeing what do the numbers look like?

Kyle Seagraves: 00:31:11

How does it feel when we look at the monthly payment and everything added with

Kyle Seagraves: 00:31:15

it, like taxes and insurance and, um, PMI, you know, any mortgage insurance,

Kyle Seagraves: 00:31:19

what do the upfront costs feel like?

Kyle Seagraves: 00:31:21

So I would at least begin that as really, as early as you were like,

Kyle Seagraves: 00:31:24

I think I want to buy a house.

Kyle Seagraves: 00:31:26

Begin that conversation, um, when you're shopping, uh, I think a lot of people

Kyle Seagraves: 00:31:31

don't really understand why they would shop, uh, we're doing it for two reasons.

Kyle Seagraves: 00:31:35

Um, one is to make sure that we have, uh, approvals with several

Kyle Seagraves: 00:31:38

people that way we kind of weed out.

Kyle Seagraves: 00:31:41

Maybe those lenders who are like, yeah, we can do it.

Kyle Seagraves: 00:31:43

No problem.

Kyle Seagraves: 00:31:44

Cuz there's a lot of people who just go with the first lender and then

Kyle Seagraves: 00:31:47

they get under contract and that loan actually can't go through cuz the

Kyle Seagraves: 00:31:51

loan officer didn't check something.

Kyle Seagraves: 00:31:53

We wanna have a backup plan with a couple different lenders.

Kyle Seagraves: 00:31:55

To make sure we actually can get approved with several people, not

Kyle Seagraves: 00:31:58

just one guy who was like you.

Kyle Seagraves: 00:32:00

We can absolutely do it.

Kyle Seagraves: 00:32:01

No problem at all.

Kyle Seagraves: 00:32:02

The other big thing is we can save money by seeing what terms

Kyle Seagraves: 00:32:06

a lender would give to us.

Kyle Seagraves: 00:32:08

Different lenders are gonna have different interest rates, uh,

Kyle Seagraves: 00:32:11

different mortgage insurance that they might offer on a conventional loan.

Kyle Seagraves: 00:32:14

One might offer, you know, $160 per month.

Kyle Seagraves: 00:32:17

Another might be, a hundred.

Kyle Seagraves: 00:32:19

So it's gonna be cheaper.

Kyle Seagraves: 00:32:20

Monthly, uh, might have different interest rates.

Kyle Seagraves: 00:32:22

Um, some might have smaller, different programs or different nuances.

Kyle Seagraves: 00:32:26

And we also might run into a level of service.

Kyle Seagraves: 00:32:29

That's different.

Kyle Seagraves: 00:32:31

One loan officer might be really quick and responsive and helpful, and another

Kyle Seagraves: 00:32:34

one might never reply to my email.

Kyle Seagraves: 00:32:37

And when you're under contract, you have a certain amount of days

Kyle Seagraves: 00:32:42

that you said you're gonna close your home in for a lot of people.

Kyle Seagraves: 00:32:45

It's 30 days in really competitive markets that might be 20.

Kyle Seagraves: 00:32:49

It's not just a preference, it's a legal requirement that you signed.

Kyle Seagraves: 00:32:54

And so if we work with a lender, even if they have a really low rate, but they're

Kyle Seagraves: 00:32:58

not responsive and they're really slow and disorganized and they don't close the

Kyle Seagraves: 00:33:01

home within, let's say 30 days that we put on our contract, the seller can cancel

Kyle Seagraves: 00:33:06

the deal and you won't get the home.

Kyle Seagraves: 00:33:08

Now we can ask for an extension that's AB absolutely happens,

Kyle Seagraves: 00:33:12

but we have to keep that in mind.

Kyle Seagraves: 00:33:13

A lender can change.

Kyle Seagraves: 00:33:15

They can kill the deal if they don't help us close on time.

Kyle Seagraves: 00:33:19

And so that can be really frustrating for home buyers because it's

Kyle Seagraves: 00:33:22

not just the bottom line number who has a lowest interest rate.

Kyle Seagraves: 00:33:26

We're also looking at who can help us actually close this whole thing,

Kyle Seagraves: 00:33:30

answer our questions, help us navigate something that can be very confusing.

