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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!
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This is a k u and v studios original program.
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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.
Unknown Speaker 0:16
Hello to you, Stan, the real estate man. And welcome to the Las Vegas real estate room where all roads lead to a home
Unknown Speaker 0:37
Welcome, welcome. Welcome to our show. The Las Vegas real estate room. Standard real estate man. I'm with Vegas one Realty and I've been a real distance 1988 My license number is 20828 and I can be reached at 702-809-2949. I'm here today with my supreme loan officer Miss Rachel Nichols. Please say hello to the audience. Miss
Unknown Speaker 1:08
Nichols. Hello, everyone. Happy Sunday.
Unknown Speaker 1:11
Great and welcome here. Before we get started today, Miss Nichols please tell everyone about your company experience license number and contact information.
Unknown Speaker 1:21
I work for fairway independent mortgage. My office is off of Fort Apache and Russell near the IKEA if you're familiar with the South Vegas southwest Vegas area, my license number is 1699997. My cell phone is 702-551-9511. And I am on Instagram business page. It is at loans by Rachael nicole.com. I've been in finance since 2001. I have been in mortgages specifically since 2018. And I love it I love what I do I specialize in downpayment assistance, credit building, you know anything that I can help to get people into the home into those keys.
Unknown Speaker 2:13
That's super, and I understand you are licensed in several states to is that correct?
Unknown Speaker 2:18
I am I'm licensed in six states total California, of course, Nevada, Tennessee, Arizona, Georgia, and Texas. So
Unknown Speaker 2:29
folks, if you're interested in homes in those locations, she can definitely help you. Yes. And also I have referral people. I have a network of people in all the states. So if you're buying in Alaska or New York, and you need a realtor to help you, I can provide that for you. Yes,
Unknown Speaker 2:49
my company is licensed in all 50 states so I can refer to yes,
Unknown Speaker 2:53
that's great. So you know, we got you covered yet. You know, we're gonna try and get you covered in Costa Rica, because she just came back from Costa Rica. I know she was down at trying to set up some loans. I
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was you know that a lot of real estate down there. It's beautiful. It
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is beautiful. I would love to retire Costa Rica myself. Yeah.
Unknown Speaker 3:12
Michael Jordan has a home there. We saw up on a hill. I don't know if you can get that one. But we can work on that. Yeah. Well, maybe
Unknown Speaker 3:21
I could buy the door. Maybe Yeah, folks. On today's show, we're going to talk about different types of real estate loans and getting approved for such. Also, we'll talk about buying and selling real estate. So let's start talking about different types of loans. Let's start with FHA. Go ahead and explain FHA to potential buyers.
Unknown Speaker 3:44
So FHA is for primary residences only, which means you have to live in the home for at least 12 months. It is the most friendly first time buyer loan, so it's the most forgiving. So with that the minimum FICO score is a 580. So it is not a seven anything, you can buy a home with a 580 credit score, the minimum downpayment is 3.5% of the purchase price. So that'll that amount will depend on how much you're looking to purchase or how much you qualify for and then the loan limit is $498,257. But I put your purchase price with a minimum downpayment at about 515,000. So there are plenty of homes out there for that price range and lower. The inventory is picking up right. Yes, okay. Okay. So yes. And then, you know, like I said, it's the most forgiving so if you've had a bankruptcy, you know, you can still purchase a home two years after your discharge date. Short Sale three years. And foreclosure is a four year waiting period. So, like I said, a lot of, you know, life happens when so when it does, it's not the end of the world, you just have to wait a little bit, get yourself settled. And then when you're ready, you can move forward.
Unknown Speaker 5:17
And of course, you know, you need some guidance, Rachel can definitely show you the right path to take. So you can qualify for an FHA. Now, FHA has what is called mortgage insurance premium. Explain that a little bit.
Unknown Speaker 5:32
So a mortgage and mortgage insurance premium is what is required when you don't put down 20%. It protects the lender, and in case you default on the loan default means you stop paying it or you know, you go into shorts, short sale or foreclosure. And so it is required for FHA, for conventional which we'll get to is not required when you reach 20%.
Unknown Speaker 6:01
Equity. Now, can you boost that mortgage insurance premium out at some point in FHA, you
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would have to refinance to get out of it into a conventional loan. Yeah. Okay.
Unknown Speaker 6:13
So let's segue into conventional go ahead and explain what conventional loans are.
Unknown Speaker 6:18
Okay. So conventionals are, I would say, for the more established borrower, I always say that we're funding borrower
Unknown Speaker 6:29
Don't worry, I can't say seafood.
