January 12, 2022 • 17 mins
In this deep dive, Ben returns to get you first-time home buyers ready for that dream home. He covers the difference between FHA and conventional loans and which is best for you. He breaks down closing costs, why they are necessary for every real estate transaction, and how they protect you. Ben gives us the lowdown on fixed-rate and adjustable-rate mortgages. He even informs what you should be bringing on your first meeting with a mortgage lender.
Ben specializes in working with first-time home buyers and potential clients who may not meet the necessary qualification to get approved for traditional mortgage financing. In addition, he has a knack for teaching clients practical ways to prepare for a successful and easy home buying process and spreading financial wellness through real estate.
Host: @itstanyatime
Guest IG: @benthebanker_
Tik Tok: benthebanker_
Learn more about your ad-choices at https://www.iheartpodcastnetwork.com
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
What's up, money movers? Welcome back. Today's deep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, Bridging the Wealth Gap together retreat with
much much to discuss my thoughts. My thoughts have been
(00:22):
reeling on mortgages and how we can really help our
community secure real estate and assets for their families and
future generations. So in our previous segment you talked about
f A H s and conventional loans. Can you tell
me the difference between a f A J and a
conventional loan? Yep, So f H is going to be
(00:42):
more for your borrower who is low to moderate credit
and or income. Right, So credit that is kind of shaky,
probably anywhere from like a five eighty to a sixty
sixty credit score, all right, and in low, low to
moderate in them as well. So depending on where your
dead tin come ratio is. Normally deadtin come racials that
(01:04):
are around forty five to seventy five sorry, fifty seven
percent is where the dead tin come ratio would be
at for FH buyer conventionally different. Now you're looking at
strong income, strong credit. You're looking at normally credit scores
in the seven hundreds high six hundreds, you're looking at
deadsin come ratio that is under seventy, very strong bar
(01:25):
whereas not more times than not they have more than
three percent to put down on a home. So those
are the big differences. Okay, alright, that makes a lot
of sense. Um, what are closing costs and how much
should I expect them to be? Because I feel like
sometimes those are a surprise for people at the end
(01:46):
of a really great journey. How how do you how
would you explain those? Oh man? So, closing costs is
always a big question mark for a lot of people,
but it's necessary in every real estate transaction. So closing
costs consist of the originator's fee. So whatever originating company
that you're going with, it consists of their fees. You
have title feast, the attorney fees. We have to pay
(02:07):
the attorneys who are doing the title searches. Okay, they're
not going to do their job for free. Um, we
have um transfer texts that need to be paid. You
also have an escrow set up. Okay, so in escrow
count guys. For those of you who don't know, you
have to pay property taxes because if you don't you
will be taken. Promise you that you need homeowners insurance. Okay,
(02:29):
homeowners insurance to make sure that your home is covered
all right and fully covered at that God forbid anything
happens while you have a lean on your property. Okay,
So homons and I'm feeling very very broke right now.
This is a lot of costs. Yeah, home ownership is
not easy, but I love that you're preparing us for
this UM and and obviously the UM if needed, the insurance,
(02:54):
the mortgage insurance as well. So you also need an
escrow set up. And what the scrow set up is
for is that we they we pretty much put funds
in the account prior to you closing, because what we
want to do is pretty I call it like a pad.
We want to make sure that you have enough money
there so when the end of the year comes and
taxes are taken out, insurance is taken out, insurance company
(03:18):
needs to have enough funds in there so that they're
able to pay all the parties there. UM pay all
the pretty much the the invoices to all the parties
that need their funds, because God forbid, if it doesn't happen,
you're at risk for pretty much because you're the borrowers,
So we want to protect all barrowers by making sure
that we have those uh as grow setups. Um. And
(03:40):
that's pretty much what closing costs really consist of. It's
just making sure that we have everything in line so
that there is nothing missing and hopefully later down the
line borrowers are not you know, coming back to get
bit in the behind for something that they should have
paid for that the mortgage company actually pays for in
your behalf. That actually sounds like a protective mechanism exactly. Um. Okay,
(04:04):
So my next question, should I choose a fixed rate
or an adjustable rate mortgage? So it depends, It depends
on the goal, and it depends on also where you
are well the market, the market that you're in when
you're looking to buy your home. So if you're looking
to do a fixed rate mortgage, and fixed rate mortgage
means that interest rate is fixed for the life of
(04:27):
the loan, it is not going to change at all. Okay. Now,
fixed rate mortgages normally really follow the market, so following
the market meaning that rates we actually follow rates that
are that that the market actually goes by. Okay. Guys.
