Mortgage Matters: Frequently Asked Mortgage Questions You Didn't Know You Needed to Know

Roland and Heidi discuss the importance of voting and announce an upcoming homebuyer education class on November 2nd, in collaboration with CPLC. The class, from 8:30 am to 3:00 pm, covers home ownership, budgeting, and credit, and includes a raffle for UNLV football tickets. They emphasize the difference between pre-qualification and pre-approval, highlighting that pre-approval involves thorough verification and is more reliable. They also discuss additional home buying costs such as earnest money deposits, home inspections, appraisals, and closing costs, which typically amount to 4% of the purchase price. 

What is Mortgage Matters?

Mortgage Matters is your go-to show for all things home financing. Join Roland and Heidi as they break down the ins and outs of the mortgage world. From first-time homebuyers to seasoned investors, we’re here to guide you with expert insights, real talk, and the latest market trends. Whether you're looking to buy smart or refinance right, Mortgage Matters is your trusted source for smarter decisions and financial freedom. Tune in and take control of your home financing journey.

Wesley Knight 0:00
This is a Kun V studios original program. The content of this program does not reflect the views or opinions of 91.5 jazz and more the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education.

Roland Daniels 0:43
Good morning Las Vegas. Welcome to mortgage matters. I'm your host, Roland Daniels, certified mortgage advisor with Geneva financial. My NMLS number is 355859, company. NMLS number is 42056, and you know what time it is, so grab that cup of coffee, and let's do this. Of course, I'm here this morning with my fantastic co host, Heidi Griffith, good morning. Heidi. Well,

Heidi Griffith 1:11
good morning. Roland, happy Sunday, everybody. I'm Heidi Griffith. I'm also a mortgage advisor and your Director of Client Services. My NMLS number is 2247754, thank you so much for tuning in this morning. We'd like to give a quick shout out to our always amazing engineer. Wes definitely but before we jump in, we're gonna add a little civic duty into today's mix. How about we do that? Roland,

Roland Daniels 1:38
absolutely so before we get started and jump into the mortgage side of things, let's talk about something that really makes a difference in our community, which is voting. Yes, early voting has already kicked off, and it's going strong. We voted last Sunday. We did. We did. Remember, early voting runs until November the first, and of course, Election Day is right around the corner on November the fifth, so you can even register all the way up to election day if you haven't already. So no excuses. This is your opportunity to have your voice heard, whether it's voting early, or maybe you're doing it by mail or in person on election day. That's

Heidi Griffith 2:25
right, that's right. There's nothing more important than being part of the community, and voting is one of the biggest ways that you can do that.

Roland Daniels 2:33
Agreed? So now, so let's pivot to something Hattie, that that both of us really are excited about we are and so Saturday, November the second, we are hosting, in collaboration with CPLC, the path to home ownership. This class will run from 8:30am to 3pm with the doors opening usually around 820 it's going to be held at CPLC, which is located at 555, North Maryland Parkway, right on the corner of Maryland Parkway and bonanza.

Heidi Griffith 3:08
This really is a great class. It has something for everyone. I just want to kind of point out while we're sitting here and talking about our homebuyer education class, yes, that this class is special because we have a raffle, don't we?

Roland Daniels 3:19
Do. So we are raffling off two tickets to support UNLV football game, and it looks like it will be on November the 16th. That's the San Diego State game. It is the San Diego State game. They

Heidi Griffith 3:33
are kicking butt this year. The best they've ever been, huh? Yeah, if you attend the class, you're automatically entered into the raffle. Someone's gonna walk out of class on Saturday the second with two tickets to UNLV at Allegiant stadium, and the rebels are crazy. The

Roland Daniels 3:49
rebels in an awesome season, we were ranked for the first time in history of the UNLV program. I think we made it all the way to ranked number 25 in the nation just a couple of weeks ago.

