How To Buy Your First House With An FHA Loan *Step By Step Breakdown*

so how to buy your first house when using an FHA loan not Garland nmls number five eight seven zero zero better known as mg the mortgage guy welcome back to the channel we are live we are blessed thank God for another day the first question is what is an FHA loan okay this is how we starting this talks this is how we're starting all right so what is a FHA loan a FHA Loan Federal housing Administration it came out in 1934 after the Great Depression um FHA is people think it's a first time home buyer loan right I always thought it was that for a long time honestly it's not that's just marketing okay right but FHA like all loans are is a tool FHA just happens to be one of the most popular tools out there because low credit low down payment requirements Okay so FHA again stands for federal housing Administration and it is a loan not for first-time home buyers but it's a loan for anyone who's looking to purchase a primary residence Pro so primary residents that's not investment properties not not investment property you can purchase a owner occupied multi-family no more than four units yes but it has to be primary residence owner occupied meaning you're living in the crib correct okay owner occupied right yeah yeah I'm gonna get mail sent there right not none of that foolishness okay okay so unoccupied so what kind of um what kind of down payment should I have if I'm going to um use an FHA loan what kind of that well the minimum down payment is 3.5 percent of the sales price right so if you're talking a hundred thousand loan I just want to use Easy numbers three and a half percent is thirty five hundred dollars of a hundred thousand right right um that's 35 uh 3.5 so you have to you have to um my phone keeps ringing what was the question you said about down payment I'm sorry this is live this is what happens yeah bro wake up man come on bro it's been a long weekend and my and my phone keep ringing let me put this on doing all this stuff please please all right let me let me get focused for the show so how much money should you have or what kind of down payment do you I just told you 3.5 down payment okay right so three so depending on the loan amount right 500 000 700 thousands three and a half percent down of whatever that is then you have your closing costs on top of it as well but I'm pretty sure we're gonna get in tomorrow yeah we have some questions about that too now 3.5 is that is that based on any like that's everybody across the board that's the minimum down payment that doesn't mean that's going to be your down payment that you're going to qualify with okay so there's a big difference right when you look at any Loan program and they say the minimum down yes right that doesn't mean you're gonna qualify for a loan with putting that minimum down right so in some cases you might need to put 10 down depending on the size of the house and with your overall debt to income ratio is okay but the requirement is a minimum of 3.5 down payment okay um can you get assistance with this down payment yeah so you can do down payment assistance right um You can do you can get a gift okay from a family member uh they have programs out there like some like even if you work in like health care and stuff like that depending on the hospital they might even have assistance for you that you can get as well so there's so many different little things that you can do if you don't have all the capital where you can kind of I don't want to call it raise the money but you can essentially raise the money with down payment assistance you can get um if you get your 401k you can get a gift right you know so it's things you can use if you don't have the physical money now if you don't have the physical money and you get a gift is there any procedures that you have to follow in order to have that money in your bank account absolutely so when you get a gift so you have to get a gift letter okay right so you have to get a gift letter and the Linda has to see the money's coming from whoever's the donor into your account so this is I want to tell you guys a lot of y'all be trying to do this foolishness right you'd be having mattress money right and then you want to take your mattress money give it to Mommy Mommy deposits it and then sends you the money right as a gift okay that that don't work why doesn't that work because we had the so mommy has to have a daddy or whoever you get your gift from we have to see their bank account and we have to see that they have the money in their account already for how long it doesn't it could just be the most recent bank statement right so if you're trying to get a gift of ten thousand dollars from them and they don't have ten thousand dollars in their account that they're using to wire you the money the bank we're going to look at that like wait a minute where did this deposit come from right right so always when you get a gift make sure that they have money so that way when we paper trail it we're not seeing any large deposits that can you know hurt your um transaction is there a way around that where you can just be like oh like a service maybe you like let's say I'm a videographer and I shot a video from my mom that's income now okay I'm just saying this is how people think sometimes you know good question that's income now so now if but even then if you have any large deposits that go into your account we have to document where that money has come from okay so now that can be used as part of your cash to close because your it's working income and capital that's coming in so now in your situation it's a little bit different because now if you're a business owner and you're using business funds to buy this house for down payment or closing costs now we need to get a CPA letter basic stating that the money that you're using for this transaction doesn't negatively negatively impact the standing of your business right right so yes can that monies come in as a videographer or anything you're doing as a self-employed person yeah and we paper trail it yeah because you're running the business right but if it's in your personal name right and you got a large deposit and you didn't document that hey I have my one W-2 job but I have this other income here too and but you're not putting on your loan application now we have the paper trail like all right how long have you really been self-employed in the standard third so it's a lot that can come in it like I try to just tell people keep it clean okay keep it as clean as possible all right cool um I want to sit back a little bit because you got to focus just uh oh it's an FYI let's give you good Clips right there but they're blurry now because uh they're not blurry yeah you gotta focus on that one bro they're not they're not blurry this guy man um all right so how do you calculate your uh debt to income ratio how do you calculate your debt to income ratio yeah and what is DTI because that's one of the most important factors as you stated uh earlier well DTI is DTI debt to income ratio right so all right when lenders are qualifying you for a loan we're using your gross income especially if you're a w now this I'm going to speak to a W-2 person right now okay I'm not going to speak to self-employed because it's a whole different story right so from a W-2 employee we're using your gross income to qualify gross income gross income so we're not using your net remember your net is after you pay your taxes and then what's your leftover after so we're using your gross rental income so I'll just use your easy number let's just say you make a hundred and twenty thousand a year ten thousand dollars a month okay right so we're looking at your gross income and then we're looking at what are the minimum payments that are on your credit report okay so we're not looking at your balances so you can have a 50 000 dollar car but if the payment is 250 dollars we look we're taking that number is that on everything across the board phone bill the phone bill's not on your credit report oh anything on your credit report so just credit cards credit cards credit report not everything that you're paying because Child Care is not on your credit report got you you know what I'm saying car insurance is not on your on your credit report so it's still so technically there are things that aren't on your credit report but then you can qualify for a credit but you may not even be able to afford it still ding ding ding ding ding there's a difference between eligibility and affordability right right eligibility doesn't mean nothing because can you afford it because you're gonna have you gotta eat like your your Whole Foods bill is not on your credit report you know your insurance is not on your credit report your child care is not on your credit report how just for you if you gonna and you're going out it's not on your credit report you still have to live right your your cell phone your utilities of the house none of these things are shown on your credit report so that's why I always speak about eligibility versus affordability and don't be house rich and cash poor because the way the lender is qualifying you again is off your gross income you're not taking home ten thousand dollars a month you're taking home probably 6 500. yeah but we're qualifying you based off the growth gross income so you're going to get approved for you're going to be able to get approved but does that mean you can still afford it so now we take all those minimum payments and let's just say those minimum payments come up to a thousand dollars a month okay right and then now you have your mortgage payment let's just say you buying a 500 000 house in in Long Island that might be a four thousand dollar monthly payment a month right right so now you have that four thousand plus your thousand that equals five thousand so if you divide five thousand by ten thousand is basically fifty percent right so that's your fifty percent that's an income ratio right there but remember I just said you probably taking home 6500 yeah so if your bills are five