So I don't know if people are in the stocks here,
but we follow bank rate. I'm not going to get
(04:48):
much into that as kind of complex, but um, we
pretty much followed the market. So whatever your fixed rate
is is pretty much gonna be locked in at wherever
da time you in kind a home, the time you're
about to close, depending on that you have. Some lenders
do it differently where they might like a rate prior
to you're doing an application, or right before you go
(05:10):
to the closing table, maybe a couple of days prior,
depending on what you want to do. But a fixed
rate mortgage is normally going to follow the market depending
on where it's locked at. Okay, Now, adjustable rate mortgages,
you have different adjustable rate mortgage time frames. Okay, so
you have a three year, you have a five year,
and you have a seven year, and some even do
(05:30):
tenure adjustable rate mortgage. Now, adjustable rate mortgages will normally
be lower than what the market uh than than the
actual market rates. You'll normally get a rate lower. The
thing is, though those rates are just after a certain
time period, non times out of ten is probably gonna
go up. Okay, so more times than not. When people
(05:53):
use adjustable rate mortgages is when rates are really high. Okay,
so that's normally when people use adjustable rate. Just so
in this market that we're in, we're rate to actually
at an at an historic low, believe it or not.
So now it's a good time to buy, good time
to buy. Fixed rate is the best option to go.
I don't see many a just adjustable rate mortgages mortgages
(06:16):
being put out there because it's just rates are low.
So yeah, exactly, why wouldn't you lock in your rate
at the lowest rate possible for thirty years versus locking
it in for three, five or seven years. Just doesn't
make sense. So get the best rate to ken and
lock it in for thirty years. Okay. So you talked
about the market, and we just came out of COVID.
(06:38):
What are you seeing right now with the market. Is
it a buyer's market, a seller's market? Um? Is there
a lot of inventory? Great question? So during COVID it
was a mess. I will say that it was a mess.
It was definitely a seller's market. During COVID, we did
not have a lot of inventory. The price of lumber
(06:58):
was ridiculous. So we're making tons of money. Now, what
I'm seeing, especially in UM in my area in Atlanta,
the market is kind of slowing down, is getting more
even now. Um, we're honestly in this shift. So buyers
are starting to you know, kick like get it, get
it going again. They're filling their straw. Now buyers again
(07:18):
out there. They're able to now really negotiate with the
sellers and get what they're kind of hoping for versus
a couple of months ago where you literally we're paying
ten dollars over asking Christ. Yeah, so huge ship, huge
shift in these last couple of months. Okay, UM, my
(07:39):
next question, can you explain to me p M I
and d t I What are those words P M
I So good questions. So that to income ratio d
t I. Now, whenever you hear d t I, that
is death to income ratio. That is what we discussed earlier,
where how you can calculate how much home you can afford? Right,
(08:00):
So every d t I is going to be different
for every program, just like F A f H. The
max d t I is fifty seven percent back in ratio.
So how do you get that number? How do you
know is my d T I at simply lying into
a credit Carma, log into a credit wise LGG, into
(08:21):
something where you can see your credit, if not credit
for your your credit report. At the at the very least,
add up all of your monthly payment obligations, not the balances,
the payments. People make that mistake. Calculate all of the payments,
add them together, and divide that by your monthly gross income.
(08:43):
And when you divide that, you will get a d
t I calculation of whatever percentage that is for you.
I think a lot of people will be shocked because
you know, they don't really take into account like you say,
they're total spend versus income. And this is I think,
you know, one of the conversations. Let I want to
make transparent on our podcast, like we have to be
(09:04):
conscious of saving and not spending, you know in those
even in a in a world now where we're it's
at the touch of a button, you can subscribe to
five different streaming platforms for month. Like it adds up?
Does it? Definitely does? So? Definitely keep that in mind,
and that's why we tell people be very moundful about
what you're spending your money on or taking out debts on.
(09:28):
Be very monthful of that, and that's why we encourage
people that if you're really looking to purchase a home,
don't go acquire any major debts, don't have anyone really
pull your credit, and really really try to pay down
as many deaths as possible, because what does not count
against you are any debts that are paid off at
the time that you have your credit pool. Okay, you
said something really interesting. You're like, don't have anyone go
(09:49):
and pull your credit. It's like this is a thing
that people are a little uncertain about because they're like, well,
does that mean I can go on free credit karma?
