Study Hall: How to Buy a Home in 2022 with MG The Mortgagee Guy

Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Do what's right. Leave now. Under President Trump, America's laws, border and families will be protected.

when it comes to real estate. So, you know, always good to hear his perspective from somebody that's actually on the inside officer, not just somebody that just invest in property, somebody that actually is working in the field day to day and people will proved for mortgages, getting people funding.

know nobody looks forever. So that that the key is to make the most out of life that you have, appreciate it, make wise decisions and leave your family in a in a in a better position when you pass away to to you know, have peace of mind, have generational wealth, and create some level of you know, stability.

mind as a blessing. So we're all blessed at the end of the day. If you're watching this, you're blessed. If you're able to type something in the chat, you're blessed. If you're able to you know, speak, tell a friend and tell a friend, you're blessed. And we're blessed to be able to you know, be here in front of you and to speak.

So he was definitely a legend. And rest in peace to him and his family because you know, it's sad man, you never know, you never know, and it's crazy. I was thinking, like I haven't seen him a lot this year too, because normally he's super active online and just to hear hear the news today is just kind of kind of took a step back. So rest in peace to Daryl Framan, Sr. And conduless to his family and God bless that man.

second home, third home, investment property. You know, it's a lot of it's a lot of fear in the marketplace. So let's give it people some education.

up America, the flood gates are going to happen. The government's going to do everything in their power to prevent a crash, and they did in the real estate space, I'm speaking specifically, and it went crazy and I was online screaming to the top of my lungs. You need to go and get this cheap money because it won't last forever. As you all can see, it didn't last forever. It lasted for about eighteen twenty months, and now interest

rates have skyrocketed. But I want everybody to understand that presents probably the best opportunity for real estate people in the next two years, because there's going to be less buyers in the market, there's going to be more inventory that's going to hit the market, and especially if you are investing, this is going to be probably the best opportunity for you as an investor to buy real estate. Just pay attention to what everything that's happening in the news.

They are spewing fear left and right when it comes to housing. So this is the time, in my opinion, where you guys need to really start thinking like investors, even if you're buying your first home, think like an investor. And this is something I've been screaming for the top of my lungs. Also, stop being emotional. I think like an investor because this opportunity will pass you by if

you don't take action on it. Regardless of where the interest rates are right now, still a great opportunity to buy. So I'm gonna share my screen man. Let's get busy with this real quick. Now. You gotta forgive me. I'm new to this. Mac Tuks done did all types of new stuff in the in the studio. I don't I'm a PC guy, so I don't even He told me I got a swipe with three fingers. I'm like, what is this, bro? I don't know what you're talking about. So ya gotta ya, gotta forgive me. Where I don't

even know how you okay, share your screen? I think he said, share my desktop? Right, yeah, how you do share desktop? Oh? Shared desktop?

I'm one of the top mortgage people in the country. I run a division of a mortgage bank. We are here to help you, guys, achieve your real estate goals. Whether you're looking to buy your primary residents, buy a secondary home or a vacation home, or purchase investment properties. Meet and my team could help you achieve your goals. All right, just hit the link in my Instagram bio and we will take care of you. All my resources are there, all right. So today we're gonna keep it

real simple. I'm gonna give you a lot of information. If you're ready for some information, put some fires in a chat. MG is ready to go. We're gonna teach you how to prepare your lend defile. I'm gonna teach you how to hire the right lender right with low program and I'm gonna go briefly on a couple programs.

I'm gonna discuss closing course, the underwriting process. Then I'll open it up for some Q and A. But there's gonna be a lot of information in this and I'm gonna take you to a couple different websites also, So I'm gonna need you guys to really focus in on this because I want to show you, guys how to go get certain information on your own versus it being in a slide show. All right, preparing your lend to file most important, most important. A lot of people are

not organized. This is one of the biggest problems that I see when people are looking to purchase real estate. They are not organized. So one of the key things I want to tell you guys, the document checklist that you see here is pretty standard across the board for all lenders. And I love to see all that fire in the chat YouTube. Y'all keep it going. Let's hit that like button share it's with ten people immediately, all right, and y'all screenshot this slide because these are the documents

that you are gonna need for any lender. That you go to in America. All Right, the last two years of W two's you're gonna need a two year work history. Now if you are a two year If you are a W two employee, you do not need to show tax returns unless that lender has overlays, which are guidelines on top of goidelines. But for the most part, if you are a simple W two employee, you do not need to show your tax returns. We do need to

see a two year work history. Now. One of the biggest things that people always tell me is, Matt, I have five jobs in the past two years, but they will all W two. Does this disqualify me? No, it does not. Any gaps in employment we have to document with a letter of explanation that gap in employment. All right, If you go from working from Target to ups to Best Buy, that's okay. As long as your income is

the same or increasing, you won't have no issues. But if you're income is decreasing, then that could be an issue. All right, last two Now, I want to say another thing. If you go from W two to ten ninety nine or self employed, you start your clock back over. So if you go from working at the post office and then you want to open up your event space and quit and fire your job. Then guess what you start all over? You start all over all right, last two

years tax returns. This is truly only if you're self employed or if you own real estate investments. Is where we have to look at your last two years tax returns. If you are self employed, last thirty days of pay stuffs. We need all pay stuffs for the past thirty years. So if you get paid by weekly, we need the last two. If you get paid weekly, we need the last four. If you have multiple jobs, we need to have all the pay stuffs for multiple jobs. Now I'm

glad of just said that to myself. Multiple jobs if you have, if you work two jobs at the same time, you need to have a two year consistent work history of working those two jobs. So let's just say you work at UPS in the daytime and then you work at Target overnight, and you want to use both of those incomes to help you qualify. That is okay. We just need to show that you work that both of these jobs consistently and consecutively at the same two year timeframe.