Kyle Seagraves: 00:33:34

It helps overcome problems if they come up.

Kyle Seagraves: 00:33:37

Um, and so.

Kyle Seagraves: 00:33:38

That's a really hard thing to sum up into one quality or into

Kyle Seagraves: 00:33:43

like, what's a good role of thumb.

Kyle Seagraves: 00:33:44

And I've always relied on, on the thought of who has the heart of a teacher.

Kyle Seagraves: 00:33:49

If you're working with a loan officer, who's willing to explain things to you

Kyle Seagraves: 00:33:52

and they're patient and they, uh, don't get mad that you're asking questions.

Kyle Seagraves: 00:33:58

That usually is gonna be a really good person to work with.

Kyle Seagraves: 00:34:00

And a quick way to figure out who that is, is just ask questions.

Kyle Seagraves: 00:34:05

The person who has the heart of a teacher will answer those patiently and kindly the

Kyle Seagraves: 00:34:09

person who doesn't is going to try to push you into more of a sales conversation.

Kyle Seagraves: 00:34:13

And really it is kind of a gut feeling.

Kyle Seagraves: 00:34:16

I know in finance, a lot of people don't want to feel things for some reason, but

Kyle Seagraves: 00:34:20

like your body is good at understanding risk and understanding what is good.

Kyle Seagraves: 00:34:24

And what's not, even if you don't fully understand the situation, if

Kyle Seagraves: 00:34:28

somebody that I'm talking to rings some alarm bells in me, and I'm like,

Kyle Seagraves: 00:34:31

I don't have a good gut feeling about this, then let's listen to that.

Kyle Seagraves: 00:34:36

the right person to work with you're gonna have a good feeling about.

Kyle Seagraves: 00:34:39

Now from the numbers perspective, comparing these different loans

Kyle Seagraves: 00:34:43

can be really frustrating.

Kyle Seagraves: 00:34:44

And unfortunately, there usually isn't a really good way to analyze these

Kyle Seagraves: 00:34:48

numbers side by side because no lender wants to be like, that lender over

Kyle Seagraves: 00:34:52

there, they do have cheaper rates.

Kyle Seagraves: 00:34:54

no, one's gonna tell you that.

Kyle Seagraves: 00:34:55

Um, so I, I was running into an issue where a lot of home buyers that I was

Kyle Seagraves: 00:35:00

talking to who comment on my channel.

Kyle Seagraves: 00:35:03

Who are running into these issues of like lender a gave me this

Kyle Seagraves: 00:35:05

and lender B gave me this, but I can't tell which one is better.

Kyle Seagraves: 00:35:09

Cuz one has a lower interest rate, but higher cost and the other one has

Kyle Seagraves: 00:35:12

higher interest rate, but lower cost.

Kyle Seagraves: 00:35:14

Which one do I choose?

Kyle Seagraves: 00:35:15

Um, so actually made a software that called the loan clarity advisor.

Kyle Seagraves: 00:35:18

You just put in what a lender tells you, what interest rate the down payment, the

Kyle Seagraves: 00:35:23

amount closing costs, things like that.

Kyle Seagraves: 00:35:25

Um, and it will tell.

Kyle Seagraves: 00:35:27

Which year, which loan is the cheapest.

Kyle Seagraves: 00:35:29

So might say in year five, lender a is the cheapest and then year

Kyle Seagraves: 00:35:33

10 lender B is the cheapest.

Kyle Seagraves: 00:35:35

So if I know I'm gonna be in the home for 10 years or more,

Kyle Seagraves: 00:35:38

I'm gonna go with lender B.

Kyle Seagraves: 00:35:40

And if I'm gonna be here for a short amount of time, I'll go with lender.

Kyle Seagraves: 00:35:43

A, and so that's something you can use to compare those.

Kyle Seagraves: 00:35:46

What I would recommend for people is looking at a software like that.

Kyle Seagraves: 00:35:50

Compare the numbers.

Kyle Seagraves: 00:35:51

And then once you take a look at the numbers in a really transparent way

Kyle Seagraves: 00:35:54

and say, this, here's what the data is actually showing me the actual raw

Kyle Seagraves: 00:35:59

data of this is financially the best option when I'm comparing these, if

Kyle Seagraves: 00:36:03

maybe lender a and lender B over 10 years are only a $2,000 difference.