Does that affect my credit school? Or um, what does
that mean when you say, don't have anyone go and
pull your credit. So when we say don't have anyone
going for your credit, that's really to protect you. Now,
(10:10):
we all know that when you have whenever you have
someone pull your credit, it is more times than not
going to be a hard inquiry, right, and hard inquiries
can definitely affect your credit score, not dramatically, but it
definitely can affect your credit score. The other thing too,
as lenders, we have to be mindful of when we
pull your credit, what inquiries you've had in the last
(10:32):
ninety days, and we have to look at those and
we have to investigate each of them because if you're
looking to acquire any new debt soon, we have to
take that under consideration. The other thing is too, we
also have to account for did you go to any
other lenders and get denied and come here and what
was the reason why you got denied? We need to
(10:53):
We need to know those things, not that you probably
won't get approved for the loan, but we need to
understand is there is their stipulation that they have that
another lender may have as well, that you can't get alone,
or another reason. Maybe you're hiding information. I always say
what's in the dark will come to light. So you
wan't to be extremely honest with any UH loan, any
(11:17):
finance professional that you're working with. Be very honest, be
very straightforward. Okay, So this is a great question because
it's like what are you hiding? So what do I
need um to bring to my appointment with you when
I'm trying to get a mortgage, Like what are the documents?
What do I need to compile so that I am
as open and transparent and I ultimately get the best
(11:38):
mortgage possible. Perfect. And that's a great question because I
wish more people ask me that instead of coming to
me and wondering, Okay, where do you know? What do
I do? So the best thing you can do is
bring identification right identification obviously driver's license, um SO security,
car passports, some some form of identification, UM employment information
(12:02):
right W two's, last two year W two's, a month
worth of pay stubs. And another thing that would be
nice is bank statements. Bring bank statements. Let's see how
much money we have to work with. If you don't
have enough funds, then we can talk about maybe some
grants or down payment assistance that might be available for you.
So those are more for people who are having who
(12:24):
have a W two job, have an employer. For people
who are self employed, instead of bringing a W two's
and pay stubs, all you would have to bring are
the last two years of your tax returns. Okay, okay, great,
I've got a question for you. I have a friend.
I was like, oh, I'm gonna have this mortgage expert
on the show today, and she wanted me to ask
you a question. She is a hair stylist, so she
(12:46):
you know, it's a part of the gig economy. She
takes a lot of cash payments. She takes some over
square and stripe um. She pays booth rental at a salon,
but she makes great money. Black women like to spend
a lot on their hair um. And she is looking
to buy her first home. She's a single mom and
(13:06):
she's found the home of her dreams. You know. Now
she's trying to get financing. What advice do you have
for her? Her credits? Okay, it's just under seven Okay,
so just under seven hundred credit score. We can work
with that. Promise you that we can work with that.
So what I would do is being that she self employed,
(13:28):
gets a lot of cash, what I would do is
after speaking with what when speaking with her, first thing
I would do is want to pull the credit. Let's
see we're working with with there. So if the credit
is under a seven hundred, let's say it's to six eight,
I would think automatically, let's go conventional financing. Let's see
what we can do their I Fannie may conventional financing.
(13:49):
The other thing is too, how much money do you have?
How how much and funds are we really working with?
Do we have enough money to put it to put
three percent down. If we don't, maybe we can put
a grant down. But she says she has a lot
of money, so I'm assuming she hasked there. I'm assuming
she has to close and called the closing cost funds
as well, so she can definitely afford the cash to close.
The other thing is too, she's receiving cash, so we
(14:13):
really need to investigate are you filing all of this
on your taxes? If not, maybe the best route we
might have to take is one of two things. Either
we need to talk to your c p A and
see if we can work on showing additional income on
(14:33):
your taxes. Right, because you can amend your taxes. It's
never too late. You can always amend your taxes. That's
a really great tip there. Yeah, and if you've taken cash,
you can amend things on your taxes. I never thought
of that, Yeah, amending your Texas. I have clients do
it all the time. A'men taxes. Let's show some income
(14:54):
on it, because what you can do is say, hey,
I'm a business owner. I don't make any money, but
please give me this loan that does and making defense. Right,
So let's show some income on those texts, but some
people will be a little apprehensive about that. No, I
don't really want to play with irs. Don't want to
pay them any anybody. Okay, understandable. As a business owner,
you do have that right. We can go a different
(15:15):
route and go a bank statement law bank statement meaning
yes you will have to put more money down, but
with a great credits for six eight or higher. We
can take the last twelve to twenty four months of
your business accounts and use and calculate the average of
(15:36):
those months and use that as qualifying income. So those
will be my options. We have options. We will just
have to sit down and discuss what works best for
you and your situation. What are you dry? You've given
a lot of food for thought there and even the
other piece. I think oftentimes people think, okay, real estate agents.
