A First Time Home Buyer's VA Loan Benefits - VA Mortgage and Buying a Home With NO MONEY 🧐🏠

happy va wednesday so i'm actually really excited to do this video because i feel like we're in the right time of the market for it and i think it's going to be a lot of fun so how to buy a house with a va loan with no money out of your pocket yeah you can do it and look i'm sure you've heard from other lenders well you have to have earnest money you have to have closing costs you have to you have to you have to you know what in a perfect world you would have all that okay in a perfect world i would be in a castle on a beach well sadly truly sadly because that would be epic right castle on the beach white horse like can you see it um we don't live in that world so sometimes we have to make do with what we have in order to accomplish our goals so if your goal is to own a house but you're like i don't have the cash i'm never gonna yeah let's do it if you fought for and you got that va benefit which if you're watching this video you did or your spouse did we're gonna use it and you can do this it just takes a great lender humble as well as well as a good realtor we don't want any of those whiny baby realtors who like to say i can't i can't you can't no we can't we can't no no no no but bye bye bye cants um and a little strategy that's it that's it we can do this we were actually doing this during 2020 and 2021 which are like the hottest years in history in certain situations when they arose so it's definitely doable so i'm going to walk you through how to do it okay first of all you need to get pre-approved okay basically what we're going to be doing is when you're buying a house there's closing costs that's usually the big issue people have is you know va zero down which means zero down payment it does not mean zero closing costs va does not cover your closing costs even if you're disabled if you're disabled they waive the funding fee but they don't cover your closing costs so the closing costs are usually the big barrier to entry now when rates were really low what lenders could do is we could give you a higher rate and give you money for closing costs so if you're watching this going well i've never paid closing costs before guys it's because your seller gave you the excuse me the seller either paid for it or the lender gave you a higher rate and covered it that's how your closing costs were paid before those are the only two ways they can be paid for if it's not you paying for it okay so the lender giving you a higher rate and paying all closing costs it's a lot tougher right now and the reason is the rates are so volatile that we're not seeing what i would call money in the margin like we used to so 2020 you know 2019 even 2021 i could look at a rate sheet i could go up half a percent to a percent and we could definitely give the client a chunk of money towards closing costs if that's what they wanted to do most of my clients wanted the lowest rate possible for the lowest monthly payment and we were trying to get the seller to pay the closing costs which is always my preferred way to go so number one first step you've got to get pre-approved you need to get pre-approved you need to get fully underwritten you need to be working with a lender who is an expert and not an order taker i can't state that enough there's so many call centers i say it in air quotes but they're actually call centers that's what they are who serve as va loans like that's who you guys are directed to all the ads that you guys are getting they're call centers it's not the strongest lenders and people are like oh well if it's a call center i'll be no it's not cheaper it's not cheaper one of the biggest call centers for va loans charges one percent up to three thousand dollars yeah and they're not going to give you a loan summary or tell you about it until you're in contract for real for real you guys know who i'm talking about some of you do type it in the comments let's see if you get it right i won't say yes or no because i don't want to be sued but i think we'll we'll be able to figure it out okay so you need an expert on an order taker because your lender needs to be strategizing this now can you do this in all states with all price points no if you guys wanted to try to do this in new york with a hundred thousand dollar loan it's not going to work here's why the maximum credit a seller can give you for closing costs is four percent of the purchase price okay so on a three hundred thousand dollar house that's twelve grand four hundred thousand dollar house that's sixteen i mean we can keep on doing math just to see if i can four percent on 500k 20k and on and on and on and on right 100 000 it's four grand and it's very rare that we ever see closing costs that inexpensive around the country okay now let's talk about what closing costs are so first of all with va i wave my lender fee so you don't need to worry about a lender fee if you're working with me i'm licensed everywhere but rhode island and utah rhode island because i've been lazy i'm sorry guys i will get there and utah because i personally object to their education requirements and i've drawn the line in the sand and i am not budging until they get with this century anyways so i'm everywhere else so we're happy to help you okay so the lender's job what we have to do is we have to get you fully pre-approved and then we walk you through what to expect with closing costs because a lot of times people go well it's just the lender fee right and you're waiving yours jen so i don't need to worry about it no so other closing costs to consider are a year of homeowners insurance yeah that can be in some states that can be three thousand dollars a year even higher on more expensive houses if you're in hurricane alley it could be four thousand dollars a year so that's a big closing cost um title in escrow or title and attorney that's another big closing cost prepaid interest prepaid interest is from the date that you close on the house through the end of the month it's like prorated rent that's another closing cost okay if you guys are working with another lender they may be charging you a lender fee that's even more money right so money money money closing costs can add up to you know i've seen them as high as twenty thousand dollars no joke okay and certain states are more expensive than others so it's really important that when you're talking to a lender you're talking to a lender that is going to take the time to go through closing costs with you and say okay here's our game plan because that's the thing like what happens a lot is lenders just turn people away because they go oh well they don't have any money for closing costs so why would i work on their loan whereas i'm like oh my god it's a va loan if they don't have money for closing costs let's negotiate this right and then there's always some real estate agent that's like you can't get the seller to pay closing costs here yeah you can yeah you can i mean we were doing it in 2020 2021 if we can help the realtors help you know negotiate for the buyer to get closing costs in those years we can definitely do it in 2022. seriously the market's shifting so is the market shifting to a bunch of foreclosures no but the market's shifting back to where a buyer can actually negotiate so let's just for example let's say that you're in oh gosh i don't know i don't want to pick a state i don't have any favorites um i don't know let's just go with ohio okay so let's say you're in ohio actually has really inexpensive closing costs i'm just going to say that so let's say you're in texas everyone wants to move to texas um in texas you know let's say you're buying a 500 000 house i would say look we're gonna need three and a half percent it's gonna