Hey, what's going on?
It’s Scott Taylor with sandiegorealestatehunter.com.
Licensed in the state of California for doing both real estate and mortgages, with an emphasis on San Diego.
Now, you're here because you fill out a form on my website, maybe about today’s San Diego’s mortgage rates, maybe about San Diego’s mortgage finder and that's what this educational video is all about.
Now, this will be Q. and A.
There's another video probably on this page or via e-mail or use social media, where ever you're seeing this, we kind of broke down more of why I’m doing this versus just a rate and kind of the different mortgages.
So, if you're looking for your mortgage rate, just like I said any other video, go to bankrate.com.
They'll tell you,
“here’s what it is for thirty year, here's what it is for five year, here's a V.A, here's this, here's that”
and then you'll see an asteroid and then it'll say,
“if your credit score is about hundred, if you make a million dollars a year,
if you're debt income ratio is ten percent, if your blah, blah, blah.”
And you're like, okay, so let's not ruin my rate then.
So, how do I figure this stuff out?
That's what I’m here for, and that‘s what these educational videos or for.
I think they’re pretty good education, unfortunately you have to look at me and listen to me, so maybe you're like,
“I don’t know.”
So, what I would like to do is answer some kind of Q. and A question,
I get a lot of e-mails, I get a lot of text, I get a lot of questions obviously about real estate and about mortgages.
And this is why I kind of want to break some down, I have a lot of questions, there’s a lot in my head and I kind of want to go off the cuff,
if you don't mind;
I don’t like to have a lot of notes,
I don’t like to have the teleprompter.
So, the first one is,
“Hey Scott with the down payment assistance stuff and the first time home buyer stuff and the closing costs assistance stuff,
if it was actually true, if it actually existed, how come I don't know about it?”
And my answer is, you do now because I know about it.
So, one of the misconceptions is that if you go to a bank or credit union, they have all the loan products available.
They don't, they have what they want to offer and a lot of banks or credit unions specialize in specific things.
I don't know of any even do the first time homebuyer stuff or closing costs assistance or down payment assistance stuff.
I really don't know, but I'll tell you that it does exist, there are things like a five percent silent seconds that turns…
If you don't sell a refi in three years that falls away.
I can't say it's free, but you get it, you don't pay it back.
And it falls away and you never pay it back; that’s pretty close to free for me.
There are things, we can get a hundred and four percent financing in the state of California;
not zip code specific, you could live wherever you want.
There's things like the M.C.C. tax credits, where you can save up to twenty percent off your mortgage interest every single month, claim via tax line when you do your taxes.
I promise you, those programs do exist, I deal with them all day, every day and so does my team.
There's things like a one percent down, two percent or forty lender, equity boost where you're buying a place of four thousand and you put down four thousand, the lender will give you, no strings attached, eight thousand dollars to buy the place.
It does exist, there’s the San Diego Housing Commission stuff, there is the [inaudible 00:03:12] fund, there's a lot of different products, so simplified.
It's who you work with.
If you go to a bank or credit union, you deal with that, if you deal with me, I’m approved…my company is approved, my team is approved with a lot of your wholesale lenders in the state of California and there's a lot of different programs.
“Scott, maybe talk a little more about why there's so many different programs?”
So I know there's things like the V.A. and the F.H.A. and conventional and the U.S.D.A. and the Jumbo and the piggyback and a lot of different stuff.
And to be honest with you, there's probably no real easy way to streamline it, but if you're a veteran, before that, I would say pretty close, the V.A. loans are the best.
Right, so you go V.A. If you do V.A. purchase, you would do V.A streamline refinance, and you would stick V.A, okay.
If you want to buy in, [I’ll say], the country side or out of [inaudible 00:04:05], like again, in San Diego, in [inaudible 00:04:08], that’s not really, but like [inaudible 00:04:09] or like Julieann, Ramona, Campo etc.
I would probably say, stick with USDA if you can, because you can buy as low as zero down and there's fantastic rates.
Now then, we talk about first time homebuyer, we've talked about VA, and we talked about U.S.D.A.
