Home Buying Part 3: Timing It Right with Kyle Seagraves

Katelyn Magnuson: 00:00:15

Welcome back to our mini season, talking all

Katelyn Magnuson: 00:00:18

things, mortgages and home buying.

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We have Kyle Seagraves here, who is a certified mortgage advisor,

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licensed loan originator, and the owner of win the house.

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

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Kyle, again, welcome back.

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I feel like this is just gonna be old hat at some point.

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And today we're gonna talk about all things, timing with the home loan process.

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So, you know, pre-approval how the approval process works.

Katelyn Magnuson: 00:00:45

You know, how to really just schedule and plan for what this can look like.

Kyle Seagraves: 00:00:50

Yeah.

Kyle Seagraves: 00:00:50

This trips up people a lot, because I think.

Kyle Seagraves: 00:00:54

Especially for those people who are like me, who everything has to be an

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calendar and be organized and have to prepare for every single step in my life.

Kyle Seagraves: 00:01:02

Uh, it can be a little frustrating because you don't have as much control over it.

Kyle Seagraves: 00:01:06

Um, and ultimately there is this fear of.

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Rejection that I think prevents us from actually taking the first step.

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Because we have, we're listening to so much information.

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We're like, oh, am I ready to buy now?

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Or do I have enough savings or is this the right move?

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I am hearing stuff about the market.

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When in reality, there is zero risk.

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And applying for a mortgage and starting the conversation.

Kyle Seagraves: 00:01:29

Um, it's kind of in a similar way.

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Like, I, I have a friend of mine who, uh, he just got of a relationship and

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he was like, oh, I I'm ready to start getting back into something a little

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bit, but I'm afraid of, you know, I'm not, I don't know if I'm ready.

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I was like, Hey, there's zero risk.

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It's just a date.

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You're not, you're not getting married.

Kyle Seagraves: 00:01:45

I pro like, please don't get married.

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The first person.

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Get married off the first day.

Kyle Seagraves: 00:01:49

Like just dip your toe in the water.

Kyle Seagraves: 00:01:51

It's fine.

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It's just a date.

Kyle Seagraves: 00:01:52

Same thing with applying for a mortgage.

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Like you can begin talking with a loan officer and it just be that,

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Hey, I just wanna see where I'm at.

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Could you, could you let me know where my credit's at, where my budget is?

Kyle Seagraves: 00:02:05

Uh, show me some numbers so I can get familiar with this.

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I'm not sure if I'm ready to move forward, but I'd like to

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take a, a first look at this.

Katelyn Magnuson: 00:02:13

I think people can really be embarrassed sometimes too.

Kyle Seagraves: 00:02:16

mm-hmm.

Katelyn Magnuson: 00:02:16

where they think they are financially and what

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they think that means or the story they think it tells about them.

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And I think that wherever you are is where you are, but knowing where you

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are and like what you can afford, or if you need to make changes, or if you

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need to do some work, I think can be incredibly empowering, but you don't

Katelyn Magnuson: 00:02:33

know unless you've talked to someone and, and started or dipped your toe.

Kyle Seagraves: 00:02:37

Yeah, this is why I think it's helpful to have that.

Kyle Seagraves: 00:02:39

I think we talked about this in the first episode, like, Hey, don't

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talk about your numbers with people.

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because like, let's only talk about numbers with people who can help

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us make decisions about numbers.

Kyle Seagraves: 00:02:50

Um, because if I'm telling all my numbers to all my friends and family,

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and then I go and talk to a loan officer, I'm gonna have that fear of

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like, well, what if, what if I have to come back with different news?

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And they think about my situation differently or, or whatever,

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whatever that narrative is.

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When, if we're just talking with the, the people who can actually help

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us give us information about these numbers, uh, it takes off some of

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that pressure of like, Hey, the loan, officer's really there to just help you.

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See if you can qualify for a loan or not.

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I promise you, they want to help you qualify for a loan cuz

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they, they get paid that way.

Katelyn Magnuson: 00:03:18

Right.

Kyle Seagraves: 00:03:19

right.

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No loan officer gets paid by turning you down for a mortgage.

Kyle Seagraves: 00:03:22

So if they can make it work, they're going to absolutely try to do that.

Kyle Seagraves: 00:03:25

Um, not to say they're gonna, like all people are gonna just push you into

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something that you're not comfortable.

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but like they're incentivized to help you get a mortgage.

Kyle Seagraves: 00:03:33

So they're not really there to sit and be like, haha, this

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about your financial situation.

Katelyn Magnuson: 00:03:37

Right.

Kyle Seagraves: 00:03:38

Uh, they're interested in say like, how can we help you

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qualify for a loan and most loan officers that I I've talked to?

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It's usually not just like a hard, no, it's usually like, Hey, here's the things

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we need to work on to begin the process.

Kyle Seagraves: 00:03:51

And really there is.

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We can do all types of exercises and planning and scenarios

Kyle Seagraves: 00:03:57

before we start that process.

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But you will learn so much about your financial situation and about

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the future of buying a house by just having that conversation.

Kyle Seagraves: 00:04:05

Because when we talk with a loan officer, not only can we see,

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can we get approved for a loan, but once we can, we figure out what

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our monthly payment's gonna look like, how much house we can afford.

Kyle Seagraves: 00:04:17

And then also what the upfront costs are going to.

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Which just accelerates your planning so much further than if

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you're just spending a ton of time, not actually taking that step.

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And we're just theoretically looking at, well, the down

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payment could be this month.

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The payment could be that all to find out.

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Then we get a, we apply and find out we're doing the math wrong.

Katelyn Magnuson: 00:04:36

Right.

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I think we can all be guilty of Zillow shopping, but not actually, you know,

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understanding what we have or what we can be working with versus, oh,

Katelyn Magnuson: 00:04:44

Hey, it looks like that, you know, $400,000 house that you kind of had

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an eye on, or that range you were looking at, that's totally realistic.

Katelyn Magnuson: 00:04:50

That's totally doable.

Katelyn Magnuson: 00:04:52

Go for it.

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And I think it can be a really freeing feeling to be like, I can do that or I

Katelyn Magnuson: 00:04:56

can do that once I've done X, Y, and Z, like it gives you such a clear action.

Kyle Seagraves: 00:05:02

Yes, absolutely.

Kyle Seagraves: 00:05:03

Yeah.

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Rather than, yeah.

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And rather than looking at like the $600,000 house and then getting

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approved and being like, okay, actually can't do that right now, but it's

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something we can do in the future.

Kyle Seagraves: 00:05:11

It, just, to me, I, I tell people, I use the phrase like emotional failure, like,

Kyle Seagraves: 00:05:16

are we setting ourselves up for emotional

Katelyn Magnuson: 00:05:17

mm-hmm

Kyle Seagraves: 00:05:18

a lot of times we are, yeah.

Kyle Seagraves: 00:05:20

We're kind of doing a little bit of sabotaging, um, because we

Kyle Seagraves: 00:05:22

were afraid to take the next.

