March 17, 2025 • 16 mins
Mortgage expert Nikki explains the critical importance of using proper language in purchase agreement addendums and how seemingly innocent terminology can create significant issues for mortgage approval. Proper communication between real estate agents and lenders before drafting addendums can prevent costly mistakes and ensure smoother transactions.
• Market update: Fed meeting expected this week with no anticipated rate cuts but updated economic projections
• Interest rates seeing slight increase due to market uncertainty but trending back down to mid-to-high 6% range
• Reducing purchase price often better than large seller credits that buyers might not fully utilize
• Keep addendum language clean and simple to avoid triggering additional verification requirements
• New trend requiring formal acknowledgment when buyers change lenders mid-transaction
• Partnering with knowledgeable professionals crucial as guidelines constantly change
Reach out to Nikki or Angie with any questions about purchase agreement language or mortgage guidelines.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
All right, good morning, everyone, welcome.
Or afternoon, or, if you'rewatching the recording, hello.
Welcome to the Monday MarketUpdate in Mindset Call with
Nikki, myself and Keri.
Today is March 17th, so, nikki,let us know all we need to know
for the week.
Speaker 2 (00:20):
Absolutely Well.
Happy St Patrick's Day everyone, and happy birthday Lexi.
Okay, so we've got aninteresting week coming up.
So the Fed meeting is happeningthis week.
They'll conclude their meetingon Wednesday and we should hear
from Jerome Powell soon afterthat.
We do not expect an interestrate cut.
(00:46):
However, we do expect someinformation on the summary of
economic projections, or SEP.
This is where the Fed relatesnotes that it has about what it
feels like the economy is goingto do here, going forward, what
they feel unemployment is goingto do, and then how many rate
cuts are they planning for theyear.
So we'll get information forthat on Wednesday.
From an interest rate standpoint, we saw a little bit of
increase over last week just dueto some market uncertainty with
(01:06):
things happening in the stockmarket.
However, today already we'reseeing some correction to that
increase.
So we should be back down intothe mid to high sixes here
pretty quickly and being able toeven go into the touch into the
low sixes later this week,considering the notes that are
going to be expected from theFed meeting.
So things are looking good.
They're seeing, you know, it'sa little bit more volatility in
(01:27):
the market from a day-to-daybasis.
However, we are seeing thingsyou know tend to pressure be put
on those interest rates to keepthem lower than what they have
been in the last three months.
So that's all good news.
So today, an interesting topic.
I've been dealing with thisquite a bit over the last couple
months actually and I kind ofthought about it and I didn't
(01:48):
really think too much about it,but it popped into my mind this
morning about addendums to thepurchase agreement.
So I will say there's a couplethings.
Number one if we as a lenderare asking you for an addendum
to a purchase agreement, it isalways for a very specific
reason.
Or asking you for an addendumto a purchase agreement, it is
always for a very specificreason.
We are asking that language becorrected to make it more
(02:09):
mortgage friendly most of thetime, or to clarify some
information on the purchaseagreement that might not have
been clarified before.
A good example of this is whenyou go through an inspection
period on a purchase agreementfor a client and you have some
work orders, you have somerepairs, you have credits going
back to the buyer as a result ofthese repairs, or changes in
(02:30):
purchase price as a result ofthese repairs or results of the
inspection or for any otherreason.
The language that you use onthe addendum is very important
from a mortgage standpoint.
If we have terms like sellercredit that is gonna be going to
be considered to be a sellerpaid closing cost, then at that
point, if we are using the termseller credit, we are restricted
(02:53):
to using that credit forclosing costs and setup of
escrow account and discountpoints, which means that we are
restricted to that 3% rule, 6%rule or 9% rule as far as how
much the seller can contributeto the closing costs for the
buyer.
Keep in mind, if you areissuing a larger seller credit,
that even if it falls withinthat 3%, 6% or 9% range, we
(03:18):
could possibly not be able tocharge that much in closing
costs in general to take care ofthat, and so you have a risk of
your buyer leaving money on thetable.
A good example of this let'ssay the closing costs on a
$300,000 mortgage are gonna beabout $7,000.
And there's a $9,000 creditthat gets issued.
(03:39):
Number one, we are above ourlimit and number two, we have to
leave that $2,000 on the tableor try to buy that interest rate
down in order to make sure thatthe buyer uses all those
credits.