thousand dollars not including your utilities food gas like child care right you only have fifteen hundred dollars left over for the month for the month your house rich and cash pour because that 1500 is gone right once you go out one night in New York City it's over yeah it's expensive in New York so DTI DTI people is the most important thing this is what I want to tell you guys you got to understand that it doesn't matter what the bank is going to approve you for a bank will approve you with that number is because they're not looking for your affordability right the bank that's not their job it should be and good loan officers will speak up and tell you no you shouldn't buy this right right shout out to all the girls but the people who are just trying to push you to make quotas and sales and make money they're not going to tell you this they're going to say hi whatever right but that's why it's important for our audience to know these things go in hand so now with debt to income ratio with an FHA loan FHA is very generous and forgiving when it comes to debt to income ratio you can go up to 55 percent on your back end right so there's two ratios you have a housing ratio and you have the full to income ratio your housing ratio is your front ratios basically your income and and and the expenses and then the full DTI includes the income your credit report and the housing right okay included into it so if you had a 55 back in debt to income ratio that's kind of like the max where FHA would go now some lenders might have overlays where they say you know what you're at 50 is our max if you had a lower credit score right because remember FHA you can go as lost 580. some banks will go down to five technically FHA doesn't have a credit score requirement as long as you have above 500 but that doesn't mean lenders are going to do it right you have a handful that will go below 550 but a lot of them are now starting to come out with 550 credit scores but I would say generally speaking 580 is the minimum credit score okay for FHA loan so our lender with their overlays might say you know what since you got the 600 or 580 credit score we don't want you to have a back end of 50 because you're too risky because you're because your credit history so we might cap you at 42 percent that's an income ratio so it's very important that you need to know is what what does your profile look like and then the lender that you're working with what are their qualifications and what are their requirements so now if you're going with a high debt to income ratio deal you again you have to remember so you're you're in a bad position because you're maxing yourself out right you should never Max yourself out at that because remember a 50 debt to income if you're gross is really like 75 off your net 80 off your net right so you just got to be mod for that when you're out here home shopping is there any way to prevent or any way you can like kind of like look at your expenses and everything you have going on to kind of know if you're ready to actually purchase this house or like what can you what can you do to kind of you know know that you're able to do this what can you do to know that you're able to do this in terms of can you afford it or not right I mean everybody wants to get a crib at some point so like well you got to be realistic with yourself first and foremost right like be realistic like you know what your bills are right you know what you have to pay so ultimately at the end of the day if you trying to take up money and control then you're going to set yourself up for failure so I firmly believe you shouldn't you shouldn't buy a house when you're maxed out because you're a foreclosure away in my opinion and then I think that's where maturity comes into right when you are purchasing real estate you have to be mature and you have to be able to look yourself in the mirror and say you know can I really afford this because the bank gonna give you the money man they're gonna say hey go house shopping we want you all about houses right but they ain't going when you start making the payments they're gonna get your ass out of there too yeah yeah so I think what can you do it's just be mature be an adult like this isn't a dope situation and you really know all your bills are outside of what we see on your credit report so just be responsible it's the best thing that anybody can do to prepare for home ownership it's just be mature and be responsible so now let's say if you are not able to well I'm not even sure if it's here not able to qualify but let's say if you want a co-signer or you need one is that ever happened with the FHA loan where they say you need to have somebody co-signer or that's just like an option that a buyer would have yeah so you can get you can get cosigners okay um co-signers are allowed with FHA Loans um I don't see too many so you have like you have non-owner occupied cosigners and then you sometimes you have co-borrowers co-borrowers right right so yeah so you sort of like you and your girlfriend are looking to buy a house together moving it together you'll be considered a co-borrower okay right but if mom needs to sign and co-sign the deal because maybe your DTI is not there whatever the case may be and we now need to put them on but they're not owner occupied they're not occupied cosigner okay right so it's a little bit different right yeah because now they're co-signing it they don't really have the ownership in the property but they have the responsibility of the debt so now I'm W-2 I mean I'm sorry I'm on W2 I'm self-employed right so if it's self-employed people um what do we have to have in order in order for us to be going you know through the whole buying process so I know for sure off the off the bat it's two years of income right correct so what everybody is two years of income consistent though W2 W2 and then consistent self-employed self-employed yeah but also if you're in college right and I don't think I never said this before um on our channel so like if you are in college yeah yeah College history is not your employment so someone who's who's going to school right now they graduate with a degree in marketing okay they did four years they have enough money saved they have the credit and they just got a new job right now they've been at the job for a month two months they got 30 days worth of pay stubs now we can use that four-year college degree as their work history and then boom they don't have to wait until they work for um two years in order for them to get approved for a mortgage how do you even do that I just told you what how's that possible like I just told you that's the guidelines that's allowed yes allowed if you are in college and you graduate and you want to buy a house and you have a job and you can document okay okay yeah you have to go so you can't just graduate college let's go buy a house you missed that part yeah I was looking down yeah so when you use your college as your degree as your employment history and you have a job in college no or anywhere no I'm all right your four-year college is your your job that's why I said how do you how do you when you graduate now you get a job at XYZ marketing firm okay and now you can show that offer letter which shows your salary your start date and now a bank well if you qualify with the DTI requirements the bank will fund that deal on the FHA guidelines have you done a lot of loans like that yeah absolutely well I didn't go to college so that's why I dropped out okay but that can happen it happens all the time yeah that's dope so all you college students you need to like learn this game so that way you can go out and buy real estate yeah that's dope I I didn't even know that well you know you learn something new every day so um now on your credit right I don't know if you spoke briefly on credit scores it's 580 credit score um and what do you guys look at or what is an underwriter look at when well first of all we got like 200 plus people in here yeah I need to like this video throw some gems if you're getting some information and if it's been valuable to you so far please throw some gems in the comment and make sure you guys like this video we ain't got enough likes on here right now all right that's first things first uh what was your question again um so um what was my question yeah what the credit score I'm sorry I'm like back and forth I want to have it on the computer but you want to see yourself so it's kind of I gotta look at myself and look at this it's distracting me from like all right so just get you um credit score credit score right 580 credit score um and correct what do you guys look at because I know I heard something about the average of or you take the middle score so yeah so credit score so there's three um credit scores credit bureaus TransUnion Equifax and Experian so we use the middle of the three scores to qualify someone so let's just say you have a 600 a 650 the 700 credit score I'm gonna ask all the artist so you have a six I'm asking all y'all and y'all need to type the answer in the chat okay if if you have a 600 a 650 and a 700 credit score what is your middle score can I answer or no let them type and chat first time students quiz time Pop Quiz if you have a 600 a 650 and a 700 what is your mid score type it in chat please I gotta get that Jeopardy sound you do them it's probably copyright though all right we got uh we got it I think somebody was trolling and put 700. I don't know well you say middle score yes so middle score of the three correct okay yeah it's all 650 650. all right that is your middle score that the lender will use for qualifying purposes okay now we're also going to look at your credit report we're going to look at your payment history how long the trade lines have been open for do you have any collections or anything like that okay um so we're looking through your credit report um to see what you got going on because if you can't pay your Verizon bill what makes you think you can get a mortgage or pay a mortgage right yeah um so we look through the credit report make sure