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Stan "The Real Estate Man" Fikes and Rachel Nichols as they talk all things real estate in the Las Vegas valley. Get the latest information on the housing market from industry professionals with decades of experience!
Unknown Speaker 0:00
You're listening to locally produced programming created in KU NV studios on public radio K you envy 91.5 Hello to you standing real estate man. And welcome to the Las Vegas real estate rule where all roads lead to a home
Unknown Speaker 0:31
hello to you and welcome to the show. I'm your host Stan the real estate man. I'm with Vegas one Realty and I've been a realtor since 1988. My license number is 20 828. My contact number is 702-809-2949. I'm here today with loan officer Miss Rachel Nichols. Please say hello to the audience. Miss Nichols. Hello, everyone. Before we get started today, Miss Nichols please tell everyone about your company experience, license number and contact information. Okay,
Unknown Speaker 1:15
I'll start with my license number is 1699997. And my company company is fairway independent mortgage Corporation. My office is at 5598 South Fort Apache road over in Southwest near IKEA.
Unknown Speaker 1:35
And how long have you been doing our loans? Miss Nichols?
Unknown Speaker 1:39
I've been doing mortgages since 2018. And I've been in finance since 2001. Started in California, in the banking industry started as a teller worked my way up to branch manager.
Unknown Speaker 1:55
Oh, great. Now here in Vegas, what's your license number
Unknown Speaker 1:58
1699997. And your contact information is 702551951 way.
Unknown Speaker 2:08
Okay. Now, on today's show, we will talk about different types of real estate loans getting approved for search. Also, we will talk about buying and selling real estate. Miss Nichols let's talk a little bit about how you qualify a person to purchase a home.
Unknown Speaker 2:31
Okay, so first things first is I have a conversation, you know, that's the start. I feel like that's the absolute first step. A lot of people are in their heads about how to get started, you know, it's too much they've heard these rumors and stories and things like that. So I just kind of asked what their goals are, how soon they want to be in a home, how long they want to be in their home. And then I talk about kind of the qualifications, you know, help them figure out what their mortgage credit score is. If they have savings, or if they need downpayment assistance, if they're going to live in the home, or if they're not ask about how long they've been on their job or in their industry. And then at that point, we kind of determine, you know, a timeline. And so I can have them do the application, everything is virtual.
Unknown Speaker 3:28
So does that is that a long process for you to get them pre approved for a loan? Or is it short process? Or is it contingent upon how fast they get you Doc? Yeah,
Unknown Speaker 3:39
that's exactly it depends on how long how long it takes them to get me everything.
Unknown Speaker 3:45
So I assume you sometimes you have to pry them a little bit. Yeah, so
Unknown Speaker 3:48
my subtle reminders, you know, Hey, how's it going? Happy New Year, what you're doing?
Unknown Speaker 3:55
Please give me those documents so I can get you pre qualified. Yes.
Unknown Speaker 3:58
Yeah. Or I'll just ask, you know, are you still planning to be a homeowner it sometimes that that kind of pushes them a little bit?
Unknown Speaker 4:07
So is it like the new homebuyer that kind of dragged their feet or is it all buyers? It's
Unknown Speaker 4:13
all buyers. Is it? Yeah. Some people are determined, you know, they know that they've been waiting to do it. I had someone submit documents day before yesterday, but they applied last March. So Wow. Yeah. So it's just a we're dragging them. Yeah, yeah. And in their mind, they have their own timeframe. And if you communicate with me, I won't bug you. But you know, if this is your goal, and you tell me this is your goal, then I'm going to be your accountability partners. What I say
Unknown Speaker 4:41
that's great. That's great. Now, is there any cost to them? Pre qualifying? Absolutely not. No, that's wonderful. So folks, do you hear that? You can get pre qualified for a loan through Miss Nichols at no cost? That's right. That's a benefit for you to buy a home. So you said you know, good Go for it. Yeah. Now, there's a couple of acronyms that's out there that a lot of people don't understand, like FHA, conventional, and VA. Could you explain to the audience what those acronyms stand for?