Kyle Seagraves: 00:36:09

Am I then willing to go with the lender who has the higher,

Kyle Seagraves: 00:36:12

slightly higher interest rate?

Kyle Seagraves: 00:36:13

Because I'm more confident in them

Kyle Seagraves: 00:36:15

closing the.

Kyle Seagraves: 00:36:16

I'll do that all day long, $2,000 over 10 years absolutely will pay that to

Kyle Seagraves: 00:36:21

make sure that I actually get this home

Katelyn Magnuson: 00:36:23

Right,

Kyle Seagraves: 00:36:24

a lot of people will just go online and try to

Kyle Seagraves: 00:36:26

find the cheapest advertisement.

Kyle Seagraves: 00:36:28

You know, those like really, I don't even know how they're legal, but you'll see

Kyle Seagraves: 00:36:32

those advertisements are like 1% interest.

Kyle Seagraves: 00:36:34

Like no one's offering that but then you, you know, you apply and it's,

Kyle Seagraves: 00:36:39

you work with somebody who maybe ISN inexperienced and you're not able

Kyle Seagraves: 00:36:42

to close loan and you could miss.

Kyle Seagraves: 00:36:45

On buying the

Katelyn Magnuson: 00:36:46

That 1% potential has now potentially cost you.

Katelyn Magnuson: 00:36:49

a home.

Kyle Seagraves: 00:36:50

It cost you the entire, that entire home.

Kyle Seagraves: 00:36:51

Now you have to go find something else and you potentially already paid $500

Kyle Seagraves: 00:36:54

for an appraisal $500 for an inspection.

Kyle Seagraves: 00:36:57

Maybe more not to mention all the time that you spent looking for homes.

Kyle Seagraves: 00:37:00

So those are the two things that I would look at.

Kyle Seagraves: 00:37:02

Let's look at the raw finances, uh, and you can use that software to compare

Kyle Seagraves: 00:37:07

those instead of having to do all the math

Katelyn Magnuson: 00:37:09

Yeah.

Katelyn Magnuson: 00:37:09

Which will link in the notes.

Katelyn Magnuson: 00:37:10

Yeah.

Kyle Seagraves: 00:37:10

takes forever.

Kyle Seagraves: 00:37:11

And most people don't do it correctly.

Kyle Seagraves: 00:37:13

And then coupling that with which one of these lenders has the heart

Kyle Seagraves: 00:37:17

of a teacher from there, you'll be able to make a really good decision.

Kyle Seagraves: 00:37:21

Usually what ends up happening is the most helpful person often has, uh,

Kyle Seagraves: 00:37:25

usually the middle ground offering.

Kyle Seagraves: 00:37:28

If you're looking at three people, usually they're the

Kyle Seagraves: 00:37:30

second person, second best option.

Kyle Seagraves: 00:37:32

And I'll go with them all day long over the cheapest option

Kyle Seagraves: 00:37:36

that I don't have confidence.

Katelyn Magnuson: 00:37:38

Absolutely.

Katelyn Magnuson: 00:37:38

You know, I couldn't agree more.

Katelyn Magnuson: 00:37:39

I think that that's great advice when looking to qualify for a home mortgage.

Katelyn Magnuson: 00:37:47

I think that both with home loans and with auto loans, uh, it's a really

Katelyn Magnuson: 00:37:52

common misconception that if you are married or partnered that both

Katelyn Magnuson: 00:37:57

of you, it kind of comes across.

Katelyn Magnuson: 00:37:59

And I was actually under this belief until several years ago that like,

Katelyn Magnuson: 00:38:03

why wouldn't you both be on a loan?

Katelyn Magnuson: 00:38:04

You know, you're both contributing to the household.

Katelyn Magnuson: 00:38:05

Finances.

Katelyn Magnuson: 00:38:06

You're both purchasing this, but I, I wanna talk about,

Katelyn Magnuson: 00:38:09

do both people need to be.

