Mortgage Matters

Announcer
0:00:00
This is a KUNV Studios original program.

Wesley Knight
0:00:04
The content of this program does not reflect the views or opinions of 91.5 Jazz & More, the University of Nevada Las Vegas, or the Board of Regents of the Nevada System of Higher Education.

Roland Daniels
0:00:15
Good morning Las Vegas. Welcome to Mortgage Matters.

Roland Daniels
0:00:37
I'm your host, Roland Daniels, a certified mortgage advisor with Geneva Financial. My NMLS number is 355-859. Our company NMLS number is 42056. And as always, I'm here with my fantastic co-host, Heidi Griffith. Good morning, Heidi.

Heidi Griffith
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Well, hey there. Good morning, Roland. How are you this Sunday?

Roland Daniels
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I am doing awesome. Glad to be back.

Heidi Griffith
0:01:11
Yeah, welcome back. You've been gone for a minute.

Roland Daniels
0:01:13
About two weeks now.

Heidi Griffith
0:01:14
We are glad to have you back in the studio. I am Heidi Griffith. I am also a mortgage advisor with Geneva Financial, and I'm your director of client services. My NMLS number is 224-7754.

Roland Daniels
0:01:29
Well we have a great show lined up for you today. But before we get into it, let's talk about last week, December's Path to Homeownership Workshop.

Heidi Griffith
0:01:38
Yeah.

Roland Daniels
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So we partner on the first Saturday of every month with the HUD-certified nonprofit, CPLC. And this month, the room was full and on fire.

Heidi Griffith
0:01:50
Oh my, it was, right?

Roland Daniels
0:01:51
It was.

Heidi Griffith
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It was, it was full, full. And it was just really, everybody was having a great time. Everybody was excited. And it really was a good sense of community. We had some great questions. We'll actually cover a couple of those today.

Heidi Griffith
0:02:04
We laughed, we learned, and, of course, we had snacks and lunch because I love snacks. But by the end of it, everyone received their Homebuyer Education Certificate. That actually makes them eligible for all of the down payment assistance programs we offer. We got a lot of questions answered as well.

Roland Daniels
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We did, and it definitely put a big smile on my face, right?

Heidi Griffith
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Yeah, it was beautiful.

Roland Daniels
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So it's always inspiring to see so many people taking that first step towards home ownership. So it's proof that people really do understand how important it is to act before it's too late. And if you've missed any of our workshops, don't worry. You have another opportunity coming up next month.

Heidi Griffith
0:02:46
That's right, that's right. Our next Path to Home Ownership workshop is actually scheduled for the first set. We do these classes the first Saturday of every month at CPLC They're on the corner of Maryland Parkway and Bonanza and the next class is scheduled for Saturday, January 4th Then we actually have a class on Monday, January 13th We're going to be hosting a down payment assistance homebuyer education class and that's going to be held at the Whitney Library That's located like TROP just east of Nellis.

Heidi Griffith
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And that's only an hour long class. That class is going to run from 11 to 12. And obviously, lunch, maybe some snacks.

Roland Daniels
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Are you sure?

Heidi Griffith
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I'm positive.

Roland Daniels
0:03:23
OK.

Roland Daniels
0:03:24
And we also have two additional classes being planned for January. And once everything is finalized, we'll let you know. We will share those details. But for now, it's a great time to start pre-registering for one of the upcoming classes

Roland Daniels
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that we've announced.

Heidi Griffith
0:03:41
Yep, yep.

Heidi Griffith
0:03:42
And speaking of classes and holidays and all of that kind of stuff, I want to also highlight before we get started in today's show a really good initiative. It's actually called the Title I Homeless Outreach Program for Education, or HOPE.

Heidi Griffith
0:03:55
It's from the Clark County School District. The program actually works to support students experiencing homelessness, and it helps them access resources. I am I'm kind of blown away this is the second year that we've been kind of giving information about this program and I was overwhelmed last year when we heard the statistics and it hasn't gotten any better I think the numbers have actually

Heidi Griffith
0:04:18
probably gotten a little bit stronger unfortunately. There are approximately 13,000 students not just kids but students in the Clark County School District who are considered homeless under federal law.

