January 30, 2025 • 34 mins
What if the Las Vegas real estate market is teetering on the edge of a notable shift? Join us for an engaging discussion as we dissect current trends and strategies, from buying out-of-state properties to managing real estate transactions amidst a divorce. With a noticeable increase in single-family home listings and a decline in condo and townhome availability, we'll analyze what these changes mean for potential buyers and sellers. Amidst the chill of winter, there's a surprising upswing in under-contract and sold properties that we won't want to overlook. Plus, with the Federal Reserve's recent decision to keep interest rates stable, we explore the possible implications for future rate adjustments and how they might spark shifts in the housing market.
We're not just stopping at market trends; we're shining a light on the real estate industry's pressing issues, such as the surge in class action lawsuits and the challenges faced by the admirable Tunnels to Towers Foundation. Their mission to house veterans in North Las Vegas isn't without hurdles, specifically zoning complications. As we navigate these topics, we'll also tackle Nevada's critical affordable housing crisis head-on, a shortage of 80,000 homes demanding urgent attention. Meanwhile, local initiatives are stepping up to provide lead hazard assessments for older homes, aiming to protect the health of young children. This episode promises a thorough examination of the challenges and triumphs within the real estate sector.
And for those navigating personal complexities like international purchases or divorce amidst home buying, we haven't forgotten you. Learn the intricacies of closing loans from abroad, the legal nuances required to avoid pitfalls during a divorce, and the importance of financial transparency with lenders and realtors. We also unpack the often misunderstood realm of cash-out refinancing and rate buy-downs, sharing valuable insights on making informed decisions in a fluctuating market. Whether you're seeking expert advice or insider tips, our conversation is packed with practical guidance tailored to the dynamic Las Vegas real estate landscape.
Welcome to Vegas Realty Check, the informative podcast that dives deep into the world of Las Vegas real estate.
Our expert hosts break down the complexities of the ever-changing Las Vegas property market, analyze market trends, economic indicators, and unique property features to provide you with valuable insights on timing your home sale or purchase.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to Vegas Realty.
Check your go-to podcast forall things Las Vegas real estate
.
Whether you're buying, sellingor investing, we bring you the
latest market trends, insidertips and expert insights to
navigate the ever-changing LasVegas realty landscape.
Tune in each week as we breakdown the data, answer your
questions and help you make thebest real estate decisions in
(00:21):
the entertainment capital of theworld.
Speaker 2 (00:26):
Hey.
So today we're going to coverbuying out of state, buying
while in a divorce and, if youcan get your home equity to help
with your rate, buy down on arefinance.
So we're going to cover allthose things today on this show.
I'm your host, trish Williams,thanks for joining us at Vegas
Realty Check, and I'm yourco-host Courtney Boehm with JFK
(00:46):
Financial.
Yes, so we have a great show instore for you today.
Before we get into everythingthat we are talking about and
listener questions, we're goingto open up with our market
numbers for the week.
Speaker 3 (00:59):
Sure, absolutely so.
Right now, single familyresidences on the market, we're
looking at 51.27, which is up 40from last week, All right.
Speaker 2 (01:09):
And then condos and townhomes.
We have 18.37.
Those are down 12.
Love to see that inventorydropping Right.
Speaker 3 (01:17):
Slowly but surely, we are getting there.
Speaker 2 (01:20):
Are people like I was thinking about this this
morning because it's cold out.
It's like freezing cold out andit's not normal for Vegas.
Maybe the buyers are justscared of the cold.
Speaker 3 (01:31):
I don't know about you, but when it's cold out I
don't like to leave my house atnight.
Speaker 2 (01:36):
And people in Vegas are like that, like if it's
raining they'll cancel all theirappointments, so like that
could be a Vegas spoiled fromthe weather thing.
Speaker 3 (01:47):
So maybe, maybe, yeah , yeah, so like that could be a
Vegas spoiled from the weatherthing.
So I believe it, maybe, yeah,yeah.
So what's cold here isdefinitely not cold many other
places, but I'm telling youpajamas at like 7 30 I'm happy,
yeah absolutely um new listings,so we we only went up one on
the new listings.
Speaker 2 (02:01):
Yeah, so 936 new listings, and that was.
Speaker 3 (02:05):
That was just one more from the week before and we
have 785 price decreases thisweek, which is up 122 from last
week.
Speaker 2 (02:16):
Yeah yeah.
Good to see those pricesdropping and sellers are trying
to get those buyers intocontract.
These under contract numbersare looking good, though, so 824
for the week, which is 124 morethan last week.
Speaker 3 (02:31):
So we are seeing activity out there, absolutely,
and I think things are startingto heat up and as far as sold,
we have 520, which is up 96 fromlast week, so that's good.
Speaker 2 (02:42):
Yeah, yeah, we're definitely seeing some of that
January activity.
I still think it's slow, it'snot moving as quickly as I would
hope it would, but it's doingokay.
Speaker 3 (02:54):
Yeah, I think we're slowly going to see an uptick.
Come February, march, I think alot's been very steady.
Speaker 2 (03:02):
Yeah, fed met yesterday.
How'd that go?
Speaker 3 (03:05):
You know it went not like I would love it to go.
I would love to see, you knowrates go into the fives.
But we and I think I talkedabout this about two weeks ago
on this show we predicted thatthis meeting was going to
virtually keep everythingexactly the same as far as the
rates went, and that's exactlywhat happened.
The the March 18th 19th Fedmeeting is supposed to,
(03:32):
prediction wise, have the ratescome down a little bit.
So we kind of knew, based onjust different things that we
were hearing, that this one wasgoing to be virtually nothing.
Nothing was really gonna move,and that's pretty much exactly
what happened.
So right now we are sittingvirtually where we were almost
last week right at around a 7%for a conventional loan on a
30-year, and you're looking alittle bit lower about a 6.5%, a
(03:56):
tad bit lower on a nationalaverage for FHA and VA 30-year.
Speaker 2 (04:00):
Yeah, yeah, yeah.
So those have not moved much.
But the Fed is not the end allbe all of the rates and where
they go, so other things canhappen.
I know yesterday we were bothin this housing forecast and
they were talking about how thejob reports are really the most
impactful as far as where thosemortgage rates are going, which
(04:23):
I guess that was surprising tome.
I didn't really realize that.
Speaker 3 (04:26):
I think there's a correlation between so many
things versus the bond marketjobs, spending, credit card
rates, things, everything's kindof in conjunction with and I
think that you know we're goingto see what happens in the next
few months.
But March 18th 19th is really adate for us, especially as
(04:47):
lenders, to kind of look out forand start seeing that slow
trending down.
Yeah, we're hoping to come downa little bit into the you know,
probably high sixes around thattime, but we shall see.
I think we've all tried to makegreat predictions and we just
don't know.
We thought last year we weregonna be a lot lower than what
we ended up ending the year with.
Speaker 2 (05:08):
So yeah, and when it comes down to it.
I mean, so many buyers aresaying they're putting off their
buying decisions, they'rebuying activity until they,
until the rates come down.
Yet there's so many buyers thatstill home buying can be
affordable for them.
They still can afford thepayment.
They would just like it to be alower payment.
(05:30):
But keep in mind, when thoserates do go down, the prices are
probably going to increasebecause we still have a very
strong market, even with theenvironment that we're in right
now with rates.
Speaker 3 (05:41):
And I think the most important thing, which obviously
we're in the industry where wedeal with this all the time, but
that's where you hear thatannoying saying that we always
use or hear, date the rate.
Right, marry the house, datethe rate.
Because at the end of the dayyou have to think, if you're
just waiting for the rates tocome down, so is everybody else.
Oh gosh, and the problem withthat is when the rates a lot of
(06:10):
property.
Speaker 2 (06:11):
Oh yeah, because they're going to buy it with the
intent of they know the valuesare going to increase, so it's
going to be we'll.
We'll see more people gettinginto flipping, buying, holding
for a couple months, becausethey know that once those rates
come down, the buyer pool willbe flooded.
Speaker 3 (06:27):
And and then you have , you know people who are coming
in with three and a half 5%down getting beat out of a
market because people are comingin with 3.5% 5% down getting
beat out of a market becausepeople are coming in with 50%
down or all cash.