Katelyn Magnuson: 00:38:12

on the loan and kind of, and this may come back in and our strategy that we

Katelyn Magnuson: 00:38:16

chat about later, but do both people need to be on the loan when looking

Katelyn Magnuson: 00:38:19

to purchase a home mortgage or a home.

Kyle Seagraves: 00:38:22

best strategy is put the minimum amount of people

Kyle Seagraves: 00:38:24

on the mortgage as possible.

Kyle Seagraves: 00:38:26

If you can qualify with just one person do that.

Kyle Seagraves: 00:38:30

Um, because it really just adds a layer of protect.

Kyle Seagraves: 00:38:34

Your spouse can always be added onto the deed and not on the mortgage.

Kyle Seagraves: 00:38:39

So if you can qualify with just one person, you can do that.

Kyle Seagraves: 00:38:42

You both have ownership of the home, but there's only one person who

Kyle Seagraves: 00:38:44

has responsibility for the debt.

Kyle Seagraves: 00:38:46

And why I would do this is because worst case scenario, okay.

Kyle Seagraves: 00:38:51

Things like COVID happen.

Kyle Seagraves: 00:38:52

You lose your job.

Kyle Seagraves: 00:38:54

You get even just missing a mortgage payment.

Kyle Seagraves: 00:38:56

Can derail credit for years.

Kyle Seagraves: 00:39:00

I'd rather not that happen to two people.

Kyle Seagraves: 00:39:02

Let's just have it happen to one person.

Kyle Seagraves: 00:39:04

Now we have the other person's credit saved there.

Kyle Seagraves: 00:39:08

Um, not only that, but what I run into with a lot of people is they're like my

Kyle Seagraves: 00:39:11

credit score is great, but my income's low and another person's like my credit

Kyle Seagraves: 00:39:15

score sucks, but my income's great.

Kyle Seagraves: 00:39:17

Like, okay, well, when we're applying together, the lender is going

Kyle Seagraves: 00:39:20

to use the lower credit score to qualify you for which loan you can

Kyle Seagraves: 00:39:24

use and the interest rate as well.

Kyle Seagraves: 00:39:27

Um, so if we can just use one person.

Kyle Seagraves: 00:39:29

Preferably with the higher credit score and get away with the lower income.

Kyle Seagraves: 00:39:33

That's the best strategy.

Kyle Seagraves: 00:39:34

If we have to add, you know, if there's not enough income and you need to add

Kyle Seagraves: 00:39:37

that person on, that's fine, but we do have to use the lower credit score.

Kyle Seagraves: 00:39:43

So ultimately it's better to do the minimum amount of people possible.

Kyle Seagraves: 00:39:48

Um, it's just less, not only is it easier, but it adds that safety net, if you need.

Katelyn Magnuson: 00:39:55

Absolutely mitigates the risk to the household as a whole.

Katelyn Magnuson: 00:39:58

And I don't know if you wanna chat about this at all, but I know that I

Katelyn Magnuson: 00:40:01

had, um, Kinda become aware that if one of us, if you know, I was going

Katelyn Magnuson: 00:40:05

to be the primary person purchasing our homes, going forward, there might

Katelyn Magnuson: 00:40:09

be a strategy to putting, let's say our auto loans under my spouse's name.

Katelyn Magnuson: 00:40:14

And, you know, having that so that the debt is showing up on his and not

Katelyn Magnuson: 00:40:17

showing up on mine rather than if, you know, we're both on the auto loan

Katelyn Magnuson: 00:40:21

shocker, because this is before I knew.

Katelyn Magnuson: 00:40:23

And so even if I was qualifying for the house on my own, that auto loan

Katelyn Magnuson: 00:40:27

in both of our names would show.

Katelyn Magnuson: 00:40:30

under my debt to income.

Katelyn Magnuson: 00:40:31

Whereas if it was on his, it wouldn't have shown up.

Kyle Seagraves: 00:40:34

Yeah.

Kyle Seagraves: 00:40:34

The amount of times I've had clients refinance an auto loan into somebody

Kyle Seagraves: 00:40:37

else's name is like too many to count, uh, cuz it is very common, uh, especially

Kyle Seagraves: 00:40:43

when it's a joint account and it's like, oh we just five years ago we needed that.