All right, Because a lot of people start new jobs and they say I've been at this new job for a year and they want to use that income. That income won't work all right, So I just want you guys to please understand that if you have multiple jobs and you work in Simon TEAMUS, so you need to have a two year history for the lenda to use that last two months of your bank statements. All pages

very important. If your bank statement says page six of seven and that last page is left blank, the underwriter will still need to see page seven. Even if it says this page is left blank intentionally, we still need to see that statement. Now what your bank statements, what we are looking for is the large deposits. So you don't want to have too many large deposits, especially cash

going into your bank account, because we cannot document that transaction. Okay, if you have NSF fees, non sufficient funds, you don't want to show those bank statements because if you cannot manage your money and you go a negative every month, then why would a bank want to give you a loan that shows you have no discipline. So you have to make sure that there's no NSF fees. What I

try to tell everybody is this right. If you are purchasing a home, even if you're preparing right now, you say I want to buy six months or eight months, open up a separate account, call that your real estate fund, name it whatever you want to call it, right and then have if you're gonna use your direct deposits, if you're gonna use whatever money that you're making that you can legally document, have that money only deposited into that account,

and don't try to do minimum transactions in that account. That way you eliminate a lot of headache and a lot of future paperwork. Copy of your ID has to be a government issued ID, driver's licensed passport, and it has to be valid. If you're getting a gift, which is allowed for most traditional programs, conventional FHAVA, you can get a gift, it just has to be documented with a gift letter. And we have to see the donors' bank statements showing them that they have the money and

they're able to gift it over to you. Now, what a lot of people try to do, and I'm gonna tell you this right now, don't do this. They will have mattress money and say hey, I got fifty k on my mattress, or to only came my mattress. I'm gonna give it to my mom, let her deposit it, and then she's gonna wire me the money as a gift. Doesn't work like that. You can't do that. We're gonna we're gonna see that all day and we won't be

able to use that money. So, if you're gonna get a gift from a family member or meeting, or a parent, a sibling, you have to make sure whatever amount that they're gifting you that they have that money in their account already. And then you're gonna need a completed loan application. Whatever lenda that you're going to do business with, they will be able to provide you with with that online loan application. So again, screenshot this, save it, and study this.

All right? Okay, how do I go to the next one? I hate this Mac? All right, So let's let's go. Oh you see stupid Mac? All right, here we go. I'm giving you out a juice early. All right. Now, now that you have your documents and you're ready to go to get pre approved, But I need you guys to understand the difference between a regular traditional pre approval and the fully underwritten pre approval. Is right, A regular preapproval is basically a letter that is issued by a

loan officer at the bank. They have reviewed your income, your assets, your credit report, and they have determined that based off of their calculations, that you can get X, Y and Z amount of money. This is not a commitment to lend from the bank. I need you guys to all understand that a loan officer like myself, although I am a great loan officer, I do not issue loan commitments. The only person that can issue a loan

commitment on behalf of a bank is an underwriter. So, to be quite honest with you, that pre approval letter that even myself and my team is going to give you, it's not worth the paper is printed on because people can have a pre approval letter and still get declined once they get into contract for a house to buy. This happens every single day nationwide. The reason being sometimes loan officers make mistakes and they do not calculate your income properly. These things happen all the time, So I

need you guys to understand pre approvals are worthless. Although it is needed, it is needed, and I want you guys to please understand of what I'm really truly saying here, it is needed for you to go out there and shop for a home. This, that, and a third. It gives you an idea. If you got a great loan officer like me. I like to tell people my pre approvals are solid goal because I pre underwrite because of my skill set, right, But not every loan officer is

built the light. So what I always recommend and my team office and service also is a fully underwritten pre approval. This basically means that the loan officer not only did he review your income, credit documentation, etc. He now he's going to pack he or she is going to package up that loan as if you're in contract. And then now they're going to submit that loan to underwriting and the address is going to be a TBD address to

be determined. And now the underwriting department from the lender, they will actually review your file as if it's a real deal, meaning you have executed contracts of sale. They're going to review it and they're going to issue what's called the conditional mortgage approval or conditional loan commitment. And this means that the lender is committing that they will give you x, Y and z amount of dollars based

off of you meeting these conditions. Now, when we get laid into this presentation, we're going to talk about the underwriting process and conditions and things of that nature. But what I love about having a fully underwritten pre approval. This gives you all the work done upfront, so you know exactly what the lender wants to see to close. Three things they going to want to see is a

contract to sale, a clean tider report, and the appraisal. Right, obviously, you don't get those things until you sign contract, but you'll have everything else that that underwriter likes or doesn't like on that conditional mortgage approval letter. So now you can start working on that credit approval side while you're out here shopping. And also once you get so let's just say they want a lot of explanation, they want

to see the gift funds, etc. Etc. You can can submit all these what we call conditions to the underwriting department and they'll clear those conditions so that way, by time you find a house, only thing you need is probably three or four things and you can close. Now, what this is going to do, and I'm highly recommending everybody who's watching this live and who's going to watch

this on the replay. If you're buying a house in today's market, if you want to be competitive, you need a fully underwritten per approval letter because this is going to give you that ability to close fast two to three weeks. Right in most markets, people are still waving financing contingencies, meaning they don't if they don't, they're waving their right to financing. So if they get declined by bank, it doesn't matter. They still have to buy a loan.

So when you are in and that's typically for cash buyers, you see that. But you have some buyers who are getting financing, who are going through this process are also waving their financing contingencies because they know they have a mortgage already. All right, So this gives you a competitive advantage, especially if you're someone who's putting down three point five five percent down payment in today's market. All right, Now, this is all going to be hard credit polls pre approvals.