And so I'm sure in those typeof markets do you see as many
seller concessions or thingsbeing offered?
Speaker 2 (06:43):
No, and buyers have to pay over the appraisals a lot
in those types of markets.
Absolutely so definitely not abuyer-friendly market.
So that is, if you're waitingfor those low rates, that you're
waiting to be shopping in thattype of market, which might not
be the best scenario for youAbsolutely and keep in mind.
Speaker 3 (07:01):
and why we say that is because, as long as you can
get into a home and qualify downthe road, we can always
refinance you and make thepayment even more comfortable
while you're building equityversus paying someone else's
equity and and these homes arenot going down.
Speaker 2 (07:16):
um, our town is only growing and we're going to get
everyone from california andit's been growing and the
value's been going uptremendously in the last two,
three years yeah, even in spiteof all the rates and all the
things and the buying market notbeing so attractive, we still
have appreciation, which isdefinitely something that you
need to pay attention to,because that is proof that as
(07:39):
soon as those rates come down,the prices are going to increase
even more.
Speaker 3 (07:43):
Absolutely.
Speaker 2 (07:44):
So that is our crystal ball prediction for you.
Speaker 3 (07:47):
Yes, rates go down to the low sixes, high fives,
that's my wish.
Speaker 2 (07:52):
Yes, so we have some news.
New York Times reported thatNAR and several Michigan real
estate associations have filedan overturn, a motion to
overturn another class actionlawsuit, which is focuses on the
MLS requirement to join NAR.
(08:13):
So I know most consumers outthere have no idea what this
means and might not even matterto you, but this is part of this
, like big settlement lawsuitand all the disputes that we've
been having recently in regardsto this, because currently
agents that are part of the MLS,which is the multiple listing
service, which is like a localassociation, have to join the
(08:35):
National Association of Realtors, so have to be part of the NAR.
And you know some agents havebeen, you know, just kind of
looking at that, like why isthat necessary?
You know what is the purpose ofthat.
So NAR does offer a lot ofbenefits and does have a lot of
things associated with being amember, but it is something that
(08:56):
some people are trying todispute and NAR and some other
associations are pushing tooverturn that lawsuit.
Speaker 3 (09:09):
So it is a requirement to be part of NAR.
Speaker 2 (09:10):
It is a requirement to be in If you're like our MLS,
if you want to be in the localMLS, you have to be in NAR.
So it's.
It is a requirement currently,but there's a there's a lot of
changes coming out.
There's lots of class actionlawsuits.
Another one was filed yesterdayagainst some other brokerages.
I mean this is getting out ofcontrol, like absolutely out of
(09:34):
control.
Speaker 3 (09:34):
I don't think you're going to see this trend not
continue.
I think there's going to be alot of lawsuits and I think
there's so many gray areas withwhat was going on.
That it's.
You're just going to see itcontinue and you're going to
hear news about it probably alot.
Speaker 2 (09:50):
Yeah, I just it.
Just it upsets me so muchbecause I look at the bullet
points of, like, the initiallawsuit and the reasons and the
things that they're you knowclaiming are done that made this
whole thing happen.
And I know I wasn't doing that,yeah, and because I, you know,
maybe was trained well or youknow, things happen.
(10:13):
I don't know.
I knew that was against therules, I wasn't doing that.
So for me to be part of thisnow and have the repercussions
of it, really upsets me.
Speaker 1 (10:24):
Like really upsets me .
Speaker 2 (10:25):
And it's not I know I'm not the only one that wasn't
doing that.
There's thousands and thousandsof realtors and it's like the
few bad apples we're all payingthe price for, and that is just
so frustrating to me.
But that's the way the systemis and there's no way around it
and I think people are startingto fight.
Speaker 3 (10:43):
Why do I have to pay to be involved in this if I
don't want to be?
Or I think there's just a lotof uproar and people are
changing the future of, I think,how real estate is operating
and things that are involved in.
Where's my money going?
Speaker 2 (10:57):
Well, you know, one of the plaintiffs that filed the
initial lawsuit has now openedup this like all inclusive by.
You know, we can sell your homeon our platform for like a very
low price.
You know kind of business.
I feel like there's a hugeconflict of interest in that.
Like he started this wholething to overturn the agency or
(11:19):
or that overturn the way thatyou know that everything,
everything in our business was,was done the way everything was
practiced, and now he's using itas a personal benefit.
I I don't know I mean, I'm notan attorney so I don't know how
that stuff works but that seemsfishy to me.
Speaker 3 (11:37):
And I said that's where, when you hear about all
these little regulations orthings that change, there's
going to be like a literal, likeslippery slopes of like people
trying to get around things orgray areas that aren't defined,
and that's why I think there'sgoing to be a lot more weird.
You know issues or lawsuitscoming up, but we shall see.
It's just continued since that.
Speaker 2 (11:57):
So yeah, yeah, another one.
Another news report we hadTunnels to Towers, I think
that's the name of it.
Yeah, tunnels to TowersFoundation, which I actually.
This is a foundation that myhusband and I contribute to.
It's a very good cause.
They help build homes forveterans.
That's amazing.
My husband and I contribute to.
It's a very good cause.
They help build homes forveterans, so they are a
(12:18):
nonprofit organization dedicatedto assisting fallen.
First responders are now.
They're trying to build aproject, or they were trying to
build a project here in NorthLas Vegas and I guess, through
zoning requirements andeverything like that, it got
shot down to the request torezone the area.
So that is very unfortunate.
(12:42):
It's one of those things thatyou know, we would have loved to
see something good like thatbrought to the Valley, but I
don't think they're giving upthere, so that will probably
just be.
Speaker 3 (12:56):
They'll probably just look to another area, maybe not
in North Las Vegas jurisdictionand I think that kind of ties
into last week when I wastalking about on the news how
they said Nevada has the worsthousing crisis in the country,
especially affordable housing.
That were 80,000 homes shorthere in the Valley, especially
for affordable homes, and youknow there's a huge waiting list
for people to get into thosehomes, including veterans.
(13:17):
So it's just just, it's sad.
You know we're growing so fastand I think there's a dire need
for affordable housing here andyou see it when you're driving
around, you can feel it.
Speaker 2 (13:26):
Yeah, absolutely, and KLAS, which is one of our local
Las Vegas news stations.
Here they are offering a leadhazard assessment and
remediation in older homes thathave small children that are
within the city limits.
So Bullet Point has to be builtbefore 1978, which that was the
(13:48):
risk of lead-based paint.
You have to have a household,has to have a child under six
years of age who resides orfrequently visits the property,
and household has to meet theHUD guidelines.
If you are interested in thisor you want to look into more
information, you can call229-7444 or email SHIFT that's
(14:16):
S-H-I-F-T at lasvegasnevadagov.
So that's a great thing thatcan help people that are, you
know, at risk or still havelead-based paint hazards in
their home, and definitely thatis a concern for small children.
Speaker 3 (14:32):
And it is a big deal.
I was actually reading somestats on it and it said about an
average of 170,000 homes herein the Valley they do think have
lead-based paint issuesobviously older homes and then
typically in serious cases itcan cause seizures and death and
in mild cases, especiallychildren, it can cause headaches
(14:54):
, a lot of brain fog and, Ithink it said, like nausea,
stomach aches.
So it is something serious andif you have an older home, it's
a free assessment.
Get it checked out, because itmight not be so visible now but
it definitely will be reallyvisible later and it's a really
big deal.
Speaker 2 (15:11):
Yeah, it's one of those like underlying things
that you don't really know ismaking you sick.
So definitely you have an olderhome.
Check it out and remediation ofthat it can be very costly, so
it's great that there's aservice available to be able to
help people with that.
Absolutely.
Speaker 3 (15:27):
I think that's great.
Speaker 2 (15:28):
Check that out if you're out there, and let's get
into our listener questions,starting withuricio absolutely,
and then I'll go into um.
Speaker 3 (15:36):
I have a good loan program too oh, let's talk about
your money, okay yes, so, um,I've covered different types of
loans and one of them I covered,I think maybe three or four
weeks ago, was an i-10 loan,which is someone without a
social security number.
So this loan is a foreignnational loan.