everything lies up there and there's always opportunities on people's credit report to boost their scores too right right so A lender can do what's called a rapid rescore have you ever heard of a rapid rescore before I've never even heard of type in chat yes or no have you guys ever heard of a rapid rescore yes in chat or no before that though you said collect so what kind of collections are do you guys look at like are medical stuff on there too like typically I don't think medical shows up on your thing no more oh that's right that's some of the laws that came out that that takes that off okay but if you have judgments when we run a title search even if it's not on your credit report it'll come up in title search okay all right so we got a lot of people saying no yeah they never heard of a rapid rescore well probably golly thank God that you subscribed to my channel so that way I can teach you these things because you guys need to notice stuff right so when a lender runs your credit and we're looking at your credit report for the most part right not every lender probably offers the service but here at Garland Mortgage Group we definitely do this thing can be a little bit expensive too and I'm gonna break it down now we'll have like a system I'm not going to give them because I don't want to promote the companies and nothing like that they don't pay me but we have the system and in the credit reporting system it will tell us areas of opportunities for where we can boost your credit 10 points 20 points 30 points whatever it is okay so we run it through the system and it's a charge right right um for us to do this um some lenders will eat the cost of it I'm gonna say who pays for that yeah yes I'm gonna eat the cost of it somewhat right but now it'll come back and it'll tell us oh pay down this pay down this pay this off do this and these scores will boost up to these okay right so now we go back to you tomorrow and say look I ran it through the system it's telling me for me to get you to 700 from your 650 for your mid score if we do X Y and Z and you should give me proof that it was done letters from the company on a letterhead Etc and giving us updated account information now I can submit this back to our credit company who now will go and update the credit bureaus right and then they update the credit bureaus and then now boom a new score populates how accurate is this as opposed to like you know those those apps that have all those credits it's pretty accurate if you if you do everything that it says like give or take a 0.5 like which you're gonna be in that ballpark of what the system will come back I never knew that nah rapid resource golden but it can be expensive now from A lender perspective right and this is sometimes this is why lenders probably don't speak about this a lot because now if you got let's just say five items okay that we gotta update that's five items each items on each credit report so that's three like so it's really like we're updating like 20 different items because we got to go to each three credit bureaus for one item next one right right they charge us for this like per item or yeah per update per item update wow per Bureau I've seen some like a thousand dollars you know what I mean like the Bell come back because but that was a lot of work that had to be done but you know it might be a couple hundred dollars but it's worth every penny but what kind of clients are you doing this for because you have a lot if you have clients who have lower credit scores and you're trying to get them to the next level even if you have a client that has 700 720 you're trying to get them to the next 10 it's only one little thing just pay down hey is your Amex paid off yet do you paid it off yet oh cool give me the proof let me update this real quick because now if I get this I get you 20 more points and I'll get you a better interest rate yeah that's though it's called strategy it's called understanding the Dynamics of what's going on here and then you'll be able to now win a deal or from a consumer perspective they get a better interest rate rapid rescore ladies and gentlemen rapid rescore this is why you need to work through college group I'm trying to tell you flowermg.com book a consultation like what are y'all thinking it's probably because he's not in suit it's probably not but look look how many people said no they didn't never heard of a rapid restart I've never I've never even and I'm pretty sure half of these people done spoke to some loan officer in their life before that's more like back end stuff though pause you know yeah super pause but it's not it's not really his front end because you need to be able to know the information because if you got 660 scores and you you and there's an opportunity yo let's you don't really need to do quote-unquote credit repair right you just need to pay some [ __ ] off what I always say the best credit repair is pay your bills so now can we as people have access to this or only only if you have to be licensed no basically and you can't have access to it okay it's for us all right just asking because I'm sure some people curious about that um now can all lenders approve you for the minimum requirements of a FHA loan let's say if you have the minimum requirements like a 580 can you like well most lenders no because most limited has overlays right so overlays so overlays are guidelines on top of the FHA guidelines and overlays are in place to protect the bank okay right and whatever the average tolerance is so a bank might say we don't want no 580 credit score bar was our minimum credit score is 620 regardless okay they can do that right um so getting you approved for the maximum loan amount first of all loan amounts are different in every County Across America for FHA depending on where you live um so can a lender get you approved for uh the maximum yes if you qualify dti-wise which we broke down earlier in this video but if you want to find out what your max loan amount is in your area you can just Google it matter of fact actually we actually yeah that was a little later but you want to get that now you know what I'm saying I mean you don't [ __ ] want to answer the questions all right so we could do this I'm going with your flow so uh all right so let's get to um let's show the loan limits here which we have all right so we have uh FHA mortgage limits right I'm not sure which website this is this is hud.gov.gov right so you can go to hub.gov took some gonna put it in the description um as well so you can go to hot.gov and you can find out what your FHA mortgage limits on it's very simple right so you come on here and you type in your information only thing you need to put is whatever state and the county name so talks put in New York and let's just do Suffolk County yeah we already have Suffolk on here so but also Larry before you send before you do anything on the bottom y'all that bottom left it says uh calendar year what does it say yeah uh limit year limit year make sure it's for the recent year that you're in because you see how the drop down you had other years so always make sure that's set to 2023 or the Year we're in right and then you just hit send or whatever all right so we hit send yep we're in Suffolk this is New York and Long Island yeah so if you don't want all the different states that have a Suffolk County to come up that's why you guys specifically put your state right right and this one you didn't put the state you just put the county right that's why I brought up Massachusetts and New York and some of these different counties yeah so you see in New York for a single family New York is considered a high cost area right right so in New York we can go up to one million what's that one million 89 yeah one family uh one family yep 1.3 not almost 1.4 million for a duplex almost 1.7 million like 165 for three and look at that bad boy at the 2 million two million for a four family absolutely ridiculous the amount of money you can get with with these loans yeah that's pretty and still put three and a half percent down which a little what's your 600 credit score you know what I'm saying like you can still do all of this let's show them another state let's talk let's go to Georgia or something like that right let's put that information so we could do all states here or just put Georgia yeah just put Georgia so that way we don't bring up a bunch of different things let's put Cobb County Cobb so let's put in Cobb County right send it hit send and Now ladies and gentlemen you'll see how Cobb County one family is only 5.92. you know what I'm saying but actually that's great because this used to be a lot less you know a couple years ago right that just means the in the government they changed the loan limits every single year as home prices appreciate this that a third to make it more accessible for home buyers to get lower down payment loans and et cetera et cetera to keep the economy going but you can see in Cobb County you can get 1.1 million on a full family right it's not as high as New York what's a four family look like in Georgia though I don't know interesting it could look like whatever you can get up to a million it don't matter yeah you know what I'm saying it's still crazy and that's only if you qualify only if you qualify that's pretty dope okay yeah so that's how you find your loan limits oh my gosh she's overlays jeez man so it's Productions leave it up to two please all right we got almost 300 people in here I need them to like the video and drop some more gems because we're giving them a lot of information we got to keep reminding people to like the video please drop some gems if you're learning something um through this conversation that tooks wanted to have all right so let's talk about closing costs because I actually like never heard of closing costs up until I I think maybe a couple years ago because usually you only hear about this when you get to the closing table right or if you have a good loan officer like yourself then you would hear about this but most people think they have to save up the money for the