Now there comes a point wherewe as a lender can only allow
the borrower to buy down aninterest rate so far and we have
(03:59):
limits on our end on high costmortgage.
What those points are how muchwe can charge and how much we
can actually charge the clientin fees overall.
So we got to make sure thatwe're working together on that
term seller credit and most ofthe time it might be more
beneficial for all partiesinvolved, including the seller,
to reduce purchase price instead.
(04:19):
I had a client who got aninspection where the roof, air
conditioning, hvac and thestucco needed to be repaired and
it was to the tune of $80,000.
And I got an addendum sayingthere was going to be an $80,000
credit and I was like there'sno way I can use an $80,000
credit.
(04:39):
So please keep that in mindwhen you're doing addendums.
Also, if you are changinglanguage, changing lenders for a
purchase agreement, we aregoing to require an addendum
stating that you are aware ofthe lender change.
This is something that has cameup in the last couple weeks,
honestly, to the last month,that lenders are starting to
(05:01):
require knowledge that we arethe new lender when we do come
in on these rescue operations orwhen the client does change
lenders.
So keep that in mind Always.
Just be communicating to usbefore you even write an
addendum.
If there's any discussion,please contact me or your lender
and talk about the languagethat needs to go in that
addendum.
Especially if there's going tobe repairs to the property or
(05:26):
things of that nature, we willhave to check to make sure that
those repairs are completed tothe borrower's satisfaction and
that they're completed at allvia a final inspection on the
appraisal on our end.
So just some things to keep inmind as you're writing these
addendums, because it does get alittle bit confusing and I
don't like having to go back andmake you guys do rework again,
(05:46):
and we'd rather it's just betterif we have the discussion up
front.
So just something to keep inmind as you're working through
purchase agreements.
Speaker 1 (05:53):
Yeah, and it's a really great reminder because I
never was trained that way inthe beginning, to go back to my
lender Again, have thisconversation, have this
relationship, even if you're thelisting.
You know, not necessarily ifyou're the listing agent, but I,
as a listing agent, would callNikki and be like this is what
came in, how could this go?
So I mean, it can go all around, but especially if you're the
(06:15):
buyer's agent, it's so yeah, andit's so important.
And what I've seen happen too,and what happened recently, is
also what language you put onthere, like if you have the
repairs or what was the one.
I can't think of it right now,but it's like they don't want to
see all that called out, likeall the things that are going to
(06:35):
happening or if you're leavingstuff in the home for the buyer,
it's just can be anunderwriting nightmare.
So the cleaner you can keep it,the better.
I learned that the hard way inthe beginning because, again, I
wasn't really.
I learned on the go, as I was,you know, making making the
mistakes and quickly correctingthem, and that was one of the
things they're like don't eversend me something like that
(06:57):
again.
I'm like sorry.
They're like no, we just can'thave that, or it's just gonna
blow up everything and I don'tthink that's talked about enough
.
Speaker 2 (07:06):
Right, and it's not in an effort to hide anything.
It's in an effort to make thetransaction as clean as possible
.
So a really good example ofthis is if you are going to have
an inspection situation whereit's resulting in a price
reduction or a seller credit.
A simple language would be theseller agrees to pay $2,000
(07:26):
towards buyer closing costs,inspection contingency is
released and be done with it.
Or if there are repairs thatneed to be made in some cases.
In some states you are allowedto put those that information on
a separate addendum or you'reallowed to keep it out of the
purchase agreement all over theplace.
You don't completely and youcan do it via email.
(07:47):
In the state of Arizona,unfortunately, that's not the
case and some states also havesome regulations.
You have to be very specific inyour addendum language in
Arizona.
Have to be very specific inyour addendum language in
Arizona.
So just keep in mind,understand your state
regulations and understand whatis required to go on that
purchase agreement as a resultof inspection and as a result of
repairs and work orders andthings of that nature, because
(08:08):
anything that you put on thataddendum that comes across our
desk we're going to have toverify has been completed before
closing.
And that may be okay with you.
It may not be a big deal, butif things are going to be
completed after closing, then wehave, you know.