Whether you go with a fully underwritten pre approval or traditional pre approval, it's all hard polls. Okay, pause, Hiring the right lender, all right, Hiring the right lender is very important. Like I said to you guys earlier, not all loan officers are built alike. Now, these are the three types of companies that originate loans. And I always get the question of what's the difference between a broker

and a banker and the retail thing. So I want you guys to screenshot this slide or so so that way you can go back and you can reference this on your own. A mortgage broker is basically a middleman, right. A mortgage broker does not lend money they're going to They are on board or signed up with several lenders and their job is to quote unquote shot through those lenders to see who you can get the best deal with. Right. A mortgage banker is like MG where we lend, we process,

we underwrite, we fund, we do everything in house. Okay, but we also sell the loan too the retail big bank, because we're not set up for servicing. The retail big bank is more so like the Chase, the Wells Fargos of the world, where they offer more products, not just mortgages. They'll offer you check in savings accounts, personal loans, auto loans. You know, credit unions will kind of fit into this category as well. All right, now, the difference between the

all three look. First of all, I want to just make this clear. When you're working with any company a Chase of Wells Fargo, you know, a loan depot, any of the big brand names like the Quick and loans of Rocket Mortgages, whatever you see out there, you have to remember you're not working with that company. You're working with the loan officer. So you have to make sure that you're interview on these loan officers right to make sure that they fully are capable of helping you achieve

your real estate goal. If you are looking to buy your first primary residence, one of the questions that people always ask me, you're Matt, what questions do you ask when you are interviewing these people? I always tell people to ask questions you already know the answer to. But the very first question should be, if you're buying your primary house, ask them are they a homeowner? Very simple? Are you a homeowner? If you're looking to buy an

investment property, ask them do you own investment properties? Currently? I am of the firm belief, and this is no disrespect to anybody in my industry who does not own a home or investment properties right now. But I am on the firm belief that if you are going to work with someone, they should actually own real estate right because how can they really identify with you right in the process of what you're going to go through. That's

just me personally. So these are some of the questions that I would ask, and then ask them questions that you already know the answers to. Right. You may know a little bit about faha, you may know a little bit about conventional So ask them three or four things that you know the answer to like the back of your hand, and just see how they're going to answer those questions. You'll be surprised that a lot of people

just don't know what they're doing. And by you asking questions you already know the answer to, you can kind of get an understanding of their knowledge base, and then you can kind of dig a little bit deeper from there and determine if he or she will be right to be a part of your real estate team, because you have to remember, guys, whether you're buying your first house or your tenth house, this is a business. Real estate is a business. If you can follow on your

tax in terms of get tax deductions. It's a business. I don't care if you're gonna live in it. I don't care when nobody tells you. So you have to always remember you are the CEO of your business. You are in charge. You have to put your team together, and you have to make sure that everybody on your team, lenders, realtors, attorneys, whoever it is, everybody has your best interests in mind, all right, Always remember that. So these are the three

types of companies that originate loans. Just one to give you guys a little bit game on this so you can kind of understand who's who are what are the players? All right, let's talk about some loan programs, all right, So I'm gonna stick to the usual suspects tonight. We got a minimum five eight's credit score for FHA, three point five percent down payment is required. Max sells concession is six percent. A sellers concession is one the seller

agrees to pay a portion or all of your closing costs. Now, a sellers concession is not guaranteed. A sellers concent session, how gets included into your loan amount only if the house appraises for the higher value. So I'm gonna give you guys a quick example, and I'm gonna use easy numbers,

just acting as an example. If you're buying a home for one hundred thousand dollars and you want to get a six percent sellers concession, which is six thousand dollars, right, a six percent sales concession six thousand dollars on one hundred k. That means one hundred and six thousand dollars is what your house, the house has to appraise for in order for you to get a sealers concession. And now your down payment is based off of the one

hundred and six thousand, not the one hundred thousand. The seller will still net the one hundred, but those that six thousand is being is increasing your finance and so you can get a credit for your closing costs. That's how a sales concession works. So if you're in a competitive market like we are now, I believe the opportunity for buyers to get sellers concessions are going to come back as interest rates skyrocket. So I will encourage all my buyers who are watching this. Closed mouth does not

get fed. I repeat, closed mouth does not get fed. It doesn't hurt the ask, but consult with your real estate professional who's making the office on your behalf to see what the market is dictating at that moment before you ask, because you don't want to put yourself at a disadvantage at the same time, all right, one to four family FAHA approved condos and mixed use properties are allowed with FAHA. Now, for those of you who do not know what a mixed use property is, this is

basically a commercial building. It will have typically in the Northeast. How a mixed use property looks is a storefront on the bottom and residential units on a on the tottom. Think about your local bodeggas right, that is mixed use properties. The key with the mixed use properties for it to be approved for FHA, it cannot exceed four total units with the commercial and the residential, and the residential units have to be fifty one percent of the liverable square footage.

So if you can find a mixed use property, this can be a gold mod for your first time home buyers because now commercial rent is going to be higher than residential, so eventually this will give you more cash flow. So this is a great opportunity for those buyers out there who live in areas where there are these type

of properties. To buy a commercial building with as little as three point five percent down payment, all right, seventy five percent of the rental income can be used to help you qualify five on a two to four unit property. So easy numbers for you guys right now. So if the rental income is one thousand dollars, the lender will use seven hundred and fifty dollars of that thousand dollars to help you qualify for the loan, even if the

property is vacant. Okay, three to four unit properties or triplex and quads in certain areas will require at minimum three months of reserves. What are reserves? MG Reserves are

your mortgage payment times three. So if your mortgage payment is one thousand dollars a month, then you need to have at least three thousand dollars post closing, either in your checking, your savings, your brokerage, your four one K. It needs to be able to be liquidated, obviously, so the bank will want to see proof that you can liquidate it if needed to. But as long as you have it, then boom, you will qualify. Another thing about three or four family unit it's very important. I didn't

put this on the slide. It's called the FHA self sufficiency Test. The FAHA self sufficiency test very important with this basically means that it doesn't matter if you qualify, you've been pre approved. If you're looking to buy a three to four family if that house is not self sufficient, then FAHA will not fund that three or four family unit.