house have a down payment they don't even think about I've never heard any of my friends talk about some closing costs so what are um the what is the amount of closing like closing costs money I guess or money you should have prepared for this so closing costs are standard on every single loan you're going to have fees you have to pay people right no one does nothing for free right so typically I like to use a five percent um calculation for closing costs so five percent of the sales price so if it's a hundred thousand sales prices times five percent five thousand dollars right so five percent five percent or 500 000 times 5 25 000. it should be somewhere in there and depending and but there's a lot that comes with closing costs right um matter of fact you got the thing let's bring up the other thing the the loan estimate you didn't remember you went to the website and you said page one page two oh yeah yeah that's right yeah oh my God I'm like wait what on the website have you been drinking this weekend no I actually wasn't I was just busy uh all right so we have Aluma right here boom this guy yeah yeah that's right okay all right we back okay can I see this um I I made it big so um pause I made it big though so they can kind of like bro I'm looking at this on YouTube I can't even see this well that's why I said to you you're not able to see it that's why I want to put it up but if you guys can see it type yes and chat if you can't then um we'll leave uh we'll leave a link in the description oh my God so I mean floor is yours my friend you can talk about whatever you want on here I mean this thing looks mad small so I can't really see it but look this is what a loan estimate looks like for what you can see here they said they can see it so whatever right so in a loan estimate is going to break down things so in the top part is basically going to have your information the the program you're doing damn I wish we can see this better so we can really like zoom in there's a website um you know what because that that because that's like an image right yeah this is an image no no no no let me let me let me let me get let me just get this real quick I mean what's wrong with this you could just break this down no trust me bro you wanna you you yeah but you're gonna waste time you can wasting time I don't care right now okay oh my God we gonna do this the right way if we gonna do this we're gonna do it the right way okay okay so uh I don't have Jeopardy music or anything like that to play while you why you search for this okay don't worry unfortunately um don't worry somebody said no it's blurry all right sorry that wasn't all right well then you need to hurry up and get this link this guy and he put some damn no man it's like it says viewer retention it's like if I'm watching this I don't want to you know then you listen you missed the gems then no there's a lot of gems no I know exactly I'm gonna just trim this part out after that's what I'm gonna do no you're not gonna trim nothing now see this is this is why it's good to be prepared right this is exactly why it's gonna be this is why I'm big on Preparation well you who told you put some stupid ass up we spend time trying to plan things before put this little stupid thing check the text message and pull up the website bro come on I'll check the text message now like pull up the website so that people can really get some education here because I don't know what picture you put up here yeah no it's okay okay go to the website they see all of this um not yet all right yeah scroll down hold on scroll down where am I scrolling to scroll down with says um can you make that big bigger you see that's the loan I'm assuming right there because you can scroll through it and everything I can show this page if you want but yeah there you can probably see that all right guys we're gonna share the screen we're gonna share the screen again um and hopefully this works that looks so much better can you make it bigger uh the website make the website bigger yeah so that way they can really see it on the screen all right hopefully that's that's uh it's probably gonna be blurry let me see how it looks all right either way just go through it we'll put the link in we'll put the link in the description and uh yeah so basically on the top right hand it shows your long terms the purpose the fixed rates it shows everything right okay um it shows you if the rate was locked or not very important and if it is locked it tells you exactly how much um how long your rate is lock one matter of fact scroll up a little bit no no scroll up Scroll up Scroll up Scroll up Scroll up all right you see where it says click loan estimate loan estimate this highlighted sample loan estimate right there you see the hyperlink where right there sample loan estimated paragraph right there right there yeah click that that's much better let's do it like that okay and show them that because with the other thing on the side I want them to really be able to see is that better guys much better much better much better yeah zoom in some more that's good that's good all right so you guys now you can see like the top of it what it's looking like right so you got all your long terms and everything like that and when you hit that rate lock your rate is locking it tells you what time is locked in one day right when do you get this though like what do you so you get your so when you apply for your mortgage and you have your contract then they send you this long estimate a part of all your initial disclosures okay and on this loan estimate in the beginning I want to make this clear your loan estimate in the beginning is only giving you an estimate okay right it's not giving you the final numbers it is an estimate only I just want to make that clear okay okay it is an estimate that's why it's called loan estimate not loan final yeah like loan estimate okay because some people will say oh your fees are so high oh my God like this is estimate relax right right okay now if you look down it says loan terms it breaks down you loan amount your interest rate your monthly principal interest payment your principal interest payments was being paid to the mortgage company okay now you see it in in the middle it says do you have a prepayment penalty if you did like this example does it shows you when that people how much it is and when it expires um if you have um PMI you see in a second that principal that projected payments bucket it shows you how long you're going to have the PMI for and then what the mortgage payment could look like once that PMI drops off right it shows you what your monthly escrow payment is but I want to stop right there real quick because I want to let everybody know your escrow payment is always going to increase so when you get a 30-year fixed rate mortgage guys your mortgage payment principal interest is was fixed your print your your property taxes and your homeowners insurance can increase annually or decrease or decrease which will in turn make your mortgage payment higher or lower every every year basically okay because if home prices keep Rising then property taxes rise along with it right so pay attention to your statements that come in the mail okay after you close on your house because it will tell you it'll give you what's called the escrow analysis and that escrow analysis will tell you what the projected taxes are moving from year to year what's it what's it real quick just definition of an escrow escrow is basically an account that the bank uses to pay your property taxes and your homeowners insurance okay cool all right so I got that and and chat yeah understand escrow a little bit better okay thank you so now you have closing calls and it tells you your estimated closing costs and estimated cash too close right now scroll down let's go to page two this is the most this is a very important page now this is breaking down all your closing fees now the lender only controls block a block a block a okay type in chat Linda only controls block a lender only controls block a we do not control all these other fees up here the only thing we control is our origination charges anything that's listed in that block a all these other fees are third party fees so that's why it's an estimate because we don't know who your title company is until you tell us and we order title and they send us what's called a title bill and then when they give us the title bill we update these loan estimates accordingly to what their fees are we don't know depending on when you're going to close how much of an escrow we might have to set up so we would give you higher numbers in the beginning in a process and then once we get the title bills and everything we have a set closing date then we update everything right right so your loan estimate guys will break down all your fees in the beginning of the process but remember these things are subject to change depending on the deal and what happens during the deal and as any time anything changes on its initial estimate the lender has to redisclose to you what those changes are with the new fees so you're not going to be in the dark you're going to know because you're going to get disclosures disclosures all the time actually for your signature during your whole process so that's why it's very important that you guys pay attention to your emails that you're getting and when you're in the process and you're looking at the stuff because too many times people just sign and don't know what they're looking at and then they wait for the end when you get your closing disclosures which those are the final numbers and they're like wait a minute my course went up ten thousand well yeah we sent it to you we told you but you ain't paying attention right you know what I'm saying so closing costs again it's five percent on average could be less could be more now your seller's concession will be listed on here too um so if you scroll up a little bit to the bottom of page two right like you see what says all the total costs in that box right there right I and J yeah so now you see it's hella