Then we got to get into escrows, we've got to get into, you
know, those types of that typeof language and sometimes, from
a purely mortgage standpoint, wewant to keep this just as clean
(08:30):
as possible and make sure thatthe buyer knows what under has a
good understanding of whatthey're getting from you know,
the seller in terms of workorders and things of that nature
, but just making sure that thatmortgage transaction is clean.
Speaker 1 (08:44):
Yeah, words matter.
Speaker 2 (08:45):
Absolutely.
Speaker 1 (08:47):
And when you had mentioned that so and I've seen
this happen before Can you talka little bit about, let's say, I
write a purchase agreementagreement and I put 10%, 90 and
then that changes to five.
Or my buyer decides thatinstead of conventional they're
going to go FHA, like mid to endof the deal, like something
(09:07):
comes up and they have to quickswitch it around.
Do I need to amend that or whatdoes that look like for the
holistic contract?
Speaker 2 (09:16):
Yep.
So the signal if we go from aconventional to an FHA, for
example, the signal that alertsthe listing agent, the buyer's
agent and the seller is that weare going to an FHA mortgage, is
that FHA amendatory clause thatneeds to get signed.
I as a lender am having thatconversation with the buyer's
agent first saying, hey, here'swhat you know.
Obviously the buyer first afterwe have our discussions.
(09:37):
But you know, here's whatchanged, here's why we're going
FHA.
I can talk, you know.
And then I reach out to thelisting agent and say, hey, fyi,
here's what happened, here'swhy we're going here's, you know
we don't need to worry aboutthe appraisal for this manner or
we don't need to worry aboutthe change in financing for this
and really talk about thesolution that comes with that.
And then that's when we getthat amendatory clause.
So that does not necessarilyrequire an addendum to the
(10:00):
purchase agreement to say, yes,we're aware that they're
changing over to FHA financingChanges in down payment also is
a very good point.
We don't need to necessarily doan addendum making the seller
aware that the buyer is puttingdown 5%.
It's really at the point wherethey can qualify a 10% down or
qualify at what we put on thepurchase agreement, as long as
(10:21):
they have the ability to qualifyfor that.
Any changes that they decide tomake throughout the process are
not required to be changed onthe purchase agreement.
So that's a really importantaspect as well.
Will that change in the future?
Who knows?
I very highly doubt it, but itcould be something that's
(10:41):
trending, kind of like thiswhole.
You know, if we're changinglenders, you have to let us know
.
You know type of situationwhere it has to be documented
that you know about it has cameup, that you know the whole down
payment stuff could come up.
But regardless of that, youknow it's in.
You know it's just really beingtransparent to as a lender and
making sure that you make theparties away when there are
(11:03):
important changes and thingsthat affect it, because you know
these things.
So the effort is not to putdoubt into the seller's mind.
The effort is just to betransparent in what we're doing.
So any major changes, yes, wewill make people aware, but
changes in down payment amountsI can't imagine sending an email
every time we change a loanamount due to one circumstance
(11:24):
or another.
You guys would be like what areyou doing?
Why can't you get your loanamount right.
Speaker 1 (11:35):
Sometimes, the less you know, the better.
Better, as long as it's movingforward.
Speaker 2 (11:37):
I only want to be called if I need you know
exactly.
No one knows perfect,absolutely no.
Speaker 1 (11:43):
I just thought that came up and I know that I had
dealt with that in the past and,um, yeah, and that's why I just
I love how you show up, nikki,and I really appreciate having
strong, strong business partners, because I have, especially
early on, or even when I thoughtI had it all figured out,
agents on the other side are soconvicted in their statements
(12:05):
and how they show up and whatneeds to be done, and I'm just
like it almost makes me questionmyself because they are so
certain that it's this way, eventhough I'm like, but you know,
so able to lean on Nikki or ableto have these people where I
can just check myself because Imean, come hell or high water,
this agent is like no, it has tobe this way.
(12:27):
And I, how do you talk someoneoff that ledge?
So it's just really importantto understand that, because I've
been in those situations beforeand you want to put your kid
gloves on and play nice in thesandbox and yet you know, help
educate other agents too.
So that's a lot of this.
It's not only educating ourbuyers and sellers and other
(12:48):
people, it's educating otheragents, because I wasn't trained
perfectly at the beginning andI learned a lot along the way
and even when I was on my team,my team lead had been in it for
like 18, 20 years and threetimes in one year she looked at
me and she's like what are youdoing?
