Unknown Speaker 0:00
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Unknown Speaker 0:16
Hello to you. I'm Stan the real estate man, and welcome to the Las Vegas real estate room, where all roads lead to a home.

Unknown Speaker 0:37
Hello to you, and welcome to the show. I'm Stan the real estate man. I'm with Vegas one Realty, and I've been a realtor since 1988 let me give you my license number, which is 28 to eight, and my contact number is 702-809-2949, and by the way, you might want to get a little pencil and paper so you can take a few notes. I'm here today with loan officer. Ms, Rachel Nichols, please say hello to the audience. Ms, Nichols, hello

Unknown Speaker 1:13
everyone.

Unknown Speaker 1:14
Thank you for coming. MS, Nichols, and before we get started, please tell everyone about your company experience, license number and contact information.

Unknown Speaker 1:25
I am with loan depot. My phone number 702-551-9511, my license number is 1699997, and I am a loan consultant, loan officer, mortgage broker. You can call me loan lady. I take care of loans. I find a loan that's best fitting for you. My office is here in Las Vegas, Nevada, in the southwest, but I am licensed in several states, so I don't have to be in front of you to make a deal work. We work virtually, and I've been a loan officer Since 2018 but I've been in finance since 2001 so Wow,

Unknown Speaker 2:17
that's great. Bottom experience you have under

Unknown Speaker 2:20
your belt. Yes, yes, yes. I

Unknown Speaker 2:22
love numbers. So I have to assume that you love doing loans also.

Unknown Speaker 2:26
I do. I do. Yeah, the joy of getting people to the keys when they least expect it, or, you know, getting them into a home that they didn't expect to get into, yeah, that's the fun part.

Unknown Speaker 2:40
Great. Now, folks on today's show, we're going to talk about different types of loan, how to go about getting a loan, what it takes to qualify for a loan, and this sort of thing. We'll also talk about real estate, of course, as it is, all together as one. So let's start about discussing how a person would get qualified. Ms, Nichols,

Unknown Speaker 3:05
okay, so what we would do is have them submit an application. My company does an initial soft pull on the credit so we kind of get an idea of what we're working with, or if we need to do a little work before we continue the process. And then at that point, once the application submitted, we I review everything on it, and then determine what documents are needed, and then I'll send out a request for those. We'll make sure everything is accurate. One thing that I find is that people typically make more than they put on the application.

Unknown Speaker 3:46
Why do you why do you think they do that

Unknown Speaker 3:48
they're used to what they get in their account versus their gross income before any deductions, and so they kind of short themselves when it comes to income. So that's why we go through the whole verification process. We want to make sure you know you're qualifying for the amount that you want and not shorting yourself. Once we do that, we put everything together, I run it through the system, and as long as we get a system approval, then I submitted for pre underwriting. And so what that means is an underwriter, underwriter will review everything that I've received and everything I've put together, and then they'll make a decision. It's an initial conditional approval. If they have any questions, or if I have any questions, we go back to the buyer and get those answered, anything we need to explain, like Job gaps or large deposits, you know, anything that sticks out and we need to have addressed. Then we do and then we get the approval, and then we get. Their pre approval letter sent out to them and their realtor so they can start shopping. We want this done, because if you're not pre approved, you are just window shopping.

Unknown Speaker 5:13
Well, folks, that is very important what she just said, because the number one thing that you need to do before you start shopping for a home is get pre approved. And it's even better to be fully approved, if possible, yes, because there's none like going out looking for a home. You do not know what you can buy. You have no concept of what you can buy. And like she said, You just window shopping. But if you want a window shop, there's nothing wrong with that, but you know, when you really want to get into buying a home, you have to prepare properly, and you must get pre approved, and that's what Rachel does. My job after she gets you approved, is to help you locate a home that fits you and your family's need. Now, Rachel about how long would that take for you to get a person approved? Once

Unknown Speaker 6:05
they get everything and we figure out if anything's missing and get that turned in, usually takes two to three days for an underwriter to review everything submitted, so it's not that long. So

Unknown Speaker 6:17
that's great, because that's a short period of time, okay, but the main thing is get your documents in order so you can get them to her so she can get you approved. Yes, okay, now there's different types of loans, and how do you determine, or how do you come to the conclusion of what a person might use as a loan type, you know, FHA, conventional or VA, those sort of loans. So

Unknown Speaker 6:47
that's something that I review when they submit their application. So if they have a large down payment or lower credit score, or they need down payment assistance, or they're doing an investment purchase, those all determine the type of loan that we're looking for that'll have the best rate, the best terms. You know, there are certain loans that are just better fit for certain things. So if they're a veteran, you know, we want to go for the VA loan. If they're a first time buyer, they have minimal funds for the down payment. We usually want to go for FHA. If they have funds, they're kind of established and this is their first time purchasing, then we may go for conventional. Okay,

Unknown Speaker 7:37
great. Now these loans are these type of loans, government backed. FHA

Unknown Speaker 7:43
and VA are government backed. Conventional is a private loans.