So if you have friends, familyand other countries, of course
(15:57):
it can't be a primary, but theycan actually purchase a home
here for an investment or asecond property, so they don't
have to actually live in theUnited States to be able to
purchase a home here.
Speaker 2 (16:08):
Okay, so what are the requirements on?
Speaker 3 (16:12):
this Absolutely.
So we can do a one to four unitproperty and it must be
non-owner occupied.
Obviously, if they're comingfrom another country, we would
be looking at their income in adifferent currency.
Typically right, Not always,but usually they're overseas and
their currency is different.
Some people are working remotefrom another country, so we can
(16:33):
use their income to qualify theloan.
The biggest thing is they musthave a US bank account.
Speaker 2 (16:39):
Okay.
Speaker 3 (16:40):
So when they're doing all the closing, wiring the
funds, they can't not have a USbank account, so that's
something that they would haveto open.
They're going to look at proofof residency and we're going to
look at their, their livingsituation and and verify that
that's all good as far as theircurrent home, and then the loans
typically are going to be 30down or more.
(17:02):
You're not going to see aforeign national loan under 30,
so it is a decent amount down.
Speaker 2 (17:07):
but the great news is that they can get a loan and
we're usually going to look tomake sure they have an average
of six to 12 months reservesokay, yeah, definitely, because
you want to make sure that, uh,you, that they're covered,
they're covered here, especiallynot being in the states or
being able to absolutely, um, totrack that absolutely so.
Speaker 3 (17:25):
not a hard loan to get done, but there are going to
be some stipulations and thebiggest thing is the 30 down
must have a us bank account'svital we can't do it without
that.
They can't wire the money to ustitle all the closing costs and
things like that.
Speaker 2 (17:40):
Yeah, you mean you can't do the.
What is that WhatsApp wherethey say I'm wiring funds from.
I'm like please do Just give meyour account number so I can
send it over.
No, it goes through escrow.
Speaker 3 (17:51):
Sadly, I've heard stories of that working, which
is crazy.
I have too.
It's unbelievable.
Yeah.
Speaker 2 (17:57):
Yeah, so all right.
Well, that's a great, that's agreat thing, great product.
If you have, you know, friendsor family that are not in this
country that are interested inpurchasing hair, then let them
know we have options.
Absolutely, yeah, all right.
So going into Mauricio,mauricio is buying a home, but
he is not buying one out of thecountry, he's buying one out of
(18:19):
Las Vegas and he wants to knowthat if he is out of state and
he doesn't think that he's goingto be able to be here for the
final closing or signing, whatcan he do?
Can he sign electronically?
Speaker 3 (18:33):
Absolutely so.
That happens all the time, soyou don't have to physically be
here to get your loan closed ontime.
So we always ask that you letus know.
There has been situations wherepeople left last minute and
didn't tell us and it's not funto try to find.
You know we have to find atitle company but based on what
(18:53):
state you're in.
Each state has like a differentregulation of closing.
Some can be done by a notary,so we can actually send a notary
to wherever you are, and thegreat thing about a notary is
usually they work into the nightas well.
So if you get off work oryou're on vacation or whatever
needs to be done, or we can alsoset it up at a title company
for you to go into the titlecompany wherever you are If
(19:15):
you're in California or out ofstate somewhere else.
Not a big deal at all.
Typically there's going to be alittle bit of an extra fee for
that versus you just coming toyour local title company and
signing.
Speaker 2 (19:26):
Right, but it's a minimal fee, like usually $150,
$200.
It's not definitely worth theconvenience and.
I mean, I've had people sign atStarbucks before.
Like it is, they can literallymeet you anywhere at any time
that you need.
Speaker 3 (19:41):
Super simple.
Speaker 2 (19:43):
Mobile notaries.
That even works when you're inthe state and you just have a
crazy work schedule orsomething's going on and you
can't go to the tile companyduring business hours.
You have options there, so thatworks out for you, mauricio.
Speaker 3 (19:56):
And you can.
Actually, I've had a loan closeand they were in another
country, so we sent everythingto the United States embassy and
they actually had to go thereand sign.
Speaker 2 (20:05):
Yeah, we've had to do that before too, so, yeah, that
is an option too, so it works.
Speaker 3 (20:11):
It works anywhere.
Speaker 1 (20:11):
We can work it out, no matter where you're at.
Speaker 3 (20:14):
You do not have to physically be here the biggest
thing is just tell your lender,tell your agent, that you're all
of a sudden leaving town.
That way you know we're gettingthe home closed on time and
it's not a frantic.
Where are you and what do wehave to figure out last minute?
Speaker 2 (20:27):
Yeah, definitely, let us know ahead of time what we
need to be preparing for.
Speaker 3 (20:32):
Absolutely yeah.
And then the next one is let'ssee, amy.
Yes, amy, I'm getting a divorce, but it's not finalized yet.
But I want to purchase a homeright away.
Is that possible while I'm inthe middle of a divorce
situation?
Speaker 2 (20:48):
You have to be very careful with this, amy.
Yeah, the reason why you haveto be very careful with this is
I have seen so many times wherethe let's just say it's your
ex-husband just for conversation, purchases or soon to be or
purposes soon to be ex-husband,and he says, yeah, go ahead,
(21:09):
I'll sign the paperworkwhatever's needed when it comes
time.
And in the meantime, duringthis 30-day escrow, you and him
are having a dispute.
Maybe it's with child support,maybe it's with child custody,
maybe it's alimony, maybe it'ssomething you're not seeing eye
to eye.
That happens during a divorceand they say their attorneys
(21:30):
will say, well, they need thisquick claim deed signed.
So now this is going to be anitem that we use to negotiate,
to back them into a corner, tomake it to where you have to do
what we want you to do.
You have to do what we want youto do, so be very, very careful
about that.
(21:53):
I tell people that if you aregetting a divorce or you're in
the midst of a divorce, thespouse has to sign what's called
a quit claim deed releasingtheir interest in the property
that you're purchasing.
Absolutely.
I require or highly recommendthat is done during the 10-day
due diligence period when weopen escrow, because that is
your cancellation period as well, where you have the right to
cancel and if we don't, they cando that ahead of time.
(22:16):
They don't have to wait untilclosing.
If we get that documentexecuted, notarized and signed
on file before closing, then wehave no last-minute surprises at
the end of the transaction andyou're within that due diligence
where, if the other party isnot cooperating, you have time
to cancel and get back yourdeposit.
Speaker 3 (22:38):
Absolutely and I think on a lender standpoint.
Can you get a loan when you'regoing through a divorce?
The simple answer is yes.
However, there are a lot ofthings that we need to see
before we can close a loan.
Is it the best time tonecessarily get a loan?
(23:00):
It's always the best time onceeverything's finalized, and the
reason being is that, as alender, we have to look at how
much you know we're qualifying aloan based on what their debts
are, their finances.
So, on an FHA loan, if we'redoing an FHA loan, if you're not
legally divorced yet, typicallytheir debts are going to hit
you as well.
So, even if you don't have acredit card commingled, if they
(23:24):
owe $50,000 on a Visa creditcard and you're not legally
divorced on an FHA loan, we haveto hit for it as well.
So with FHA VA, it's the same,especially in a community
property state.
Now, when we get intoconventional loans, we don't
have to count the debts debts.
(23:45):
However, no lender is going toclose a loan until they see all
the finalized divorce decree,for the reason being is we don't
know if the husband's going toowe $5,000 a month in alimony or
$1,000 a month in child support.
So we need to see those finalnumbers to be able to feel
confident that he has theability to repay.
He may not qualify after beingtold he has the ability to repay
.
He may not qualify after youknow being told he has to pay a
(24:05):
thousand dollars a month forchild support or you know, five
thousand dollars a month foralimony, whatever that looks
like.
So typically we'll wait andthen the second we get that,
then we can move forward andclose.
But there's a lot of movingparts that go into that.
Divorces are messy.
Not everything goes as smooth.
So can you get a divorce?
Can you get a divorce?
Can you get a loan when you'regetting a divorce?
(24:28):
The simple answer is yes.
It's just there's a lot ofthings that have to be finalized
before we can just hand you theloan Absolutely.
Speaker 2 (24:36):
Yeah, definitely so.