Like, where do you find thisstuff?
(13:09):
I don't know, I've never heardof it.
What are you doing, like, howare you finding this stuff?
I don't know, I've never heardof it.
Like, how do you find thisstuff?
Because I've come with the mostrandom situations and things
that people that have donehundreds of transactions have no
idea.
Yeah.
Speaker 2 (13:22):
Yeah, and I think it's like keeping up with the
changes too.
I mean, things are constantlychanging.
You know, when we think aboutyou know the overall from just a
purely mortgage standpoint whenwe take a loan, but the overall
from just a purely mortgagestandpoint, when we take a loan
any loan in general and we sendit over to a servicer or we sell
it off in the secondary market,between the time that we
originate that loan to the timethat it gets sold off, we're
talking usually 30 to 45 daysand you guys would be surprised
(13:46):
at how often it comes back to usand says, oh, this has changed,
this little bit has changed,you need to correct things here,
et cetera.
Because things are constantlychanging from an investor
perspective and things areconstantly changing from you
know how languages and howdifferent guidelines are being
interpreted and new guidelinesthat are added in and clarifying
information and, believe it ornot, you know there's a lot of
(14:09):
times where we're calling FannieMae or Freddie Mac directly and
saying, ok, how do we need tohandle this situation?
And getting guidance directlyfrom them so that we don't have
what we call buybacks on thesecondary market.
So, keeping up with the marketchanges and keeping up with
industry.
Language changes is hugebecause things aren't done the
same way they were 20 years agoand they certainly aren't done
(14:29):
the same way they were sixmonths ago.
So it's just keeping that inmind and understanding that use
your resources, use the peoplethat you know have surrounded
you, use your trusted TikTokpeople and your trusted
Instagram reels people and youknow a lot of those really good,
smart influencers that are inthe business every day and do
(14:50):
the work and have the successand understand they can get into
the nitty gritty and reallyunderstand that language and
understand what's trending andwhat's happening within the
market.
Speaker 1 (15:00):
I'll say it again and I'll say it every time who you
partner with matters.
They're a direct reflection andextension of your business.
Find good business partners.
If you don't have them, findNikki, or I can help you with
this.
I can help you with with goodbusiness partners across the way
, but lender wise Nikki's it.
So thank you so much.
Appreciate you absolutely.
(15:21):
All right, everyone.
Till next time.
I'll reach out to Nikki if youhave any questions, or myself,
and we are here and happy tohelp and make it a good one.
Bye, everyone.
All right, good morning, everyone, welcome.
Or afternoon, or, if you'rewatching the recording, hello.
Welcome to the Monday MarketUpdate in Mindset Call with
Nikki, myself and Keri.
Today is March 17th, so, nikki,let us know all we need to know
for the week.
Speaker 2 (00:20):
Absolutely Well.
Happy St Patrick's Day everyone, and happy birthday Lexi.
Okay, so we've got aninteresting week coming up.
So the Fed meeting is happeningthis week.
They'll conclude their meetingon Wednesday and we should hear
from Jerome Powell soon afterthat.
We do not expect an interestrate cut.
(00:46):
However, we do expect someinformation on the summary of
economic projections, or SEP.
This is where the Fed relatesnotes that it has about what it
feels like the economy is goingto do here, going forward, what
they feel unemployment is goingto do, and then how many rate
cuts are they planning for theyear.
So we'll get information forthat on Wednesday.
From an interest rate standpoint, we saw a little bit of
increase over last week just dueto some market uncertainty with
(01:06):
things happening in the stockmarket.
However, today already we'reseeing some correction to that
increase.
So we should be back down intothe mid to high sixes here
pretty quickly and being able toeven go into the touch into the
low sixes later this week,considering the notes that are
going to be expected from theFed meeting.
So things are looking good.
They're seeing, you know, it'sa little bit more volatility in
(01:27):
the market from a day-to-daybasis.
However, we are seeing thingsyou know tend to pressure be put
on those interest rates to keepthem lower than what they have
been in the last three months.
So that's all good news.
So today, an interesting topic.
I've been dealing with thisquite a bit over the last couple
months actually and I kind ofthought about it and I didn't
(01:48):
really think too much about it,but it popped into my mind this
morning about addendums to thepurchase agreement.