Unknown Speaker 6:34
Yes, conventional. It requires 3% downpayment for first time homebuyers and 5%. If you're a repeat buyer, and that's, you're considered a repeat buyer, if you're buying if you're you haven't owned a home in three years or more. So if you sell a home and you want to buy another one within that three year period, then you're not considered a first time homebuyer until you're past that three year period. The minimum FICO score is a 620. And no higher than FHA, yes, yes. Yes. So it's, the requirements are a little more because the loan amount, the minimum loan amount is 766,005 50
Unknown Speaker 7:21
was no higher. Yeah. A little more with conventional? Absolutely,
Unknown Speaker 7:26
absolutely. And these are the the requirements for if you're buying a primary residence, or you're going to live in the home. Now, if you wanted to buy a second or vacation home or a rental property, then the downpayment requirements are different. So a minimum downpayment for investment properties is 15%. Depending on the property, it may be 20. So it just depends on the status of the property. And then for vacation homes, it's 10 to 15%, down. So if you're looking to purchase, you know, for yourself, then this is another way to go. It does require things like reserves or savings. So if you have a 401 K, or stocks or anything like that, that helps you to qualify. And I will say, you know, although these are the minimum requirements for these programs, it's not an automatic approval. So you even though you have a 580 if you have a bunch of collections or, you know, recent, this or recent that, you know, that increases your risk. And so just keep that in mind when you're applying. Okay,
Unknown Speaker 8:40
so let's talk a little bit about VA loans and what is going on with the VA system.
Unknown Speaker 8:49
Okay. VA loans require that you live in the property. So it's the same 12 month requirement, and then you can convert it into a investment property if you like. If this is your first time purchasing, there's no down payment required $0. If it's not your first time, they have what's called a repeat funding fee. And so it's a percentage depending on a few factors, but basically, it's it's a downpayment. no mortgage insurance is required. So that requirement for FHA and conventional does not apply here. The VA has worked it out where you don't have to include that in your mortgage payment. And that can actually save you a few $100 a month, depending on your purchase price. The minimum FICO score is 580.
Unknown Speaker 9:48
So that's just about the same as FHA. Yes, uh huh.
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And the maximum loan amount listen to this is $2 million. Wow.
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Okay, so I'm gonna go join the service when I leave here.
Unknown Speaker 10:03
I don't think they're hiring. No.
Unknown Speaker 10:08
I think I'm past that time anyway, me too. did make me a dishwasher for sure. Okay. So that's not bad. Yeah FHA, conventional and VA. Now, do you do refinancing I do
Unknown Speaker 10:23
I do. I do purchases and refinances I do he locks. I do a bit of everything downpayment assistance.
Unknown Speaker 10:32
Yeah, you use the word he like a lot of people might know what that stands for. So please, explain HELOC.
Unknown Speaker 10:39
HELOC is a home equity line of credit. And what that is, is it's a line of credit attached to your home. So it is a lien against your property. And it's based on the equity you have available. So say you bought a home for 200,000. And after two or three years, the value went up to 400,000. Well, that means you have 400 that I'm sorry, $200,000 in equity. So you can access a portion of that without refinancing your rate. So, you know, a few years ago, people were getting 2.5 2.75 They don't want to touch that. That was a good old day. Oh, yeah. Oh, yeah. That was only three years ago. Can you believe that? But yeah, so if you don't want to touch your interest rate and your payment, you want to keep that low, then you can access funds by doing a home equity line of credit. So
Unknown Speaker 11:38
that might be a good idea for some folks to do that and buy rental property.
Unknown Speaker 11:42
Absolutely. Yeah, absolutely. A lot of people do they use it for many different things. You know, if they want to fix up their home and sell it for to upgrade. That's something that they do pay off debt. send the kids to college, you know, the whole thing. Anything you need medical expenses. Yeah. Yeah. Anything you need, you can access your funds that way.
Unknown Speaker 12:06
Well, I can definitely see my another property to make more money. Oh, yeah, that would make all the sense in the world. Now, let's talk a little bit about jumbo loans, because that's where the jumbo is the Jumbo?
Unknown Speaker 12:23
Yes, jumbo loans require 10% down. And if we're talking jumbo, you know those numbers are higher. So jumbo loan is $1 more than conventional. So as I stated before, conventional is the limit is 766 $550. So if you want to go Jumbo, and above that amount, then you would need 10% down minimum. Now there are brokers who will try to make a deal work. Typically it's costlier upfront. So you know, they'll allow for lower credit scores and things like that. But typically, your minimum credit score for jumble is 660. And then we kind of work it out from there. I know they're very popular with, you know, high end clients who are looking to, you know, get that house on the hill,
Unknown Speaker 13:24
where you know, what, what the price is escalating so much anymore. I mean, it looks like our average home price is going to be around a million dollars here, surely.