Roland Daniels
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Can you imagine that?

Heidi Griffith
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Yeah, it's not a good thing. And when we say considered homeless, I mean, yeah, maybe they're staying in a weekly or in a relative's house, but they don't have a roof over their head to call their own. This is super important. And with the holidays in front of us, the school district has kind of partnered with an app called Purpose, excuse me, that's Purposity and that allows you to directly meet the needs or the request of these kids for the holiday

Heidi Griffith
0:05:00
coming up. And so what you do is you download the app, you follow Clark County School District, and you can then see specific requests. So maybe one gal, you know, maybe she wants makeup or someone wants a basketball or someone wants a PlayStation or maybe just a PlayStation controller. There really is a wide range of things that you can select from. You get to pick what gets purchased and then it's delivered directly to the school district

Heidi Griffith
0:05:29
and they make sure that those kids get that stuff. So you can go to the Perpocity app and or you can contact us and we'll send you the link for that.

Roland Daniels
0:05:38
We sure will.

Heidi Griffith
0:05:38
It really is heartwarming, and I really hope that we can all come together and do as much as we can for these kids.

Roland Daniels
0:05:44
Yeah, so every little bit helps, and it's a simple way to make a meaningful impact in a child's life. Heidi, let's get in today's show. We've got some fantastic topics lined up today, including questions from last week's workshop.

Heidi Griffith
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We do, there was a lot of them.

Roland Daniels
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Yes. So, since we're going into the third week of December, let's talk about goals again, just for a bit. We know this time of the year has most people reflecting on the year ahead and even mapping out bigger goals, like buying their first home, refinancing their current ones, and just getting their financial house in order.

Roland Daniels
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The groundwork you lay now will save you time and stress later. So when it comes time to apply for a mortgage or make those big decisions, and it's all about your finances, so think of it as giving your future self a holiday bonus. I agree.

Heidi Griffith
0:06:40
I agree. And if you already own a home, this is also a great time to reevaluate your financial situation. So when we talk about the house, that means whether you want to lower your monthly payments through a refinance, tap into your home's equity for doing home projects. Maybe you've been living with cabinets that you really don't love for a long time and

Heidi Griffith
0:07:01
you've talked about maybe redoing the cabinets, maybe the countertop. Yeah, now is the time to start thinking about maybe using some of that equity if that works for you. A little effort now really is going to have a big payoff for next year and getting prepared and getting all of the information as well, right?

Roland Daniels
0:07:17
Yeah. So what if I want a new pool? Is that possible?

Heidi Griffith
0:07:20
Absolutely. It's possible. Absolutely. If you've got the equity in your home, that may be a good resource for you because we've talked about this a lot. You know, your home is a liability, right?

Roland Daniels
0:07:31
And also.

Heidi Griffith
0:07:32
But it's also an asset. That is correct. It's also an asset. And it's probably the largest asset that most people have. Don't you agree? I 100% agree. Yeah, yeah. So we're going to go into what steps you should possibly take if you're looking for a quote unquote financial tune up. And I think first up is knowing your budget, right? So what's coming in, what's going out,

Heidi Griffith
0:07:53
because we're here, the holidays are here. And I know that it's going to probably put a dent in some people's finances. So now's the time to get everything in balance by looking at your monthly expenses, identifying areas where you might be able to cut back or reallocate funds, and kind of have a game plan. You know, most of us, when we start talking about goals, especially at this time of the year, like January 1 is that number.

Heidi Griffith
0:08:16
So it's all about setting yourself up for success going into 2025.

Roland Daniels
0:08:20
Yes. And we want you to be the most successful ever. That's correct. So check your credit. Everyone is entitled to a free credit report annually from annualcreditreport.com. So, take time and look it over carefully.

Roland Daniels
0:08:36
Are there errors that need to be corrected? Are there opportunities to improve your score by paying down that credit card balances or clearing up smaller debts? Your credit score is one of the most important factors when applying for a mortgage. The higher your score, the better your terms, and that can save you thousands of dollars over the life of a loan.

Heidi Griffith
0:08:58
That's true. Why don't you give us that website address again?

Roland Daniels
0:09:02
It is annualcreditreport.com, and it'll give you all three of your credit reports. It won't give you your FICO scores, but it will give you your actual credit report.