Unknown Speaker 5:14
Yes, FHA stands for Federal Housing Administration. It is a type of loan that you have to it has to be owner occupied. The loan limit for that is this year, it just actually went up to $498,257. Was put you in a purchase price of around 515,000. Oh, that's great. Yeah, that's after the minimum downpayment. That's about what the loan would be. You could go higher, you know, if you put more money down, I've had people put down more if they got a settlement, but you know, they're more comfortable with FHA, the debt to income limit is higher. So it's, it's a very friendly product. For a first time homebuyer.
Unknown Speaker 6:03
Oh, great. Now, what about conventional How does everyone work? Conventional,
Unknown Speaker 6:07
if you're a first time homebuyer, you only need 3% down, you need a 620 credit score. Oh, for FHA, by the way, you only need a 580 credit score. But yes, conventional, you need at least a 620. What else you need some savings, but you can buy as owner occupied? Or you can buy an investment? Or you can buy a second home?
Unknown Speaker 6:31
No, let me ask you, if you're doing conventional as a second, do you have to put more down? Absolutely.
Unknown Speaker 6:37
minimum requirements 10% down, okay, depending on what you're buying, it may be 15. So for instance, if a condo community has more rental properties or rental units, then it may require you to put more money down.
Unknown Speaker 6:56
Okay. Now, there's some news called MMI and P. Emi. So explain those two situations. Okay.
Unknown Speaker 7:04
So MMI is linked to FHA, it's a minimum mortgage insurance requirement. They require an upfront premium or fee. And so it's included in your closing costs, something you have to pay to close on the home. And it's a set rate. So it's a percentage of the loan amount. And it's either 5.0% If you put down the minimum, which is 3.5%, or it's 5.0%, if you put down at least 5% or more.
Unknown Speaker 7:40
Now, these are fees, can you eliminate them at some point during your loan term?
Unknown Speaker 7:47
Absolutely, you can refinance into a conventional loan, once you get to 80% loan to value. So you want to if you do like, improvements to your home, and you know, or if equity just naturally goes into your home, like because of the market, then you can definitely refinance to get or you don't have to refinance. You know, you can kind of take the mortgage company and submit some documentation, a lot of them just require, you know, whatever improvements you made, and then they'll come out do an appraisal, and then if they determine that the value meets the 80% loan to value, then you're good to go.
Unknown Speaker 8:25
Now, you can also get their own stand by equity. Yes, getting enough equity in your home. Hmm. Okay,
Unknown Speaker 8:33
so a lot of people experienced this, during COVID, saw the values went up. And they had low mortgages. And so even though they put the minimum down, a lot of people experienced a lot of growth, a lot of equity in their home. And so this is a great time to refinance if they're trying to get cash out or get rid of the PMI. That's debt consolidation, you know, anything like that. Oh,
Unknown Speaker 8:58
great. Now talk a little bit about VA loans, because you know, we have a lot of military families out there looking for homes right now. Oh, yeah, we definitely want to help them.
Unknown Speaker 9:08
Yes. Go ahead. 0%. Down 0%.
Unknown Speaker 9:12
Now, yes,
Unknown Speaker 9:13
no money out a pile of money out here.
Unknown Speaker 9:18
Keep your money in your bank. Good.
Unknown Speaker 9:20
Only thing they need is closing costs, which a lot of sellers can grant you know, so
Unknown Speaker 9:26
how much can the seller pay for VA on the closing costs
Unknown Speaker 9:28
up to 6%? Wow. So they can do that. And then what else? 0% down no PMI? So no mortgage insurance? Yes. So that allows them to qualify for more home. Well,
Unknown Speaker 9:41
listen, folks, if you want to get a home super cheap or affordable. join the military. I'm sure they will open their arms for you to come into the service. Bus you'll be doing yourself a great benefit joining the military. It's a great career. My son, he, he graduated from the Naval Academy and I'm so proud of him. Oh, that's wonderful. It's just great. And he has a lot opportunities that he's achieved and received, that sort of thing. So, think about the VA loan. We're here to help you. She's here to help you. Now, let me explain to you about buying a resale home. Because we, we deal with that too. Rachel, we'll get people pre approved to look at homes in the resale market, which is absolutely wonderful. Now what I do is I acquaint myself with your home needs, your price range, your bedrooms that you want, baths, garages, location, etc. I will locate homes that fit your needs. I'll set up viewings. Once we know what you want, and we got the viewing setup, we'll get in the car and we'll run out and look at some homes. Plus, I'll take some Gatorade in case you get thirsty. Now once we find the home that you like, it's my responsibility to write the contract up and get it accepted from the seller. Once it's accepted, we go into escrow. Not escrow escrows, an entity that is sole and separate from the real estate and loan industry. They are a neutral party, which makes sure that the home goes through the process of getting close. And they will also make sure that you get a home that is free and clear of any encumbrances. Now, during this process, we have what is called a due diligence period where I have to make sure the inspections the appraisal conditions, the request for repairs are handled in a timely manner. So during that time, if I have 15 days or 20 days to do these things, I must get them done on time. Because if I don't, it will affect the contract. I also handle all the issues that might come up. Once we done all this, and we went through escrow, it's time to close. Once we close, that's the big deal right there. Because now you get the keys to your new home.