Katelyn Magnuson: 00:05:26

Yes.

Katelyn Magnuson: 00:05:26

So with the process and getting, you know, getting started and having that

Katelyn Magnuson: 00:05:29

conversation, let's say that maybe they're in a spot to start moving forward, right.

Katelyn Magnuson: 00:05:34

Maybe what they're looking at and what it sounds like, and their

Katelyn Magnuson: 00:05:37

finances and their debt and their credit scores and everything comes

Katelyn Magnuson: 00:05:40

together and they wanna move forward.

Katelyn Magnuson: 00:05:43

What does that next step normally look like for.

Kyle Seagraves: 00:05:47

Um, so I think the first thing to do is begin talking

Kyle Seagraves: 00:05:50

with three different lenders.

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I'm gonna talk with.

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I usually like to, uh, have people look at three different types of lenders.

Kyle Seagraves: 00:05:57

So one being, uh, a big bank, um, or a big direct lender.

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So this would be, uh, someone like, and I'm not vouching

Kyle Seagraves: 00:06:05

for any of these companies.

Kyle Seagraves: 00:06:05

Just throwing out examples.

Kyle Seagraves: 00:06:07

Um, bank of America, Quicken loans those would be good examples of the,

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kind of the big companies you see have commercials about mortgages.

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Um, the next would be a local credit union.

Kyle Seagraves: 00:06:17

It's gonna be local to either your city or county, your state, um,

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some lender that just works with a small local group of people.

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Uh, they might have some different options than a bigger national brand.

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And then also looking at a.

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Brokerage, um, brokers don't charge any extra.

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They don't charge anything different than with a bank or a credit union.

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Um, you actually might find some savings with a broker or more

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creative options with a broker.

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So shopping with these three different types of lenders will allow to have

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a really good range of conversations and numbers to begin looking at.

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And it's really as simple as I can.

Kyle Seagraves: 00:06:53

Google mortgage broker near.

Kyle Seagraves: 00:06:55

Find maybe some people with good reviews, give 'em a call.

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Say, Hey, I'm looking to begin the process.

Kyle Seagraves: 00:07:00

I'm not really sure where my credit's at.

Kyle Seagraves: 00:07:02

Here's kind of, I'm thinking of buying a house that maybe is like this.

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What would be the next.

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They're usually gonna send you to, uh, most of the time, an online

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application, or they might take it over the phone and all you're doing here

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is you're just sharing, um, probably more financial information that you've

Kyle Seagraves: 00:07:16

ever shared with anybody in your life.

Kyle Seagraves: 00:07:19

Um, it's a lot of stuff.

Kyle Seagraves: 00:07:20

Where do you love?

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Where do you work?

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How much do you make?

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How much is in your bank account, all these different things.

Kyle Seagraves: 00:07:26

Um, and usually they're gonna ask you for documents to support

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what you put on your application.

Kyle Seagraves: 00:07:31

So if you say I make $7,000 per month, they usually wanna see

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the pace stub that supports.

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That if you say I have $40,000 in my bank account, okay.

Kyle Seagraves: 00:07:40

We need to say the bank support bank statement that supports that as well.

Kyle Seagraves: 00:07:43

I just make sure that they're giving you something that's accurate, but as we

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have these conversations with these three different types of lenders, it's gonna

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start to draw some really good questions that we might have about the process

Kyle Seagraves: 00:07:54

that we can ask those loan officers.

Kyle Seagraves: 00:07:56

And that is going to really kickstart the process after you're done with that.

Kyle Seagraves: 00:08:01

At this point, you should have three preapproval.

Kyle Seagraves: 00:08:04

Meaning you're approved for a loan and three different loan quotes.

Kyle Seagraves: 00:08:08

So we can see what the monthly payment's gonna look like, what the

Kyle Seagraves: 00:08:10

upfront cost will look like as well.

Kyle Seagraves: 00:08:13

Then at that point, you should be very confident about like, Hey, our

Kyle Seagraves: 00:08:16

financing is kind of taken care of.

Kyle Seagraves: 00:08:19

We did the steps, we got three yeses and we're ready to move forward

Kyle Seagraves: 00:08:23

with the home shopping portion.

Katelyn Magnuson: 00:08:27

So once that happens, and I think that we'd encountered this

Katelyn Magnuson: 00:08:30

potentially once, but let's say you get preapproved faster than you were

Katelyn Magnuson: 00:08:35

anticipating, or let's say that in the market that we have today, you then go

Katelyn Magnuson: 00:08:40

out and you start health shopping, which.

Katelyn Magnuson: 00:08:42

I think can be both the fun and the horrid part of home buying depending

Katelyn Magnuson: 00:08:47

on who you are and what you like to do.

Katelyn Magnuson: 00:08:48

But let's say you get out there and you're doing it and you are getting, you know,

Katelyn Magnuson: 00:08:53

past cause normally these preapprovals.

Katelyn Magnuson: 00:08:54

If I remember correctly, have a, a time limit on them, if I'm remembering

Katelyn Magnuson: 00:09:00

correctly, what happens if it's like been six months and you're still

Katelyn Magnuson: 00:09:02

shopping and haven't found your house.

Kyle Seagraves: 00:09:04

yes, if that happens, it's perfectly okay.

Kyle Seagraves: 00:09:06

You're gonna survive.

Kyle Seagraves: 00:09:07

nothing's gonna break apart.

Kyle Seagraves: 00:09:09

Um, so use your credit report is gonna last four months.

Kyle Seagraves: 00:09:13

So, what this usually means is you're gonna expect to be under

Kyle Seagraves: 00:09:16

contract for home around 30 days.

Kyle Seagraves: 00:09:18

From the time you put an offer and it's accepted to closing.

Kyle Seagraves: 00:09:22

So that leaves you about three months to shop.

Kyle Seagraves: 00:09:25

If it takes longer, it's perfectly okay.

Kyle Seagraves: 00:09:27

Like there, there is no, there's no payment that's

Kyle Seagraves: 00:09:29

required up front to get it.

Kyle Seagraves: 00:09:30

Pre-approved if you, if a lender charges you, something like don't

Kyle Seagraves: 00:09:33

work with, 'em no reputable, lender's gonna charge something.

Kyle Seagraves: 00:09:36

And if you like, like, Hey, this is actually too much for us right now.

Kyle Seagraves: 00:09:38

That's.

Kyle Seagraves: 00:09:41

You can say that and back out there's no risk.

Kyle Seagraves: 00:09:44

And so if that happens where you've been shopping and for a lot of people

Kyle Seagraves: 00:09:47

in this market, this has been happening.

Kyle Seagraves: 00:09:48

They're looking at homes for a few months and they can't find something that's okay.

Kyle Seagraves: 00:09:53

Um, what you can do is talk with your loan officer and say like,

Kyle Seagraves: 00:09:55

Hey, we haven't found anything yet.