I would talk to your lender,talk to your realtor, before you
move forward with that decision, don't, don't surprise us last
minute at closing and say, ohyeah, I have a husband and we're
getting divorced, because I'veseen that happen last minute,
where it can throw a big curveball into everything.
(24:56):
So, no secrets, no surprises.
Make sure we know everything upfront.
Speaker 3 (25:01):
And also too, once we have, you know, a divorce
decree, when we're looking atthat we can use for possibly
whoever's getting the childsupport, the alimony.
As long as it's gonna continuefor three years or more, we can
actually use that as income aswell To help you qualify Correct
so things have to be somewhatfinalized before we can just
move forward, so it is stressful.
(25:22):
Obviously, we're there to help,but there are things that have
to be in place before we canjust issue you a loan absolutely
.
Speaker 2 (25:27):
Okay, all right.
And then we have Rick, our Rick, here asked us a question last
week.
That I thought was a very goodone, and so can you use the
equity in your home.
If you're doing a refinance andyou have a substantial amount
of equity in your home, are youable to use that equity to a
(25:48):
rate buy down on the refinance?
Speaker 3 (25:50):
Yes.
So the answer is yes.
So anytime you're doing arefinance, a cash out refinance,
we can typically go up to 80%of the loan to value, meaning
whatever the house's value is80%.
So if you have 40, 50, howevermuch money you have left of that
right before you hit the 80%let's say you have $100,000, you
want to do a cash out refinancewe can use that money, that
(26:13):
equity at closing, to buy downthe rate for the closing costs
and everything.
Now, with that being said, basedon what you're doing right now,
ideally, if you're one of thoseamazing fortunate people that
have a 3%, a 4% mortgage, even a2.5%, typically, unless you're
(26:34):
in dire need, you're probablynot going to want to do a cash
out refinance and buy down arate right now, for the simple
fact that I mean you might beusing the money to pay off debts
and things.
But because the rates are sohigh right now, most people are
going to end up refinancinganyways in the next 12, 24
months and so, yes, you can buyit down.
I think when the market wasduring COVID at three, three and
(26:56):
a half 4%, obviously spend theextra money and buy down the
rate.
Never going to see rates likethat again, but right now it's
just not really worth using yourequity to buy down a rate in
this current market.
Can you do it?
Speaker 2 (27:09):
though?
Yes, because the cost, whatit's going to cost you, is going
to wipe out the benefit right.
Speaker 3 (27:18):
Most of the time at these rates.
Yes, now in the market, when wewere at three 4%, people were
pulling out a hundred thousanddollars paying off all their
credit card debts.
That maybe saved them $1,500 amonth in cashflow, but their
mortgage went up $250 a monthRight, so for them it was really
worth it.
Right now, because the ratesare so high, you might be at a
break even.
(27:38):
It really depends on eachindividual situation how much
credit card debt you have orwhat you're trying to do, but
usually if you have a pretty lowmortgage right now as far as
the rate on a first I don'trecommend doing that unless you
absolutely have to, and rightnow is not the best time to buy
(27:59):
down a rate.
Speaker 2 (28:00):
Yeah, and the important note about rate buy
downs is I think that oftenpeople think that, um, if you
buy down rate, they think, oh, Ican, you know, pay five or ten
thousand dollars and get my ratefrom seven percent to five
percent?
It doesn't work that way.
Um, so it's when you're buyingdown a rate first off.
They're very costly and it's acost.
That isn't.
It's not like there's a certainnumber gets you a certain point
.
Speaker 3 (28:19):
It's daily, it's their price, the rates change,
the cost changes based on debtto income credit.
There's so many factors that gointo how or how much it's going
to cost when you buy down arate.
Speaker 2 (28:31):
Yeah.
Speaker 3 (28:38):
And typically those rate buy downs are just little
percentages of points and reallyyou have to look at if it's
going to cost you $5,000 to buydown a rate but it's saving you
$100 a month.
What is your break-even amountof time and are you even going
to be in the home once you hityour break-even?
Are you going to sell the homein three, four years?
And so right now it's just notthe best market for that.
Are there markets where youwant to buy down a rate during
COVID all day long?
You're never going to see thoserates again.
(29:00):
I mean, I don't think so.
But this market is just not forthat.
Speaker 2 (29:04):
Well, I have.
When I bought my home in 2018,2018, um, I did a I I paid at
the.
At that time, rates were in thefives, um, so I yeah, it was
great, um, but they were in thefives and I paid $5,000 for a
quarter of a point buy down.
So it was like 0.25% buy down,um, from the rate that I was at,
(29:27):
so I think it got me to like aneven five, so $5,000, I was
very happy with that.
However, you have to look atthis time, how long, like,
what's the savings of that overthe stretch of time?
Um, I was thinking with theintent that, on a 30 year loan,
or 20 years or however long ittook me to pay off the loan,
that would break even and makesense.
(29:49):
But what happened?
What changed?
Covid hit and rates got down tonothing and I refinanced in
March of 2020 when rates were 2%.
I didn't, you know, I had thatloan then for, you know, less
than two years, and that $5,000I paid was kind of basically
(30:10):
flushed down the toilet becauseI may have, you know, like, seen
a return of that of $100 amonth, for, you know, I mean
less than less than $2,000, I'msure.
Speaker 3 (30:20):
Granted.
Did we ever think we were goingto see rates that low?
Speaker 2 (30:23):
No, I could have never called that, could have
never expected it.
Um, it was.
You know so it is.
You have to keep in mind um ofthat.
You know so it is.
You have to keep in mind um ofthat.
You know.
The return of that buy down ifI look back again, I wouldn't
have bought down the rate, Iwould have just wrote it out for
until until, uh, refinancing.
But I never would have seen thatcoming, so I you know, didn't
(30:44):
know what was going to happenand in the end I won, so it's
fine but this market rates arecoming down, so don't buy down.
Speaker 3 (30:52):
It's just not cash out, refinances, things like
that.
Right now.
You have to really look at eachindividual situation.
Speaker 2 (30:57):
It's just right now you're going to refinance yeah,
especially if you're in thesevens yeah, and the cost to buy
down for the little minimalpercentage that it is is, uh,
really very, yeah, very costly.
And unless that rate issomewhere where you say I'm good
with this rate for 30 years,you know, then um, then maybe it
makes sense, but if not, thenyou have to really look at that
(31:18):
return and how long you'reintending on staying in that
rate.
Speaker 3 (31:23):
Absolutely, and that 5%.
Yours is a very rare case,which I'm sure other people have
.
The same situation where it wasabsolutely worth it, but did
you hit your break even?
Speaker 2 (31:31):
No, no, no, definitely didn't hit the break
even, because it was, you know,like I said, not too long after
that rates came down, so funstuff.
Speaker 3 (31:41):
But either way, you have a great rate.
I have a great rate, saved mehundreds of dollars every month.
Speaker 2 (31:46):
I was so happy for that.
So yeah, that's and that's wouldnever, touch a refinance, and
that's even when it comes tobecause I have, you know, a few
properties, we have a fewproperties and when it comes to
looking at paying down, becauseI always advise paying down your
mortgage doing those extrapayments, trying to get the note
(32:07):
paid off quicker, is a greatstrategy.
Everybody should be doing it.
It's very easy to do.
Even the littlest paymenttowards your principal can make
a big difference overall.
But for me, we have some otherproperties that have much higher
rates, so those are priority,my primary.
I'm like that rate's costing usnothing.
(32:29):
So it's fine.
Those were the days.
Yeah, so it's the other oneswith the days.
Yeah, so it's the other oneswith the high rates that we're
trying to get down first.
So those are good and we cantalk about that on future shows
too, of strategies of workingtowards your finances and
getting everything in order.
So, if you guys are watchingthe show, please check out our
(32:51):
link tree, which iswwwrealtycheckvegas.
Right there you can seeeverything Realty Check, all of
our social medias, all of our um, all of our links to everything
about the show and everythingabout both of us.
Um, I, uh, I did do over thelast week I did a comedy show at
(33:12):
the improv, um, so if you wantto see me, do stand up.
Um, you can.
You can check out the um,connect with me on Facebook
through that link and I have avideo there on Facebook If you
guys want to see it it was myfirst time ever, so it was uh,
it was all right, it was.