Heidi Griffith
0:09:13
And that's typically annually, right? But in a lot of instances, annualcreditreport.com will offer, you know, sometimes monthly, sometimes weekly for free, where you can pull it. And why do they do that?

Roland Daniels
0:09:26
Sometimes there are breaches.

Heidi Griffith
0:09:27
A lot of times there's breaches, unfortunately.

Roland Daniels
0:09:29
Yes. So when there's breaches, they'll come with an offer. They'll say, well, for the next six months, you're able to pull your credit report every month or every week, just to give you an idea.

Heidi Griffith
0:09:40
Right, and that's a great tool to use. It's going to, when we say that it's going to give you all three of your reports, you've actually got to go back kind of in fourth and check the box to move on to the next report. You do. And one of those little insider tips that we like to use, especially when they are just doing the annual reports, is to pull one of those reports quarterly. So maybe pull your Experian this quarter,

Heidi Griffith
0:10:05
your TransUnion and move on that way. But I've noticed over the past couple of years that they've been pretty frequent. I'm able to pull mine almost every month as of late.

Roland Daniels
0:10:16
Yes, unfortunately, we've had a lot of credit breaches.

Heidi Griffith
0:10:20
Yeah, that's, yeah.

Heidi Griffith
0:10:22
So we've got the credit out of the way. And again, this does not give you your credit scores, but there are places that you can get your credit scores. So you've got Experian.com.

Roland Daniels
0:10:32
Yeah, and that will give you your Experian score.

Heidi Griffith
0:10:33
Your Experian FICO, right? And we've got myfico.com.

Roland Daniels
0:10:37
Yes, and that gives you your Equifax score.

Heidi Griffith
0:10:39
That gives you your Equifax. So if you wanna get your TransUnion, because those are the three, right? If you wanna get your TransUnion, I think the only place that we're aware of right now is Discover, so if you have a Discover credit card,

Heidi Griffith
0:10:51
they'll give you your TransUnion score. Those three places are gonna give you FICO scores, and those are gonna be the closest scores to a mortgage scoring model. We use the TriMerge, right?

Roland Daniels
0:11:03
Yes, that's a TriMerge system. But when it comes to Experian.com and MyFICO.com, they use the Scoring 8 model.

Heidi Griffith
0:11:11
Right, the FICO 8.

Roland Daniels
0:11:12
Okay, and that's going to be like Heidi said the closest that you can get to a free consumer score that's pretty accurate probably within 20 points of an actual mortgage FICO scoring system. So that gives you it

Heidi Griffith
0:11:24
gives you a really good idea not that credit Sesame and credit karma are bad they're just not nearly as accurate they're a great tool to kind of because they report daily creditors don't report daily do they they report monthly. So if you're seeing a change from Tuesday to Thursday, it's not because the creditor, your credit card company or your car payment company.

Roland Daniels
0:11:47
They use the Vantage Score credit model.

Heidi Griffith
0:11:52
And we may see that as an industry standard at some point, but that's not where we're at today. So yeah, just check your credit. And then we're going into the new year. So if you're setting goals and resolutions, I know a lot of us are looking at, you know, maybe saving some money. So with the holidays, obviously, we know

Heidi Griffith
0:12:09
that there's going to be probably a stretch to a lot of people's budgets. But if you are receiving a holiday bonus or tax refund, my suggestion would be to set some of that money aside for a possible down payment, maybe your closing cost, because even a small consistent savings adds up faster than you think. So we can even help you figure out

Heidi Griffith
0:12:29
how much you'll need to save based on your home ownership goals, right?

Roland Daniels
0:12:32
We can. And lastly, tackle debt strategically. High interest debt, especially credit card balances can eat away at your financial stability. Look into methods like the snowball or avalanche approach to pay down debt.

Roland Daniels
0:12:47
And this is not, it will not only improve your financial health, but it will also improve

Heidi Griffith
0:12:53
your debt to income ratio, which is another key factor that lenders will consider. That's a big one. Debt to income is a big one. So we want to make sure that we're saving. We want to make sure that we know what our credit is. We want to make sure that we're taking care of the debt in the right fashion.