So I will say there's a couplethings.
Number one if we as a lenderare asking you for an addendum
to a purchase agreement, it isalways for a very specific
reason.
Or asking you for an addendumto a purchase agreement, it is
always for a very specificreason.
We are asking that language becorrected to make it more
(02:09):
mortgage friendly most of thetime, or to clarify some
information on the purchaseagreement that might not have
been clarified before.
A good example of this is whenyou go through an inspection
period on a purchase agreementfor a client and you have some
work orders, you have somerepairs, you have credits going
back to the buyer as a result ofthese repairs, or changes in
(02:30):
purchase price as a result ofthese repairs or results of the
inspection or for any otherreason.
The language that you use onthe addendum is very important
from a mortgage standpoint.
If we have terms like sellercredit that is gonna be going to
be considered to be a sellerpaid closing cost, then at that
point, if we are using the termseller credit, we are restricted
(02:53):
to using that credit forclosing costs and setup of
escrow account and discountpoints, which means that we are
restricted to that 3% rule, 6%rule or 9% rule as far as how
much the seller can contributeto the closing costs for the
buyer.
Keep in mind, if you areissuing a larger seller credit,
that even if it falls withinthat 3%, 6% or 9% range, we
(03:18):
could possibly not be able tocharge that much in closing
costs in general to take care ofthat, and so you have a risk of
your buyer leaving money on thetable.
A good example of this let'ssay the closing costs on a
$300,000 mortgage are gonna beabout $7,000.
And there's a $9,000 creditthat gets issued.
(03:39):
Number one, we are above ourlimit and number two, we have to
leave that $2,000 on the tableor try to buy that interest rate
down in order to make sure thatthe buyer uses all those
credits.
Now there comes a point wherewe as a lender can only allow
the borrower to buy down aninterest rate so far and we have
(03:59):
limits on our end on high costmortgage.
What those points are how muchwe can charge and how much we
can actually charge the clientin fees overall.
So we got to make sure thatwe're working together on that
term seller credit and most ofthe time it might be more
beneficial for all partiesinvolved, including the seller,
to reduce purchase price instead.
(04:19):
I had a client who got aninspection where the roof, air
conditioning, hvac and thestucco needed to be repaired and
it was to the tune of $80,000.
And I got an addendum sayingthere was going to be an $80,000
credit and I was like there'sno way I can use an $80,000
credit.
(04:39):
So please keep that in mindwhen you're doing addendums.
Also, if you are changinglanguage, changing lenders for a
purchase agreement, we aregoing to require an addendum
stating that you are aware ofthe lender change.
This is something that has cameup in the last couple weeks,
honestly, to the last month,that lenders are starting to
(05:01):
require knowledge that we arethe new lender when we do come
in on these rescue operations orwhen the client does change
lenders.
So keep that in mind Always.
Just be communicating to usbefore you even write an
addendum.
If there's any discussion,please contact me or your lender
and talk about the languagethat needs to go in that
addendum.
Especially if there's going tobe repairs to the property or
(05:26):
things of that nature, we willhave to check to make sure that
those repairs are completed tothe borrower's satisfaction and
that they're completed at allvia a final inspection on the
appraisal on our end.
So just some things to keep inmind as you're writing these
addendums, because it does get alittle bit confusing and I
don't like having to go back andmake you guys do rework again,
(05:46):
and we'd rather it's just betterif we have the discussion up
front.
So just something to keep inmind as you're working through
purchase agreements.
Speaker 1 (05:53):
Yeah, and it's a really great reminder because I
never was trained that way inthe beginning, to go back to my
lender Again, have thisconversation, have this
relationship, even if you're thelisting.
You know, not necessarily ifyou're the listing agent, but I,
as a listing agent, would callNikki and be like this is what
came in, how could this go?
So I mean, it can go all around, but especially if you're the
(06:15):
buyer's agent, it's so yeah, andit's so important.
And what I've seen happen too,and what happened recently, is
also what language you put onthere, like if you have the
repairs or what was the one.
I can't think of it right now,but it's like they don't want to
see all that called out, likeall the things that are going to
(06:35):
happening or if you're leavingstuff in the home for the buyer,
it's just can be anunderwriting nightmare.