credits is exactly so you whatever money you put down your good faith deposit when you sign your contract if you get in the sales concession everything would be broken down right here and then boom it will spit out with your final number is what you need to bring the closing cool okay that's so we're done with this uh this uh this slide well do you understand closing costs tools how to actually look at your loan estimates yeah I have I have a few questions so ask a question hopefully these overlays don't pop up again all right so um you go find a house that you want right and then you go to so what's the process because we're speaking we're going through the flow of this but like let's say if I find a crib on Zillow what's my next step to do I have to go find somebody like yourself to get me the crib to get a loan right yeah okay and then one and one step do I get the loan estimate so you get a loan so all right let me break this down to YouTube because too many times people they get pre-approved and they say let me see a loan estimate right right unless I'm not giving you a loan estimate on pre-approval maybe you get a closing cost worksheet okay right because you just you just want to know an idea of what your fees are going to look like costs and stuff like that so you'll get a closing cost worksheet during your pre-approval stage for me when you now sign your contract and you go into a deal that's when we do the disclosures and we do all the loan estimates at that time and then you you get your loan estimate and then that's when you have your conversation with your lender about whether you the good the bad the ugly and you mentioned Title Company when does that come into so maybe we need to do some title episodes um because we haven't really speak no one really speaks about title and the whole title report yeah and stuff like that but title is typically ordered in New York because New York is an attorney state so that means you have an attorney representing you and that attorney will typically order the title okay but in States like Georgia where the relatives are handling the contracts they will choose who the settlement companies are and the title companies are right um but I would tell you and I would tell everybody watching this you are the boss you can order from whatever Title Company you choose to you just have to know you can and most people don't know that they can so the title is very important it shows basically the history of the house like if there's any judgments if there's any thing on there that can um hurt your investment in the bank's investment into buying this property right right um so yeah title report is very important we can't close without a title report but we'll do some title content so people really have a full understanding of title good question write that down so we won't forget because I'm going to forget okay so cool um next question is um now you have money right so you want to get the house what steps do I need to take to show that I actually have this money or how that I actually have this income let's say if I make 80k a year or whatever it is how do I make sure that the bank knows that I make that you provide the documents so what documents so that's the question well this isn't this is the next this is the next step for yeah okay so what so what documents that you need to get pre-approved what proof of funds yes proof of funds all right so documents and proof of funds are two different things well that's why you just said documents no because you said because you asked a question I said you said your documents right what documents okay but you just said proof of funds and that's why I said documents and proof of funds are two different things okay so explain okay so documents you need is your W-2s your tax returns your pay stubs you know last two months bank statements okay Etc so the lender can see last you said last two months right all pages of your bank status and that's for W-2 or and self-employed and self-employed okay W2s last two years of w tools if you're self-employed last two years of tax returns if you're W2 then you don't really need to provide tax returns but some lenders will still make you um submit the tax returns uh you need 30 days of pay stubs if you're self-employed then you probably don't pay yourself and pay stops right so you don't need that but most important is last two months of your bank statements where's the money show the money you know what I'm saying and that's bank statement shows proof of funds whether it's a 401k whether it's a brokerage account whether it's your checkings and savings wherever that money is that is the proof of funds show us your money now you submit all of this you under your loan officer reviews everything and then they're gonna issue you a pre-approval letter and now once you have that pre-approval letter you can go out and shop and that's where most Realtors want to see um when you're in the marketplace it's just that you've been pre-approved and it's a viable pre-approval right so uh I mean a realtor is not going to waste or want to waste their time unless you have that basically because you can go you don't you don't want to waste your time right forget the Roses I mean a lot of people do that with other things like cars want to say no car Playboy right so I'm just I'm saying so but you don't know if you're looking for a house you might just you know you might not know these things so you might just want to go look for a house and I even have that step done before well that's why you need to be tuned into mg the mortgage our show every day and you'll learn these things that you don't even play yourself and go shopping without having a pre-approved letter right now you know exactly what you're getting approved for and what you can really afford if you really do a a solid analysis of your financial profile and then you move on from there you go shopping so now the rates for FHA are they um like better than other products loan products or is FHA better than other loan products rates like do you get the the best rate so now in terms of interest rates yes good question so interest rates yes you have typically FHA comes with lower interest rates because you don't have all those llpas remember we discussed llpas well FHA don't have all of that okay right they don't penalize you for low credit scores because this is a low credit score type of program got you right so yes typically you'll have like so if the conventional rate is for eight one borrowers six and a quarter percent today FHA will probably be five and a half to 5.75 depending on the lender so it might be a quarter to three quarters of a point lower depending on the lender right so yes you will get better interest rates with the FHA loan now if you have good credit scores if you have good credit score correct now what about insurance um I this is the one thing I really don't get I'll get with like this whole process is the insurance part okay um I hear PMI a lot but I don't even know what that what that even means and how important is this when you're actually going to buy a house so FHA requires has two insurance premiums first of all pmi's private mortgage insurance you have to have this listen Okay because I hear all the time yes okay PMI is typically with conventional mortgages gotcha private mortgage insurance right if you put down less than 20 percent with a conventional mortgage then yes you'll have PMI okay what FHA it has MIP mortgage insurance premium same thing different right different terminology so MIP versus PMI pretty much the same thing now with FHA they have two MIP fees that they're charging you one is The Upfront MRP that's 1.75 of your loan amount okay and that gets financed into the loan okay so for example if you got a hundred thousand dollars right times one point seven five percent do y'all math y'all 100 000 times 1.75 how much is your PMI yeah your upfront MIP type it in chat hundred thousand dollars times 1.75 percent how much is your upfront mortgage insurance premium type it in chat s what's your answer it was a hundred thousand times what 1.75 percent how much is your upfront mortgage insurance premium well y'all figuring this out please go like the video also it's almost 400 in y'all here we got one answer in here so far I'm saying wrong answers okay 17.50 exactly yeah so that's your upfront mortgage insurance premium okay right that you that it gets financed into your loan now people always ask me should I find answer the pan and cash just Finance it because the difference in monthly payment is nothing so I'd rather you remember you do a million dollar loan times 1.75 that's 17 500. yeah right so that fee it gets more expensive the bigger your loan amount so you're better off financing it because the difference in payment is like ten dollars right I'd rather have my money right right and then you have your monthly MIP your monthly MIP is now 0.85 percent right so if you do now if you do a three let's just say I'm gonna use 500 000 for this one you got a five hundred thousand dollar loan times point eight five percent that comes out to 42.50 now you divide that by 12 that gives you 354 a month MIP that you have to pay so loan amount times .85 that gives you the annual number then you divide that by 12 that gives you the monthly number right or what your PMI is and that is for the life of the loan if you put down less than ten percent with FHA if if you put down less than ten percent correct okay if you put ten percent or more down then that PMI the MIP goes away year 11. okay okay I got that I got that you understand that I get that yeah do y'all understand this I understand that now please tell me if you're happy right because again this is probably probably the cons of FHA is that PMI right that PMI 10 plus years or life of the loan sucks because now you got to look at 354 dollars right a month let's just say you stay in this for you know 120 months that's 42 500. is it more concerning with higher loan limits though oh it's hot that was a 500 000 we just did right so imagine the million is double that