I laughed yeah and I.
Speaker 3 (33:35):
I would have been brutally honest if I was like, I
didn't think I was actually, Ithought you were really funny.
Speaker 2 (33:39):
No, thank you, yeah, I thought it was good I have
some hilarious plus it's likevegas humor, so I always think
that's funny yeah, yeah.
No, it was fun.
It was fun.
It was definitely an experience, but a lot of fun.
So you can check that out ifyou want to and if you need to
reach me, my phone number is702-308-2878.
How do?
Speaker 3 (33:58):
people reach you, courtney, so you can reach me at
702-416-6918.
Call or text me.
Speaker 2 (34:03):
I'm always available All right, courtney, is your
money girl, I will help you findthe home or sell the home.
So, yes, all right, you findthe home or sell the home.
So, yes, all right.
Thanks, guys, and we'll see younext week.
And thank you, chicago title oh, thank you, chicago title for
being our marketing partner.
We appreciate you, thank youyou, thank you.
Welcome to Vegas Realty.
Check your go-to podcast forall things Las Vegas real estate
.
Whether you're buying, sellingor investing, we bring you the
latest market trends, insidertips and expert insights to
navigate the ever-changing LasVegas realty landscape.
Tune in each week as we breakdown the data, answer your
questions and help you make thebest real estate decisions in
(00:21):
the entertainment capital of theworld.
Speaker 2 (00:26):
Hey.
So today we're going to coverbuying out of state, buying
while in a divorce and, if youcan get your home equity to help
with your rate, buy down on arefinance.
So we're going to cover allthose things today on this show.
I'm your host, trish Williams,thanks for joining us at Vegas
Realty Check, and I'm yourco-host Courtney Boehm with JFK
(00:46):
Financial.
Yes, so we have a great show instore for you today.
Before we get into everythingthat we are talking about and
listener questions, we're goingto open up with our market
numbers for the week.
Speaker 3 (00:59):
Sure, absolutely so.
Right now, single familyresidences on the market, we're
looking at 51.27, which is up 40from last week, All right.
Speaker 2 (01:09):
And then condos and townhomes.
We have 18.37.
Those are down 12.
Love to see that inventorydropping Right.
Speaker 3 (01:17):
Slowly but surely, we are getting there.
Speaker 2 (01:20):
Are people like I was thinking about this this
morning because it's cold out.
It's like freezing cold out andit's not normal for Vegas.
Maybe the buyers are justscared of the cold.
Speaker 3 (01:31):
I don't know about you, but when it's cold out I
don't like to leave my house atnight.
Speaker 2 (01:36):
And people in Vegas are like that, like if it's
raining they'll cancel all theirappointments, so like that
could be a Vegas spoiled fromthe weather thing.
Speaker 3 (01:47):
So maybe, maybe, yeah , yeah, so like that could be a
Vegas spoiled from the weatherthing.
So I believe it, maybe, yeah,yeah.
So what's cold here isdefinitely not cold many other
places, but I'm telling youpajamas at like 7 30 I'm happy,
yeah absolutely um new listings,so we we only went up one on
the new listings.
Speaker 2 (02:01):
Yeah, so 936 new listings, and that was.
Speaker 3 (02:05):
That was just one more from the week before and we
have 785 price decreases thisweek, which is up 122 from last
week.
Speaker 2 (02:16):
Yeah yeah.
Good to see those pricesdropping and sellers are trying
to get those buyers intocontract.
These under contract numbersare looking good, though, so 824
for the week, which is 124 morethan last week.
Speaker 3 (02:31):
So we are seeing activity out there, absolutely,
and I think things are startingto heat up and as far as sold,
we have 520, which is up 96 fromlast week, so that's good.
Speaker 2 (02:42):
Yeah, yeah, we're definitely seeing some of that
January activity.
I still think it's slow, it'snot moving as quickly as I would
hope it would, but it's doingokay.
Speaker 3 (02:54):
Yeah, I think we're slowly going to see an uptick.
Come February, march, I think alot's been very steady.
Speaker 2 (03:02):
Yeah, fed met yesterday.
How'd that go?
Speaker 3 (03:05):
You know it went not like I would love it to go.
I would love to see, you knowrates go into the fives.
But we and I think I talkedabout this about two weeks ago
on this show we predicted thatthis meeting was going to
virtually keep everythingexactly the same as far as the
rates went, and that's exactlywhat happened.
The the March 18th 19th Fedmeeting is supposed to,
(03:32):
prediction wise, have the ratescome down a little bit.
So we kind of knew, based onjust different things that we
were hearing, that this one wasgoing to be virtually nothing.
Nothing was really gonna move,and that's pretty much exactly
what happened.
So right now we are sittingvirtually where we were almost
last week right at around a 7%for a conventional loan on a
30-year, and you're looking alittle bit lower about a 6.5%, a
(03:56):
tad bit lower on a nationalaverage for FHA and VA 30-year.
Speaker 2 (04:00):
Yeah, yeah, yeah.
So those have not moved much.
But the Fed is not the end allbe all of the rates and where
they go, so other things canhappen.
I know yesterday we were bothin this housing forecast and
they were talking about how thejob reports are really the most
impactful as far as where thosemortgage rates are going, which
(04:23):
I guess that was surprising tome.
I didn't really realize that.
Speaker 3 (04:26):
I think there's a correlation between so many
things versus the bond marketjobs, spending, credit card
rates, things, everything's kindof in conjunction with and I
think that you know we're goingto see what happens in the next
few months.
But March 18th 19th is really adate for us, especially as
(04:47):
lenders, to kind of look out forand start seeing that slow
trending down.
Yeah, we're hoping to come downa little bit into the you know,
probably high sixes around thattime, but we shall see.
I think we've all tried to makegreat predictions and we just
don't know.
We thought last year we weregonna be a lot lower than what
we ended up ending the year with.
Speaker 2 (05:08):
So yeah, and when it comes down to it.
I mean, so many buyers aresaying they're putting off their
buying decisions, they'rebuying activity until they,
until the rates come down.
Yet there's so many buyers thatstill home buying can be
affordable for them.
They still can afford thepayment.
They would just like it to be alower payment.
(05:30):
But keep in mind, when thoserates do go down, the prices are
probably going to increasebecause we still have a very
strong market, even with theenvironment that we're in right
now with rates.
Speaker 3 (05:41):
And I think the most important thing, which obviously
we're in the industry where wedeal with this all the time, but
that's where you hear thatannoying saying that we always
use or hear, date the rate.
Right, marry the house, datethe rate.
Because at the end of the dayyou have to think, if you're
just waiting for the rates tocome down, so is everybody else.
Oh gosh, and the problem withthat is when the rates a lot of
(06:10):
property.
Speaker 2 (06:11):
Oh yeah, because they're going to buy it with the
intent of they know the valuesare going to increase, so it's
going to be we'll.
We'll see more people gettinginto flipping, buying, holding
for a couple months, becausethey know that once those rates
come down, the buyer pool willbe flooded.
Speaker 3 (06:27):
And and then you have , you know people who are coming
in with three and a half 5%down getting beat out of a
market because people are comingin with 3.5% 5% down getting
beat out of a market becausepeople are coming in with 50%
down or all cash.
And so I'm sure in those typeof markets do you see as many
seller concessions or thingsbeing offered?
Speaker 2 (06:43):
No, and buyers have to pay over the appraisals a lot
in those types of markets.
Absolutely so definitely not abuyer-friendly market.
So that is, if you're waitingfor those low rates, that you're
waiting to be shopping in thattype of market, which might not
be the best scenario for youAbsolutely and keep in mind.
Speaker 3 (07:01):
and why we say that is because, as long as you can
get into a home and qualify downthe road, we can always
refinance you and make thepayment even more comfortable
while you're building equityversus paying someone else's
equity and and these homes arenot going down.
Speaker 2 (07:16):
um, our town is only growing and we're going to get
everyone from california andit's been growing and the
value's been going uptremendously in the last two,
three years yeah, even in spiteof all the rates and all the
things and the buying market notbeing so attractive, we still
have appreciation, which isdefinitely something that you
need to pay attention to,because that is proof that as
(07:39):
soon as those rates come down,the prices are going to increase
even more.