Heidi Griffith
0:13:09
I know from experience, we see a lot of people who don't reach out to us until they've done what they feel is good for their credit. Because everybody, I mean, between money and credit, those are probably the two biggest fears that we see in our industry.

Roland Daniels
0:13:24
Don't you agree? They're doing it at your self-credit.

Heidi Griffith
0:13:26
Yeah, yeah. And unfortunately, when you just start paying stuff off or paying stuff down, you may not be paying the right stuff. Like, you know, I know we've seen a lot of folks who have paid off medical collections. Yep. That's not necessary, is it?

Roland Daniels
0:13:38
What about charge-offs?

Heidi Griffith
0:13:39
Yeah, charge-offs are not necessary to pay off. So we'd rather you, if you're going to utilize some of your savings or your funds, to pay it down debt, to speak to a professional before you just dive into that. That is great information. And as we go into tax season, right, and if you're getting a tax refund, this is a great time to help start planning your financial goals. Because if you're a future home buyer, that refund could actually be a really good boost towards saving for your down payment or any other expenses that come with buying a home, right?

Roland Daniels
0:14:08
Right. So, and for our current homeowners, tax time can be a chance to reassess your financial situation. So, whether it's using your refund to pay down those high interest credit cards or start maybe your own home improvement project or even build an emergency fund, which we should all have. So it's about being intentional on how you will

Heidi Griffith
0:14:31
allocate those dollars. Yeah, yeah. And at this time of the year, right, it's also a good time to get organized. I know that that's at the top of my priority list this year. So if you're planning to buy a home in 2025, having all of the information you're going to need available and handy, this is really a big one. And I know it's going to sound silly, but anytime you go in to get an assessment, to get pre-approved to purchase a home, the lender is going to require documents, right? They are.

Heidi Griffith
0:14:59
And they're all pretty basic documents, but for example, tax returns. If the lender asks you for tax returns, most of us just don't have them sitting on the top of our desk, right? So maybe we have to go into a box that's in storage or in the garage or in a closet.

Roland Daniels
0:15:14
Or you're tax prepared.

Heidi Griffith
0:15:15
Right, or you have to get with your, this is a great time to start thinking about that and getting those documents in order. So we're just talking basic stuff, like we're gonna need a month's worth of pay stubs. We're gonna need your W-2s for the past two years.

Heidi Griffith
0:15:28
So if you don't have those and you don't know where to find them in your home, you've gotta call your employer or your past employer if you're no longer with them currently, right? We're gonna need two months worth of bank statements. And we're going to always say this, all pages, even if those pages are blank.

Heidi Griffith
0:15:42
And then once you get ready to meet with a mortgage professional, you've got these documents handy and ready, because I know a lot of times we meet with folks, and it could be weeks collecting those documents just because they're not accessible to them. That is correct.

Roland Daniels
0:15:56
So we do recommend that you collect all of those documents and put them in a folder, something that you can carry that's readily available.

Heidi Griffith
0:16:04
And if you don't like carrying papers around, then you can put it on a jump drive on your computer just because we can take your jump drive and stick it in ours, or you can send us an email, or you can upload your documents through our secure portal on the app. I mean, there's just a lot of ways that we can get those, just to have them handy. And if you're considering refinancing, your tax return can be a great opportunity to reduce your debt and free up funds for closing costs.

Roland Daniels
0:16:30
The key is to have a plan and think about how these choices align with your larger financial goals.

Heidi Griffith
0:16:37
So Roland, while we're talking about all of this, let's talk about cash out refinances for a quick second, especially for folks who have equity in their homes, right? Because there's a lot of people out there that have built equity, especially over the past several years.

Roland Daniels
0:16:52
Yes. So stock market has at an all-time high, along with our equity and our properties. We

Heidi Griffith
0:16:58
are at an all-time high. Yeah. I mean, that jump in 2020 when COVID first hit, I mean, that number that year. So an average real estate market is usually single digit appreciation every year, two, three, five, maybe 7% in increase a year. 2020 brought us what in increases?

Roland Daniels
0:17:19
2020, 2021 going into 2022 was bringing us close to 25 percent year over year increase in equity.