Kyle Seagraves: 00:40:47

Or, you know, three years ago, they needed to do that, but their credit's

Kyle Seagraves: 00:40:50

not the point where they need to do that anymore and refinancing it off

Kyle Seagraves: 00:40:54

of their credit report immediately removes it from a debt on the mortgage,

Kyle Seagraves: 00:40:58

uh, to then be able to qualify.

Kyle Seagraves: 00:41:00

Um, because we're all we're looking at here.

Kyle Seagraves: 00:41:02

What's called the debt income ratio and it is your, uh, monthly debts.

Kyle Seagraves: 00:41:07

Plus your future mortgage payment divided by your gross monthly income.

Kyle Seagraves: 00:41:13

Um, and so.

Kyle Seagraves: 00:41:15

This waivers, depending on the loan type, but usually around 45% is gonna be a

Kyle Seagraves: 00:41:19

maximum that you're gonna be looking at.

Kyle Seagraves: 00:41:21

So you can take your, your gross monthly income and multiply at

Kyle Seagraves: 00:41:24

times 0.45 and find the maximum amount of debt that you can have.

Kyle Seagraves: 00:41:28

And so if you're over that limit, that's when you wanna start looking

Kyle Seagraves: 00:41:31

at, okay, could we take a cart out of my name and put it into my spouses?

Kyle Seagraves: 00:41:36

If I'm just on the loan to remove that debt from.

Katelyn Magnuson: 00:41:39

Or is there a student loan payment or loan that's almost,

Katelyn Magnuson: 00:41:42

you know, so close to being paid off.

Katelyn Magnuson: 00:41:44

Could we have that?

Katelyn Magnuson: 00:41:44

Is there like, what is the lowest barrier here to, especially when you're

Katelyn Magnuson: 00:41:48

on the cusp to get that out of your, you know, debt to income calculations.

Katelyn Magnuson: 00:41:54

And I think that people don't, I think people just look at paying debt off

Katelyn Magnuson: 00:41:57

as like a blanket thing when you don't have to pay that off and you like,

Kyle Seagraves: 00:42:01

mm-hmm

Katelyn Magnuson: 00:42:02

why do it right now?

Katelyn Magnuson: 00:42:03

But there's a

Kyle Seagraves: 00:42:03

And don't don't do any of this without talking to a

Kyle Seagraves: 00:42:06

loan officer first, because a lot of people, I think they, they don't

Kyle Seagraves: 00:42:10

realize, qualifying for a loan.

Kyle Seagraves: 00:42:12

Actually, isn't a problem for them in their mind.

Kyle Seagraves: 00:42:14

They're like, there's no way I'll be able to qualify a lot

Kyle Seagraves: 00:42:16

of self-employed people do this.

Kyle Seagraves: 00:42:17

No way.

Kyle Seagraves: 00:42:17

I'll be able to qualify after go to the bank statement loan.

Kyle Seagraves: 00:42:19

Did you even try getting approval with a conventional, because I've worked with a

Kyle Seagraves: 00:42:23

lot of self-employed people who they can qualify for conventional all day long.

Kyle Seagraves: 00:42:28

It's only after you talk with a loan officer and things.

Kyle Seagraves: 00:42:31

uh, maybe there's some work that needs to be done or a different

Kyle Seagraves: 00:42:34

strategy that needs to happen that then we wanna consider don't do all

Kyle Seagraves: 00:42:37

this work before you even got a no to

Kyle Seagraves: 00:42:40

begin with.

Katelyn Magnuson: 00:42:42

Yeah, no, I couldn't agree more.

Katelyn Magnuson: 00:42:43

I think again, seeking that.

Katelyn Magnuson: 00:42:47

Educated information and the empowered information lets you then make

Katelyn Magnuson: 00:42:51

decisions without just spinning out.

Katelyn Magnuson: 00:42:52

Because I think a lot of people have a tendency when it comes to money,

Katelyn Magnuson: 00:42:55

debt, loans, any of this to just kind.

Katelyn Magnuson: 00:43:00

Spin outta control a little bit.

Katelyn Magnuson: 00:43:01

Oh, I'm gonna, you know, try and do all of these things.