Speaker 3 (07:43):
Absolutely.
Speaker 2 (07:44):
So that is our crystal ball prediction for you.
Speaker 3 (07:47):
Yes, rates go down to the low sixes, high fives,
that's my wish.
Speaker 2 (07:52):
Yes, so we have some news.
New York Times reported thatNAR and several Michigan real
estate associations have filedan overturn, a motion to
overturn another class actionlawsuit, which is focuses on the
MLS requirement to join NAR.
(08:13):
So I know most consumers outthere have no idea what this
means and might not even matterto you, but this is part of this
, like big settlement lawsuitand all the disputes that we've
been having recently in regardsto this, because currently
agents that are part of the MLS,which is the multiple listing
service, which is like a localassociation, have to join the
(08:35):
National Association of Realtors, so have to be part of the NAR.
And you know some agents havebeen, you know, just kind of
looking at that, like why isthat necessary?
You know what is the purpose ofthat.
So NAR does offer a lot ofbenefits and does have a lot of
things associated with being amember, but it is something that
(08:56):
some people are trying todispute and NAR and some other
associations are pushing tooverturn that lawsuit.
Speaker 3 (09:09):
So it is a requirement to be part of NAR.
Speaker 2 (09:10):
It is a requirement to be in If you're like our MLS,
if you want to be in the localMLS, you have to be in NAR.
So it's.
It is a requirement currently,but there's a there's a lot of
changes coming out.
There's lots of class actionlawsuits.
Another one was filed yesterdayagainst some other brokerages.
I mean this is getting out ofcontrol, like absolutely out of
(09:34):
control.
Speaker 3 (09:34):
I don't think you're going to see this trend not
continue.
I think there's going to be alot of lawsuits and I think
there's so many gray areas withwhat was going on.
That it's.
You're just going to see itcontinue and you're going to
hear news about it probably alot.
Speaker 2 (09:50):
Yeah, I just it.
Just it upsets me so muchbecause I look at the bullet
points of, like, the initiallawsuit and the reasons and the
things that they're you knowclaiming are done that made this
whole thing happen.
And I know I wasn't doing that,yeah, and because I, you know,
maybe was trained well or youknow, things happen.
(10:13):
I don't know.
I knew that was against therules, I wasn't doing that.
So for me to be part of thisnow and have the repercussions
of it, really upsets me.
Speaker 1 (10:24):
Like really upsets me .
Speaker 2 (10:25):
And it's not I know I'm not the only one that wasn't
doing that.
There's thousands and thousandsof realtors and it's like the
few bad apples we're all payingthe price for, and that is just
so frustrating to me.
But that's the way the systemis and there's no way around it
and I think people are startingto fight.
Speaker 3 (10:43):
Why do I have to pay to be involved in this if I
don't want to be?
Or I think there's just a lotof uproar and people are
changing the future of, I think,how real estate is operating
and things that are involved in.
Where's my money going?
Speaker 2 (10:57):
Well, you know, one of the plaintiffs that filed the
initial lawsuit has now openedup this like all inclusive by.
You know, we can sell your homeon our platform for like a very
low price.
You know kind of business.
I feel like there's a hugeconflict of interest in that.
Like he started this wholething to overturn the agency or
(11:19):
or that overturn the way thatyou know that everything,
everything in our business was,was done the way everything was
practiced, and now he's using itas a personal benefit.
I I don't know I mean, I'm notan attorney so I don't know how
that stuff works but that seemsfishy to me.
Speaker 3 (11:37):
And I said that's where, when you hear about all
these little regulations orthings that change, there's
going to be like a literal, likeslippery slopes of like people
trying to get around things orgray areas that aren't defined,
and that's why I think there'sgoing to be a lot more weird.
You know issues or lawsuitscoming up, but we shall see.
It's just continued since that.
Speaker 2 (11:57):
So yeah, yeah, another one.
Another news report we hadTunnels to Towers, I think
that's the name of it.
Yeah, tunnels to TowersFoundation, which I actually.
This is a foundation that myhusband and I contribute to.
It's a very good cause.
They help build homes forveterans.
That's amazing.
My husband and I contribute to.
It's a very good cause.
They help build homes forveterans, so they are a
(12:18):
nonprofit organization dedicatedto assisting fallen.
First responders are now.
They're trying to build aproject, or they were trying to
build a project here in NorthLas Vegas and I guess, through
zoning requirements andeverything like that, it got
shot down to the request torezone the area.
So that is very unfortunate.
(12:42):
It's one of those things thatyou know, we would have loved to
see something good like thatbrought to the Valley, but I
don't think they're giving upthere, so that will probably
just be.
Speaker 3 (12:56):
They'll probably just look to another area, maybe not
in North Las Vegas jurisdictionand I think that kind of ties
into last week when I wastalking about on the news how
they said Nevada has the worsthousing crisis in the country,
especially affordable housing.
That were 80,000 homes shorthere in the Valley, especially
for affordable homes, and youknow there's a huge waiting list
for people to get into thosehomes, including veterans.
(13:17):
So it's just just, it's sad.
You know we're growing so fastand I think there's a dire need
for affordable housing here andyou see it when you're driving
around, you can feel it.
Speaker 2 (13:26):
Yeah, absolutely, and KLAS, which is one of our local
Las Vegas news stations.
Here they are offering a leadhazard assessment and
remediation in older homes thathave small children that are
within the city limits.
So Bullet Point has to be builtbefore 1978, which that was the
(13:48):
risk of lead-based paint.
You have to have a household,has to have a child under six
years of age who resides orfrequently visits the property,
and household has to meet theHUD guidelines.
If you are interested in thisor you want to look into more
information, you can call229-7444 or email SHIFT that's
(14:16):
S-H-I-F-T at lasvegasnevadagov.
So that's a great thing thatcan help people that are, you
know, at risk or still havelead-based paint hazards in
their home, and definitely thatis a concern for small children.
Speaker 3 (14:32):
And it is a big deal.
I was actually reading somestats on it and it said about an
average of 170,000 homes herein the Valley they do think have
lead-based paint issuesobviously older homes and then
typically in serious cases itcan cause seizures and death and
in mild cases, especiallychildren, it can cause headaches
(14:54):
, a lot of brain fog and, Ithink it said, like nausea,
stomach aches.
So it is something serious andif you have an older home, it's
a free assessment.
Get it checked out, because itmight not be so visible now but
it definitely will be reallyvisible later and it's a really
big deal.
Speaker 2 (15:11):
Yeah, it's one of those like underlying things
that you don't really know ismaking you sick.
So definitely you have an olderhome.
Check it out and remediation ofthat it can be very costly, so
it's great that there's aservice available to be able to
help people with that.
Absolutely.
Speaker 3 (15:27):
I think that's great.
Speaker 2 (15:28):
Check that out if you're out there, and let's get
into our listener questions,starting withuricio absolutely,
and then I'll go into um.
Speaker 3 (15:36):
I have a good loan program too oh, let's talk about
your money, okay yes, so, um,I've covered different types of
loans and one of them I covered,I think maybe three or four
weeks ago, was an i-10 loan,which is someone without a
social security number.
So this loan is a foreignnational loan.
So if you have friends, familyand other countries, of course
(15:57):
it can't be a primary, but theycan actually purchase a home
here for an investment or asecond property, so they don't
have to actually live in theUnited States to be able to
purchase a home here.
Speaker 2 (16:08):
Okay, so what are the requirements on?
Speaker 3 (16:12):
this Absolutely.
So we can do a one to four unitproperty and it must be
non-owner occupied.
Obviously, if they're comingfrom another country, we would
be looking at their income in adifferent currency.
Typically right, Not always,but usually they're overseas and
their currency is different.
Some people are working remotefrom another country, so we can
(16:33):
use their income to qualify theloan.
The biggest thing is they musthave a US bank account.
Speaker 2 (16:39):
Okay.
Speaker 3 (16:40):
So when they're doing all the closing, wiring the
funds, they can't not have a USbank account, so that's
something that they would haveto open.
They're going to look at proofof residency and we're going to
look at their, their livingsituation and and verify that
that's all good as far as theircurrent home, and then the loans
typically are going to be 30down or more.