Unknown Speaker 7:48
So explain to the people what government backed means.

Unknown Speaker 7:52
What that means is the government insures the loan in case it's defaulted. So you pay an insurance premium. It's a mortgage insurance premium. Or, yeah, that's what it is. Mortgage insurance premium. It's included in your monthly payment, and it protects the lender in case you default on the loan. Default on the loan means you stop paying it, you go into foreclosure, or, you know, something like that, and you can't afford the home anymore, so the lender is made whole by the government.

Unknown Speaker 8:26
Okay, so that's pretty good. You got some protection there far as the person making the money allocation for the loan, right? Okay, now let's talk a little bit about FICO scores that are needed for different types of loans. Okay,

Unknown Speaker 8:45
so the most first time homebuyer friendly one is an FHA loan. The minimum requirement is 580 they will go down to 500 if you have 10% to put down, so 10% of the purchase price, and a few other factors that are considered. So those are for, you know, people who have the funds, but, you know, haven't taken the greatest care of the credit. And so there are options out there for that VA, it requires a 580 as well, and that one actually allows a higher debt to income. So for not to get too deep, but for FHA, typically, you can go up to about 56% debt to income, which means that 56 of your 650, 6% of your income can go towards your monthly debt, including including your new housing expense for VA, you can sometimes, I've seen it go up to 80% so. Yeah, it just really depends on how much residual income you have. That's something that we look at, because, like I said, we don't want to get too

Unknown Speaker 10:11
deep now. What about investors? What type of credit scores are you looking for? Fica scores for investors.

Unknown Speaker 10:18
So if we go the traditional, conventional route, the minimum is a 620 if we go say we want to do an investment purchase, and we're getting creative, a lot of times, they'll require maybe a 660 or a 680 something like that. So we just kind of play that one, you know, as well. But the minimum, the bare minimum, is a 620 Okay,

Unknown Speaker 10:46
okay, that's not bad. I mean, it gets you in the door, right, at least, yeah. Now, if you're an investor, what type of paperwork do you need for investors?

Unknown Speaker 11:03
So for investors, of course, we want your ID. If you're closing in an LLC or a corporation, we'll need your articles or your business documentation, license, if you have that. And then it did depend. So there's two ways we go about it. If we are buying the traditional way, then you need the standard documentation, which is your w twos, pay stubs, tax returns, bank statements, really kind of dig into your finances just to make sure you can afford it. Now, there, in addition to any other properties that you have now, there are other routes where we don't dig into your immediate finances. So we won't need your pay stubs, we won't need your W twos. We would need your bank statements to make sure you have the closing costs and reserves for after closing. And this loan is DSCR. It's a depth service coverage ratio loan, and what that means is, as long as the rent for the property covers the mortgage, then we can work towards an approval. So for instance, if your mortgage is, say, 2300 a month, and we do the appraisal and it comes back with the rent schedules, what it's called, and the appraisal determines the market rent for that property is 2500 then we can do the loan. Oh, that's

Unknown Speaker 12:44
great for investors. Yes. And kind of less paperwork,

Unknown Speaker 12:48
absolutely, less stress, easy peasy. Oh, yes. So yes.