Heidi Griffith
0:17:30
Right, so if you've owned your home for three years or so, you probably have some equity sitting in it, right? You do. Right, so maybe now could be a good time to consider refinancing, specifically cash out refinancing, because this is where you actually borrow against the equity you already have in your home.

Heidi Griffith
0:17:46
So you're essentially converting some of that value into cash, so it can be a great tool for homeowners who are looking to achieve specific financial goals, but realistically it's not a one size fits all solution. So let's really just sit with that and talk about the benefits and things to keep in mind

Heidi Griffith
0:18:02
if that's something you've kind of been toying

Roland Daniels
0:18:04
with. So with some of the benefits, a cash out refinance can provide you with funds for a wide range of needs. Many homeowners use it to consolidate those high interest credit card debts, which can free up hundreds of dollars in monthly expenses. With credit card rates often near 30%, can you imagine?

Heidi Griffith
0:18:25
Swapping out that for a much lower mortgage rate might be a big relief for your budget. Absolutely, absolutely. So with that, you take the money out of your home. So you're taking some of that equity. You're kind of taking a loan out against it. Right? You are. You're getting rid of those high interest debts. But something I want to keep in mind with that is to be careful. We don't want to pay down large credit card debt. Right.

Heidi Griffith
0:18:51
Get rid of all of that credit card debt. Now you've got that second payment, right? Because we were doing that. And then you rack up those credit card payments again. That's not good. We don't want that to happen again. No, no, because now you've got an additional payment. We got a first, a second. And now you've got the debt that you just got rid of all over again. And so that, if that's the way it's going to go, then I probably would

Heidi Griffith
0:19:12
suggest not doing that. Yes, we need to come up with another plan. Right, right. So another common use for this would be if you've, like I said earlier, if you've got some home improvements that you want to do. Roland mentioned a pool. We could actually, you know, then get you the money so that you could get a swimming pool in the backyard for summer. So whether it's updating an outdated kitchen, replacing a roof, if you are, you know, really thinking about clean energy, solar panels. It's a big thing here.

Roland Daniels
0:19:39
What about that man cave?

Heidi Griffith
0:19:40
Well, what about it? Do you have a man cave? Do you have a man cave? I don't. What would you do with a man cave?

Roland Daniels
0:19:45
That's a great question.

Heidi Griffith
0:19:46
Watch those shows that you watch.

Roland Daniels
0:19:50
Do they have a man cave?

Heidi Griffith
0:19:51
Well, you could have a man cave and watch your action shows.

Roland Daniels
0:19:54
Sure.

Heidi Griffith
0:19:54
Oh, okay, sure.

Roland Daniels
0:19:55
We could do that.

Heidi Griffith
0:19:56
So, Cash Out Refi could actually fund projects that not only improve your equity or quality of life, but also increase the value of your home. So if you're doing the right improvements to your home, right, it adds value. So you could actually do a cash out refinance,

Heidi Griffith
0:20:09
take that equity, do some improvements and make your home maybe worth a little bit more. Yeah. So it's about making your home work for you.

Roland Daniels
0:20:16
And it's not just about big projects. Some homeowners use cash out refinancing to build an emergency fund. That's smart. Cover additional educational expenses.

Heidi Griffith
0:20:27
Kids gotta go to college.

Roland Daniels
0:20:28
Right. Or even help a family member with their financial goals.

Heidi Griffith
0:20:32
Right. This is a great time if you've got adult kids and they're looking at getting into their first home, this could be a great tool actually.

Roland Daniels
0:20:39
Yes. And it can give you the flexibility to address what's important to you.

Heidi Griffith
0:20:44
Right. And we also have to understand that refinancing isn't a one-size-fits-all and it's not for everyone. And there really are a few things that we wanna keep in mind. First and foremost, it comes with closing costs, okay? So it's not free, you just don't get to do a refinance,

Heidi Griffith
0:20:59
it's going to cost you. So it would be important to factor that into the calculations so that there aren't any surprises and you know what you're looking at.

Roland Daniels
0:21:06
Right, so remember, tapping into your equity means that your mortgage balance will go up. So depending on how much you borrow, you may see an increase in your monthly payment. And if you extend the term of the mortgage, you could pay more in interest over time.