So, now let’s talk about for like a regular purchase.
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I'm just a regular person and I want to buy a home, okay, then from there, the next load down would be something like Conventional, where it could be as low as three percent down to get a conventional loan,
If you're buying you know condo in North Park for four hundred thousand or if you're buying a town home Forrest Ranch for four twenty five; it exist… like you go that route.
You probably make a little more money, you might have a little bit debt income ratio, you might have had a little better credit score, not always.
If that doesn't work then, we would probably go to something like an F.H.A, where you can put down three point five percent, their guidelines are a little looser and would probably go that route.
It's especially great if you want to go up to a little bit higher loan amount; so maybe you want to go up to that six forty nine seven fifty.
I'd say probably F.H.A. might be a little better because you don't have to put down through the half percent and then if you've got an F.H.A. loan, you can do a FHA streamline refinance to where we can do it, no cost, no points, no fees, etc. And you could refi at eight and go that route.
Now, if you're going to a bigger loan amount, there's really only two different options;
You kind of do the jumbo mortgage loan amount, which will probably be a minimum of plus or minus ten percent down or you might do something like a piggyback loan, where it can be five or ten percent down and it's a little structured different.
You have your down payment, you have a first and then you have a second.
So, that might be a better structure, where we have better monthly payments and or if we get closing cost cover.
From there you know, if you're doing construction loans and I kind of talked about in my other video, if you’re doing it like on a purchase, like a regular purchase, I'm not talking about hard money stuff, I’m not talking building stuff,
I’m talking about if you want to buy a place and kind of fix it up, can you get a loan for that?
On a purchase to be completely blunt, I like to be honest and direct as I can; it's a little hard, especially if you get permits to deal with it in those time frames.
Think about it.
If you have a thirty year or less escrow, you really think you can get the architect out there to do the architecture designs and the contractor out there to bid and then the city permits and do all the city….?
You can’t that in thirty day.
With all due respect, again, you probably can't.
So, you want to purchase, whether it was an F.H.A. 2 or 3K or whether it was a home [inaudible 00:06:45] loan; it's really pretty hard to purchase, right.
So, I say,
“hey, buy the place, three and a half percent down, three percent down and then when you can get everything in line, then you can do that as the refi and you can work those costs into your new loan.
To me, that makes the most sense.
Then of course, if you want to get cash out, you can do a cash out refi on any loan or rate term refi or you can even do like a key lock, right.
So, that would be something that you can do.
So, I want to answer your question a little bit longer than I wanted to on that and I apologize.
I just kind of wanted to direct you, “like hey, there's really no such thing as today's rate, it depends on you and the loan and your debt income ratios and your credit scores”.
And I kind of just wanted to talk about a little bit better about the different loans and questions that people have regarding those loans because we don't sometimes know like what do those things even mean and who are they good for.
So, you want to get started with me and I appreciate it;
how do we get started?
We can go online, to scottsloanapp.com,
You fill it out in twenty minutes or less.
Once you're done, I get a text or email alert, I’ll pull your credit, I’ll give you a call. I’ll say,
“hey, based off your application, based off your credit score, based off your debts, we’re good to go, supply all your documents.”
So, I’ll send you an e-mail; things like drivers’ license and social security card and last two or three years tax returns and W2s, last four months’ paychecks, last two months of bank statements, all pages, if you have 401K, IRA etc. and then depending on the credit report, maybe Chapter seven, Chapter thirteen, short sales, foreclosures, etc.
Once we have all that in, everything in, we’ll look at it and say,
“Hey, based off of what you provided, and I look at the lenders, here's the programs that we're going to go with.”
You don’t even know that, I do, that’s my job.
Then we submit it and then we're off to the races.
So, we tried to do this fast as possible.
If it’s a purchase, you're probably doing it in thirty days or less, if it’s a refi, we can do it as fast as basically, we get the stuff from you, submitted it, get it approved and close escrow.
So, a lot of times it's twenty one days or less.
So, thanks for watching. Once again, go to scottsloanapp.com, to get started.
I look forward to serving you.
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