Unknown Speaker 12:52
So if you're looking to make some investments, please give Rachel a call at 702-551-9511. And also, if you're just looking for a straight loan to get into a home, you can also reach at the same number, which is 702-551-9511, now I like to give you the benefits of buying a home in Las Vegas. I have 15 bullet points that I like to read to you all right about why it's a good idea to buy a home in Las Vegas. In the benefit of buying a home in Las Vegas for you, number one, there's no personal income tax. Number two, there's no corporate income tax, no gross receipt tax, no franchise tax, no inventory tax, no tax on the issuance of corporate shares, no tax on the sale or transfer of shares, no sharing of information with the IRS. Simple annual requirements, protection for directors and officers, no initial or minimum capital requirements, anonymity of owners, total privacy, business friendly environment, high value investments and low property taxes. So buying a home in Las Vegas is very beneficial for you and your family. Yes,

Unknown Speaker 14:29
and the baseball team is coming. The football team is already here. We like, we're

Unknown Speaker 14:34
mini New York with a whole lot of entertainment. That's right, which is going to be, it's going to be beautiful. You know, we lost the Tropicana beyond the day. Yes. Little, little footnote, I worked at the Tropicana as public area supervisor in 1980 Oh, wow. And I had a ball there. I had a ball there. Seen a lot of stars. Yeah. It was a beautiful hotel at the time. I'm kind of, I'm kind of sad to see it go. Yeah,

Unknown Speaker 15:02
lot of memories. I went to Foley's Boger there. I hung out there every night,

Unknown Speaker 15:09
every night. You know, that stadium, by the way, is going to be beautiful. I don't know if anybody's seen the renditions of the drawings, but it's going to be something when they put that together,

Unknown Speaker 15:19
absolutely, absolutely, that blow through. Oh, it's

Unknown Speaker 15:23
gonna be beautiful. Yeah, it's gonna be beautiful. I can see myself sitting in there right now drinking 1015, margaritas.

Unknown Speaker 15:33
I just want the hot dog and the peanut.

Unknown Speaker 15:37
Now, let's talk a little bit about jumbo loans. Rachel, what's going on with jumbo loans? Jumbo

Unknown Speaker 15:41
loans are loans that are at least $1 above the conforming loan limit. So they're big home purchases. So if you expect to buy a home and the loan amount after your down payment is above. Let me see $766,550 then that would be considered a jumbo loan. Now I will say that the new 2025, conforming loan limits have been they're supposed to be announced in November, but we kind of got a sneak peek, and it looks like they're gonna be $802,650 so if it's $1 above that, then that would be considered a jumbo loan. Typically you need at least 10% down. There are brokers that allow a little less, but be prepared to make an investment. They want you to have some skin in the game. So you know they're not going to allow just a minimal amount. Okay,

Unknown Speaker 16:52
that's great. So when a client asks you, what loan is best for me, how do you go about determining your determination for that question.

Unknown Speaker 17:04
So I asked them, you know, the basics, like, Are you a veteran? How much do you have to put down? Do you need down payment assistance? Do you have an idea of what your credit score is? I just kind of get an idea of their profile, and then kind of go from there and I explain why I'm very big on educating the client along the way, because I don't want anyone to just go with the flow. This is a big deal. You know, purchasing a home is a very big deal. So if I hear okay, then that tells me that they're not fully understanding so I want to make sure that, okay,

Unknown Speaker 17:46
that's that's absolutely true. Now, how do you determine what is the best interest rate for them?

Unknown Speaker 17:53
So the interest rate is determined by the stock market, so it's not something that we determine in house, every morning, we get an announcement or an email, I should say, of that the rate sheet is out. And so the RATE SHEET determines what they qualify for, and we figure that out by their credit score, by their debt to income, which is tied into how much they put down. So it's a full picture that kind of gives us the interest rate we're working with. And then there's option also, options to buy down the interest rate if they have the funds to do so, so if they're not happy with it, so say it's like 6.75 and it'll cost them, I don't know, a couple 100 or a couple 1000 to buy it down to six or even 5.5 you know, if we have the ability to do that, then we give them the option to do so.

Unknown Speaker 18:55
Okay, now, does the rate change over time, or does it stay the same if

Unknown Speaker 19:00
they have a fixed rate, then that rate stays the same until they either refinance or sell the home, you know, and then they won't have the rate anymore. If it's a an arm or adjustable rate mortgage, that means that they didn't want a fixed rate. And so it can vary. Now, one thing that can change that has nothing to do with the rate is property taxes. So I know a lot of times people, they'll get a notice saying that they owe a balance or something on the property taxes from the tax assessor, and that has to do with their value. So it has nothing to do with the rate or, you know, nothing has changed with the loan, but if your property value goes up, then so do your property taxes. So just keep that in mind as well,

Unknown Speaker 19:50
and that that'll change your payment folks, along with your insurance, adjusting over time, right? Yes,

Unknown Speaker 19:57
if your insurance goes up, your homeowners. Insurance goes up, then that affects your monthly payment as well.