Unknown Speaker 12:47
Okay, I have a question for you. So what is your buyer's consultation look like before you get in the car? And you know, take them out? What do you ask them?
Unknown Speaker 12:57
Well, what I do is I you know, I'm normally talking to him on the phone, where I meet with him at the office, I really prefer to meet with him at the office and go over each and everything that they want in a home. Okay, and then, of course, they went to you first, and I know what they qualify for. So once I know what they qualify for, then we can narrow our search down to those types of homes, that price range in the location that they want to be. And once they are okay with all those parameters, that's when I put them in the car and go out and show them home. Okay, because I don't want to be wasting their time. And of course, I don't want to waste mine either. Both of our times are valuable. Absolutely. And you as a loan officer and myself as a real estate agent. We are here to help the buyers or the sellers. And that's our goal. We want to make sure that both entities are well taken care of. And they don't have to worry about any of this transaction. We want them to sit back and relax, go on with their daily activities and rely on us because we're going to give them 110% Of what we what we do. Okay. That way, they don't have to worry about anything. Now let's go back to the loans. Okay. Now, there's a terminology called government back. What does that mean?
Unknown Speaker 14:32
That's the opposite of private lending. So, government back means it's insured by the government. So if anything happens, the government steps in and kind of saves the day.
Unknown Speaker 14:45
Okay. So they will take care of the delinquent debt or something like that.
Unknown Speaker 14:52
They will. Let's see. How do I describe this? They insure the loan. So like the FHA, let's start, let's go back to the mortgage insurance. So mortgage insurance is due for the life of the loan. So that insurance covers the loan, if it goes delinquent, and then it can go back to the government, it can satisfy the lender. And then if it's foreclosed on, then it goes back to the government. So if the you know, if the buyer goes into foreclosure or anything like that it's handled that way.
Unknown Speaker 15:29
So they're kind of like a safety net for the lender. Yes. Okay. Yes. Okay. So that makes it strong for a buyer to get a home because they can rest assured that the loan will be backed by the government. Yeah, in case of default is less
Unknown Speaker 15:45
risk for the lender. So that's why it's more friendly, you know, for our part, all parties involved. Okay. Yeah. Great.
Unknown Speaker 15:53
So I've often wondered about the jumbo loan. Jumbo sounds like a Titanic, she explained the jumbo loan to folks. Um,
Unknown Speaker 16:04
in simplest terms, it is any amount that's over the conventional loan limit. And the conventional loan limit is, as of this year, 766,500 50,000. So you're looking at a loan that's close to maybe 790,000, I'm sorry, a purchase price. So depending on how much money is put down, if the loan is over this 766 $550 number, then it will be considered a jumbo loan. Wow. And they can be any property type. It can be, you know, if you find a condo for that much, I don't know where but somewhere in Vegas,
Unknown Speaker 16:50
zero requirement for a downpayment on mountain for jumbo loan. You know,
Unknown Speaker 16:55
there are programs, I work with brokers too. And so they have 3% down programs, depending on what your circumstances are, but 5% 10%, you know, 20% is pretty reasonable. And if you have that much money to put down, then you could fall back into a conventional loan. Okay,
Unknown Speaker 17:14
great. Great. That's good information. Now, what's the current interest rate? Oh,
Unknown Speaker 17:21
they are around seven, seven and a half. We had a little dip during the holidays, which is it's normal, I would say. And so they've kind of they're creeping back up, but they expect them to go back down. But I think they've been saying that for some time. Now.