Unknown Speaker 13:34
Oh, wow. We are turning into California. Yeah, I was
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on the community not long ago looking at homes for a buyer. And I was just stunned that the sales price on some of these houses 1,000,002 million 4,000,007. You know, but I think the average home price in Las Vegas right now is around 470,000. Because you really need to look at your situation, and try and get a house over your head if you don't have one already.
Unknown Speaker 14:09
I tell people that all the time. You always want to control your housing expense, because the good old days of COVID taught us you know, landlords have no problem increasing rent. They don't they really don't.
Unknown Speaker 14:24
Right now we got some legislation going on with this gonna be a situation where we, you know, homeowners or potential homeowners, or potential renters going to have to, you know, fight to keep their rent stable. You know, because right now the owner of a home that you might be renting from he can raise the rent on you at any time. Yeah, there's no rent control here. None. And that's not a good situation for most people. I have a friend right now. His rent has been raised three times in the last year. Here, wow. And he's pulling his hair out. And I had told him I says, you know, you need to buy in if your credit is messed up or whatever you need to straighten it out. And that is something Rachel can do for you. Also, she can give you guidance on how to straighten your credit out what steps you need to take that sort of thing. Absolutely, go ahead and give me a few pointers on that, please.
Unknown Speaker 15:25
So what I have you do to start is because a lot of people look at their credit, and it doesn't match what I see. And that's because there are different scoring models. So you may see Vantage eight, and FICO, this and that. And so, just for your own notes, the mortgage scores are FICO, two, four, and five. And so what I have you do is complete an application, I actually do soft polls, so I don't have to do a hard pull on your credit, if you know, it's not where it needs to be. And then I typically have you submit your as far as documents, your pay stubs, so that I can give you an idea of the purchase price we're working towards. Once we get your credit in order. Some of the tips that I offer are limited, no, every individual is different. But you can be added as an authorized signer to someone's credit account. And you want to do that on an account of theirs that has a low to no balance, and has a long credit history. It's a one way benefit. So it doesn't hurt them. It only benefits you to be added. And within a few days, it actually shows up on your credit report. And it can benefit you. I've seen it by a couple 100 points, the bump them up a little bit. Absolutely, absolutely, depending on the account they're added to. So if it has a high bar, I mean a high limit. But it's a zero balance, and they've had it for five, seven years, something like that, that can definitely benefit you, you don't want to be added to a card that is used constantly with a limit close to the balance, I mean, I'm sorry, a balance close to the limit, or that can potentially be over the limit, because that actually hurt your score. So when I see situations like that I tell people to have themselves removed, and then that also increases their score. Okay,
Unknown Speaker 17:42
that's great. That's great. Now, when you're pre qualifying a person for a loan, what do you need from them to get things rolling?
Unknown Speaker 17:53
I do a lot of things virtually being that I'm licensed in multiple states. So I can text or email you the link to complete the application. As far as documents, and the application is really just that is your name, social Date of Birth address, your employment information, your bank account information. And just some general questions like, do you plan to live in the home? Do you have any outstanding debt not mentioned on your credit report, things like that. And then as far as documents, it's mostly your financials. So it's going to be your bank statement, two months of bank statements. 30 days of pay stubs.
Unknown Speaker 18:40
tax returns, yes,
Unknown Speaker 18:41
two years of tax returns W twos for two years, a retirement statement if you have one. And then if you have, if you don't work, say you're retired, then we just need your pension award letter or your benefit letter. If you get Social Security, we need that. If you get childcare, I mean child support. We just need the court order for that. Alimony, same thing, foster care, you know, the documentation for that. So there's, you know, different things that apply to different people. So we really just figure out what's needed, and then go from there. And then we actually do pre underwriting so we can get your file in front of an underwriter before you start shopping and going into contract just so that you're confident when you make an offer.
Unknown Speaker 19:33
Now I explained to him what an underwriter does. underwriter
Unknown Speaker 19:37
looks at everything we submit, and they either make some changes or they agree. Typically straightforward files are pretty straightforward. And so they agree. Or they may be minor changes, or they may see something like, say a large deposit, you know, and they'll want an explanation So for that, where did it come from? We want to make sure it's not matches money. Right? So yeah, we, we get everything submitted, they review everything and they give the stamp of approval so that you can be approved for your loan. And then, like for doing a pre approval, you're not in contract yet and you go into contract, we've done all the hard work upfront. And so typically, we can get the appraisal done the home inspection and confirm the title is clear, and there's no liens on it. And you can close I mean, within two to three weeks.