But you also mentioned this is gonna involve like a
good c P A someone who's thoughtful about how you
(15:58):
do your taxes as well, like man. Actual literacy is
not as easy as it you would think it is.
But thank goodness, we have experts like you to share
some knowledge with us, so we're prepared for buying our
own homes. Yeah, definitely, definitely, No problem. Ben, thank you
so much for joining us. Please tell us how people
can find you on social so that they can follow
(16:20):
and continue to get more wisdom and hopefully a mortgage
from you one day in the future. Yeah, definitely, Guys,
don't ever hesitate to reach out to me. I love
to help people bigger small. Uh, financial issues are not.
It does not matter to me. I'm all about educating.
Educating is what I love to do. So I'm on
Instagram at Ben the Banker Underscore, and I'm also on
(16:40):
TikTok Um at Then the Banker Underscore, where I put
out a lot of content videos to help people understand
everything that they need to know in detail, just like
I was discussing now on this show about how to
qualify for home well Money Movers, I hope you enjoyed
these buckets of knowledge, and I hope that you invite
me all to your housewarming parties when you buy your
(17:02):
first home. Then, thank you so much for joining us.
And that's it for now. It's been a pleasure having
you on the podcast. Thank you for having me appreciate it.
Money Movers, thanks so much for tuning in, but make
sure you keep it locked to the Money Moves podcast
powered by Greenwood. Thank you so much for tuning in
Money Moves audience. If you want more or a recap
(17:22):
of this episode, please go to the bank Greenwood dot
com and check out the Money Moves podcast blog. Money
Moves is an I Heart Radio podcast powered by Greenwood
Executive produced by Sunwise Media, Inc. For more podcast on
I heart Radio, visit the i heart Radio app, Apple Podcasts,
(17:43):
or wherever you get your podcasts from.
What's up, money movers? Welcome back. Today's deep dive into
entrepreneurship and our community is brought to you by our
partners at MasterCard, Bridging the Wealth Gap together retreat with
much much to discuss my thoughts. My thoughts have been
(00:22):
reeling on mortgages and how we can really help our
community secure real estate and assets for their families and
future generations. So in our previous segment you talked about
f A H s and conventional loans. Can you tell
me the difference between a f A J and a
conventional loan? Yep, So f H is going to be
(00:42):
more for your borrower who is low to moderate credit
and or income. Right, So credit that is kind of shaky,
probably anywhere from like a five eighty to a sixty
sixty credit score, all right, and in low, low to
moderate in them as well. So depending on where your
dead tin come ratio is. Normally deadtin come racials that
(01:04):
are around forty five to seventy five sorry, fifty seven
percent is where the dead tin come ratio would be
at for FH buyer conventionally different. Now you're looking at
strong income, strong credit. You're looking at normally credit scores
in the seven hundreds high six hundreds, you're looking at
deadsin come ratio that is under seventy, very strong bar
(01:25):
whereas not more times than not they have more than
three percent to put down on a home. So those
are the big differences. Okay, alright, that makes a lot
of sense. Um, what are closing costs and how much
should I expect them to be? Because I feel like
sometimes those are a surprise for people at the end
(01:46):
of a really great journey. How how do you how
would you explain those? Oh man? So, closing costs is
always a big question mark for a lot of people,
but it's necessary in every real estate transaction. So closing
costs consist of the originator's fee. So whatever originating company
that you're going with, it consists of their fees. You
have title feast, the attorney fees. We have to pay
(02:07):
the attorneys who are doing the title searches. Okay, they're
not going to do their job for free. Um, we
have um transfer texts that need to be paid. You
also have an escrow set up. Okay, so in escrow
count guys. For those of you who don't know, you
have to pay property taxes because if you don't you
will be taken. Promise you that you need homeowners insurance. Okay,
(02:29):
homeowners insurance to make sure that your home is covered
all right and fully covered at that God forbid anything
happens while you have a lean on your property. Okay,
So homons and I'm feeling very very broke right now.