So for an example, let's just say if your mortgage payment is one thousand dollars a month, and you're buying a four family unit, and let's just say all of the rental unit on this property equals up to one thousand dollars a month, So let's just say two hundred and fifty dollars per unit. Again, I'm using real simple numbers for you guys. We're gonna use seventy five percent of that thousand dollars, which gives you seven hundred and

fifty dollars. But your mortgage payment is one thousand dollars, So now that property is negative by two hundred and fifty dollars, So that property is not self sufficient. So after that seventy five percent value that's taken away the mortgage, that seventy five percent needs to be one thousand dollars minimum to cover. So in that case, you would need at least a fifteen hundred dollars mortgage at a very a fifteen hundred dollars rental income to qualify for the

FHA self sufficiency test. So that's very important. Guys. For those of you out there who are looking to purchase three or four family profits with FHA, it's very important you understand the FHA self sufficiency test. If you have a pre approval for a three or four family, contact that loan officer and make sure that they understand the FHA self sufficiency test all right. Grants, gifts for one kids can be used, co signers can be use. Max loan amount are based on the FAHA county loan limits.

Easy way to find your FAHA county loan limits is just google your county and just put you know, if I'm in Nasaal County right now, so I'll put Nasau County FAHA twenty twenty two loan limits and they'll come right up right. So, but you have to check case certain states like New York, this is a high cost area. We can get approved for more money like a four family we can go up to one point nine million. In other areas you can't go that high. So you have to really check to see if FHA will even

allow because of those county loan limits. And most importantly, most importantly, FAHA is only for primary residents only. When you are speaking to a Linda, take the word investment out of your vocabulary. Yes, we know it's a multifamily and it will be a quart unquote investment, but you have to start using determinology owner occupied multi family and FAHA requires you to live in this for one year. After one year, if you want to move out and

live your best life, go right ahead. But don't commit mortgage fraud. Guys, don't commit mortgage froud. All right, let's get busy. Let's talk about some student loans because a lot of you guys got student loans. If you got student loans loans, please type yes in the chat. Please. If you have student loans, please type yes in the chat. While I take some quick water break. Troy shot, I'm good on time.

So FAHA uses the payment listed on the credit report or account statement, but if the loan is deferred or for barans, the lender would use half a point of the outstanding balance. Let me give you a couple examples.

If the payment on your credit report, let's just say you owe two hundred thousand K and student loans and your credit report shows that your monthly payment is three hundred dollars, the lender will use the actual documented payment on your credit report three hundred dollars a year ago. A year ago that was not the case, the lender will probably use close to two thousand dollars or one

percent rule right payment not on a credit report. If your payment, if your balance to your federal loans is fifty K and a monthly payment on your credit report is zero, the lender will still use two hundred and fifty dollars as your payment, will calculate it into your debt to income ratio although you have a zero payment. Why because we're using a half a point of that

fifty thousand. A year ago we were using one percent, and it will be five hundred dollars incorporated into your debt to income ratio if the payment is zero on your credit report. Let's say you owe seventy K and federal loans and your credit report shows a monthly payment is zero. The lender will use three hundred and fifty dollars for your payment, unless you acts the servicer to recalculate the payment due to a significant change or family size.

That can be known as an income based repayment plan. Right if your loan is in deferment. If you all hundred K federal loans and your credit report shows that the loans aren't deferment, the loan officer you will use five hundred dollars as your actual monthly payment unless you can document from the servicer that you have a lower payment under income driven repayment plan when that deferment ends.

So guys, these rules completely change and FAHA and conventional had boxed out so many people with student loans because of the stupid as one percent calculation, right, even though you wasn't paying that much, we still had to calculate one percent. With these new options, that's available for you. The government understood and understands that it's difficult for people who are going to school and coming out with large debt to buy real estate. So they're trying to encourage

home ownership. So they change the guidelines, which I think is a home run for everybody who typed yes and chat that they have student loans. So again, screenshot this study it and let's move forward. Let's talk about student loans that are collections. A lot of you are in collections. You are default on your student loans. Please understand, if you are in collections or default, you will not get a loan until you take those student loans out of

the firm out of default or collection status. So please, please, please, even if it's not popping up on your credit report, remember lenders are doing basic they're basically doing background checks. We run a system called caveas we will find that you have some debt, some student loan debt, and we will tell you no your decline. So if you know you have that debt, work out some payment arrangement and

move forward. How to fund grants? I want you to all screenshot this, Okay, I want you to all screenshot this website. And I'm actually gonna try to go to this website. Let's see. Can Y still see my screen? All right? So let me see it. I'm gonna move this damn how you move this stupid zoom bar? Ya who said the Mac was good? Shout out the Apple though, But I can't.

local buying. All right, Ari, I see you in the YouTube chat that put that link in the chat for me, Ari. So this is the website. This is what it looked like. A lot of people don't even understand that there's a lot of money out there, especially through a lot of local programs, and people are always asking me, how do you find this money? Well, this is one website that people don't know. And you see you have all fifty states right here. So I'm going to pick a state, right, Uh,

give me a state. Somebody give me a state, Troy, give me a state.