So the cleaner you can keep it,the better.
I learned that the hard way inthe beginning because, again, I
wasn't really.
I learned on the go, as I was,you know, making making the
mistakes and quickly correctingthem, and that was one of the
things they're like don't eversend me something like that
(06:57):
again.
I'm like sorry.
They're like no, we just can'thave that, or it's just gonna
blow up everything and I don'tthink that's talked about enough
.
Speaker 2 (07:06):
Right, and it's not in an effort to hide anything.
It's in an effort to make thetransaction as clean as possible
.
So a really good example ofthis is if you are going to have
an inspection situation whereit's resulting in a price
reduction or a seller credit.
A simple language would be theseller agrees to pay $2,000
(07:26):
towards buyer closing costs,inspection contingency is
released and be done with it.
Or if there are repairs thatneed to be made in some cases.
In some states you are allowedto put those that information on
a separate addendum or you'reallowed to keep it out of the
purchase agreement all over theplace.
You don't completely and youcan do it via email.
(07:47):
In the state of Arizona,unfortunately, that's not the
case and some states also havesome regulations.
You have to be very specific inyour addendum language in
Arizona.
Have to be very specific inyour addendum language in
Arizona.
So just keep in mind,understand your state
regulations and understand whatis required to go on that
purchase agreement as a resultof inspection and as a result of
repairs and work orders andthings of that nature, because
(08:08):
anything that you put on thataddendum that comes across our
desk we're going to have toverify has been completed before
closing.
And that may be okay with you.
It may not be a big deal, butif things are going to be
completed after closing, then wehave, you know.
Then we got to get into escrows, we've got to get into, you
know, those types of that typeof language and sometimes, from
a purely mortgage standpoint, wewant to keep this just as clean
(08:30):
as possible and make sure thatthe buyer knows what under has a
good understanding of whatthey're getting from you know,
the seller in terms of workorders and things of that nature
, but just making sure that thatmortgage transaction is clean.
Speaker 1 (08:44):
Yeah, words matter.
Speaker 2 (08:45):
Absolutely.
Speaker 1 (08:47):
And when you had mentioned that so and I've seen
this happen before Can you talka little bit about, let's say, I
write a purchase agreementagreement and I put 10%, 90 and
then that changes to five.
Or my buyer decides thatinstead of conventional they're
going to go FHA, like mid to endof the deal, like something
(09:07):
comes up and they have to quickswitch it around.
Do I need to amend that or whatdoes that look like for the
holistic contract?
Speaker 2 (09:16):
Yep.
So the signal if we go from aconventional to an FHA, for
example, the signal that alertsthe listing agent, the buyer's
agent and the seller is that weare going to an FHA mortgage, is
that FHA amendatory clause thatneeds to get signed.
I as a lender am having thatconversation with the buyer's
agent first saying, hey, here'swhat you know.
Obviously the buyer first afterwe have our discussions.
(09:37):
But you know, here's whatchanged, here's why we're going
FHA.
I can talk, you know.
And then I reach out to thelisting agent and say, hey, fyi,
here's what happened, here'swhy we're going here's, you know
we don't need to worry aboutthe appraisal for this manner or
we don't need to worry aboutthe change in financing for this
and really talk about thesolution that comes with that.
And then that's when we getthat amendatory clause.
So that does not necessarilyrequire an addendum to the
(10:00):
purchase agreement to say, yes,we're aware that they're
changing over to FHA financingChanges in down payment also is
a very good point.
We don't need to necessarily doan addendum making the seller
aware that the buyer is puttingdown 5%.
It's really at the point wherethey can qualify a 10% down or
qualify at what we put on thepurchase agreement, as long as
(10:21):
they have the ability to qualifyfor that.
Any changes that they decide tomake throughout the process are
not required to be changed onthe purchase agreement.
So that's a really importantaspect as well.
Will that change in the future?
Who knows?
I very highly doubt it, but itcould be something that's
(10:41):
trending, kind of like thiswhole.
You know, if we're changinglenders, you have to let us know
.
You know type of situationwhere it has to be documented
that you know about it has cameup, that you know the whole down
payment stuff could come up.
But regardless of that, youknow it's in.