This is a lot of costs. Yeah, home ownership is
not easy, but I love that you're preparing us for
this UM and and obviously the UM if needed, the insurance,
(02:54):
the mortgage insurance as well. So you also need an
escrow set up. And what the scrow set up is
for is that we they we pretty much put funds
in the account prior to you closing, because what we
want to do is pretty I call it like a pad.
We want to make sure that you have enough money
there so when the end of the year comes and
taxes are taken out, insurance is taken out, insurance company
(03:18):
needs to have enough funds in there so that they're
able to pay all the parties there. UM pay all
the pretty much the the invoices to all the parties
that need their funds, because God forbid, if it doesn't happen,
you're at risk for pretty much because you're the borrowers,
So we want to protect all barrowers by making sure
that we have those uh as grow setups. Um. And
(03:40):
that's pretty much what closing costs really consist of. It's
just making sure that we have everything in line so
that there is nothing missing and hopefully later down the
line borrowers are not you know, coming back to get
bit in the behind for something that they should have
paid for that the mortgage company actually pays for in
your behalf. That actually sounds like a protective mechanism exactly. Um. Okay,
(04:04):
So my next question, should I choose a fixed rate
or an adjustable rate mortgage? So it depends, It depends
on the goal, and it depends on also where you
are well the market, the market that you're in when
you're looking to buy your home. So if you're looking
to do a fixed rate mortgage, and fixed rate mortgage
means that interest rate is fixed for the life of
(04:27):
the loan, it is not going to change at all. Okay. Now,
fixed rate mortgages normally really follow the market, so following
the market meaning that rates we actually follow rates that
are that that the market actually goes by. Okay. Guys.
So I don't know if people are in the stocks here,
but we follow bank rate. I'm not going to get
(04:48):
much into that as kind of complex, but um, we
pretty much followed the market. So whatever your fixed rate
is is pretty much gonna be locked in at wherever
da time you in kind a home, the time you're
about to close, depending on that you have. Some lenders
do it differently where they might like a rate prior
to you're doing an application, or right before you go
(05:10):
to the closing table, maybe a couple of days prior,
depending on what you want to do. But a fixed
rate mortgage is normally going to follow the market depending
on where it's locked at. Okay, Now, adjustable rate mortgages,
you have different adjustable rate mortgage time frames. Okay, so
you have a three year, you have a five year,
and you have a seven year, and some even do
(05:30):
tenure adjustable rate mortgage. Now, adjustable rate mortgages will normally
be lower than what the market uh than than the
actual market rates. You'll normally get a rate lower. The
thing is, though those rates are just after a certain
time period, non times out of ten is probably gonna
go up. Okay, so more times than not. When people
(05:53):
use adjustable rate mortgages is when rates are really high. Okay,
so that's normally when people use adjustable rate. Just so
in this market that we're in, we're rate to actually
at an at an historic low, believe it or not.
So now it's a good time to buy, good time
to buy. Fixed rate is the best option to go.
I don't see many a just adjustable rate mortgages mortgages
(06:16):
being put out there because it's just rates are low.
So yeah, exactly, why wouldn't you lock in your rate
at the lowest rate possible for thirty years versus locking
it in for three, five or seven years. Just doesn't
make sense. So get the best rate to ken and
lock it in for thirty years. Okay. So you talked
about the market, and we just came out of COVID.
(06:38):
What are you seeing right now with the market. Is
it a buyer's market, a seller's market? Um? Is there
a lot of inventory? Great question? So during COVID it
was a mess. I will say that it was a mess.
It was definitely a seller's market. During COVID, we did
not have a lot of inventory. The price of lumber
(06:58):
was ridiculous. So we're making tons of money. Now, what
I'm seeing, especially in UM in my area in Atlanta,
the market is kind of slowing down, is getting more
even now. Um, we're honestly in this shift. So buyers
are starting to you know, kick like get it, get
it going again. They're filling their straw. Now buyers again
(07:18):
out there. They're able to now really negotiate with the
sellers and get what they're kind of hoping for versus
a couple of months ago where you literally we're paying
ten dollars over asking Christ. Yeah, so huge ship, huge
shift in these last couple of months. Okay, UM, my
(07:39):
next question, can you explain to me p M I
and d t I What are those words P M
I So good questions. So that to income ratio d
t I. Now, whenever you hear d t I, that
is death to income ratio. That is what we discussed earlier,
where how you can calculate how much home you can afford? Right,
(08:00):
So every d t I is going to be different
for every program, just like F A f H. The
max d t I is fifty seven percent back in ratio.