Unknown Speaker 20:37
So you put the package together, you make sure the package is clean as best as possible. Then you submit it to the underwriter Yes, and no underwriter will put the stamp on it yea or nay or have you get more information? Right. Okay. So that's not a bad situation.
Unknown Speaker 20:54
Now, it takes about a week for everything. Once I have everything we get to submit it takes about a week. So
Unknown Speaker 20:59
after that, would you consider that person loan approved?
Unknown Speaker 21:05
Absolutely. At that point, it's like we have a program called Cash guarantee where we have done all the verifications and everything and so yeah, they're pretty much approved. Oh, that's great. That's great. Yeah. So we just need the property approved to pass the appraisals and things like that. And
Unknown Speaker 21:25
when she says Property approved, that means that I have to find you that property. Yes. And it has to pass appraisal, of course, you know, that's an unnecessary deal there. What else do you do for people for his loans? Go? What? Well, let me put it this way, what are some of the don'ts you don't want them to do? Um,
Unknown Speaker 21:51
we don't want you to buy like open new accounts or get any new type of debt. So okay, if we've already considered the debt that you have, and we've given you the pre approval letter, and then after that, you go out and you buy a new car, or new airplane or a new timeshare, that affects your debt. And so it increases your debt. And so that actually lowers your approval amount. So we don't want you to do anything, before you get those keys in your hand. You can do it the day after.
Unknown Speaker 22:33
But don't do it before. You don't want them to make large deposits. No,
Unknown Speaker 22:38
I mean, if we can explain it. So say you have a lawsuit going on, and you get that deposit during our transaction? Well, that's something you want to communicate, because we'll need the documentation, but it can also improve your purchase price, you know, if you want to use some of the money, so yeah, communicate, that's the biggest thing communicate. Now
Unknown Speaker 22:59
do you want them to pay off debts collections or charges off during this particular period?
Unknown Speaker 23:04
It depends. We don't typically require charge off pay offs. We don't even consider those and your debt to income, but collections, we may you know, if that's going to help your credit score, that might be something we want you to do. As far as debt, you know, if you have, I always say if you have two bills that both have a balance, do of let's say $500, and one has a payment of $100 a month, and the other one has a payment of $25 a month, we want you to pay off the one that has the $100 monthly payment because that's the one that affects your debt to income. So debt to income is affected by the monthly payment, not the total balance.
Unknown Speaker 23:51
Okay, now, should they stay with their current employment, employment? Or is it okay for them to change jobs,
Unknown Speaker 24:00
you know, if they're going to a better job, that's, that's fine. We can explain it, especially if it's in the same industry or say they've been working like a job and going to school, and now that they finish school, they have started the job in their career, you know, in their degree or whatever. I shouldn't say whatever. But, yeah, sometimes doing that is good. You know, it benefits them. Now, if there's an issue and say you're demoted or you know, fired for whatever reason, you definitely want to let us know that because we will likely need to put things on hold or adjust. Okay.
Unknown Speaker 24:48
So listen, folks, if you're thinking about buying or selling your home, like I said, I've been a realtor since 1988. And I'd be more than happy to sell your home for you or help you find the home That's what we love to do. I love my job as well as she loves her. You know we work hand in hand to help you as a client. Yes, so you can reach ratio at
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702-551-9511
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and you can also contact me at 702-809-2949 and you can also visit my website new home safari.com. We are also offering two new condo floor plans in the northwest. They are moving ready. They'll be ready this fall. Plan one is 14 150 square feet with three bedrooms, two and a half baths in a one car garage, primary closet and an entry drop zone. Plan two is 14 180 square feet. This home boasts three bedrooms, three and a half baths and a two car garage. Covered Patio nestled in the backyard. In a loft included is 12 by 24 inch tile floors. Three and a half inch baseboards. Quartz countertops with one and a half detailed edge at the kitchen with touchless falses undermount sinks more than plumbing fixtures throughout back lit mirrors at all baths. A tankless water heater, electric vehicle charging outlet in a smart tech package. Also pavers are included undermount sinks and solar is included. So if you have an interest in a condo, and these are new, they're located in the northwest for more details that 702-889-2949 and Miss Nichols can do the loan for you. Quick, fast and in a hurry. That's right. That's right. Okay, so we like to thank you for listening to our show today. And we'll be back soon. Miss Nichols, please sign off today. All
Unknown Speaker 27:13
right, everyone. Again, my my phone number is 702-551-9511. You can find me on Instagram at loans by Rachel Nicole. And I'm with fairway independent mortgage.
Unknown Speaker 27:29
Very good. I really appreciate everybody listening to us and putting up with us trying to be your realtor and your loan officer. Because that's what we want to do. That's right. All right. Thank you very much. Thank you. Thank you for listening to the Las Vegas real estate rule. 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