Heidi Griffith 4:03
Hopefully we make that happen again. We've got a lot of great games ahead of them. The San Diego State game that we've got tickets to give away should be an excellent game. I am super excited. Yes, Lee, and if you haven't been and you want to get some tickets and you want to learn about home ownership, our home buyer education class on the second because it really is a class that has something for everyone, right? It does. The class is HUD certified, so you've got reliable information there. And it's not just for first time home buyers. It's like you know whether you're buying your first home, whether you're buying your fifth whether you own a home and you're thinking about investing in real estate, this workshop really does have value for everyone. Plus everyone who attends receives their home buyer education certificate, and that's going to make you eligible for all of the down payment assistance programs that we offer, plus you'll be entered into the raffle we were talking about. So

Roland Daniels 4:55
exactly we're diving into the tools and resources for buyer. At all stages doing this workshop, including down payment assistance. But if you don't need down payment assistance, that's fine as well. So if you have your eye on a new home or need a little help in getting there, this is the place to learn how to get access to the different resources that are available to you. We're going to keep this workshop interactive. There will be plenty of opportunities to ask your questions throughout the day, and we encourage you to speak up. We're all here to make sure that you you leave with as much useful knowledge as possible. And sometimes the best learning comes from questions from other people.

Heidi Griffith 5:42
It's so true, right? I think that I walk away from every class that we participate with with actually new knowledge for myself. So getting there asking the questions that maybe you have or you didn't even know you have until you got there. And beyond just learning about buying a home, we cover a lot of important topics. We talk about budgeting and credit. We break down what makes a strong budget. We talk about how getting you know if your credit isn't in perfect shape, how to get it there, and how to plan for not only buying but also maintaining a home, it's more than just a mortgage payment. You've got maintenance, you've got insurance, property taxes, and we're going to help you plan for all of that.

Roland Daniels 6:23
Yes, we want you to be the most successful homeowner possible. Yes, we do, and we will have all of the experts joining us, and we'll be covering the mortgage the pre approval process. That's you, right? And there will also be a realtor to walk through the home buying portion. There will be a home inspector, a homeowners insurance agent and a HUD certified counselor to guide you through home ownership. Absolutely

Heidi Griffith 6:48
and again, I mentioned the HUD certified counselor when we first started talking about the class. You've just said it again. Why don't you tell us what exactly a HUD counselor is and what kind of value they bring, of course,

Roland Daniels 7:01
so as a certified housing advisor approved by the Department of Housing and Urban Development, HUD counselors provide an unbiased guidance, and they are there to help ensure that you understand all of the options that are available for you. And we will be discussing budgeting to down payment assistance programs, and they act in your best interest without trying to sell you anything. That's a big one, it is, and whether you're a first time home buyer or maybe you just need a clearer understanding of the steps ahead. A HUD counselor is there as a valuable resource that will help you make informed and confident decisions

Heidi Griffith 7:43
absolutely and this is just, this is one of those services that's available to all homeowners. HUD, put this together, and those resources are there, but not a lot of people know about them. So always reach out if you're more comfortable talking about the process prior to meeting with a professional meeting with a real estate, professional meeting with a mortgage, professional HUD counselors are there as your advocate. So with this class, I really, this is just, I this is the biggest class that we do. This is the, you know, I guess, most important class that we do. It's the most in depth class, for sure. You know it's from 830 until 3pm it does cover everything, and you're really just not going to find this much expertise under one roof. Very often. We understand that buying a home can feel really overwhelming and maybe even scary, but having the right people in your corner can make all of the difference. Knowledge is power, and we really are passionate about education and helping you give you the knowledge you need to become a successful homeowner, right? And listen. You know, we know some people might be nervous about where they stand financially, but let me assure you, this is a judgment free zone. We're here to help people understand how to improve, not to criticize. Every single journey starts somewhere, and everyone in this class is in the same boat, wanting to learn and grow. We're all about making you feel supported no matter where you're starting. So

Roland Daniels 9:13
even if you bought a home before the market changes, program changes, they do. And this workshop is the best way to get the information that is relevant in today's market?