homeowners Ship Assistance for California. You've got state wide and regional programs, and you have all the programs right here. How you can even go by sort by city or county. Right, So let's go sorted by county. Where's La la is. Let's see, let's take it. Let's go to Fresno. Let's see what's in Fresno. No, it wants me to leave. I'm not gonna take no chance. I'm not gonna leave the website because I don't know of it. But y'all see how easy that is. Right, Let's go to Let's

go to another state. Right, let's go to Illinois. Since it's right here, same thing, real easy to find. Look for buying for a home. Homeownership assistant programs. You go right here, you scroll down. You got all the state wide and region new programs all right here for you guys. Programs by the city. You got contact information right here. You got who you can contact for what city it's in. It's all right here, ladies and gentlemen, it's all right here,

right under your nose. And they don't talk about this stuff, and it's very simple and easy to find. I'm gonna go to New York because we're in New York, right assistance and programs, and then you have all the New York programs and even by city by town, you got Long Island, New York, Hudson Valley upstate, and you have contact numbers, you have websites, emails. I mean, you have everything that you need up here to find you some free money, all right, everything you need up here to

find your money. And New York got a lot of money. You see how long that list was. So this is what I wanted to explain to you guys. You have to do your homework, you have to do your due diligence. And this is why I want to take you to the webstite versus me just having this on my PowerPoint because I want you guys to be able to find this stuff on your own. All right. So again, the website is hud dot gov forward slash Buying, forward slash

local Buying. Okay, there you have it, and mothershad voice, let's get the conventional financing we're heating up now. Six to twenty minimum credit score, minimum down payment, three to fifteen percent, depending on what type of property you're buying, whether it's a one family or multifamily who max Sell's concession allowed is three percent. You can buy one to four family and fanymake approved condos and co ops and input coops up there with co ops as well. Max

loan amount is based on Fandymade loan limits. Again, all you have to do is google Fany Maade twenty twenty two loan limits and you will have all the information you need right there. Grants gifts and for one K is allowed, you have to live in the property for one year if it is your primary residence. Also, now we're going to take you back to another website. Now, before we get there, let's talk about the Fanny Man Freddie Mac's student loan guidelines. It's pretty much the same thing,

but I like freddie guidelines better. So, if you are going conventional and it's student loans, listening on a credit report is zero or if it's deferred or forbearance, the lender is going to use the one percent balance to calculate it. So if you have that situation, you probably don't want to go Fannie May. You want to go Freddie Mac because Freddie Mac is like Faha, where they'll use a half a percent of the loan balance to qualify.

So the examples that I give you guys early on how to calculate is the same exact for both Fannie Mae and Freddie Mac. But if you're going conventional with student loans, your best bet is to act the lender or tell the lender not even ask, because you're the boss. You tell the lender you need to have a Freddie Mac backed conventional mortgage because of yours through the loans. Okay, and yes, for those on YouTube, will keep acting. Will this be saved on the channel? Yes it will. This

is free game University right now. You're welcome. All right. Two of my favorite programs with Fannie Mae and Freddie Mac is Fanny Made Home Style and Freddie Mac Home Possible. Let's go to the websites. Let's go to home Ready first. So all you gotta do is Google Fannie May Home Ready.

Go to Google, and all you will see the websites will come to the top now and bring you to this website on purpose, because it's very important that you understand in these programs and what these websites look like, right, because these websites, these websites are very, very very important for you to navigate. You have all the information that

you will need, all these websites right here alone. So I'm gonna get you guys a little bit familiar with this now when you're dealing with Freddie mac all Fanny Made Home Possible. This is all income based, all right, so what I mean by it? And this is the home Possible website, right, Just get you guys a little bit familiar on how it looks. But let me go back here, right, So let me google something. So let me go Fanny May uh, Fanny May May income limits right,

Fanny May Home Possible Home Ready income limits right. So this medium income is very important. So if you're looking to get qualified for this home I mean, for this program, you have to let me just hit this. You can't make more than eighty percent of the area medium income, all right. So again, how I got to this is all the thing I did was google Fannie May Home Ready income tool and this map will show up. Now

I'm a punch in the zip code. I am in valid stream right now, so I'm going to type in valid stream zip cold and now you're going to see it's going to come here and it's going to bring the map of valid stream. Now it's telling me the area medium income in my area where I'm at right now is ninety nine thousand. But in order to qualify for this loan, my income cannot exceed seventy nine thousand, six hundred. All right, so that's eighty percent of that

ninety nine thousand. You can do this for anywhere in the country to see what's your income. What's what's west Chester zip Co? Y'all?

This is this is the gross income that the lender is using, not your justic gross We're not looking at the tax returns. This is your gross income, not your net income. The only way is going to go for net income is if you're self employed and you're trying to get one of these loans. But this is the first step that you need to go to see if you even qualify for the Home Possible or Home Ready program because they both go off the same thing. So I want to show you, guys what this looked like

in real time, so you are familiar with this. And this works best if you have an address. So if you're looking for properties and you're already preapproved, just punching any address in your right.

you'll have to put down fifteen to twenty percent. So I love the Home Possible program for that, and then also with the Fani Made Home Ready program, one of the things that I love is that they will allow you to use border income or or roommate income to help you qualify even if you're buying a one family property.

So if you're buying a one family let's just say you was in college you had a roommate, you can document that you had a roommate and the roommate is going to move in with you right then you can have a quote unquote lease sign between you and that roommate and if they.