Kyle Seagraves: 00:09:57

And your loan officer might wanna handle it a couple different ways.

Kyle Seagraves: 00:10:00

They might ask for an updated credit report where they might put

Kyle Seagraves: 00:10:03

another inquiry on, if that's the case still, isn't gonna be a huge

Kyle Seagraves: 00:10:06

impact to your credit score at all.

Kyle Seagraves: 00:10:08

Maybe a couple points, that's it?

Kyle Seagraves: 00:10:10

Um, if that's the case, it's okay.

Kyle Seagraves: 00:10:12

For a lot of lenders, they'll be like, great.

Kyle Seagraves: 00:10:14

Just let us know if anything big changes, anything big with your credit.

Kyle Seagraves: 00:10:17

Big with your income.

Kyle Seagraves: 00:10:19

They usually won't have to do anything updated until you're

Kyle Seagraves: 00:10:21

ready to look at something.

Kyle Seagraves: 00:10:23

Um, so if you're that adamant in the search process, I don't, I

Kyle Seagraves: 00:10:26

personally don't think you need to keep getting updated credit

Kyle Seagraves: 00:10:28

reports through the whole thing.

Kyle Seagraves: 00:10:30

It's just, if there's any big change, Hey, you know, it's been six months

Kyle Seagraves: 00:10:34

and then we apply it for our car.

Kyle Seagraves: 00:10:36

You know, we got a new car and a new credit card, then maybe we

Kyle Seagraves: 00:10:38

want to update the credit report to make sure it's still accurate.

Kyle Seagraves: 00:10:41

But for most people, it's not something they have to worry about.

Kyle Seagraves: 00:10:44

Just communicate with your loan officer and they'll help guide you through it.

Kyle Seagraves: 00:10:47

Um, if you haven't found a home, like it's not like you have to go through the

Kyle Seagraves: 00:10:49

whole process over again, they're just gonna be updating your loan application.

Katelyn Magnuson: 00:10:55

That makes total sense.

Katelyn Magnuson: 00:10:55

And that was actually going to be a question that I asked is I think

Katelyn Magnuson: 00:10:58

that a lot of advice that's given out is, you know, don't open any new

Katelyn Magnuson: 00:11:01

lines of credit when you're in the process of buying a house, right?

Katelyn Magnuson: 00:11:04

No auto loans, no big furniture purchases.

Katelyn Magnuson: 00:11:07

So I think that, that, and you can let me know if you disagree.

Katelyn Magnuson: 00:11:10

I think that sound advice if you're in the, if you've put an

Katelyn Magnuson: 00:11:14

offer and that's been accepted you're in that, that process.

Katelyn Magnuson: 00:11:16

But I think if we're talking about people that are looking maybe for an

Katelyn Magnuson: 00:11:18

extended period of time, I would say, maybe just chat with your loan officer

Katelyn Magnuson: 00:11:23

before you're making any big changes that could impact what you're able

Katelyn Magnuson: 00:11:27

to qualify for, rather than putting everything on hold for six to 12.

Kyle Seagraves: 00:11:31

Absolutely.

Kyle Seagraves: 00:11:32

Yeah, you absolutely can still make changes.

Kyle Seagraves: 00:11:34

Just make sure that you do communicate those because they might change things.

Kyle Seagraves: 00:11:37

You know, if you get a new car, like that's going to give you an inquiry,

Kyle Seagraves: 00:11:41

lower, your average, your accounts increase your credit utilization,

Kyle Seagraves: 00:11:44

uh, and change your credit mix.

Kyle Seagraves: 00:11:45

So that could have a significant change on your credit report.

Kyle Seagraves: 00:11:48

And so that's something you can do.

Kyle Seagraves: 00:11:51

Uh, but if you're like actually under contract for a home,

Kyle Seagraves: 00:11:54

we don't want to change.

Kyle Seagraves: 00:11:56

Anything, when you're buying a house, it, introduces a lot of life change.

Kyle Seagraves: 00:12:00

Uh, we wanna buy a new house, but then you a new car to just for the commute.

Kyle Seagraves: 00:12:03

And then I want all this furniture and it's all this stuff.

Kyle Seagraves: 00:12:06

Just do it after you absolutely can wait till after you buy a home, maybe you

Kyle Seagraves: 00:12:10

don't have all the furniture in it's.

Kyle Seagraves: 00:12:12

Okay.

Kyle Seagraves: 00:12:12

You'll be alright.

Kyle Seagraves: 00:12:13

You'll survive.

Kyle Seagraves: 00:12:14

But you do not wanna derail your home purchase because you change

Kyle Seagraves: 00:12:17

something with your credit.

Kyle Seagraves: 00:12:18

So ultimately after you get a preapproval, In between that and closing on your

Kyle Seagraves: 00:12:22

home, you just wanna make sure that any change that you're gonna make to

Kyle Seagraves: 00:12:25

your credit or any big changes, like changing jobs or something like that.

Kyle Seagraves: 00:12:31

Talk to your loan officer before you do that.

Kyle Seagraves: 00:12:33

I was talking with a friend of mine who just bought a house recently and, um,

Kyle Seagraves: 00:12:38

he just wrote an offer to buy a house.

Kyle Seagraves: 00:12:40

So seller accepted it he's been under contract for maybe a week.

Kyle Seagraves: 00:12:44

And then he was like, oh man, I forgot to tell you.

Kyle Seagraves: 00:12:46

I'm about to take a, a job with another.

Kyle Seagraves: 00:12:50

I was like, wait, no, you're not, no, don't stop.

Kyle Seagraves: 00:12:54

Don't do it.

Kyle Seagraves: 00:12:56

Do it after just wait.

Kyle Seagraves: 00:12:58

Like, and so I was like, I wouldn't, you need to call your

Kyle Seagraves: 00:13:01

company that you're gonna work for.

Kyle Seagraves: 00:13:03

I was like, did you tell your company yet your company you work for now?

Kyle Seagraves: 00:13:06

I was like, no.

Kyle Seagraves: 00:13:06

Okay.

Kyle Seagraves: 00:13:07

Tell them, Hey, we need to change my start date to after the closing.

Kyle Seagraves: 00:13:12

And they accommodated it and it was fine, but otherwise, what would

Kyle Seagraves: 00:13:15

happen is it completely changes his.

Kyle Seagraves: 00:13:19

Even if he, even though he was making more money, it completely readjusts

Kyle Seagraves: 00:13:23

everything and likely he would've had to been at the new job for a minimum of two

Kyle Seagraves: 00:13:27

weeks, possibly a month to then close.

Kyle Seagraves: 00:13:30

Would the seller ex extend the period for that long another month?

Kyle Seagraves: 00:13:35

Probably not.

Kyle Seagraves: 00:13:35

They might go with another offer.

Kyle Seagraves: 00:13:36

Don't make any big changes to your income, to your credit or to the

Kyle Seagraves: 00:13:40

money you have in your bank accounts.