(17:02):
You're not going to see aforeign national loan under 30,
so it is a decent amount down.
Speaker 2 (17:07):
but the great news is that they can get a loan and
we're usually going to look tomake sure they have an average
of six to 12 months reservesokay, yeah, definitely, because
you want to make sure that, uh,you, that they're covered,
they're covered here, especiallynot being in the states or
being able to absolutely, um, totrack that absolutely so.
Speaker 3 (17:25):
not a hard loan to get done, but there are going to
be some stipulations and thebiggest thing is the 30 down
must have a us bank account'svital we can't do it without
that.
They can't wire the money to ustitle all the closing costs and
things like that.
Speaker 2 (17:40):
Yeah, you mean you can't do the.
What is that WhatsApp wherethey say I'm wiring funds from.
I'm like please do Just give meyour account number so I can
send it over.
No, it goes through escrow.
Speaker 3 (17:51):
Sadly, I've heard stories of that working, which
is crazy.
I have too.
It's unbelievable.
Yeah.
Speaker 2 (17:57):
Yeah, so all right.
Well, that's a great, that's agreat thing, great product.
If you have, you know, friendsor family that are not in this
country that are interested inpurchasing hair, then let them
know we have options.
Absolutely, yeah, all right.
So going into Mauricio,mauricio is buying a home, but
he is not buying one out of thecountry, he's buying one out of
(18:19):
Las Vegas and he wants to knowthat if he is out of state and
he doesn't think that he's goingto be able to be here for the
final closing or signing, whatcan he do?
Can he sign electronically?
Speaker 3 (18:33):
Absolutely so.
That happens all the time, soyou don't have to physically be
here to get your loan closed ontime.
So we always ask that you letus know.
There has been situations wherepeople left last minute and
didn't tell us and it's not funto try to find.
You know we have to find atitle company but based on what
(18:53):
state you're in.
Each state has like a differentregulation of closing.
Some can be done by a notary,so we can actually send a notary
to wherever you are, and thegreat thing about a notary is
usually they work into the nightas well.
So if you get off work oryou're on vacation or whatever
needs to be done, or we can alsoset it up at a title company
for you to go into the titlecompany wherever you are If
(19:15):
you're in California or out ofstate somewhere else.
Not a big deal at all.
Typically there's going to be alittle bit of an extra fee for
that versus you just coming toyour local title company and
signing.
Speaker 2 (19:26):
Right, but it's a minimal fee, like usually $150,
$200.
It's not definitely worth theconvenience and.
I mean, I've had people sign atStarbucks before.
Like it is, they can literallymeet you anywhere at any time
that you need.
Speaker 3 (19:41):
Super simple.
Speaker 2 (19:43):
Mobile notaries.
That even works when you're inthe state and you just have a
crazy work schedule orsomething's going on and you
can't go to the tile companyduring business hours.
You have options there, so thatworks out for you, mauricio.
Speaker 3 (19:56):
And you can.
Actually, I've had a loan closeand they were in another
country, so we sent everythingto the United States embassy and
they actually had to go thereand sign.
Speaker 2 (20:05):
Yeah, we've had to do that before too, so, yeah, that
is an option too, so it works.
Speaker 3 (20:11):
It works anywhere.
Speaker 1 (20:11):
We can work it out, no matter where you're at.
Speaker 3 (20:14):
You do not have to physically be here the biggest
thing is just tell your lender,tell your agent, that you're all
of a sudden leaving town.
That way you know we're gettingthe home closed on time and
it's not a frantic.
Where are you and what do wehave to figure out last minute?
Speaker 2 (20:27):
Yeah, definitely, let us know ahead of time what we
need to be preparing for.
Speaker 3 (20:32):
Absolutely yeah.
And then the next one is let'ssee, amy.
Yes, amy, I'm getting a divorce, but it's not finalized yet.
But I want to purchase a homeright away.
Is that possible while I'm inthe middle of a divorce
situation?
Speaker 2 (20:48):
You have to be very careful with this, amy.
Yeah, the reason why you haveto be very careful with this is
I have seen so many times wherethe let's just say it's your
ex-husband just for conversation, purchases or soon to be or
purposes soon to be ex-husband,and he says, yeah, go ahead,
(21:09):
I'll sign the paperworkwhatever's needed when it comes
time.
And in the meantime, duringthis 30-day escrow, you and him
are having a dispute.
Maybe it's with child support,maybe it's with child custody,
maybe it's alimony, maybe it'ssomething you're not seeing eye
to eye.
That happens during a divorceand they say their attorneys
(21:30):
will say, well, they need thisquick claim deed signed.
So now this is going to be anitem that we use to negotiate,
to back them into a corner, tomake it to where you have to do
what we want you to do.
You have to do what we want youto do, so be very, very careful
about that.
(21:53):
I tell people that if you aregetting a divorce or you're in
the midst of a divorce, thespouse has to sign what's called
a quit claim deed releasingtheir interest in the property
that you're purchasing.
Absolutely.
I require or highly recommendthat is done during the 10-day
due diligence period when weopen escrow, because that is
your cancellation period as well, where you have the right to
cancel and if we don't, they cando that ahead of time.
(22:16):
They don't have to wait untilclosing.
If we get that documentexecuted, notarized and signed
on file before closing, then wehave no last-minute surprises at
the end of the transaction andyou're within that due diligence
where, if the other party isnot cooperating, you have time
to cancel and get back yourdeposit.
Speaker 3 (22:38):
Absolutely and I think on a lender standpoint.
Can you get a loan when you'regoing through a divorce?
The simple answer is yes.
However, there are a lot ofthings that we need to see
before we can close a loan.
Is it the best time tonecessarily get a loan?
(23:00):
It's always the best time onceeverything's finalized, and the
reason being is that, as alender, we have to look at how
much you know we're qualifying aloan based on what their debts
are, their finances.
So, on an FHA loan, if we'redoing an FHA loan, if you're not
legally divorced yet, typicallytheir debts are going to hit
you as well.
So, even if you don't have acredit card commingled, if they
(23:24):
owe $50,000 on a Visa creditcard and you're not legally
divorced on an FHA loan, we haveto hit for it as well.
So with FHA VA, it's the same,especially in a community
property state.
Now, when we get intoconventional loans, we don't
have to count the debts debts.
(23:45):
However, no lender is going toclose a loan until they see all
the finalized divorce decree,for the reason being is we don't
know if the husband's going toowe $5,000 a month in alimony or
$1,000 a month in child support.
So we need to see those finalnumbers to be able to feel
confident that he has theability to repay.
He may not qualify after beingtold he has the ability to repay
.
He may not qualify after youknow being told he has to pay a
(24:05):
thousand dollars a month forchild support or you know, five
thousand dollars a month foralimony, whatever that looks
like.
So typically we'll wait andthen the second we get that,
then we can move forward andclose.
But there's a lot of movingparts that go into that.
Divorces are messy.
Not everything goes as smooth.
So can you get a divorce?
Can you get a divorce?
Can you get a loan when you'regetting a divorce?
(24:28):
The simple answer is yes.
It's just there's a lot ofthings that have to be finalized
before we can just hand you theloan Absolutely.
Speaker 2 (24:36):
Yeah, definitely so.
I would talk to your lender,talk to your realtor, before you
move forward with that decision, don't, don't surprise us last
minute at closing and say, ohyeah, I have a husband and we're
getting divorced, because I'veseen that happen last minute,
where it can throw a big curveball into everything.
(24:56):
So, no secrets, no surprises.
Make sure we know everything upfront.
Speaker 3 (25:01):
And also too, once we have, you know, a divorce
decree, when we're looking atthat we can use for possibly
whoever's getting the childsupport, the alimony.
As long as it's gonna continuefor three years or more, we can
actually use that as income aswell To help you qualify Correct
so things have to be somewhatfinalized before we can just
move forward, so it is stressful.
(25:22):
Obviously, we're there to help,but there are things that have
to be in place before we canjust issue you a loan absolutely
.
Speaker 2 (25:27):
Okay, all right.
And then we have Rick, our Rick, here asked us a question last
week.
That I thought was a very goodone, and so can you use the
equity in your home.