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talk about some closing course. All right, you know what. This is what I'm gonna do. Let's go back to Let's go back to this. Let me show y'all what a loan estimate looks like. Okay, this is what. Yeah, some of y'all YouTube got it. Roommates exactly, all right, So this is what This is a sample loan estimate. This is what you're gonna get from Alenda. Some will get you this before you even sign a contract on the house. I know, me and my team we issue

loan estimates only when you have a contract. If you want, of course breakdown, we'll give you what's called the closing course worksheet, which is not a loan estimate, but it gives you an idea of what the fees are. So I want to show this to you so you guys can get familiar of what you're looking at. Right, So on the top left hand side, you're going to have whoever the bank is, the bank's address is going to show you the date that the loan estimate was issued.

The applicants is you with the property address is the estimated property value. It'll tell you what your loan terms are, the purpose of it, what type of product you have. So if it's a thirty yet fixed mortgage, it'll tell you that it was a thirty year fixed mortgage. If it's a FHA conventional VA, one of these boxes right here will be checked. It'll tell you your loan number, your loan ID, and most importantly is the rate locked or not? Okay?

And if it is locked, as you can see here on this example, it tells you until what time that it is locked? Okay? Scrolling down, you have your loan terms, your loan themount, your interest rate, your monthly principal and interest payment. The principal interest is what you're paying back to the bank. It'll tell you if you have a pre payment penalty you or not, if it's a balloon payment or not. You're not going to see this in regular traditional loans, so don't worry about that right now.

If you have mortgage insurance, you'll see it right here on your payment projected payments. It'll tell you if it's mortgage insurance, and if it was, there'll be a number listed right here with says zero, and then in this column right here, it will tell you what year is projected to fall off. Very important if you're taking out loans with mortgage insurance that you are paying attention to this right Your escrow is to manage your property taxes

and the homeowner's insurance ESCRO. Let me say this, and I'm gonna say this loud and clear for everybody who is listening. ESCRO is subject to change on an annual basis. So whatever mortgage payment that you gotta start off with today, that will not be your mortgage payment in a year because taxes will go up, homeowner's insurance will go up, and that means your mortgage payment is going to go up.

So although you have a thirty year fixed mortgage, the only thing that is fixed is that principal and interest payment. Your escro is subject to change. Now here's a tip. Every single year, you're gonna get what's called the escrow analysis. The bank is going to send it to you. Please read it. Learn to understand that, because that is telling

you exactly what's happening in that escrow account. Depending on when your taxes are doing where you live, some taxes, some property taxes are due quarterly, some are done semi annually, some are done angrily. The town is going to send you a tax bill. Although the bank is responsible for paying it, the town still has to send you with

the bill is for the upcoming year. When you see your bill, if you do not agree with it, you can't call the town and start a process called grieving your taxes a grievance okay, which can potentially lower your property taxes down. But that is a process and it's not guaranteed to lower your property taxes. But I just want to make you guys aware of what is out there for you. And I want you guys to be

aware that your mortgage payment will increase. So when you hear me screaming to the top of my lungs like I've been for the past four years on the internet, don't be house rich and cash poor. This is one of the prime examples, because you be thinking, you're paying me three hundred and eighty dollars, gonna be for the life of your loan, and you'll get a root awaken. In one month, You're gonna open up your your damn mortgage statement and your payment's gonna be five hundred dollars

and you're gonna be like, what the hell happened? So I want you guys to be aware of this. Be aware of this, all right? Scroll down. Estimated taxes and insurance a month. Again, this is subject to change. Estimated closing course plus estimated cash to close. This is basically and you see it says from the borrower. That means what you have to bring the closing. Now, when you guys are shopping for a mortgage, I want you guys

to be very clear on something else. The lender only controls two things, the interest rate and block A on its top left hand side, the origination charges. We do not control title fees. We do not control recording fees. We do not control how much escrow needs to be set up in that prepaid account or that initial escrow account. We do not control any of these fees. We only control the interest rate and the origination fees. So when you guys are shopping for a loan, you have to understand.

Banks will sit here and present you offers in the beginning of your process and low ball you on purpose. They will missfees on these loan estimates because it's not legally binding, right, It's just an estimate. They will tell you, and when they try, when you're trying to compare, you're looking at, well, this lender's rate is this and their fees a twenty thousand. But this lenders rate is the same, but their fees a fifteen thousand. I'm going with this lender.

But you don't realize that you're getting set up for the bag and switch because a lot of lenders out there will put lower fees on purpose. I'm trying to tell you this shit happens every single day. I don't care when no one tells me because I see it personally. When you guys are reaching out to me, asks me to you, your loan estimates. And I'm telling you there's a lot of fees missing here, all right, So please

understand that the lender only controls this. So my advice to you if you're shopping or comparing lenders, compare them with the interest rate and block a fees. That is going to give your true determination if with lender is more expensive than the others, because that's the fees that they're making their money off of, not everything else. Now, if you want to know what your title fees and your recording fees are, this is when you got to

go to your title company. If your realtor or your attorney is using a particular title company, you need to ask them for what's called a title bill. And in that title bill, you'll know what all the title fees are. You'll know what the recording fees are. You'll know what the estimated escrow account will be needed to set up based off of the closing date on the contract. You'll know all that information because us as the lender. When

we get to the end of the process. You see how this says loan estimate, right, This is in the beginning of the process. When you get to the end of the process, you're going to get what's called a CD, a closing disclosure, and the lender to update that closing disclosure, they have to get all the final bills from the title company and all other parties involved. That way they can update that closing disclosure to make it as accurate

as possible. So please understand the difference in this. Don't just be willy nilly an emotional home buyer and say, oh, this one's cheaper than this one, and this is that third and you're not even understanding by time you get to the end. It's going to be with that person who was hired probably even quoted you because they were probably doing the right thing. So it just understand the difference.