Kyle Seagraves: 00:13:42

Uh, until you talk with your loan.

Katelyn Magnuson: 00:13:44

That actually brings up a, a question B a funny story.

Katelyn Magnuson: 00:13:48

So I think that a lot of times with that, with the bank account, you

Katelyn Magnuson: 00:13:52

know, making any large changes, cash deposits, cash withdrawals.

Katelyn Magnuson: 00:13:57

during that timeframe and I, I will share mine.

Katelyn Magnuson: 00:13:59

And then I would love kind of your thoughts or guidance on that.

Katelyn Magnuson: 00:14:02

We, we sold our, my first house in September of 2019, did not plan to buy for

Katelyn Magnuson: 00:14:09

six months until the spring of 2020 went to go casually, look at houses in Idaho

Katelyn Magnuson: 00:14:14

in the first week of October in between the first week of September and the first

Katelyn Magnuson: 00:14:19

week of October, I had a large photo.

Katelyn Magnuson: 00:14:22

That large photo shoot included a lot of cash for images and, you know,

Katelyn Magnuson: 00:14:28

having some fun and doing all of that.

Katelyn Magnuson: 00:14:29

And I, and my infinite wisdom was like, this is fine because we're not looking

Katelyn Magnuson: 00:14:32

to qualify for a home until the spring.

Katelyn Magnuson: 00:14:36

Then when we put an offer in the first week of October, uh, I got

Katelyn Magnuson: 00:14:40

to answer some great questions.

Katelyn Magnuson: 00:14:41

This is why I had a very large cash with cash withdrawal and then a

Katelyn Magnuson: 00:14:43

very large cash deposit, the same amount in a 24-hour timeframe.

Katelyn Magnuson: 00:14:47

And I got to provide, it was actually my favorite thing once,

Katelyn Magnuson: 00:14:50

uh, my loan officer laughed her ass off about it when I told her why.

Katelyn Magnuson: 00:14:54

And she was like, yeah, I'm gonna need some pictures to just

Katelyn Magnuson: 00:14:57

kind of corroborate all of that.

Katelyn Magnuson: 00:14:58

And so I sent pictures over from the photo shoot and everything was fine,

Katelyn Magnuson: 00:15:01

but it definitely caused a snag.

Katelyn Magnuson: 00:15:03

in the whole process, but I at least knew that going in.

Katelyn Magnuson: 00:15:06

So what kind of, you know, advice do you have for people when it comes to

Katelyn Magnuson: 00:15:09

large bank deposits or withdrawals?

Kyle Seagraves: 00:15:12

Uh, yeah, the withdraws is not much of a concern.

Kyle Seagraves: 00:15:15

The only thing that the lender is looking at with withdraws is.

Kyle Seagraves: 00:15:19

Are they monthly?

Kyle Seagraves: 00:15:21

Are they things that happen regularly, monthly that would indicate there's a

Kyle Seagraves: 00:15:24

debt not showing on the credit report?

Kyle Seagraves: 00:15:26

That's the only thing they really care about with Charles.

Kyle Seagraves: 00:15:28

Other than that, you know, , I have a funny story too.

Kyle Seagraves: 00:15:31

Um, one of the loan officers here in, in our company was, uh, people don't

Kyle Seagraves: 00:15:36

like sharing their bank statements.

Kyle Seagraves: 00:15:37

Totally get it.

Kyle Seagraves: 00:15:38

Um, we're not really looking at like how much you go to Chipotle.

Kyle Seagraves: 00:15:41

I would be the most embarrassed person in

Katelyn Magnuson: 00:15:43

Right.

Katelyn Magnuson: 00:15:43

No judgment here.

Katelyn Magnuson: 00:15:44

Yeah, kind of

Kyle Seagraves: 00:15:44

I go too many times.

Kyle Seagraves: 00:15:46

Um, but.

Kyle Seagraves: 00:15:48

We asked this lady for her bank statements.

Kyle Seagraves: 00:15:50

And she was like, what do you wanna see?

Kyle Seagraves: 00:15:52

How many, six toys I buy?

Kyle Seagraves: 00:15:53

Like,

Katelyn Magnuson: 00:15:55

now.

Kyle Seagraves: 00:15:56

now that you say it, I really am interested.

Kyle Seagraves: 00:15:59

Uh, I wasn't, before your lender's not looking through like, oh, you

Kyle Seagraves: 00:16:03

went to Speedway and you went here and like, they don't care about that.

Kyle Seagraves: 00:16:06

The withdrawals are only looking to see, oh, is there a debt

Katelyn Magnuson: 00:16:10

Right.

Kyle Seagraves: 00:16:10

up from the deposits?

Kyle Seagraves: 00:16:13

Usually payroll deposits are easy to see.

Kyle Seagraves: 00:16:16

We can see from a certain company, anything that's non-pay is going

Kyle Seagraves: 00:16:20

to have a question added with it.

Kyle Seagraves: 00:16:21

And it's not like this big interrogating.

Kyle Seagraves: 00:16:23

No, one's gonna put a big light up to you and be like,

Kyle Seagraves: 00:16:26

so, uh, what was this deposit?

Kyle Seagraves: 00:16:27

Like?

Kyle Seagraves: 00:16:27

It's not a big thing.

Kyle Seagraves: 00:16:29

They're just gonna be like, Hey, this money came in.

Kyle Seagraves: 00:16:31

Uh, we need to source it somehow.

Kyle Seagraves: 00:16:34

And so there's a lot of places you can get money from that are acceptable.

Kyle Seagraves: 00:16:39

But there are a lot that are unacceptable.

Kyle Seagraves: 00:16:41

Things like loans, like those that need to be added to a credit

Kyle Seagraves: 00:16:44

report, um, like cash advances from a credit card can't be used.

Kyle Seagraves: 00:16:49

Or even, you know, for a lot of people it's like, okay, I sold my truck

Kyle Seagraves: 00:16:52

and here's a $10,000, uh, deposit.

Kyle Seagraves: 00:16:56

Okay.

Kyle Seagraves: 00:16:56

Like I need a receipt to see that you actually sold the truck.

Kyle Seagraves: 00:16:59

And unfortunately, a lot of this has come from a lot of the money laundering

Kyle Seagraves: 00:17:02

rules since the Patriot act where.

Kyle Seagraves: 00:17:05

Banks and lenders have to report all this information of

Kyle Seagraves: 00:17:08

how money got shifted around.

Kyle Seagraves: 00:17:10

It's really annoying, but what I recommend for people, if you're

Kyle Seagraves: 00:17:13

gonna have, uh, deposits first, talk to your loan officer about this.

Kyle Seagraves: 00:17:16

Hey, is, would this deposit be acceptable if it's not acceptable?

Kyle Seagraves: 00:17:20

as long as you're waiting two months.

Kyle Seagraves: 00:17:23

The underwriter, won't see it.