depend on the taxes of the house okay so the lender has to know that so i'd probably say let's go for four percent now are you gonna go for a house that's been on the market for a day and ask for four percent and expect to get it no no i mean look you could try it never hurts to try write a love letter to the seller sometimes those really do work seriously um but realistically the time you're going to be able to negotiate with the seller to pay a portion of your closing costs is when the house has been on the market longer so i would say you know first 14 days they're usually pretty hesitant 14 on that's when they start to be able to negotiate now this is also going to depend on the skill of your real estate agent right if you have a real estate agent that has a case of the i can't right it's not going to get done and i've seen this i've had in san antonio is a great example so in san antonio and texas i've had multiple clients at the same time it's a bigger area for us and i'll have clients working with one realtor where they go no problem we'll get it done and they're in contract and they're getting what they need in order to close they're getting the credit the realtor found the right house where they would accept the offer et cetera et cetera and i've got other clients where they still don't have a house because their realtor just can't find a damn house and can't figure out how to get it in contract and the situation i'm actually thinking of these people need closing cost help negotiated foreclosed these people don't and the realtor can't even find them a house or get them in contract they're writing an offer and offer an offer and getting beat up is this the client's fault no guys real estate agents are your negotiators like i can't stress this enough the person you hire is your real estate agent they are your negotiator okay and this can be accomplished with a great negotiator can this be accomplished with i can't betsy or i can't sam no because they can't do anything because they're excuses they're all about excuses sorry i hate it when people say i can't i know it drives me nuts because it's like anything is possible if you guys put your mind to it you guys have been in the military you don't need me telling you this you've been told this your whole life that everything's possible so okay so here's how it works we would get you fully underwritten um and then we're going through the approval i would go through line by line by line with you so that you know what closing costs look like we'd really dig into like taxes and insurance because that's usually the biggest variable and then you and i would have a conversation you know because sometimes people are like well jen i don't want to ask for a whole credit i've got like 2k or this and we talk about okay like if you have 2k i don't want to take all the money out of your bank account that's the last thing i want to do as a lender because i want to make sure that if you move into that house and that water heater breaks you can pay to replace it okay so that's something to think about too because sometimes people are like well i have money for closing i just won't have anything left that's a dangerous position to be in you know as a first-time homebuyer so you want to be careful about that okay so we would look at what we expect the closing cost to be and then as well as you talk to your real estate agent how much should i expect inspections to be because that's another thing inspections and then when you write your offer you're gonna ask the seller to do a credit for that okay it's pretty simple now does the seller have to accept your offer no do they have to give you a credit no if they want to sell the house and they don't have any other offers might they accept it yes yes yes and if they turn your offer down the first time ask to be in backup position i posted an article a couple weeks ago about how many houses are falling out of contract and it's usually there's two big reasons number one people are trying to negotiate once they get into contract which can go either way i usually like negotiating up front because i feel like it's more transparent and honest um or number two the buyers never checked in with their lender about rates they didn't have a lock-in shop and rates are up and they don't qualify okay now you guys know if you're working with us we can do a lock and roll so your rate is locked while you're shop too so you can be fully underwritten locked ready to go okay so that is how we are getting people into houses right now with zero down is we're taking a strategy of okay what do we need to make this a reality for you we're coordinating with the real estate agent saying this is non-negotiable we need this and then look are you gonna have to look at a lot of houses potentially might you get it your first offer maybe it happens it happens but there is a way to accomplish this you just have to have your game plan put together so if a lender's turned you down because they've said oh you don't have emd or you don't have enough for closing costs just know that you are working with an order taker and not an expert and call the experts let's game plan this i want to get so many veterans into homes this year because there was so much nonsense in the last two years about like oh va loans are hard guys this is a great year to teach everyone that va loans are not hard they're easy they can close quick they are awesome and they are a huge benefit for you and the fact that we can ask the seller for four percent towards closing costs magic okay i'm gonna tell you guys one story as i depart i know this has been long but i'm actually really excited i have a client he will go down in the history books i'm wondering if any of you guys are going to out negotiate him this guy is the best negotiator i've ever hit he was able to negotiate now he was buying a more expensive house i think it was about 700 or 800 thousand dollars so it was an expensive house he negotiated for the seller to pay all closing costs and the funding fee yeah he wasn't va disability the funding fee was going to be 2 2.3 percent so he was able to get that funding fee paid for and the closing costs by getting that four percent credit i've only seen that once in the last three years but i am hoping that one of you guys are able to do that and i hope that the rest of you guys were able to get you into houses with still a little bit of money in your bank so that you're in a good position and really take advantage of this moment in the market because i think i do think that if we really hit a recession hard i think we're in a recession already but i think at some point the rates will start lowering and then it's going to get really aggressive again so it's like this weird magical moment right now of in between where i think there's a lot of opportunity so questions as comments as always reach out um i'm licensed in 48 states i want to do your loan guys i love va loans like i'm not going to lie or like be shy i want to do your loans so if you're looking for a lender that's not going to you give you a great rate and get the job done i'm here okay thanks for watching guys and i'll see you next wednesday

Channel: Jennifer Beeston

Views: 28,480

Keywords: help buying a home, Jennifer Beeston, Guaranteed rate, mortgage lending, first time home buyer, real estate, VA loan first time home buyer, first time home buyers tips and advice, first time home buyer tips, first time home buyers, mortgage broker, mortgage rates, VA loans, VA mortgage, VA loan explained, VA loan for investment property, VA home loan, how VA loans work, VA home loans, VA home loan process, VA loans 2022, mortgage rates 2022, VA loans explained, VA loan

Id: R9hEncA9d98

Length: 14min 6sec (846 seconds)

Published: Wed Jul 27 2022