Heidi Griffith
0:21:22
That's right. That's right. And that's why it's so important to understand and have a clear plan. And like I said, you know, we don't want to take that out to pay off high interest credit cards and turn around and just rack up the debt again. So we want to change the cycle, not fall into the same cycle.

Roland Daniels
0:21:38
Right. So how do we decide if a cash out refinance is right for you? We start by looking at your goals. Are you looking to lower your overall debt payments, make strategic home improvements, or create a financial cushion?

Roland Daniels
0:21:54
Remember, it's not just about the math. It's about how this will fit into your own bigger financial picture.

Heidi Griffith
0:22:01
Yeah, yeah, and that's where we come in, right? So as mortgage advisors, we can actually help you weigh the pros and cons, calculate the cost, and figure out if cash out refinance aligns with your specific goals. And makes sense. Yeah, yeah, and we'll also talk about other options like home equity lines of credit, and you know, we'll determine together what's the best path for you. Right, so whether you're tackling credit card debt or planning that renovation. We are here to guide you every step of the way.

Roland Daniels
0:22:29
So feel free to call or text us. That number is 702-210-2057. That's 702-210-2057.

Heidi Griffith
0:22:40
Let's talk about the question of the week. We had a question in our last workshop. We get a lot of great questions. I know personally that I learn something new at every workshop.

Roland Daniels
0:22:50
We do.

Heidi Griffith
0:22:51
Yeah, it really, it's great. And this was a great question. And it came from a gentleman who was in the class and we were talking about seller credits. I mentioned them a lot in the class. They really are a tool that we utilize a lot.

Heidi Griffith
0:23:03
And, you know, unfortunately, sometimes our brains, because we talk about it so much, we assume that other people know what we're talking about. And sometimes they don't.

Roland Daniels
0:23:10
They don't. And sometimes when you hear a question from another person, it kind of makes sense and kind of clicks in your mind like, oh, that's exactly what I was thinking about.

Heidi Griffith
0:23:20
Yeah, yeah. And so seller credits are really a great question because they can be a game changer for buyers, but understanding how they work and where they're available really is important. So seller credits, or sometimes you'll hear them referred to as seller concessions, are the seller agrees to give you a portion of, you know, their proceeds or a dollar amount at closing. So you purchase a house for $400,000, you ask for seller concession, seller agrees to

Heidi Griffith
0:23:49
give you $5,000, he's not going to hand you a check or some cash for five grand. You're going to see that at closing, right? And these costs can be used for things like your appraisal fee, title insurance, taxes, insurance. Really, it's just a way to reduce your cost and all of those out-of-pocket expenses at closing.

Roland Daniels
0:24:11
Right. So we use seller credits all the time, and we use it as a tool to help our buyers save money up front. And in today's market, we are seeing seller credits used in a lot of scenarios, especially when it comes to properties that have been on the market for a while. Or the seller is motivated to close quickly.

Heidi Griffith
0:24:32
And yeah, and that's a great one. You know, if the seller's ready to go, even if they haven't told you that they're ready to go, there's a lot of indicators, right? Have they already moved out?

Roland Daniels
0:24:40
They're ready to go.

Roland Daniels
0:24:41
That is an indicator.

Heidi Griffith
0:24:42
Yeah, absolutely.

Roland Daniels
0:24:43
But if it's a hot market with multiple offers, the seller might not be willing to provide those seller credits.

Heidi Griffith
0:24:51
So it all depends on the situation. It does, it does, and your real estate agent will have a much better feel. They'll know if the listing agent has told them that there's, you know, been a lot of activity on the property, if there's multiple offers. I mean, in those instances, sellers may not be willing to give a credit, but we are of the thought that if you don't ask, the answer is always no. The answer is always no.

Heidi Griffith
0:25:16
Now, your realtor will help guide you with that, but we are really seeing some great stuff happening with using this strategy, because what we've done over the past couple of years is we've actually paired seller credits with down payment assistance.

Roland Daniels
0:25:32
That is correct.