Kyle Seagraves: 00:17:26

Cuz you're only gonna have to submit 60 days, two months worth

Kyle Seagraves: 00:17:29

of bank statements to your lender.

Kyle Seagraves: 00:17:31

So if you have a deposit before that, it's, what's called seasoned that

Kyle Seagraves: 00:17:34

money already sits there and exists.

Kyle Seagraves: 00:17:36

And the lender doesn't have to see before the two month period now, anything they

Kyle Seagraves: 00:17:42

see, they can question and actually subtract it from the money you can use.

Kyle Seagraves: 00:17:45

So for instance, Let's say we have $30,000 in our bank account

Kyle Seagraves: 00:17:50

and you have $10,000 in cash.

Kyle Seagraves: 00:17:51

And you're like, I've just been saving $10,000 in cash, which a lot of people

Kyle Seagraves: 00:17:54

do, uh, for some reason kind of blows my

Katelyn Magnuson: 00:17:57

Yeah.

Katelyn Magnuson: 00:17:57

The mattress money.

Katelyn Magnuson: 00:17:58

Yeah.

Kyle Seagraves: 00:17:58

yeah, I finding a lender that will accept

Kyle Seagraves: 00:18:01

cash is almost impossible.

Kyle Seagraves: 00:18:03

At this point, it can ex it exists in some of the guidelines that say,

Kyle Seagraves: 00:18:06

this is the way it's acceptable.

Kyle Seagraves: 00:18:09

I have yet to find a lender that will allow cash.

Kyle Seagraves: 00:18:12

It's just too risky.

Kyle Seagraves: 00:18:13

Um, because that lender then might have to answer, what was this cash?

Kyle Seagraves: 00:18:16

Did you prove that, how do you know for certain that that's where it came from?

Kyle Seagraves: 00:18:19

And it's so hard to document because it could come from anything.

Kyle Seagraves: 00:18:22

Um, even if we're giving like receipts and it just have very rarely seen cash work.

Kyle Seagraves: 00:18:28

so let's say we have $30,000 on our account and we had

Kyle Seagraves: 00:18:32

a 10,000 R cash deposit.

Kyle Seagraves: 00:18:34

What might end up happening is a lender says we can't use 10,000.

Kyle Seagraves: 00:18:38

We can only use 20.

Kyle Seagraves: 00:18:40

And if your down payment and closing costs are going to cost you 25, we need

Kyle Seagraves: 00:18:45

to find another way to bring in $5,000 or to prove that we have $5,000 that we have

Kyle Seagraves: 00:18:50

access to, which often can cause people to need things like a gift from a family

Kyle Seagraves: 00:18:54

member or different things like that, to

Katelyn Magnuson: 00:18:56

I was gonna ask about gifts from family members.

Katelyn Magnuson: 00:18:58

So let's say, and I, I know I've seen this come up sometimes, but let's say that you

Katelyn Magnuson: 00:19:01

have, you know, generous parents that are in a place to, or family member or friend

Katelyn Magnuson: 00:19:05

or someone that is in a place to gift you, you know, funds towards a down payment.

Katelyn Magnuson: 00:19:09

What would someone need to know about that or about documenting that.

Kyle Seagraves: 00:19:13

Yeah.

Kyle Seagraves: 00:19:14

Gifting is, is really easy.

Kyle Seagraves: 00:19:16

It's just a small bit of paperwork, so, uh, yeah, a family member.

Kyle Seagraves: 00:19:20

It can't be a friend.

Kyle Seagraves: 00:19:21

Can't just be like, Hey, I really like you also, if you have those

Kyle Seagraves: 00:19:23

friends who are giving you money like that, I would love to be connected.

Kyle Seagraves: 00:19:27

I think we it'd be your great friends too.

Kyle Seagraves: 00:19:29

so it's usually has to be a family member and different loans have different

Kyle Seagraves: 00:19:32

guidelines, which you can look up.

Kyle Seagraves: 00:19:33

Sometimes.

Kyle Seagraves: 00:19:34

Sometimes cousins are allowed sometimes they're not sometimes,

Kyle Seagraves: 00:19:36

you know, all those things.

Kyle Seagraves: 00:19:37

so if it's apparent really easy, uh, what I recommend is talking with a

Kyle Seagraves: 00:19:42

loan officer to coordinate this first, what a lot of people do is they move

Kyle Seagraves: 00:19:44

the money around without telling me, and then like, oh my gosh, okay.

Kyle Seagraves: 00:19:48

We have to document it this way then.

Kyle Seagraves: 00:19:50

And the documentation depends on how the money got move.

Kyle Seagraves: 00:19:53

So if the money went from your parents' bank account to yours,

Kyle Seagraves: 00:19:56

let's say they gifted you $10,000.

Kyle Seagraves: 00:19:58

I need to see like updated bank statements.

Kyle Seagraves: 00:20:00

I see to see it proof of the check.

Kyle Seagraves: 00:20:01

It's all like annoying.

Kyle Seagraves: 00:20:03

The easiest thing is talk to your loan officer and what's

Kyle Seagraves: 00:20:05

usually best is the donor gifts.

Kyle Seagraves: 00:20:07

The gives the money to the title company.

Kyle Seagraves: 00:20:11

The title company will provide a receipt that the money's

Kyle Seagraves: 00:20:14

there and that's all that we.

Kyle Seagraves: 00:20:15

there's a gift letter as well.

Kyle Seagraves: 00:20:17

And the gift letter is gonna say, we, the parents give our child $10,000

Kyle Seagraves: 00:20:23

with no expectation of repayment and a couple other details, you know, date,

Kyle Seagraves: 00:20:28

phone, number, all that kind of stuff.

Kyle Seagraves: 00:20:30

And it's really.

Kyle Seagraves: 00:20:31

That basic.

Kyle Seagraves: 00:20:32

And for most loans you can use the gift to cover the down payment and or the closing

Kyle Seagraves: 00:20:37

costs, um, which can be really helpful and gifts are actually extremely common.

Kyle Seagraves: 00:20:41

so gifting is not terrible.

Kyle Seagraves: 00:20:44

It just, sometimes the issues with documentation, with something like

Kyle Seagraves: 00:20:48

an FHA loan, often lenders will want the donors bank statement.

Kyle Seagraves: 00:20:53

They wanna make sure that it didn't come from same thing, those money laundering.

Kyle Seagraves: 00:20:57

Uh, kind of policies.

Kyle Seagraves: 00:20:59

They wanna make sure it didn't come from some random, whatever

Katelyn Magnuson: 00:21:03

Right.

Katelyn Magnuson: 00:21:03

They're just saying that the deposit matches the withdrawal

Katelyn Magnuson: 00:21:05

that came from where you said it came from and kind of closing the

Katelyn Magnuson: 00:21:08

loop on the documentation for that.

Kyle Seagraves: 00:21:10

They need to make sure that you didn't.

Kyle Seagraves: 00:21:11

Yeah.