Unknown Speaker 20:03
Now, if somebody wanted to lock in the rate, do you do that? Yeah,

Unknown Speaker 20:09
we lock in the rate. They have to be in contract. We have to have an address. So if we're doing a pre approval and we don't have an address, but rates are good, there's no way to lock in the rate there. There is one loophole where we can do an extended lock without an address, but it costs money. So if you decide not to move forward, then that's money that's non refundable. So I would suggest just waiting until you find a property

Unknown Speaker 20:39
now, if a person did lock in their rate on a house that they got their eye on, their under contract, how long does the lock in last?

Unknown Speaker 20:47
Depends. That's another discussion that we have. So if we locked and your contract is for 30 days, and we did a 30 day lock and it extended, then we would need to buy an extension. It's a minimal amount, but it's still a fee if it's due, if the delay is due to the fault of you, typically, you would pay it if it's due to the seller. That's something that you the realtor stand a man can negotiate for them to pay if necessary. But there are 15 day locks, 30 day locks, 45 day locks, and then there's 90 days. That's when we kind of get into the extended locks and so but I would say 15 to 45 days is where you kind of want to

Unknown Speaker 21:40
be do you allow a buyer to unlock the rate? No,

Unknown Speaker 21:44
once it's locked, it's locked, but we can adjust it. It is based on that day's lock. So the day we lock it. So if rates go down, there is one option to do a renegotiation of the lock, but to unlock it all together. No, all right, let

Unknown Speaker 22:05
me give you a little information about a home that is for sale. It's the condo, and it's offered at 362,000 it has three bedrooms, two and a half baths, and a one car garage. Is two stories with 1334 square feet. The main level of the home features open kitchen and a great room features hand free communication, remote keyless entry, video doorbell and so much more, and it comes with a 10 year limited warranty. For more information, new home safari.com, and look under condos. All right, let's go back to more loan information. Okay, can you estimate and explain your fees? Yes,

Unknown Speaker 23:01
my fee is a flat one. It's 1590 so $1,590 that includes processing, because there are so many people involved in the loan, that includes underwriting anything within loan depot, is what that charge is for. Now there are third party fees, so if you need an appraisal, you know you have to pay for that. That's separate the title company that holds the earnest money deposit, and it's kind of the middle person between the buyer and the seller side. There they charge a fee as well. So I would say, in general, your fee typically will vary between three to 5% of the purchase price, and that's without a buy down or any extras, those would be on top of that.

Unknown Speaker 24:03
Now, once the loan is done, closed and everything, do you maintain the loan, or do you sell it? Service Provider?

Unknown Speaker 24:13
Most loans are held depending on the type, because, like I said, there's the traditional ones and then non traditional. So typically, we hold on to the loan, and then we'll you get a monthly statement. It'll have my picture on it. It'll have Stan's picture on it as the realtor, and that, you know, if there's any changes in the market, it'll have our contact information as well. And you know, we're all we service you for the life of the loan. So if you want to refinance or have questions about your mortgage insurance and being able to remove it anything like that, you can reach out to us at any time.

Unknown Speaker 24:55
Okay? And I'm glad you mentioned that, because I was my next question was. Yeah, can someone contact you whenever they need to? Yeah,

Unknown Speaker 25:03
yeah. I am self employed as you are, and so typically I can, you know, answer something, the number I give out is my cell phone number, and so if I know you are shopping, or you know there's something immediately going on with the property, then I can direct you as best as I can. But otherwise, you know, usually at your service as much as I can be now I do sleep, that is a thing. So yeah,

Unknown Speaker 25:42
all right, folks, I like to give you one more home for sale, currently offered at $1,855,000 it's a single story with 3966 square feet, four bedrooms, 3.5 bathrooms, three car garage, open floor plan offers a gathering room, game room, chef's kitchen and cafe located in the master plan community of Summerland. For more information on this home, newhomesafari.com or call 702-809-2949 I'd like to thank my guest today, Miss Rachel Nichols for providing all that valuable loan information, and she can be reached at 702-551-9511, and her company name is loan depot. Great once again. Thank you for tuning in, and I look forward to talking to you real soon about real estate and mortgage loans. Thank you. Thank you for listening to the Las Vegas real estate role. I can be reached at 702-809-2949 or you can go to my website, newhomesafari.com, and please remember nothing comes to a sleeper with dreams. You.

Transcribed by https://otter.ai