Katelyn Magnuson: 00:43:03

Or they've taken all this outside information in that may not apply

Katelyn Magnuson: 00:43:06

at all in their situation where you could sit down and have, you

Katelyn Magnuson: 00:43:09

know, a 15, 20 minute conversation have submitted your information

Katelyn Magnuson: 00:43:12

and then have a clear action path.

Katelyn Magnuson: 00:43:13

Maybe you don't have to do anything.

Katelyn Magnuson: 00:43:15

Maybe you're good to go as is.

Katelyn Magnuson: 00:43:16

And you just didn't know.

Kyle Seagraves: 00:43:17

Yeah.

Kyle Seagraves: 00:43:17

Mm-hmm . . Yeah.

Kyle Seagraves: 00:43:19

Yeah.

Kyle Seagraves: 00:43:19

That happens for a lot of people with student loans too, where

Kyle Seagraves: 00:43:21

they're like, there's no way I'll be able to qualify with this.

Kyle Seagraves: 00:43:24

And they're like, and they're like, oh, did you see my student loans?

Kyle Seagraves: 00:43:27

Yeah, they're fine.

Kyle Seagraves: 00:43:28

Not a problem at all.

Kyle Seagraves: 00:43:29

You're good.

Kyle Seagraves: 00:43:29

like,

Katelyn Magnuson: 00:43:31

like, oh, okay.

Katelyn Magnuson: 00:43:33

I've just been making all these stories in my head.

Katelyn Magnuson: 00:43:34

Cool.

Katelyn Magnuson: 00:43:35

Cool.

Kyle Seagraves: 00:43:36

Yeah.

Kyle Seagraves: 00:43:36

Yeah.

Kyle Seagraves: 00:43:36

For most

Katelyn Magnuson: 00:43:37

Love this.

Katelyn Magnuson: 00:43:38

Okay.

Kyle Seagraves: 00:43:38

thing I'll say about loan shopping is.

Kyle Seagraves: 00:43:40

Please shop for your loan.

Kyle Seagraves: 00:43:41

Like, going back to our, our first episode on credit, um, a lot of people

Kyle Seagraves: 00:43:45

get really scared about inquiries.

Kyle Seagraves: 00:43:47

You're one inquiry only if fixture score is zero to five points and you

Kyle Seagraves: 00:43:51

are legally allowed to shop for 45 days, multiple mortgage inquiries.

Kyle Seagraves: 00:43:56

It will only count as one.

Kyle Seagraves: 00:43:59

So let's say I get one inquiry.

Kyle Seagraves: 00:44:01

I have 45 days to shop.

Kyle Seagraves: 00:44:03

10 15, 20, 30 lenders.

Kyle Seagraves: 00:44:05

That would be a lot of work, but you can shop with as many lenders

Kyle Seagraves: 00:44:08

as you want within 45 days.

Kyle Seagraves: 00:44:09

And it will only count as one inquiry.

Kyle Seagraves: 00:44:12

The inquiries will still show up under credit report, but it will only impact

Kyle Seagraves: 00:44:16

you as if it was just one inquiry.

Kyle Seagraves: 00:44:19

So the system works in your favor to shop around for the best terms.

Kyle Seagraves: 00:44:24

Uh, after 2008, that was became, one of the requirements is making

Kyle Seagraves: 00:44:27

sure that people are able to.

Kyle Seagraves: 00:44:30

Have the opportunity to shop for a mortgage that works for them and not

Kyle Seagraves: 00:44:33

just get trapped into one lender because they're afraid of another inquiry.

Katelyn Magnuson: 00:44:37

Right.

Katelyn Magnuson: 00:44:38

No, I think that's really important because, and I think a lot of people

Katelyn Magnuson: 00:44:42

still think that those inquiries are.

Katelyn Magnuson: 00:44:44

Credit impacting when having them count as one is just really, I'm gonna say a

Katelyn Magnuson: 00:44:48

breath of fresh air, which is, hilarious to think about when you're thinking of

Katelyn Magnuson: 00:44:52

credit, but still, and with that being said, let's say that maybe you go shop

Katelyn Magnuson: 00:44:56

for a mortgage now and you don't end up actually moving forward with it.