Kyle Seagraves: 00:21:11

They don't wanna see the donors bank statement.

Kyle Seagraves: 00:21:13

All of a sudden there was our cash deposit for $10,000 and then

Kyle Seagraves: 00:21:16

they immediately gave that to you.

Kyle Seagraves: 00:21:17

Cause that's laundering.

Kyle Seagraves: 00:21:18

We just

Katelyn Magnuson: 00:21:18

right.

Kyle Seagraves: 00:21:19

through a donor.

Katelyn Magnuson: 00:21:20

we just added someone else into the loop.

Kyle Seagraves: 00:21:22

Yeah.

Kyle Seagraves: 00:21:22

They're like you, they don't want you to try to work around the

Kyle Seagraves: 00:21:25

policy by doing something like that.

Kyle Seagraves: 00:21:27

So, sometimes the friction can happen when we ask a donor for bank statements

Kyle Seagraves: 00:21:30

and they throw a fit and they're like, I don't know what to tell you,

Kyle Seagraves: 00:21:33

but this is the only way it works.

Kyle Seagraves: 00:21:34

This is literally the guidelines.

Kyle Seagraves: 00:21:35

I don't make the world.

Katelyn Magnuson: 00:21:37

Right.

Katelyn Magnuson: 00:21:37

I'm not doing this for fun.

Katelyn Magnuson: 00:21:38

Yeah.

Kyle Seagraves: 00:21:38

yeah, after three days of huffing and puffing, we

Kyle Seagraves: 00:21:42

get it through and it works that's one of the only frictions with.

Katelyn Magnuson: 00:21:45

I think again, the really important thing to note

Katelyn Magnuson: 00:21:47

here is if you just pause before taking action and run it by your loan

Katelyn Magnuson: 00:21:54

officer, it can save time headache.

Katelyn Magnuson: 00:21:57

All of that.

Katelyn Magnuson: 00:21:57

And I see that a lot and what we do, it's so much easier.

Katelyn Magnuson: 00:22:00

Not that we want to be here to give you permission to do or not do things, but

Katelyn Magnuson: 00:22:05

because we can help things flow so much more efficiently, that will save you time.

Katelyn Magnuson: 00:22:10

Anyone else that you're working with time and can get you to your end goal?

Katelyn Magnuson: 00:22:13

Cause I think all of our goal is to, you know, Loan officer's goal

Katelyn Magnuson: 00:22:17

is to get you into that house.

Katelyn Magnuson: 00:22:18

Get you funded, make that happen.

Katelyn Magnuson: 00:22:19

You know, our goal is to see you live out your financial dreams.

Katelyn Magnuson: 00:22:22

Like we're not here to do nefarious things.

Katelyn Magnuson: 00:22:24

We wanna see you succeed.

Katelyn Magnuson: 00:22:26

So let us help you succeed.

Kyle Seagraves: 00:22:27

That's the biggest cause of friction.

Kyle Seagraves: 00:22:29

Like it's the easy, the quickest way to hate your loan officer is to do stuff

Kyle Seagraves: 00:22:32

and then tell them after is because they're gonna be like you did what?

Kyle Seagraves: 00:22:36

Okay.

Kyle Seagraves: 00:22:37

Well, now that you did that, like there's only these few options.

Kyle Seagraves: 00:22:40

Whereas if you told me before, we could've, you know, I had a, a client

Kyle Seagraves: 00:22:43

once who, the day before closing, he was like, Hey, guess what?

Kyle Seagraves: 00:22:47

I got a new job.

Kyle Seagraves: 00:22:50

What he was like, yeah.

Kyle Seagraves: 00:22:51

I make more money.

Kyle Seagraves: 00:22:52

It's not a problem.

Kyle Seagraves: 00:22:53

Yeah.

Kyle Seagraves: 00:22:53

It is absolutely a problem.

Kyle Seagraves: 00:22:55

Uh, so we had to wait another month and guess who everyone was mad at me.

Kyle Seagraves: 00:23:00

when, like, we absolutely told him no,

Katelyn Magnuson: 00:23:03

no no big life changes.

Katelyn Magnuson: 00:23:04

Yeah.

Kyle Seagraves: 00:23:05

Uh, but I'm the issue, cuz I couldn't make it work.

Kyle Seagraves: 00:23:08

Like that's not how this works.

Katelyn Magnuson: 00:23:10

Right.

Katelyn Magnuson: 00:23:10

I, I can only do what I can do within the parameters that I can work within.

Katelyn Magnuson: 00:23:14

Oh goodness.

Kyle Seagraves: 00:23:15

Whereas if he asked me, I would've said, Hey, wait a week.

Katelyn Magnuson: 00:23:18

Right.

Katelyn Magnuson: 00:23:18

And this would, this would be a non-issue.

Kyle Seagraves: 00:23:21

All right.

Katelyn Magnuson: 00:23:22

Oh man.

Katelyn Magnuson: 00:23:23

No, I think the timing can be so important.

Katelyn Magnuson: 00:23:25

And I think at the same time that it can be so important.

Katelyn Magnuson: 00:23:28

People also make it out to be more complicated than it has to be.

Kyle Seagraves: 00:23:32

Mm-hmm Yeah.

Katelyn Magnuson: 00:23:34

if someone, cuz we, we walk through what it looks like, right.

Katelyn Magnuson: 00:23:37

If someone gets approved, everything's great.

Katelyn Magnuson: 00:23:38

It lines up with their plans.

Katelyn Magnuson: 00:23:40

They're able to go house shopping.

Katelyn Magnuson: 00:23:42

Let's say someone comes in and you know, they, they chat with three different,

Katelyn Magnuson: 00:23:46

you know, lenders and they look at.

Katelyn Magnuson: 00:23:49

Their finance.

Katelyn Magnuson: 00:23:50

Isn't like, Hey, you know, to do what you want to be doing or to

Katelyn Magnuson: 00:23:52

afford the, the house that you want.

Katelyn Magnuson: 00:23:54

You know, these are some action items that you need.

Katelyn Magnuson: 00:23:58

This is probably a super general question, but for what you see,

Katelyn Magnuson: 00:24:01

what does that normally look like?

Katelyn Magnuson: 00:24:03

Is it normally like, Hey, we need to get your credit score up, you know,

Katelyn Magnuson: 00:24:05

20 to 40 points or, Hey, we need to do some debt payoff or, Hey, we need a

Katelyn Magnuson: 00:24:10

bigger down payment or, you know, kind of a combination of those, depending

Katelyn Magnuson: 00:24:13

on their personal financial situation.

Katelyn Magnuson: 00:24:15

Mm.

Kyle Seagraves: 00:24:15

I think this depends a lot based on the location.

Kyle Seagraves: 00:24:18

Um, for me, you know, I I'm, I'm in Dayton, Ohio, so we're kind of

Kyle Seagraves: 00:24:22

a kind of smaller ish Metro area with a lot of like rural around it.