Heidi Griffith
0:25:33
So if we're doing a down payment assistance loan, the down payment assistance program, depending on the program itself, is going to provide the buyer anywhere from 2% to 5% in down payment assistance, right? That is correct. Right. What about the seller credits? So then if we've written up and had the seller accept the fact that they'll provide seller credits, we can take those seller credits along with the down payment assistance. The down

Heidi Griffith
0:25:59
payment assistance will cover just what it says, the down payment. And a lot of times, depending on how the loan is structured, some of that money could actually be also used for some closing costs. So if we were using a 5% down payment assistance, the minimum down payment required for FHA loans is-

Roland Daniels
0:26:16
Is 3.5%.

Heidi Griffith
0:26:17
Is 3.5%, so we still have 1.5% that we could apply. Yeah, we could apply that towards the closing costs, right? Now, if we've got an additional seller credit, we could virtually apply that to the remainder of the closing costs. So I'm going to tell you about a specific scenario. Roland structured this file. This really is a really feel-good file. Our client had money in the bank, right? Yes. She had money. How much did she have saved? I want

Heidi Griffith
0:26:44
to say probably just around 50K. So she'd done her work and socked away money and she had money saved. She still utilized down payment assistance, right? And she had the full allotment of seller credits. So how much did she have to come to at closing at the title company before it funded recorded and she got her keys? What was her out of pocket cost? Out of pocket cost was $5,000. She came in with five and that was her earnest money. That was her earnest money deposit. And she had money in the bank. And she had money in the bank. So tell me this so that everybody understands because it sounds too good to be true. I promise you it happens and we've seen it happen a lot in a lot of instances.

Heidi Griffith
0:27:22
Time and time again. Right and in a lot of instances you may have to come in with a little bit more but with utilizing those seller credits on top of the down payment assistance you're going to be coming in with substantially less, right? That is correct. So that $5,000 that she came in with was her earnest money deposit.

Roland Daniels
0:27:39
It was.

Heidi Griffith
0:27:40
So she already had that sitting in title. We've talked about that. So right, so you do your earnest money deposit up front. It goes to the title company. It sits in an escrow account till you're ready to close. If you're not getting any seller credits,

Heidi Griffith
0:27:53
you're not using down payment, that money is then applied to your closing cost at the end. She came in, that's the only thing that was applied, was that $5,000.

Roland Daniels
0:28:01
Well, remember she had to pay for the appraisal and the home inspection. Right, and at that time, I think it was right around $1,100. Right? So she actually got money back at closing. So imagine buying a $500,000 home with less than $5,000.

Roland Daniels
0:28:18
It's crazy.

Heidi Griffith
0:28:19
It's crazy.

Heidi Griffith
0:28:20
And it works.

Heidi Griffith
0:28:21
It works.

Heidi Griffith
0:28:22
It really does.

Heidi Griffith
0:28:23
It does.

Heidi Griffith
0:28:23
I don't know if you've noticed, but I just looked at my watch and we're out of time. We are out of time

Heidi Griffith
0:28:24
Wow, we talked about a lot So we hope today's show helped clear up some of your questions and gave you a better understanding Towards steps to take so whether you're thinking about refinancing whether you're thinking about seller credits all of that kind of stuff I want to thank you for hanging out with us this morning and don't forget you can actually call our tech test and pre-register for Any of our January classes and I'm pretty sure with the start of the new year, people setting their goals,

Roland Daniels
0:28:52
they're going to fill up fast.

Heidi Griffith
0:28:54
Yeah, the classes will because everybody starts talking about goals in 20, you know, at the beginning of the year, New Year, new goals, all of that kind of stuff. So, yeah, I bet those classes are going to be full.

Roland Daniels
0:29:04
Just two weeks away.

Heidi Griffith
0:29:04
Yeah. And if you're looking for a way to give back this holiday season, really the Clark County School District Title One Hope Program through Proposody. It really is an incredible way to make a difference for homeless kids right here in our community. So if you'd like to help, you can call our Texas. We'll get you the link and information. Our number is 702-210-2057. Again, that number is 702-210-2057. Thanks again for tuning in to Mortgage Matters. Have a fantastic Sunday.

Roland Daniels
0:29:32
And until next week, remember, stay true to yourself and your mind. And until next week, remember, stay true to yourself and your mind.

Roland Daniels
0:29:43
Bye!

Transcribed with Cockatoo