Katelyn Magnuson: 00:45:01

How long does that take for those inquiries to roll off or for the,

Katelyn Magnuson: 00:45:04

you know, one inquiry to roll?

Kyle Seagraves: 00:45:06

Yeah, uh, they're gonna stay on.

Kyle Seagraves: 00:45:08

Usually they're gonna have like an impact for around 180 ish days.

Kyle Seagraves: 00:45:12

Uh, and they're gonna fall off over time and usually stay

Kyle Seagraves: 00:45:15

on your report for a year.

Kyle Seagraves: 00:45:17

Um, so.

Kyle Seagraves: 00:45:18

But again, the impact initially is so minimal that it doesn't really matter.

Kyle Seagraves: 00:45:23

I will say what, what happens for a lot of people is they get an inquiry.

Kyle Seagraves: 00:45:25

And since they're there may, they might be subscribed to several

Kyle Seagraves: 00:45:28

different credit reporting sites.

Kyle Seagraves: 00:45:31

And all of a sudden they get this barrage of emails.

Kyle Seagraves: 00:45:32

Like, did you, did you know someone checked your credit?

Kyle Seagraves: 00:45:36

Did you know that, uh, and they act like the sky is falling and

Kyle Seagraves: 00:45:40

then they log into this account.

Kyle Seagraves: 00:45:42

And remember that was a soft score model that they're using.

Kyle Seagraves: 00:45:44

That's different than the actual mortgage FICO credit score.

Kyle Seagraves: 00:45:47

And so their vantage score might fall more than the zero to five points.

Kyle Seagraves: 00:45:52

And what ends up happening?

Kyle Seagraves: 00:45:54

This is me with my somewhat dark theory.

Kyle Seagraves: 00:45:57

What it seems like happens is they're like, Hey, the world's falling

Kyle Seagraves: 00:46:00

apart because you got this inquiry.

Kyle Seagraves: 00:46:01

That's so awful.

Kyle Seagraves: 00:46:03

Hey, by the way, You should work with one of our lenders.

Katelyn Magnuson: 00:46:06

Mm,

Kyle Seagraves: 00:46:07

It's this big like fear, Hey, fear,

Katelyn Magnuson: 00:46:09

fear mongering.

Katelyn Magnuson: 00:46:10

Yeah.

Katelyn Magnuson: 00:46:10

Right.

Kyle Seagraves: 00:46:11

but direct your attention to one, like one of our lenders who is

Kyle Seagraves: 00:46:15

also gonna need to get an inquiry but there, it really is like, They're always

Kyle Seagraves: 00:46:21

like, Hey, this wasn't it so bad that you got an inquiry, um, by the way, here's

Kyle Seagraves: 00:46:25

one of the lenders that you should work with that pays us to recommend them.

Kyle Seagraves: 00:46:30

like, well, was this whole thing, just an advertising pitch to

Kyle Seagraves: 00:46:33

get me to work with your lender

Katelyn Magnuson: 00:46:35

I mean, I, I wouldn't say that's dark so

Katelyn Magnuson: 00:46:37

much is probably realistic.

Kyle Seagraves: 00:46:39

Yeah.

Katelyn Magnuson: 00:46:41

no, I think that's great.

Katelyn Magnuson: 00:46:42

So four main types of loans, conventional FHA, VA, and U S D a.

Katelyn Magnuson: 00:46:47

And then you also covered bank statement and jumbo and down payment assistance.

Kyle Seagraves: 00:46:53

assistance.

Katelyn Magnuson: 00:46:54

So, and the calculator that you mentioned, check the notes.

Katelyn Magnuson: 00:46:57

If you're listening and you wanna go give it a try.

Katelyn Magnuson: 00:47:00

Um, that will be linked in here along with the show notes.

Katelyn Magnuson: 00:47:03

And in our next episode, we're gonna talk all about timing and how the

Katelyn Magnuson: 00:47:08

actual process works, the approval process, you know, how to get started.

Katelyn Magnuson: 00:47:11

How do you get preapproved?

Katelyn Magnuson: 00:47:12

What do you need to be doing next?