So how do you get that number? How do you
know is my d T I at simply lying into
a credit Carma, log into a credit wise LGG, into
(08:21):
something where you can see your credit, if not credit
for your your credit report. At the at the very least,
add up all of your monthly payment obligations, not the balances,
the payments. People make that mistake. Calculate all of the payments,
add them together, and divide that by your monthly gross income.
(08:43):
And when you divide that, you will get a d
t I calculation of whatever percentage that is for you.
I think a lot of people will be shocked because
you know, they don't really take into account like you say,
they're total spend versus income. And this is I think,
you know, one of the conversations. Let I want to
make transparent on our podcast, like we have to be
(09:04):
conscious of saving and not spending, you know in those
even in a in a world now where we're it's
at the touch of a button, you can subscribe to
five different streaming platforms for month. Like it adds up?
Does it? Definitely does? So? Definitely keep that in mind,
and that's why we tell people be very moundful about
what you're spending your money on or taking out debts on.
(09:28):
Be very monthful of that, and that's why we encourage
people that if you're really looking to purchase a home,
don't go acquire any major debts, don't have anyone really
pull your credit, and really really try to pay down
as many deaths as possible, because what does not count
against you are any debts that are paid off at
the time that you have your credit pool. Okay, you
said something really interesting. You're like, don't have anyone go
(09:49):
and pull your credit. It's like this is a thing
that people are a little uncertain about because they're like, well,
does that mean I can go on free credit karma?
Does that affect my credit school? Or um, what does
that mean when you say, don't have anyone go and
pull your credit. So when we say don't have anyone
going for your credit, that's really to protect you. Now,
(10:10):
we all know that when you have whenever you have
someone pull your credit, it is more times than not
going to be a hard inquiry, right, and hard inquiries
can definitely affect your credit score, not dramatically, but it
definitely can affect your credit score. The other thing too,
as lenders, we have to be mindful of when we
pull your credit, what inquiries you've had in the last
(10:32):
ninety days, and we have to look at those and
we have to investigate each of them because if you're
looking to acquire any new debt soon, we have to
take that under consideration. The other thing is too, we
also have to account for did you go to any
other lenders and get denied and come here and what
was the reason why you got denied? We need to
(10:53):
We need to know those things, not that you probably
won't get approved for the loan, but we need to
understand is there is their stipulation that they have that
another lender may have as well, that you can't get alone,
or another reason. Maybe you're hiding information. I always say
what's in the dark will come to light. So you
wan't to be extremely honest with any UH loan, any
(11:17):
finance professional that you're working with. Be very honest, be
very straightforward. Okay, So this is a great question because
it's like what are you hiding? So what do I
need um to bring to my appointment with you when
I'm trying to get a mortgage, Like what are the documents?
What do I need to compile so that I am
as open and transparent and I ultimately get the best
(11:38):
mortgage possible. Perfect. And that's a great question because I
wish more people ask me that instead of coming to
me and wondering, Okay, where do you know? What do
I do? So the best thing you can do is
bring identification right identification obviously driver's license, um SO security,
car passports, some some form of identification, UM employment information
(12:02):
right W two's, last two year W two's, a month
worth of pay stubs. And another thing that would be
nice is bank statements. Bring bank statements. Let's see how
much money we have to work with. If you don't
have enough funds, then we can talk about maybe some
grants or down payment assistance that might be available for you.
So those are more for people who are having who
(12:24):
have a W two job, have an employer. For people
who are self employed, instead of bringing a W two's
and pay stubs, all you would have to bring are
the last two years of your tax returns. Okay, okay, great,
I've got a question for you. I have a friend.
I was like, oh, I'm gonna have this mortgage expert
on the show today, and she wanted me to ask
you a question. She is a hair stylist, so she
(12:46):
you know, it's a part of the gig economy. She
takes a lot of cash payments. She takes some over
square and stripe um. She pays booth rental at a salon,
but she makes great money. Black women like to spend
a lot on their hair um. And she is looking
to buy her first home. She's a single mom and
(13:06):
she's found the home of her dreams. You know. Now
she's trying to get financing. What advice do you have
for her? Her credits? Okay, it's just under seven Okay,
so just under seven hundred credit score. We can work
with that. Promise you that we can work with that.