Unknown Speaker 17:40
We're, you know, still at that rate this way better than what it used to
Unknown Speaker 17:45
be? Oh, yeah. The third things and they think exactly, yeah,
Unknown Speaker 17:49
you know, and it's always a good time to buy a home. Yes. Because, you know, everybody wants their own home. They want their own space. Yeah. So you might have to get off that fence and move forward with your real estate needs. Instead of sitting there, crossing your fingers and hoping the interest rate race gets back down into the twos and threes. Yeah,
Unknown Speaker 18:10
because right now your interest rate, if you're paying rent is 100%.
Unknown Speaker 18:15
You're not getting any return on that. No.
Unknown Speaker 18:18
And I always equated to, you know, everyone needs somewhere to live, right? And so no matter what the interest rate is, if it's yours, you don't have to worry about a landlord saying, Oh, your rents going up this this, you know, renewal period. I've had people calling me in tears during COVID Because rents were going up, they would get that call, but your rents going up $500 A month or an additional $700 A month the most I heard was 900 additional dollars. Wow. That's a hard
Unknown Speaker 18:48
pill to swallow. Oh, yeah. Yeah. She was throwing your money away. Oh, yeah. Yeah. Because you're not getting any equity whatsoever. Renting Versus owning your home, right. So that's a big deal. In life. You always want to own your home plus, you're gonna build equity. So if you got your own home and you get in six 7% equity a year, you're making money. Oh, yeah. You're making money.
Unknown Speaker 19:16
It's tangible. That's what I say. It's like if you if you took this money out the bank or your 401k or wherever you pulled it from all you're doing is putting it into a tangible asset and you can live in it you can fix it up you can it's building its own wealth,
Unknown Speaker 19:30
and you could play loud music. And, and go back and get back. You have your own barbecue without anybody complaining.
Unknown Speaker 19:39
That's right. That's our this show. You can turn this show. Yeah.
Unknown Speaker 19:43
And if you got a garage, you got a place to park your Mercedes Benz or your your jaguar or your Honda. That's right. You know, so it's always a good thing to own a home. Yes. So let's talk a little bit about listing your home For Sale. Now what I do there is, I do a free CMA, which stands for competitive market analysis, it will show the fair market value of your home. With that in hand, I will meet with you at your home. And we will discuss pricing for your listing. While I'm there, I will preview your home to give you pointers on getting your home ready for sale. Also, I will place your home in the multiple listing service for approximately 17,000 agents to have access to your home will use a lockbox for showings which will allow these agents access to your home to show your home to potential buyers. I'll use a for sale sign where applicable, which is very useful, because most people ride around during the weekend in certain neighborhoods that they like looking for homes for sale. So the set for sale sign is very useful. I advertise your home via news outlet, the internet, radio, my website, my office website, etc. I will take care of all the contract work. I'll make sure all the inspections are done. Now let's go back to loans a little bit.
Unknown Speaker 21:32
So I said the part about VA being 6% down, but I feel like I need to break that down. As far as the seller credit is concerned. It says it's unlimited. But you can go up to two points for discount points to buy down the rate. So it depends on how much you put down. But it also can go do 4% On with the addition of the 2% and discount point. So it's a calculation. It's a little complicated, but it's something that
Unknown Speaker 22:06
I figured out so you get more money down bottom line. Yes. Okay. Okay. Now, do you have any special loans for foreign agents?
Unknown Speaker 22:20
I believe at some of our broker loans, but you know, we have a bit of everything. So, for instance, we live in Vegas, where a lot of people are in the hospitality industry. And so we have w two employees, but we also have tips, you know, and so we have something called hospitality, I'm sorry, w two plus tips. It's a loan that considers your W two income, but it also considers your TIF income. Some tip income is not listed on the pay stub. Some of it you just put in your account or you know, we have a way to track it, we need some kind of way to track it. Okay. But we have programs like that we have iten programs, I think that's what you're talking about, maybe DACA is another one. We also do bank statement loans. So if you haven't filed your taxes, and you're gonna buy a home, but you run a business, or you know, you have some kind of legitimate income, we can use 12 to 24 months of bank statements. And there's a specific calculation we use to determine what income is used to qualify you. So there's ways around some things.