And this is kind of why instead of me showing you a PowerPoint presentation, I kind of wanted to give you an example, a real life example of what this looked like, because a lot of you have never seen a loan estimate before. I see people in the YouTube comments talking about they never even heard a BLOCKA. This is exactly why I want to show my screen and show this to you guys, so you have a better understanding of what these things look like. All right, we got it.

estimate that I just showed you. Again, look at the loan estimate at this point, if you're still shopping for London, and I'm gonna tell you this right now, at this point, if you're still shopping for London when you get the contract, you kind of behind the eight ball because I think you should have did you shopping while he was in the pre approval process. But if you're still shopping again, remember block A and interest rate. That's what you need

to pay attention to. Okay, now, let's keep your interest rates real quick. Locking in very important in these times. As you all have seen over the past six months, I should say that the market has been going absolutely bonkers with interest rates. This is not the time to float interest rates. So there's two things you can do when you get your contract. You can either lock it in and when we lock in, we lock in for

a certain period of time, y'all. We lock in either for thirty days, forty five days, sixty days, ninety days up to six months, right. Or you can float, which means floating means you're playing the market. I do not recommend floating in today's market because it moves so rapidly. If you want to try to protect yourself, let's just say you lock in and you want to head your

bet so to speak. If the market does drop, act your lender if they have a float down policy, type in chat float down okay, float down policy very important. So let me give you an example.

five percent. But they may charge you a point for that. Now, for those of you who don't know what a point is, a point is one percent of the loan amount and it's used to buy down interest rate. So one hundred thousand dollars loan amount times one point equals one thousand dollars. All right, So I want you guys to understand when you are trying to lock in, if your lender has that option, take advantage of it. It may cost you some money. Now, what happens if the rates don't decrease,

then you just paid a point for no reason. So you also got to understand the market and work with the loan officer who understands the market and is watching the trends that's happening. In the market to determine if it's even worth you paying that extra point to do the float down option. All right, but speak to your loan officer for more details about this.

and then boom. From there, they submit the loan for clearance to close, and in the perfect world, the underwriter will clear everything and then congratulations, you can now schedule your closing. But the mortgage process is not perfect. I'm here to tell you you will go through pain, you will go through agony, you will go through frustration, you will go through some BS. Okay, so have your expectations set properly that you are gonna go through some pain

in some BS. Even if you went through a pre underwriting process, you will still go through the pain and the bs. This is just this is just the business that we are in and it's not perfect. But you have to have your expectations set right. So once you wants to underwriter, and oh, be prepared to be asked for documents, the same documents a couple times. This happens

with certain lenders. Not gonna name no names, but this happens. Okay, I need you to understand this is part of the process and it will frustrate the hell out of you, rightfully so, but just give them whatever the hell they want and let's move on, all right. And once you go through the underwriting process you meet all your conditions. Congratulations, you are now clear to close and you can go close wing your house. That is my time for today, ladies and gentlemen. That's all I got.

education on it, Like they never teach you anything. It's like you just go out there and just hope that you're not getting taken advantage of. But you just go to a bank and you say, Okay, I'm trying to buy a home, and you just follow whatever they tell you. You don't know if it's the best thing for you or not. You don't know about the program. If you don't know the process, you make mistakes. You don't have to get the documents in order, you don't get the mortgage,

lose a home. It's a learning process and you learn as you go, but you can make a lot of mistakes. So I always thought like, why would they not have this as part of a core curriculum because it's something that is very common. A lot of people buy homes and to not have any idea of how to do it,

it just doesn't make any sense. So there's something that we never even questioned because we just were so used to just not even having it that it's just like, all right, you know, just just go with the flow. But now we have institutions like Eyo University, and we have professionals like Matt who are very gracious with their

time and they're educating the masses. So not take it for granted, because it's not something that has ever really happened before in a language that most people, especially in our world, understood, So just wanted.

that was taught. So for me to be able to be blessed with the knowledge to be able to pass it on to my community at scale, because of platforms like EYL University. It's life changing for me and I don't take it lightly. I love and this is why I always save my license number because I'm proud to be a licensed real estate professional. I tell people all the time, I'm not an internet guy. You just see me on the internet. This is what I do every

single day, this is what my team does. We help a lot of people, and I don't brag about it. You'll never see me posting closing follows. You'll never see me doing boomerangues. Respectfully. I say that respectfully because everybody got their own swag and that's cool. But I help. Don't get it twisted. MG closes a lot of loans and I help a lot of people directly and indirectly. I help some of your favorite people that you watch all the time. And you'll never hear me chasing no

clout because I don't do this for clout. I do this to help my people at Scale because I am a terrible Internet marketer. If I was really an Internet marketer, I would fledge your timeline with testimonials and all types of ish. But if you've been following me for years, you don't see that on my page. You see information all day long information, information and information, and I want

you guys to execute at a high level. I don't even ask you guys for business for ninety percent of the time, I'm just giving you the information and if you work with me and my team, great cherry on top, God bless, thank you very much. But I don't do this for leads either. I do this because I want our people to own some shit. Because our home ownership rate is forty two percent in our community and it's very important for us to close the wealth gap. Real

estate is a major component of that. So we have to own real estate.

estate and real estate investor. What we did was originally that rolled out as a separate and it's still a separate if you want that individually, but we packaged it together with Eyo University, so anybody that's in Eyo University gets access to home buyers Blueprint Volume one and volume two as part of Eyo University. And for Eyo University, of course, we have monthly financial planning calls with me.

We have weekly investment classes. Shout out to Chris. We have over one hundred archive classes because we do classes every single week and we have clubs. So people ask all the time, like what's the difference between earn your leadia Eyo University. Earn your lesia is like a public school. You can learn either way. That's the good thing. It's like you can learn either way. Public school is free. Eyo University is more hands on. It's a learning experience.