Heidi Griffith 9:24
Absolutely, yes, yes. So seriously, the path to home ownership is more than just a class. It's a tool kit for your future. No pressure, just information to help you make the best choice for you and your family. By the end of the day, you'll not only understand the process, but you will have a clear roadmap for the next steps you need to take. You'll know when you need to work what you need to work on, who you need to talk to, and exactly how to get the ball rolling. And the fact that it's from 830 to three, like we said, that gives us plenty of time to really get into everything. And you. Yeah, and you're gonna walk away with so much knowledge. There's gonna be breaks throughout. There's gonna be lunch. So why not fill your belly while you're filling your brain? So it's not just lecture after lecture after lecture. We really get in there.

Roland Daniels 10:12
All right. So how should you prepare? What do you bring? All we ask is you bring an open mind, a desire to learn and a willingness to engage, everything else will be provided for you. Lunch is on us. So if you have any questions about the November 2 path to home ownership workshop or would like to register, we're always here to help. All you can do is call or text us, that number is 702-210-2057 that's 702-210-2057

Heidi Griffith 10:51
and remember, if you show up to this class, you're going to be registered or entered into the raffle for the UNLV versus San Diego State tickets on Saturday, November 16.

Roland Daniels 11:01
That's right. So we're kicking off a brand new segment today. Heidi, we are

Heidi Griffith 11:06
this is gonna be a great segment. We'll address questions people often overlook, but they're important for your journey to home ownership. And get this, we decided to title it frequently asked questions you didn't know you needed to know.

Roland Daniels 11:21
So let's talk about something that comes up all the time, pre qualification versus a pre approval. And I think a lot of times people get these two things mixed up, but it's pretty important difference, right?

Heidi Griffith 11:36
It is, it is. And so they might sound similar, but they're definitely not the same thing, and knowing the difference can really impact your home buying journey. So let's start breaking it down. Why don't you give us what you got?

Roland Daniels 11:47
Roland, okay, so first, let's start with the pre qualification. We talk about a pre qualification, and what it means is, sometimes it's just an estimate, kind of a quick look at what you may be able to afford, you tell a lender some basic information, such as, how much do you make per month? Maybe you'd give them a ballpark figure on your debts, but it's just really scratching the surface right.

Heidi Griffith 12:14
Just surface level, right? It's kind of like guessing if your budget can handle a new car just by looking at your paycheck. So basically, you call, you know, Mr. Or Mrs. Lender on the telephone and you're like, hey, I want to buy a house. I make, I don't know, $5,000 a month. I've got, I don't know, maybe I have $2,000 in debts a month. Are you sure, Mr. Buyer, that's pretty close. Okay. Oh yeah, sure. Well, based on the information you gave me, you might be able to qualify for this. It's not, it's not, it's it's really nothing. It doesn't even it means nothing. There's no verification of documents. Nobody's looked at your credit report. You're just giving them information, and they're trusting the information you gave them is completely accurate, and that's why they're easy and quick, but also really risky,

Roland Daniels 13:01
exactly, and that's why we always say the pre qualification can be misleading and it's not a guarantee. You may think that you're ready to make an offer, but then when the time comes and you actually apply for the mortgage, you could find out that you can't even get the loan that you thought that you could. So this can put buyers in a tough spot, especially if they're already falling in love with a home, yeah,

Heidi Griffith 13:27
because there's nothing worse than thinking you're all set, right? You put in an offer, and then you have it fall through because the numbers really didn't jive. So it's not only emotionally exhausting, but it can also hurt your standing in a competitive market, because sellers really don't want to deal with shaky offers, and they want to know that you're serious and that you're actually qualified. That

Roland Daniels 13:46
is correct. So Heidi, let's flip the script and go to the pre approval, right? So

Heidi Griffith 13:53
we talked about pre qualification, right? So now we're going to talk about pre

Roland Daniels 13:56
approval. Okay, so a pre approval is more like getting that green light, right, right. So this is where we verify everything. We verify your income. We will ask for your paycheck stubs. If you're paid on a weekly basis, we'll ask you for your last four if you're paid bi weekly or semi monthly, we'll ask you for your last two paycheck stubs. So we want a month's worth. We do so. And then we look at your assets. We will take a look at your credit report. You provide the documentation like we said, paycheck stubs. Will need your last two months of bank statements, all the pages, W twos and tax returns for the last two years. And then your lender will run a credit check. And then we'll look at all of the debts that are on your credit report. So it's a much deeper process, and it's worth it, because at the end of it, you've got a letter that says this buyer is financially ready to buy and qualifies for this amount, and it makes you stand out. To the seller,

Heidi Griffith 15:00
it does. It's really like having your financing almost locked in with a pre approval. You're not just guessing. You're working with real numbers. Everything's been verified, and sellers see that and take your offer far more seriously, right?