Unknown Speaker 23:38
So that's a little sideline of getting qualified.
Unknown Speaker 23:41
Oh, yeah, yeah. And DSCR is another one. It's called debt service, credit ratio. It's an investment product where we don't consider your personal finances, you do need a credit score of at least 660. Okay, but as long as the property appraises, and the rent covers your mortgage, you can buy a home. You have the money in your account, you have the minimum credit score, you can even close in a business name if you want, but as long as the home covers the mortgage, then you're good to go.
Unknown Speaker 24:17
Now, what about time on the job?
Unknown Speaker 24:22
We don't even consider that. Really? No.
Unknown Speaker 24:25
That's unusual.
Unknown Speaker 24:26
I know. Because the money is there. It's it's one of those things where it's an investment product. So it has nothing to do with you personally, except for your credit score.
Unknown Speaker 24:35
Now with VA and conventional and FHA is your time limit on the job typically
Unknown Speaker 24:41
is two years. If you've had five years or more, we only need one year of tax returns for conventional. But yeah, typically you went two years if you haven't been on the same job but in the same industry, or you're promoting your grad is really improving your financial situation. So say you switch industries and you make way more money, then we can get around that too. I have a, what is it? It's a Fannie Mae program conventional, where if you're a recent graduate, we use your school experience. Oh, really to qualify you as long as you get a job in that same field within six months. Oh,
Unknown Speaker 25:29
that's super sore. Explain that a little more to people that's just getting out of college.
Unknown Speaker 25:34
So if you've gone to school, and you finish, you need to have your degree, you gotta
Unknown Speaker 25:40
Yes, you hear that? They want you to get this degree, you have to get
Unknown Speaker 25:45
the degree. If you didn't work while you were in school, then we can use the your transcript. So you would turn in your, your transcripts. And it would show of course, that you had your degree. And then we use that as your work experience. And so if you get that job within six months in that same field, then you can qualify as a first time buyer under Fannie Mae. Well, listen,
Unknown Speaker 26:12
I got to show Homes Luxury show homes. So let me tell you a little bit about them. showhome number one is offered at 4 million features two storeys with open living spaces in a striking architectural design. Frame by the desert and Lake Las Vegas, with 5610 square feet four bedrooms, four and a half baths, four car garage, a lof bar and fully furnish, included as a third storey Sky Deck with panoramic lake views, interior finishes and appliances in Infinity Pool and Spa glass pocket doors for indoor outdoor living and entertainment. This bedroom suite is on the first floor guest bedroom with en suite and private courtyard entry on the first floor in a junior suite with a balcony so Jumbo. She can make the loan for absolutely, absolutely showhome number two essentially located offered at 6.5 million with the lease back with 5887 square feet, four bedrooms, 5.5 baths, four car garage and fully furnished. This luxury home features two stories with the secondary primary suites for expanding families and guests with an array of spaces for large and small gatherings in areas for quiet reflection. It also includes a detached casita infinity pool, a wet deck and Spa in a private outdoor shower. Added to the home's resort style, feel. Premium natural stone hardwood finishes seamlessly blend with the home's high end appliances and technology located 15 minutes from the Las Vegas Strip when someone now let's sum up our show today. We spoke about FHA, VA and conventional loans. I'm here today with Miss Rachel Nichols, please give them your phone number again,
Unknown Speaker 28:27
it is 702-551-9511 I'm with fairway independent mortgage, and also my Instagram I post a lot of business information on there at loans by Rachel nicole.com.
Unknown Speaker 28:42
Great, and I'm standing there real estate man. I can be reached at 702-809-2949 in my website is new home safari.com We want to thank you for listening. Our next show will be next month, second Sunday of the month at 8:30am. Please tune in. Once again, myself and Miss Nichols are here to help you we want to make everything smooth and easy for you. We want to represent you we want to give you 110% service. Thank you. Thank you. Thank you for listening to the Las Vegas real estate room I can be reached at 702-809-2949 or you can go to my website, new home safari.com And please remember, nothing comes to a sleeper with dreams.
Transcribed by https://otter.ai