Kyle Seagraves: 00:24:27

The biggest problem all day long is the amount of cash.

Kyle Seagraves: 00:24:30

People have to be able to buy a house.

Kyle Seagraves: 00:24:32

Um, because buying house costs money up front.

Kyle Seagraves: 00:24:34

There are some creative ways, you know, different loans we can use to do 0% down,

Kyle Seagraves: 00:24:38

but there's still gonna be closing costs.

Kyle Seagraves: 00:24:39

And then things like a seller's market.

Kyle Seagraves: 00:24:41

It's difficult to get the seller to pay, you know, negotiate for

Kyle Seagraves: 00:24:44

them to pay the closing costs.

Kyle Seagraves: 00:24:45

And so that's one of the hardest things is like, everything's great, but it's

Kyle Seagraves: 00:24:50

gonna cost you $10,000 to buy this house with your down payment closing costs.

Kyle Seagraves: 00:24:55

And you sent me a bank statement that has $7 in it.

Kyle Seagraves: 00:25:00

So like, we need to somehow figure out how to make this work.

Kyle Seagraves: 00:25:04

That is the biggest thing that I see is people who don't have

Kyle Seagraves: 00:25:07

the savings for buying a house.

Kyle Seagraves: 00:25:09

Um,

Katelyn Magnuson: 00:25:10

mm-hmm.

Kyle Seagraves: 00:25:11

and I think it's, it's really scary because I see so many

Kyle Seagraves: 00:25:14

people who buy home and it wipes their bank account clean, um, where, like

Kyle Seagraves: 00:25:20

they bought, but they don't have any money left and it's not a really great

Kyle Seagraves: 00:25:25

financial position to be in, I think for a lot of people, um, which is why I, I

Kyle Seagraves: 00:25:29

feel like it is helpful to include an emergency fund in your timing, where.

Kyle Seagraves: 00:25:37

You absolutely can still talk to a loan officer to see those numbers, but you

Kyle Seagraves: 00:25:40

might take a look at it and be like, Hey, this bottom line number is gonna

Kyle Seagraves: 00:25:44

wipe us clean and we don't want that.

Kyle Seagraves: 00:25:47

So maybe we back away from the home buying for a second to save maybe

Kyle Seagraves: 00:25:51

three months worth of expenses.

Kyle Seagraves: 00:25:53

And then we can reenter into the conversation because no

Kyle Seagraves: 00:25:57

amount of potential appreciation in a home is worth us.

Kyle Seagraves: 00:26:02

Not having any money to be able to cover repairs or moving

Kyle Seagraves: 00:26:05

costs or anything like that.

Katelyn Magnuson: 00:26:07

Or health issues that come up or emergencies or a

Katelyn Magnuson: 00:26:11

car breaks down or anything else?

Katelyn Magnuson: 00:26:13

I know when I, I, I was that person with my first house.

Katelyn Magnuson: 00:26:16

I hated living in an apartment and I could just barely make it happen.

Katelyn Magnuson: 00:26:20

And I did it and I had almost a $3,000 repair that had to happen

Katelyn Magnuson: 00:26:23

on the house that we didn't know about six months after I bought.

Katelyn Magnuson: 00:26:26

So it immediately went on, on a credit card and I spent the next

Katelyn Magnuson: 00:26:29

three years dipping into credit card debt and then paying it all off.

Katelyn Magnuson: 00:26:33

And it is what it is.

Katelyn Magnuson: 00:26:34

It allowed me to live where I lived.

Katelyn Magnuson: 00:26:36

I'm grateful to it.

Katelyn Magnuson: 00:26:37

I've thinked it's for, you know, thinked it's for its use, but

Katelyn Magnuson: 00:26:40

it was really, really stressful.

Katelyn Magnuson: 00:26:42

And didn't have to be had I been able to wait a few more months and set a few

Katelyn Magnuson: 00:26:45

thousand dollars aside over that time.

Katelyn Magnuson: 00:26:48

And that was a big factor in this house.

Katelyn Magnuson: 00:26:50

We could've put just barely 20% down, but it would've wiped everything.

Katelyn Magnuson: 00:26:55

So we put 10% down, took the hit on the PMI, which was not that bad to then

Katelyn Magnuson: 00:27:00

have a much more robust emergency fund.

Katelyn Magnuson: 00:27:03

And it is like night and day, the, the, you know, lack of stress that we have,

Katelyn Magnuson: 00:27:07

and we were able to make improvements.

Katelyn Magnuson: 00:27:09

We were able to buy the furniture.

Katelyn Magnuson: 00:27:10

We were able to do the things that we wanted to do because we weren't.

Katelyn Magnuson: 00:27:13

So cash strapped.

Kyle Seagraves: 00:27:14

Yeah, absolutely.

Kyle Seagraves: 00:27:16

Would you like me to run through the, the timing of being under

Kyle Seagraves: 00:27:19

contract too really quickly?

Katelyn Magnuson: 00:27:19

I think that would be really helpful.

Katelyn Magnuson: 00:27:20

Yeah.

Kyle Seagraves: 00:27:21

Cool.

Kyle Seagraves: 00:27:22

Uh, the under contract piece goes pretty quick.

Kyle Seagraves: 00:27:25

Let's say we got approved for mortgage.

Kyle Seagraves: 00:27:27

Then we talked with a real estate agent.

Kyle Seagraves: 00:27:29

Cause that's the next step after that.

Kyle Seagraves: 00:27:30

And uh, we wanted to look for home and we're kind of saying, Hey,

Kyle Seagraves: 00:27:34

we want these things and we, we need three bedrooms, two baths.

Kyle Seagraves: 00:27:38

This much square footage would be nice.

Kyle Seagraves: 00:27:39

This school district be great.

Kyle Seagraves: 00:27:41

And our lender approved us for this and we wanna stay in that price range.

Kyle Seagraves: 00:27:44

Cool.

Kyle Seagraves: 00:27:44

We go and look at some homes, we find a home that we like.

Kyle Seagraves: 00:27:47

A real estate, agent's gonna help us write an offer.

Kyle Seagraves: 00:27:49

And the offer just basically says, Hey, we'll buy this for $400,000.

Kyle Seagraves: 00:27:52

We're gonna close in 30 days.

Kyle Seagraves: 00:27:53

We're gonna use this lender.

Kyle Seagraves: 00:27:54

Uh, we would like you to include the washer and the dryer and the, whatever

Kyle Seagraves: 00:28:01

that in your offer, the seller, then hopefully is gonna accept the offer.

Kyle Seagraves: 00:28:04

After that you have a due diligence period.

Kyle Seagraves: 00:28:08

This is negotiated, but usually about two weeks, uh, where you can.

Kyle Seagraves: 00:28:12

Have an inspection done on the home.

Kyle Seagraves: 00:28:14

This could be a general home inspection, could be something more

Kyle Seagraves: 00:28:16

specific, like a chimney inspection or structural inspection if you need

Kyle Seagraves: 00:28:20

something like that, an older home.