You know it's just really beingtransparent to as a lender and
making sure that you make theparties away when there are
(11:03):
important changes and thingsthat affect it, because you know
these things.
So the effort is not to putdoubt into the seller's mind.
The effort is just to betransparent in what we're doing.
So any major changes, yes, wewill make people aware, but
changes in down payment amountsI can't imagine sending an email
every time we change a loanamount due to one circumstance
(11:24):
or another.
You guys would be like what areyou doing?
Why can't you get your loanamount right.
Speaker 1 (11:35):
Sometimes, the less you know, the better.
Better, as long as it's movingforward.
Speaker 2 (11:37):
I only want to be called if I need you know
exactly.
No one knows perfect,absolutely no.
Speaker 1 (11:43):
I just thought that came up and I know that I had
dealt with that in the past and,um, yeah, and that's why I just
I love how you show up, nikki,and I really appreciate having
strong, strong business partners, because I have, especially
early on, or even when I thoughtI had it all figured out,
agents on the other side are soconvicted in their statements
(12:05):
and how they show up and whatneeds to be done, and I'm just
like it almost makes me questionmyself because they are so
certain that it's this way, eventhough I'm like, but you know,
so able to lean on Nikki or ableto have these people where I
can just check myself because Imean, come hell or high water,
this agent is like no, it has tobe this way.
(12:27):
And I, how do you talk someoneoff that ledge?
So it's just really importantto understand that, because I've
been in those situations beforeand you want to put your kid
gloves on and play nice in thesandbox and yet you know, help
educate other agents too.
So that's a lot of this.
It's not only educating ourbuyers and sellers and other
(12:48):
people, it's educating otheragents, because I wasn't trained
perfectly at the beginning andI learned a lot along the way
and even when I was on my team,my team lead had been in it for
like 18, 20 years and threetimes in one year she looked at
me and she's like what are youdoing?
Like, where do you find thisstuff?
(13:09):
I don't know, I've never heardof it.
What are you doing, like, howare you finding this stuff?
I don't know, I've never heardof it.
Like, how do you find thisstuff?
Because I've come with the mostrandom situations and things
that people that have donehundreds of transactions have no
idea.
Yeah.
Speaker 2 (13:22):
Yeah, and I think it's like keeping up with the
changes too.
I mean, things are constantlychanging.
You know, when we think aboutyou know the overall from just a
purely mortgage standpoint whenwe take a loan, but the overall
from just a purely mortgagestandpoint, when we take a loan
any loan in general and we sendit over to a servicer or we sell
it off in the secondary market,between the time that we
originate that loan to the timethat it gets sold off, we're
talking usually 30 to 45 daysand you guys would be surprised
(13:46):
at how often it comes back to usand says, oh, this has changed,
this little bit has changed,you need to correct things here,
et cetera.
Because things are constantlychanging from an investor
perspective and things areconstantly changing from you
know how languages and howdifferent guidelines are being
interpreted and new guidelinesthat are added in and clarifying
information and, believe it ornot, you know there's a lot of
(14:09):
times where we're calling FannieMae or Freddie Mac directly and
saying, ok, how do we need tohandle this situation?
And getting guidance directlyfrom them so that we don't have
what we call buybacks on thesecondary market.
So, keeping up with the marketchanges and keeping up with
industry.
Language changes is hugebecause things aren't done the
same way they were 20 years agoand they certainly aren't done
(14:29):
the same way they were sixmonths ago.
So it's just keeping that inmind and understanding that use
your resources, use the peoplethat you know have surrounded
you, use your trusted TikTokpeople and your trusted
Instagram reels people and youknow a lot of those really good,
smart influencers that are inthe business every day and do
(14:50):
the work and have the successand understand they can get into
the nitty gritty and reallyunderstand that language and
understand what's trending andwhat's happening within the
market.
Speaker 1 (15:00):
I'll say it again and I'll say it every time who you
partner with matters.
They're a direct reflection andextension of your business.
Find good business partners.
If you don't have them, findNikki, or I can help you with
this.
I can help you with with goodbusiness partners across the way
, but lender wise Nikki's it.
So thank you so much.
Appreciate you absolutely.
(15:21):
All right, everyone.
Till next time.
I'll reach out to Nikki if youhave any questions, or myself,
and we are here and happy tohelp and make it a good one.
Bye, everyone.
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