right you know what I'm saying like it gets it gets pricey this is part of your monthly mortgage payment now so this is why people will look at FHA as a con because of the fact of your PMI but I look at it like this you still got a low rate can you afford the payment and at some point you're probably going to refinance out of your FHA anyway at some point right so I always look at PMI or even MIP as a short-term lending solution right it's there to give us the ability to do these loans with low down payment right so you got to really start asking yourself if you buying yourself a 500 000 house do you have 100K 20 down payment plus closing costs no probably not yeah probably not so it's better to have the PMI and and I paid them for a couple years and then I'm a refinance out of it and I'm a dip out of this joint yeah I'm OPM in my life away so PMI is not the devil ladies and gentlemen it's a tool also that allows you to build wealth for Real Estate with using as little as your money out of pocket as possible but this is why you have to understand this math so you can go out and execute at a high level I always thought you said PMI as a devil and I was like I don't even know what he's talking about now I get it yeah so now what's the difference now what's the difference but like why would you want to use um well you kind of explain that just now but like FHA versus conventional like if you get approved for either or which one would you know what I'm saying like which one is a better tool to go with up front FHA versus conventional yeah like why would somebody want to go with a conventional loan as opposed to FHA it depends right Different Strokes for different folks number one right everybody's circumstances different right some people might just have the money and just I want to go conventional right most people go FHA because maybe higher debt to income ratios low credit scores they might have and and capital they may not have a lot of funds right right they may want to buy a multi-family I think FHA is probably one of the best tools out there to buy multi-families because you can do a 3.5 down right up to a four family right with conventional you can't unless you go with like um home style or home ready programs I think which one of them you can do like five percent down I think it's home style no yeah yeah I think it's Homestyle I can't remember a fan but that was home possible matter of fact the home possible you can do less with Freddie Mac but that's a reason why people will go FHA over conventional is for those six circumstances that I just mentioned now there are people out here that don't even want to hear the words FHA right they only want conventional because that's just what they want and that's their preferences especially if you're buying a single family home it's like I don't really need to go FHA if I don't have if I have good credit if I have down payment monies like I really don't need to go FHA I can go conventional put five percent down put 10 down and call it a day like when I brought Garland Gardens I did that conventional ten percent down 10 down it has PMI on it but my PMI honestly I can once I'm done I'm going to remove it you know what I'm saying because it's gonna have so much equity in the house the house got mad equity in it right now um so that's why I like for me I wouldn't dare do an FHA loan for myself at this point in my life because there's no reason for me to do it but if I had to I would do FHA all day it seems like the pattern with real estate or anything is like use as little money as possible and use OPM because that's the pattern of life like don't use you know try to hold on to your money and you know that's what it seems like I try to I try to do things only with new money or other people's money yeah not my old money I want to keep that so like when you do stuff you should always have that that that mindset is like how can I use your money versus mines because I want to keep mines right not all cases that work out that way but you should be thinking like that that's a fact well um I think that was pretty much that was pretty much it I kind of wanted to go through you kind of walk through it already so we don't really need to go through a whole walkthrough of actually as far as speed is concerned so somebody had a good question in here is it quicker if you got a good loan officer it doesn't matter what law you're going to get you're going to close fast right I've closed FHA Loans in two weeks and I've closed conventional loans in two weeks it doesn't matter it's all on you you wanted to go quicker how you itch together yeah when people don't have their stuff together is when it doesn't go as fast as it should be right so if you want to close fast you got to be together man you can't expect the bank it's always not the bank's fault right it's like it's you it's your paperwork it's your documents it's your profile and yes sometimes it could be the loan officer mistake it could be the underwriters being the pain that does happen but for the most part when I see challenging loans it's not us it's the borrower's profile of what they're presenting so have your ducks in a row have your ish together before you go out here and try to apply so that way you can go out here and close in a timely manner and it don't matter what Loan program you use good loan officer going to close baby we're gonna get that thing done period so actually well we won't go through a whole process that but like let's say if you're looking for a house right now let's say if the house is 500 000 in today's market um what should you prepare yourself for in terms of money to have down while somebody tell us turn up the volume I don't know if the volume thing I'm kind of we've been through the volume thing but yeah like come on bro there's nothing wrong with the vibe turn it up your volume bro here's a little there's a little button or two buttons on the side you could just hit yeah he's in the back of the class um yeah so let's say if a house is 500 000 right we'll get to the questions in a second how much money should I have 10 10 of 500 000.50 that's what's close that's what closes down payment closing costs because you got 3.5 plus another five and closing that's 8.5 round that up call it ten percent ten percent yeah okay it's a good number I would probably say you should have a lot more than that right because you got to have reserves even if the bank don't require reserves you should have them three to four months of your mortgage payments that you ain't got to never touch and live off of it's there but what if that money just be the money you're gonna use to put down anyways now reserves is post-closing reserves is after I spend my my 50k to buy this house yeah I still got another 20 left over because I got to cover my mortgage for emergency funds okay I got you you know what I'm saying so you got to have money man you can't be buying real estate with no money cool okay that's just my thought process being broke ain't cool no brim broke is actually doing yourself a tremendous disservice when you're doing when you're broke you can't enjoy life the way you need to I mean it's tough for some people out there no it's I'm not talking about it's tough for people that's these are different conversations it's like what we were talking about the other day and we're talking about income is 100k a lot of money yeah and it's not a lot of money and people like well if you live here that's not the conversation if you live somewhere like all kids who live comfortable that's not the conversation the conversation was is 100k a lot of money it's broke being cool no it sucks no that sucks like it sucks whether you're going through ish or not being broke sucks and if you're buying real estate you should never put yourself in a position to be broke right because it sucks now you have a responsibility don't people want their money that mail come out yo my mortgage statements for February come mid-January they want their money they're not playing around yeah you're getting 15 days prior to the first and then you're going to get if you ain't paid they're going to call you and say Where's My Money they're going to email you where's my money you haven't paid yet is there a problem [Laughter] being broke ain't cool bro yeah I don't care what you're going through I've been through so much when I was broke and I'm telling you it was the worst your mentors all messed up like you don't want to go do nothing you can't afford to do nothing then your mentality gets all messed up and then if you're buying houses and you broke something break you screwed yeah stressful don't be house rich and cash poor people so you want to ask some questions and do whatever you want to do all right yeah I think um drinking my water so make sure y'all like hold on look apply with mg.com my team is licensed in 21 states if you want to close fast if you want to work with me on my team we'll be happy to help you apply with mg.com please you can book consultations the whole nine yards work with me and my team okay that was my commercial break so I got 10 on a 500K house right now how fast can you close two weeks two weeks wait wait hold on let's close you know what I tell my team every morning let's close that's my text that's my good morning let's close yes let's close Okay so send me stuff I say cool let's close everything's less closed B we closing deals every day B we want to close loans that's all I want to do I don't want to do nothing else in life you want to close in two weeks I got you just how your itch together and we'll work as a partnership and we'll get you close now sometimes it might take 30 days it might take 60 days but we'll tell you up front yeah based off of your your scenario now this is going to take some time right like I have people hear me hey I want to do 200 000 rehab with an FHA 203k well that sounds like a 45 day close to me you know what I'm saying that don't sound like a two-week close I sound like a 45-day close because there's a lot of moving Parts with that so every situation is different but for the most