But we have zoom calls, we answer questions. People actually learn from each other. It's a community. It's like you know, I actually get to talk do my financial planning thing once a month. Troy does the book club Movie Club. So I mean it's something that we wanted to take the best aspects of school, but you know, at spin to it and just make the things that's really applicable as opposed to teaching you like, you know, about the stars and the moon and all that kind of stuff,

dissecting frogs and things that that wasn't really necessary. So and we did it at a competitive price point that I don't think anybody in our industry has ever been able to accomplish, to be able to do that at And you know, we're in a good vibe right now. We gotta invest Fst coming up. MG is gonna be at to invest Fest, and you know, it's just it's good. It's good times right now. So we decided to just do a flash sale, forty eight hour fourth of July

flash sale. We'll probably run into like Saturday, and we're going to do seventy five percent off four ninety nine for the whole entire year. And that's the low price it's been since Black Friday. It hasn't been that right since Black Friday. So literally one hundred hours of videos, calls with me every month, home Buyers, Blueprint Voume one, Volume two, book Club, Movie Club, access to the Facebook group, access to the weekly classes, access to the to the

weekly investment classes. Five hundred dollars, Like that's almost impossible to accomplish, but nothing is impossible at EYL.

I'll pin it. I'll pin up the link in YouTube and then I'll also put in the description of this video. And the best part about these classes that we do is that we actually get to answer questions. So this is something that you know, once again, you don't do that on a podcast where we actually you know, take zoom questions and we answer it. So it's just like being in a classroom. So that's what we're gonna do.

You just got to find homes where if you are going to put that money, that your active innovative value is going to be greater than what you put into it. So that way you're walking into in there with some equity and you're forcing that appreciation.

So I'm curious to know, from your perspective as a mortgage loan officer, what our chances look like of getting How do you deal with this kind of situation and what our chances look like of getting the APPRAI a new appraisal to come up with the right numbers so that the buyer client doesn't have to come up with more cash.

know what, we're going to order a new appraisal. I will tell you from my experience, there's a fifty maybe I would probably say a sixty five percent chance that appraisal comes in low to oh wow, it is, and it's a thirty to chance that it might hit the numbers that you want. If you have to remember, these

appraisers talk to each other. Number one, they're all providing the same the same comps everywhere you go, and a lot of appraisers they're going to use the same type of formulas to either adjust up or adjust down when it comes to their adjustments and comparables and things of that nature. So there's a good possibility that this piece of land will get a praise for the same value or probably a little bit more. It's a good possibility that it probably won't get ap praised for the sales price.

do not control appraisals. That's number one. There's an Appraisal Management company AMC that acts as the third party person between the appraiser and the lender that AMC is choosing from a round robbin of appraisers that's approved what said lender, and then they pick that appraiser goes out and us at the on the lender side, we have no clue who that appraiser is until we get the actual report back. So a lot of people always say it's the lenders

the lender. No, it's not the lender. It's with our hands are tied because of all the regulations that was put in place after the wild cowboy days. So that was a great question. But it's an unfortunate thing that happens in this market. And if you do get a lower they not might go in your bias favor. Now it's time to negotiate because now you got too low appraisals.

your househide journey, that won't impact you at all. Okay from that perspective. Now, obviously you know, depending on how much you deducted and everything like that could impact your debt to income ratio and what you can qualify for. That's a whole deeper conversation. But essentially to answer the question, if you if you rent it out and you file it on your taxes and show it as a true investment, you shouldn't have an issue with the house hack to start your house hacking.

lender and I'm currently working through that process. A question that I have is can I go to multiple lenders at the same time or do I have to start with one lender and kind of like work from there.

one lender, know your scenario right. So that's why it's important for you to be like the CEO right and understand the process and understand your debt to income ratio, Understand what programs that you are pre approved for, so that way when you go to lender B and C, you can have an intelligent conversation with them about your profile. Right, so I can say, look, this is my fight, go I got a forty over forty two debt to income ratio, I'm already pre approved from ABC lender to get the

home Ready program with I'm doing five percent down. These are my specs. A knowledge to a loan officer is going to hear that and say, oh, you know what you're talking about, Well, based off what you're saying, I can get X, Y and Z for you. You know what I mean? What did they quote you? Oh? I

can probably do that too. Right without your you have to go through the credit polls, and that's when you get more into being like that interviewer, you know what I'm saying, versus the emotional home buyer where it's just like you're happy just to get several pre approval letters and offers and you're just like you're happy, go lucky, right, and now multiple people don't run your credit for absolutely

no reason. So for me, that's why we did the home Buyers Blueprint Volume one and Volume to, especially Volume one to teach you guys how to be honestly. People have taken the blueprint and now they're loan offices because of the blueprint because they taught them so much and now they got into the game.

I'm saying, and you'll know exactly what you're doing. So I would say, can you to answer your question, yes, can you go to multiple lenders at the same time run your credit get three different pre approvals? Absolutely, But if you got the home Buyers Blueprint at your disposal, you don't need that.

But can you use an FHA loan towards a multi property that might be on foreclosure lists?

See your in tractors con artist tractors. Right. So it's a perfect tool to use, and I highly advise if you want to go that route foreclosure short sells react use that two or three K for you advantage, especially in a high court state like New York where it is so expensive here to buy multifamilies, you have to find that rundown piece of crap house. But no, the two or three K is there to help you, and it's included in your membership. Take advantage, all.

of them. Yeah, you add t I P. You had Kenny Burns, we had Terrence J. You add Eric Thomas, the number one motivational speaker in the world, Terry.