Kyle Seagraves: 00:28:22

Um, so you have this inspection period where you can get an inspector out and

Kyle Seagraves: 00:28:26

then you can potentially request repairs if you need it or back out the contract.

Kyle Seagraves: 00:28:31

Uh, if you're like, Ooh, this is way too much work.

Kyle Seagraves: 00:28:34

We didn't expect all this.

Kyle Seagraves: 00:28:36

Um, after the inspection, you're gonna then gonna have a appraisal.

Kyle Seagraves: 00:28:41

The lender's gonna have an appraiser come out, make sure the home is

Kyle Seagraves: 00:28:44

worth what we wanted a contract for.

Kyle Seagraves: 00:28:47

Um, that's gonna come back.

Kyle Seagraves: 00:28:49

You're also gonna be working with your loan officer again to potentially update

Kyle Seagraves: 00:28:51

things like your bank statements, uh, your pay stubs, maybe a credit report.

Kyle Seagraves: 00:28:56

If it's you've been shopping for a while, they're gonna tie everything together.

Kyle Seagraves: 00:28:59

And, uh, they're gonna give you a document called a loan estimate.

Kyle Seagraves: 00:29:02

This is gonna be three days after you get under contract is when they give you

Kyle Seagraves: 00:29:05

that first document to finalize your.

Kyle Seagraves: 00:29:08

And show you like all the updated terms.

Kyle Seagraves: 00:29:11

And then you'll have your inspection, your appraisal, uh, at some point

Kyle Seagraves: 00:29:14

in the process, your entire loan fin package is gonna be finished.

Kyle Seagraves: 00:29:18

And this is when everything comes back, uh, your appraisal came back,

Kyle Seagraves: 00:29:22

all your documents are submitted.

Kyle Seagraves: 00:29:24

There's gonna be something called a title report that your lender's

Kyle Seagraves: 00:29:26

gonna get on your behalf that most people don't even know happens.

Kyle Seagraves: 00:29:29

Um, when they put all that together in the file, you're gonna get

Kyle Seagraves: 00:29:32

something called, uh, a clear to close where the lender's like.

Kyle Seagraves: 00:29:36

Everything's done.

Kyle Seagraves: 00:29:37

We're never gonna request anything of you again.

Kyle Seagraves: 00:29:39

We're all good to go.

Kyle Seagraves: 00:29:41

They're then going to issue you.

Kyle Seagraves: 00:29:43

What's called a closing disclosure.

Kyle Seagraves: 00:29:45

And this is gonna be like your initial quote, but it's gonna have more updated

Kyle Seagraves: 00:29:48

and finalized fees cuz every, all the third parties submitted their fees.

Kyle Seagraves: 00:29:52

So you'd be able to say, this is our bottom line number.

Kyle Seagraves: 00:29:54

Unfortunately, in the home buying process, it's not like one number and that's it

Kyle Seagraves: 00:29:57

through the whole process, those numbers can change, um, slightly, depending on,

Kyle Seagraves: 00:30:01

you know, different quotes that come in.

Kyle Seagraves: 00:30:03

Then usually what people do is they'll schedule walkthrough of the home

Kyle Seagraves: 00:30:06

about 24 hours before you close, uh, this to make sure like, Hey, there's.

Kyle Seagraves: 00:30:11

Damage to the home before we move in or before we close, uh,

Kyle Seagraves: 00:30:15

then you'll have your closing.

Kyle Seagraves: 00:30:18

Uh, this happens differently in different states here.

Kyle Seagraves: 00:30:20

It's very common for everyone to sit the closing table together.

Kyle Seagraves: 00:30:22

And it's like a big kumbaya moment.

Kyle Seagraves: 00:30:26

yeah, it's, it's a little interesting, like you say, you have the title company

Kyle Seagraves: 00:30:29

there, the buyer, the seller, the agents, everyone signs, exchange a check too.

Kyle Seagraves: 00:30:34

today.

Katelyn Magnuson: 00:30:35

Oh like buyer an that is very different.

Katelyn Magnuson: 00:30:35

Okay.

Kyle Seagraves: 00:30:36

A lot of places that happen separately.

Kyle Seagraves: 00:30:38

so it's kind of strange that that's happens here, but, um, then you

Kyle Seagraves: 00:30:41

close and then your mortgage payment is due, uh, a month minimum later.

Kyle Seagraves: 00:30:48

It's very confusing how this happens.

Kyle Seagraves: 00:30:51

So for instance, we're at June 2nd.

Kyle Seagraves: 00:30:53

So the first payment would not be due July 1st.

Kyle Seagraves: 00:30:58

it would happen, um, like.

Kyle Seagraves: 00:31:00

I'm trying to think of the easiest way to

Katelyn Magnuson: 00:31:02

First of the month, at least 30 days after the close.

Katelyn Magnuson: 00:31:05

So August 1st

Kyle Seagraves: 00:31:07

Yeah.

Katelyn Magnuson: 00:31:07

that might be still kind of convoluted, but yeah.

Kyle Seagraves: 00:31:09

I know it's, it's all those things like

Kyle Seagraves: 00:31:11

how do, how do you make this?

Kyle Seagraves: 00:31:12

How do I like package this in a clear sentence?

Katelyn Magnuson: 00:31:14

but if June, if June had 31 days and it, this

Katelyn Magnuson: 00:31:17

was June 1st, hypothetically, then would that be a July 1st?

Katelyn Magnuson: 00:31:21

Okay.

Kyle Seagraves: 00:31:21

it'd still be August 1st.

Kyle Seagraves: 00:31:23

So we're in June right now.

Kyle Seagraves: 00:31:25

So we have to skip all of June.

Kyle Seagraves: 00:31:27

July gets skipped.

Kyle Seagraves: 00:31:28

The first mortgage payment is August 1st.

Kyle Seagraves: 00:31:31

Um,

Katelyn Magnuson: 00:31:32

But if you bought June 28th, it would still be August.

Katelyn Magnuson: 00:31:35

I

Kyle Seagraves: 00:31:35

correct?

Kyle Seagraves: 00:31:37

Yeah.

Kyle Seagraves: 00:31:37

So there's that full one month that is skipped and then you're actually

Kyle Seagraves: 00:31:40

paying the interest in between, you know, we'd be paying mortgage interest

Kyle Seagraves: 00:31:43

between June 2nd and the end of June

Katelyn Magnuson: 00:31:48

think that's super helpful.

Katelyn Magnuson: 00:31:50

Awesome.

Katelyn Magnuson: 00:31:50

Kyle, thank you.

Katelyn Magnuson: 00:31:52

We will be back on our next episode, chatting about.

Katelyn Magnuson: 00:31:56

Budget and financing and all of the financial things really, because

Katelyn Magnuson: 00:32:01

I think that's actually gonna be a little bit of a, a more in depth

Katelyn Magnuson: 00:32:04

episode with what all we have to cover.