If you're doing a refinance andyou have a substantial amount
of equity in your home, are youable to use that equity to a
(25:48):
rate buy down on the refinance?
Speaker 3 (25:50):
Yes.
So the answer is yes.
So anytime you're doing arefinance, a cash out refinance,
we can typically go up to 80%of the loan to value, meaning
whatever the house's value is80%.
So if you have 40, 50, howevermuch money you have left of that
right before you hit the 80%let's say you have $100,000, you
want to do a cash out refinancewe can use that money, that
(26:13):
equity at closing, to buy downthe rate for the closing costs
and everything.
Now, with that being said, basedon what you're doing right now,
ideally, if you're one of thoseamazing fortunate people that
have a 3%, a 4% mortgage, even a2.5%, typically, unless you're
(26:34):
in dire need, you're probablynot going to want to do a cash
out refinance and buy down arate right now, for the simple
fact that I mean you might beusing the money to pay off debts
and things.
But because the rates are sohigh right now, most people are
going to end up refinancinganyways in the next 12, 24
months and so, yes, you can buyit down.
I think when the market wasduring COVID at three, three and
(26:56):
a half 4%, obviously spend theextra money and buy down the
rate.
Never going to see rates likethat again, but right now it's
just not really worth using yourequity to buy down a rate in
this current market.
Can you do it?
Speaker 2 (27:09):
though?
Yes, because the cost, whatit's going to cost you, is going
to wipe out the benefit right.
Speaker 3 (27:18):
Most of the time at these rates.
Yes, now in the market, when wewere at three 4%, people were
pulling out a hundred thousanddollars paying off all their
credit card debts.
That maybe saved them $1,500 amonth in cashflow, but their
mortgage went up $250 a monthRight, so for them it was really
worth it.
Right now, because the ratesare so high, you might be at a
break even.
(27:38):
It really depends on eachindividual situation how much
credit card debt you have orwhat you're trying to do, but
usually if you have a pretty lowmortgage right now as far as
the rate on a first I don'trecommend doing that unless you
absolutely have to, and rightnow is not the best time to buy
(27:59):
down a rate.
Speaker 2 (28:00):
Yeah, and the important note about rate buy
downs is I think that oftenpeople think that, um, if you
buy down rate, they think, oh, Ican, you know, pay five or ten
thousand dollars and get my ratefrom seven percent to five
percent?
It doesn't work that way.
Um, so it's when you're buyingdown a rate first off.
They're very costly and it's acost.
That isn't.
It's not like there's a certainnumber gets you a certain point
.
Speaker 3 (28:19):
It's daily, it's their price, the rates change,
the cost changes based on debtto income credit.
There's so many factors that gointo how or how much it's going
to cost when you buy down arate.
Speaker 2 (28:31):
Yeah.
Speaker 3 (28:38):
And typically those rate buy downs are just little
percentages of points and reallyyou have to look at if it's
going to cost you $5,000 to buydown a rate but it's saving you
$100 a month.
What is your break-even amountof time and are you even going
to be in the home once you hityour break-even?
Are you going to sell the homein three, four years?
And so right now it's just notthe best market for that.
Are there markets where youwant to buy down a rate during
COVID all day long?
You're never going to see thoserates again.
(29:00):
I mean, I don't think so.
But this market is just not forthat.
Speaker 2 (29:04):
Well, I have.
When I bought my home in 2018,2018, um, I did a I I paid at
the.
At that time, rates were in thefives, um, so I yeah, it was
great, um, but they were in thefives and I paid $5,000 for a
quarter of a point buy down.
So it was like 0.25% buy down,um, from the rate that I was at,
(29:27):
so I think it got me to like aneven five, so $5,000, I was
very happy with that.
However, you have to look atthis time, how long, like,
what's the savings of that overthe stretch of time?
Um, I was thinking with theintent that, on a 30 year loan,
or 20 years or however long ittook me to pay off the loan,
that would break even and makesense.
(29:49):
But what happened?
What changed?
Covid hit and rates got down tonothing and I refinanced in
March of 2020 when rates were 2%.
I didn't, you know, I had thatloan then for, you know, less
than two years, and that $5,000I paid was kind of basically
(30:10):
flushed down the toilet becauseI may have, you know, like, seen
a return of that of $100 amonth, for, you know, I mean
less than less than $2,000, I'msure.
Speaker 3 (30:20):
Granted.
Did we ever think we were goingto see rates that low?
Speaker 2 (30:23):
No, I could have never called that, could have
never expected it.
Um, it was.
You know so it is.
You have to keep in mind um ofthat.
You know so it is.
You have to keep in mind um ofthat.
You know.
The return of that buy down ifI look back again, I wouldn't
have bought down the rate, Iwould have just wrote it out for
until until, uh, refinancing.
But I never would have seen thatcoming, so I you know, didn't
(30:44):
know what was going to happenand in the end I won, so it's
fine but this market rates arecoming down, so don't buy down.
Speaker 3 (30:52):
It's just not cash out, refinances, things like
that.
Right now.
You have to really look at eachindividual situation.
Speaker 2 (30:57):
It's just right now you're going to refinance yeah,
especially if you're in thesevens yeah, and the cost to buy
down for the little minimalpercentage that it is is, uh,
really very, yeah, very costly.
And unless that rate issomewhere where you say I'm good
with this rate for 30 years,you know, then um, then maybe it
makes sense, but if not, thenyou have to really look at that
(31:18):
return and how long you'reintending on staying in that
rate.
Speaker 3 (31:23):
Absolutely, and that 5%.
Yours is a very rare case,which I'm sure other people have
.
The same situation where it wasabsolutely worth it, but did
you hit your break even?
Speaker 2 (31:31):
No, no, no, definitely didn't hit the break
even, because it was, you know,like I said, not too long after
that rates came down, so funstuff.
Speaker 3 (31:41):
But either way, you have a great rate.
I have a great rate, saved mehundreds of dollars every month.
Speaker 2 (31:46):
I was so happy for that.
So yeah, that's and that's wouldnever, touch a refinance, and
that's even when it comes tobecause I have, you know, a few
properties, we have a fewproperties and when it comes to
looking at paying down, becauseI always advise paying down your
mortgage doing those extrapayments, trying to get the note
(32:07):
paid off quicker, is a greatstrategy.
Everybody should be doing it.
It's very easy to do.
Even the littlest paymenttowards your principal can make
a big difference overall.
But for me, we have some otherproperties that have much higher
rates, so those are priority,my primary.
I'm like that rate's costing usnothing.
(32:29):
So it's fine.
Those were the days.
Yeah, so it's the other oneswith the days.
Yeah, so it's the other oneswith the high rates that we're
trying to get down first.
So those are good and we cantalk about that on future shows
too, of strategies of workingtowards your finances and
getting everything in order.
So, if you guys are watchingthe show, please check out our
(32:51):
link tree, which iswwwrealtycheckvegas.
Right there you can seeeverything Realty Check, all of
our social medias, all of our um, all of our links to everything
about the show and everythingabout both of us.
Um, I, uh, I did do over thelast week I did a comedy show at
(33:12):
the improv, um, so if you wantto see me, do stand up.
Um, you can.
You can check out the um,connect with me on Facebook
through that link and I have avideo there on Facebook If you
guys want to see it it was myfirst time ever, so it was uh,
it was all right, it was.
I laughed yeah and I.
Speaker 3 (33:35):
I would have been brutally honest if I was like, I
didn't think I was actually, Ithought you were really funny.
Speaker 2 (33:39):
No, thank you, yeah, I thought it was good I have
some hilarious plus it's likevegas humor, so I always think
that's funny yeah, yeah.
No, it was fun.
It was fun.
It was definitely an experience, but a lot of fun.
So you can check that out ifyou want to and if you need to
reach me, my phone number is702-308-2878.
How do?
Speaker 3 (33:58):
people reach you, courtney, so you can reach me at
702-416-6918.
Call or text me.
Speaker 2 (34:03):
I'm always available All right, courtney, is your
money girl, I will help you findthe home or sell the home.
So, yes, all right, you findthe home or sell the home.
So, yes, all right.
Thanks, guys, and we'll see younext week.
And thank you, chicago title oh, thank you, chicago title for
being our marketing partner.
We appreciate you, thank youyou, thank you.
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