Roland Daniels 15:13
They do. And sometimes, if you already have that pre approval, we can close in as little as two weeks,

Heidi Griffith 15:20
because, again, let me, let me just break in really, really quickly right there, because a lot of times with files, depending on where the people are and what time we're looking at. Now, if you you called us on the phone and said, I found a house, obviously we couldn't do this. But if you started your pre approval process early, which we highly recommend, right? We do. Don't put the cart before the horse, we actually will put the file through underwriting, and an actual underwriter will look at the file, so that when you go out and put an offer on a property, once it's already been through underwriting, you're there. I mean, that's a really, really solid offer. You know, moving forward, that the underwriters giving you the green light to move forward. Yes,

Roland Daniels 16:02
and we do submit everything to the underwriters, so you have a full decision made on your file. That's right, plus it gives you the confidence to make an offer without worrying about the financing that will fall apart later in the transaction. And honestly, Heidi, that's why we only issue pre approvals, right? Yes. So we want our clients to to be successful in this process, to avoid surprises and feel confident. The whole idea is to get you prepared, so when you find that house, you're ready to make it yours.

Heidi Griffith 16:39
Yeah, I couldn't agree more, and it shows sellers that you're actually serious, and you can actually purchase their home. That's

Roland Daniels 16:47
right. So if you have any questions, feel free to reach out. You can call or text us at 702-210-2057, that's 702-210-2057, so we spend a lot of time talking about down payment assistance, and let's get into something other than some of the other costs involved when you're buying a home. Because, you know, it's not just about having enough money for the down payment. There are a few other costs that buyers should be prepared for, right,

Heidi Griffith 17:22
right? So it's not just down payment. Down Payment Assistance. Most people, you know, when we think about buying a house, we think that down payment is all that we've got to pay for. Or in some instances, we think that, and it's not so buyers focus so much on the down payment, they don't realize that there's other things that are going to pop up. And we don't want anyone to be surprised when they get to the closing table. So let's start with you know, one of the first things that you need, and that's your earnest money deposit.

Roland Daniels 17:49
Good call. So when it comes to the earnest money deposit, it's kind of like your way of showing the seller, hey, I'm serious about buying your home. Think of as that deposit that says I am in so it's typically about 1% of the sales price. So we're talking about a home of maybe $400,000 1% is roughly $4,000 so the money goes into escrow at a title company, and eventually it will count towards your closing cost or the down payment, right?

Heidi Griffith 18:24
So that money, so you put, let's just use that $4,000 on that $400,000 house, you wire the money to the title company, and it's held in escrow when you get ready to close, that's credited back and applied to whatever monies you needed at closing, right? It is right. So it's basically just a sign of good faith, and it's something that's really important to have ready to go, because this is one of those things. This is the money that you're gonna need, even prior to closing. Right at the beginning, you make an offer, you've gotta have that. You've gotta have it accessible. So here's another question. Let's just say I am getting assistance with down payment assistance, and maybe I don't have all of my earnest money deposit. If I need 4000 let's say I have 2000 saved. Can I get a gift from, say, my mom or my aunt or uncle to utilize that for my earnest money?

Roland Daniels 19:19
You sure can. Oh, you can. Okay, good. And we can have those funds wired directly to title, right,

Heidi Griffith 19:24
right? So we can use gift funds for your earnest money. We sure can.