So what I would do is being that she self employed,
(13:28):
gets a lot of cash, what I would do is
after speaking with what when speaking with her, first thing
I would do is want to pull the credit. Let's
see we're working with with there. So if the credit
is under a seven hundred, let's say it's to six eight,
I would think automatically, let's go conventional financing. Let's see
what we can do their I Fannie may conventional financing.
(13:49):
The other thing is too, how much money do you have?
How how much and funds are we really working with?
Do we have enough money to put it to put
three percent down. If we don't, maybe we can put
a grant down. But she says she has a lot
of money, so I'm assuming she hasked there. I'm assuming
she has to close and called the closing cost funds
as well, so she can definitely afford the cash to close.
The other thing is too, she's receiving cash, so we
(14:13):
really need to investigate are you filing all of this
on your taxes? If not, maybe the best route we
might have to take is one of two things. Either
we need to talk to your c p A and
see if we can work on showing additional income on
(14:33):
your taxes. Right, because you can amend your taxes. It's
never too late. You can always amend your taxes. That's
a really great tip there. Yeah, and if you've taken cash,
you can amend things on your taxes. I never thought
of that, Yeah, amending your Texas. I have clients do
it all the time. A'men taxes. Let's show some income
(14:54):
on it, because what you can do is say, hey,
I'm a business owner. I don't make any money, but
please give me this loan that does and making defense. Right,
So let's show some income on those texts, but some
people will be a little apprehensive about that. No, I
don't really want to play with irs. Don't want to
pay them any anybody. Okay, understandable. As a business owner,
you do have that right. We can go a different
(15:15):
route and go a bank statement law bank statement meaning
yes you will have to put more money down, but
with a great credits for six eight or higher. We
can take the last twelve to twenty four months of
your business accounts and use and calculate the average of
(15:36):
those months and use that as qualifying income. So those
will be my options. We have options. We will just
have to sit down and discuss what works best for
you and your situation. What are you dry? You've given
a lot of food for thought there and even the
other piece. I think oftentimes people think, okay, real estate agents.
But you also mentioned this is gonna involve like a
good c P A someone who's thoughtful about how you
(15:58):
do your taxes as well, like man. Actual literacy is
not as easy as it you would think it is.
But thank goodness, we have experts like you to share
some knowledge with us, so we're prepared for buying our
own homes. Yeah, definitely, definitely, No problem. Ben, thank you
so much for joining us. Please tell us how people
can find you on social so that they can follow
(16:20):
and continue to get more wisdom and hopefully a mortgage
from you one day in the future. Yeah, definitely, Guys,
don't ever hesitate to reach out to me. I love
to help people bigger small. Uh, financial issues are not.
It does not matter to me. I'm all about educating.
Educating is what I love to do. So I'm on
Instagram at Ben the Banker Underscore, and I'm also on
(16:40):
TikTok Um at Then the Banker Underscore, where I put
out a lot of content videos to help people understand
everything that they need to know in detail, just like
I was discussing now on this show about how to
qualify for home well Money Movers, I hope you enjoyed
these buckets of knowledge, and I hope that you invite
me all to your housewarming parties when you buy your
(17:02):
first home. Then, thank you so much for joining us.
And that's it for now. It's been a pleasure having
you on the podcast. Thank you for having me appreciate it.
Money Movers, thanks so much for tuning in, but make
sure you keep it locked to the Money Moves podcast
powered by Greenwood. Thank you so much for tuning in
Money Moves audience. If you want more or a recap
(17:22):
of this episode, please go to the bank Greenwood dot
com and check out the Money Moves podcast blog. Money
Moves is an I Heart Radio podcast powered by Greenwood
Executive produced by Sunwise Media, Inc. For more podcast on
I heart Radio, visit the i heart Radio app, Apple Podcasts,
(17:43):
or wherever you get your podcasts from.
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Therapy Gecko
An unlicensed lizard psychologist travels the universe talking to strangers about absolutely nothing. TO CALL THE GECKO: follow me on https://www.twitch.tv/lyleforever to get a notification for when I am taking calls. I am usually live Mondays, Wednesdays, and Fridays but lately a lot of other times too. I am a gecko.