part two to three weeks let's get rid of them is there a lot of moving Parts with an FHA loan there's a lot of movement problems on every loan but I'm saying like other people like you know how you're if you're building a house there's other contractors oh no it's just the bank the underwriter the loan officer really you know what I'm saying like but again this is about the the borrower profile being a one solid yeah right on how they submit in documents the loan officer setting the proper expectations from the beginning not not when the [ __ ] already hit the fan right and the loan officer actually being skilled at what they're doing to submit a clean file to the underwriting Department because Underwriters get [ __ ] sent to them all day and they got to kick it back because the way it was presented to them right so if you submit it properly the first time underwriter is going to love you look at your file like y'all was clean right and that's the very important part of when you're working with and this is what I need you all to understand not all loan officers are built alike and I say that so respectfully they're all not built alike so when the underwriter gets your file and if this loan officer has a reputation in their company I've always putting in ish files yeah when loan officers when Underwriters see it they're already rolling their eyes because they know they're gonna have to do all this extra work piecing together they did their income wrong it's like I got to do his job too or her job too on top of my job they get tight they're human yeah they got probably 100 loans they got to go through and now we got to spend extra time because you a sloppy loan officer this happens every day not all loan officers are built alike so the way that loan is presented to the underwriting Department the faster it's going to get out of that department and get an approval right and then you can move on so me and my team my relationships with our Underwriters are A1 because we know what we're doing so when they see our loans call a Mortgage Group they smile because they know it's going to be together and it's going to close gotta think about how many loans going to win that don't close yeah that don't close now you're doing all this work and nothing's closing it's frustrating you know what I'm saying so again choose pick your poison of who you're going to hire as your lender because it's not it's not the lender it's the person it's that loan officer he or she has to be awesome at what they're doing and you have to be able to interview them in a way to where you can understand that this person really know what they're doing or not and if they do then you go forward if you don't then you you keep finding but you guys know how to look go to apply with mg.com and we got you yeah I was gonna say how do you know if your loan officer isn't doesn't you know isn't knowledgeable of products or like because I did see a comment before where somebody said they didn't qualify because their loan officer said something about them not being able to do it or something like that I'm not really sure what it was but how do you know like how do you know the more you know that's that's a good answer the more you know is how you know yeah so when you are interviewing somebody and this goes for anything and I use this to practice every single day when I'm talking to people I'll ask you questions I already know the answers to them it's very simple I know the answer to it already so I'm gonna actually like I'm just playing dumb because I'm actually filling out your knowledge yeah I kind of do the same exactly it's the simplest it's the simplest hack actual stuff that you know already and then from there I could say oh no I don't like the way he answered that that's cat yeah or like why it took him so long to get from point A to point B real quick it took you 17 minutes just to say something I could have took two minutes like nah bro like nah something off yeah something's off That's it man I mean FHA seems pretty like you know straight to the FHA has a negative stigma around it in the real estate world because hey if you have Ram like no rails no handrails or if you have peel and paint you know what I'm saying if you have health and safety issues if that house won't pass FHA inspection on the appraisal right right it might come back and say so when you get an appraisal you have as is or subject to repairs as is is great meaning you don't need no repairs done right but if that appraiser comes back subject to the appraisal will list what repairs need to be there and then somebody got to pay for it to get done because now the appraiser has to go back out there again to view the property to make sure what they put on the report was actually taken care of so unexperienced or inexperience Realtors who list properties and accept FHA borrowers without understanding how FHA works and what an appraisal for FHA Loans going to look out for it's going to be a whole nightmare yeah because of the lack of experience right but my experience ones they know they'll tell you flat out like yo we got this we got this we got this we're going before this appraisal we're going to get this paint clipped we're going to add this handrail so that way when that appraisal come it's clean boom what if people are living in the house though like so how does that work someone has to take care of it it's part of your negotiation now okay so the seller has to take care of whatever it is can you I'm not paying for nothing on the house that I don't own right what if they disagree then that's it it's a done deal for that long gotta go conventional all go FHA 203k okay and get a rehab loan there's always options yeah there's always options it's just all on who you working with is what's going to make those options come to life draw some gems in the comments and I'm tired too yeah no this is good you could probably see it on my face I'm drinking mad water to stay yeah we're done you're done yeah this is I'm so done dry January has come to the end so I'm gonna say what a weekend okay done you're done all right so that was good I actually learned a lot I'm not even gonna lie no cap I definitely learned a lot this um this life for sure well this is what I do for a living yeah I mean I think that I think that I've always had these questions but I think I wanted to do it on the live just so we have some other questions coming into at the same time so I need more likes on this video that's what I'm going to tell y'all y'all better stop playing with me and give me some more likes I know we've been on this live for um we've been on here for an hour and 14. so we got like what a couple more minutes maybe five ten minutes to answer some questions whatever man um somebody asked if I could ask you if you heard of a channel alone yes and what is it we're not even gonna talk about that you can't just give like a two second like it was basically like uh 100 financing I'll just say that oh it's one of those yeah one of those one of those uh those Cloud Chase alones huh yeah this is something that you probably want me to talk about this [ __ ] what's up let's do it nah bro that's all you care about like no I'm not talking about that well I mean honestly a lot of people talk about that people have asked and commented about some type of all and oh that was all in one loan I don't know if it's the same thing but I don't know what they're talking about I ain't talking about that oh man okay um yeah these are all okay so do you somebody said they're ready to invest do you have offices in Chicago would love to work with you and your team yes we live in Chicago we don't have an office in Chicago but we lending we lived in Chicago we do Zoom calls all day with our people so it don't matter where the office is it's called Zoom we live in a technology world I don't need to have a brick and mortar there let's just do business man we can get on a zoom call with my team and let's get business and if you're a realtor who want to work with me and my team set up a realtor partnership call links will be in the description too and you can talk to my business development manager and we can talk to you how we can help you and your clients get to the closing table so we have all the options we do Zoom calls face times whatever you need we make it like accessible and easy for you it's real simple okay uh this is a good question um can you play can you can you pay for a closing cost with a credit card oh my God no you can't why not let me know yeah we're gonna swipe at the closing table yeah they got they got Square what they got what else they got um you can't no you know why because a credit card is a revolving debt right so now you swipe that your payment goes up what payment oh it's unsecured funds in our world so can you swipe your card no could you do a cash advance and deposit that money let it sit for a couple months before you apply and use that money yes why would you want to do that though I don't know people just like to run up more debt that sounds like if I feel like if you're doing something like that that sounds like a you probably shouldn't be I mean I don't know I can't even say that you got to look at this right I'm a fan of using everything you have to get what you got to get in life right and if you're using credit a cash advance I'm talking about it's still credit yeah but it's more I think it's more interesting whatever it is it's still credit coming from your credit card right and now you have a balance that you have to pay back it's more debt that you're adding to yourself yeah either which way so just be mindful of that yeah have I had people do cash advances and use that for transactions absolutely I wonder what the logic is behind that I'm curious if you really don't have the money and the credit card would give them the money that's the logic period I don't have no money man thank you Amex for giving me my down payment I'll pay you back monthly and I don't care because now I could go do what I got to do yeah it happens every day um okay um all right let's get let's see some