Roland Daniels 19:29
And you know, Heidi, another common question we get is, what happens to the earnest money if the deal falls through? A lot of people worry that they may lose that deposit if things don't work out. Man, that's

Heidi Griffith 19:41
that's a great point. So here's how it works. If something falls through because of contingencies, contingencies that are in your purchase agreement, such as home inspection shows that you know there's some major issues of the property, or the appraisal doesn't come in at the value that you wrote the. Offer at most contracts have protections in place to allow you to get your earnest money back. But here's the really important part. As a buyer, I want you to understand the terms in your purchase agreement, if you don't know, ask and work closely with your realtor to make sure that you're protected every step of the way, absolutely,

Roland Daniels 20:23
and that's why working with the right realtor and having a solid team is key. And then there's also the home inspection. This is another key cost, and it is optional, but we always highly recommend it. Definitely,

Heidi Griffith 20:38
definitely. Home Inspections are all about peace of mind. And I think another important thing to mention here is that buyers should be present for the home inspection, if that's possible for them, right?

Roland Daniels 20:49
Of course, but by being there means you get to see everything first hand, and you're able to ask questions. The inspector will point out both major concerns and smaller maintenance items, and it's such a great opportunity to really understand what you're getting to and with your home is not just about the big red flag. Sometimes the small things can add up too. So being there gives you a much clearer picture,

Heidi Griffith 21:18
sure, plus, it helps you learn more about the home itself, things like where your shut off valves are, how your systems work, and maybe even any small repairs you might want to keep an eye on down the line. So really, is an investment, and it's not just about avoiding surprises, but how to care for your future home, right?

Roland Daniels 21:39
It does, and trust me, that's money well spent, because it's all about making sure that you're not buying a house with big problems that can turn into costly surprises. Exactly,

Heidi Griffith 21:52
you better, better, know, up front, and then there's the appraisal, right? So you've got your home inspection, and then you've got to have money for your appraisal, because that's actually required by your lender, and it's there to make sure that your home is worth what you plan on paying for it, because lender is not going to give you money on a house that doesn't have the value. So if you're back to that $400,000 house, and the appraisal only comes in at $390,000 the lender is only going to loan you money for $390,000 Correct? That is correct. So the appraisal usually runs, what about six to $900 right? It does absolutely.

Roland Daniels 22:34
And speaking of other costs, let's talk about closing costs. Closing costs include things like title fees, loan origination fees, insurance and basically all of the cost involved in financing and finalizing your loan here in Clark County, we estimate the closing costs should be somewhere around 4% of the purchase price. So on a $400,000 home, that's roughly $16,000 it

Heidi Griffith 23:02
is. And I know that that sounds like a lot, right? But we try and estimate highs so that you have no surprises. And keep in mind sometimes we can get the seller to contribute towards these costs, or we can use some down payment assistance funds to help out here as well. But it's all about planning so that when you're ready, you're prepared, and there aren't any last minute surprises,

Roland Daniels 23:24
exactly, and that's really what we're here for, making sure you understand all of the costs, not just the down payment, because buying a home is a big deal, and we want you to feel ready every step of the way.

Heidi Griffith 23:38
I agree. I agree. So if you're thinking about buying. Just know that there's a bit more to plan for beyond your down payment. But with the right the right preparation, it's really manageable, and we're here to walk you through every part of

Roland Daniels 23:50
it. Heidi, you couldn't have said it any better. So if you have any questions about these costs or want to have a deeper dive in what they may look like for you in your own situation, you're always welcome to reach out to us. You can call or text us at 702-210-2057, that's 702-210-2057, well, it looks like our time today is up, and we hope you've enjoyed today's conversation and learned a little something that helps make homeownership, your home ownership journey, a bit smoother, absolutely

Heidi Griffith 24:29
and remember, buying a home just isn't about the numbers. It's about making a decision that works for you and for your family, and we're here to help you every step of the way. So if you have questions about anything we talked about today, whether it's getting pre approved, whether it's understanding closing costs, or just how you get started, we welcome you to reach out. You can call us a tech or text us. Our number again is 702-210-2057, that number is 702, 2210, 2057,

Roland Daniels 25:03
that's right. So whether you're just starting to think about buying or you're ready to jump in, we are here to answer your questions and help you take those next steps with confidence. And don't forget, we'll be back next Sunday at 7:30am right here on K, U, N, V, 91.5, stay informed. Stay confident and remember, stay true to yourself and your mind. Bye.

Heidi Griffith 25:32
Have a great weekend. You