other questions here yeah cause I'm getting tired what's the downside of getting a rehab loan interest money down Etc um what what's the downside of getting a rehab loan interest money down Etc it's no downside what are you talking about the downside the downside somebody's gonna give you a hundred percent of the repair cost to fix up your ugly old house to make it worth more than what it is how could there be a downside you know what I'm saying like really think about it there's no downsides in this it's only upside if you buy right the downside is if you don't buy right the downside is if you over leveraging yourself the downsizes if you don't know how to analyze property the proper way to know if it's a good investment for you or not that's the downside yeah when you go through twists and turns to get these type of loans absolutely but if you already have the expectation that is going to be some some pain that comes with this then you're not going to sit here and be stressing yourself out the people who are not well researched are stressed out every day the people who come to me and they're well researched and they watch my channels and read the books and do what they have to do they're not stressed out because they have information and they understand hey if I'm taking out a 203K this is gonna be a little challenging but I'm ready for it I'm mentally ready for it but downside and Rehab no it's on the upside if you do it right in my opinion okay you gotta think about the world we live in when FHA was established in 1934 there were no 30-year fixed mortgages in America at this time they were only three yet five years stuff like that yeah but homes were like what it don't matter 50 bands there were 50 bands but that's like 5 million in today's money it don't matter it's all numbers it's all relative right you have an opportunity to borrow money with as little as possible out of your pocket and if you're doing a rehab they're giving you a hundred percent of the repair costs as well yeah the bank is putting on the line 96.5 percent of the hundred that's needed to close this deal you're only putting up 3.5 of your own money and we're talking downsides we got this we got the chill the [ __ ] out like I'm just sorry like downside what 3.5 5 and the bank will give me 95 and Rehab money what why are you not jumping on this I'm just saying and that's the potential Equity play if you do it right so I just used three and a half percent of my money to leverage myself to make a hundred thousand hundred fifty thousand equity what kind of that's a flip yeah so when you think about there's no downsides to this the downside is you the person you look in the mirror every day is your downside you nothing else not the loans not the process you period all right well uh can you give can you give a prediction of the market for 2023 into 2024 should we yeah buy now or wait you know what honestly guys I feel like you're probably not gonna like the answer because he is kind of spicy today so no no what's that what's the question uh so what's your prediction um of the market for 2023 into 2024. don't we have a whole video behind that all right so next question next question I'm not answering questions go watch the videos you got to catch up man yo um I got a whole shot on that too it's a whole short in the whole video breaking all that down I'm sorry I'm not gonna answer that one uh my client okay we kind of so a lot of people asking about the income um and we kind of covered that too you have to have two years of income consistently between W2 W2 and 109 and 10.99 right you can't go from W2 to 10 and 9 because your clock will start over correct yeah basically so consistent employment is there any other is W2 or 1099 or is there any any other self-employed tonight so you have to be two years both okay you cannot um pretty much uh no I'm not I'm not scared to ask questions I just don't want you know they said they said they said you're scared I'm not scared to ask no questions it's just I don't want people to feel like you you know you're getting a little spicy with them that's why I'm drinking a lot of water right now stay hydrated off the foolishness yeah I mean I asked a question I know it's gonna piss you off so that's why that question that pissed me off it's just like I'm not answering it well I know you spoke about it already in that time so um let me see we got what else we got in here um I'm self-employed and right off and write off a lot of my income and just bought a rental property with dscr ay call oh you can't you can't then you get me into a whole nother topic of this video you have videos on that too all right guys well if you guys don't have any other FHA related questions look class please class class it's Professor mg talking to y'all when we are in these sessions please only ask questions that are pertaining to the particular topic so we can keep it all in the same video when you start asking about different things like it throws off the video so let's keep it on topic please thank you very much okay you got how long you been on this uh 90 minutes we could uh yeah I mean I don't really have any more questions I think I asked all the questions so basically in my head ten percent make sure you come with 10 um if you wanna use the FHA loan correct correct 10 anything else and all the credit you need to have your credit right gotta have your credit right you gotta have money yeah now if you get sales concessions and everything like that that's great but you want to still have your own money cool solid okay like comment share subscribe download mg the mortgage guy show any way you're listening to podcast talks when is this audio going up did you put up the audio from last week's shows I put up the business credit we have a bunch of audio that was already up there oh my God so yo there's a lot of content man a lot of content last week you said you was putting up the lives last week and you didn't wait what lives we did lives last week bro yeah but you said Monday Wednesday Friday okay we can't put I mean we have a lot of content so we can't just okay look it's on it's on talks y'all y'all don't see the audios up there that's on him this is audio right now but they can rerun this if they want to all right let me tell y'all where I'm gonna be at I'm gonna be in Baltimore this Thursday uh I'm gonna put the link in the description make sure you guys come check me at Security Square Mall shoot Shoe City all right Security Square Mall Shoe City uh from four to seven PM it's the new SMU New Balance release event I'm talking real estate I have come to some of my local people there too that do real estate I'm not going to tell y'all who they're going to be but they're going to be some really good people there in the building um it's you have to RSVP if you're in Baltimore or the surround the cities Philly Delaware DC anywhere in Maryland pull up on me at the Security Square Mall Shoe City um event from 4 to 7 P.M all right um mgbookstore.com You already know the valves go by the books and then I might bring some books for me Thursday too so if you come maybe I'll do some sign books while I'm out there as well and um if you want to work with me and my team very important if you want to work with me and my team if you're a realtor you can set up a partnership call with my business development manager if you're a home buyer investor uh first time home buyer you want to refinance whatever it is we would love to help you win 21 states you can go to plywoodmg.com or you just click the description of this video you'll see links for consultations and to apply and for the realtor partnership call all right that's all I got talks you good yeah somebody said something no I wanted to touch on real quick oh my God nah I just I guess this is what I was saying before somebody said um a question has a question no one knows it all especially about this topic otherwise y'all wouldn't be on here period that's a fact I agree oh I like that one who said that um kind of bang out four five six shout out to bang out four five six all right that is a fat I do agree um but I don't know how that was said I don't know if it was said in kind of like a a salty kind of way but either way thank God said what he said yeah that's all that matters so that's why he stuck it it looked like he got on he got Caps or no yeah oh then he he stuck out his chest with this one so uh yeah don't be scared to ask questions guys um I'm asking these questions uh for myself on camera so um you know don't be scared to be the dumbest in the room because I always feel that way when it comes to real estate um so yeah that's basically it those are my closing words ladies and gentlemen AMG Morgan Scott show is a wrap thank you guys for joining we will be live tomorrow as well um is your dad gonna be here tomorrow she's not coming in all week oh okay so Jordan yeah we can't yeah yeah so Jordana will not be on the show tomorrow or Friday um it'll just be me and talks or Friday we got a special guest maybe we need to find somebody who can sit on in this chair with us tomorrow then to replace your dinner she be like a kind of uh special tomorrow no we can't do that I mean she ain't here so we need to fill a seat Well I think I think we're both fun and then yeah but I like the three three the hard way [ __ ] it gives a different perspective on these conversations so who are you going to bring in I don't know I'll think about it tonight somebody local we'll figure it out I have no clue but I'm gonna figure it out we're gonna have a special guest tomorrow too who knows okay all right tap in tomorrow uh probably four o'clock hopefully and um yeah like comment share subscribe hit the bell for notifications all right I gotta go bass pace

Channel: MG The Mortgage Guy

Views: 136,338

Keywords: first time home buyer, real estate, fha loan, first time home buyer tips, first time home buyers, first time home buyer loan, fha, how to buy a house with an fha loan, fha loan requirements 2023, buying a house

Id: MDHZLjBIUyM

Length: 87min 27sec (5247 seconds)

Published: Mon Jan 30 2023