Strategies for First time home buyers with closing costs and lender fees episode 2019-181

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    On this weekend edition of the California real estate radio show we were able to cover some buyer strategies concerning lender fees and closing cost coverage. How do you really know as a home buyer if you are getting the best deal on a home loan? What about getting your closing costs paid, they exist for every single home buyer, but did you know you may be able to have them covered?

    I’m Connor with HONOR MacIvor and I have been representing home buyers and sellers since 1998. During that time I have been fortunate to have seen home buyers and sellers at their best and at their worst. At the end of the day, my mission is clear. No matter which side of the transaction I’m on, I have to be equitable, fair and honest in all my dealings with all parties.

    Program my phone number into your phone for any and all future real estate needs and referrals – Connor MacIvor – Realtor – Real Estate (if you format it like this I come up easily in a search with your mobile phone. My direct contact number for Santa Clarita real estate is: 661.400.1720

    Here is the transcription from today’s real estate radio show for California housing and real estate. I have an extensive referral network for California. I’m personally located in the Los Angeles Metro areas – when ready refer your friends/family and I’ll take great care of them as I would take care of you.

    California real estate radio show transcription

    Connor Macivor: (00:00)
    Good day everybody. Welcome to the weekend of dish and I’ve housing radio.com I’m your host, Conor Mac Iver, remax realtor headquartered in Santa Clarita Valley. You can get to our website and listen to past real estate radio shows by going to housing radio.com that’s housing radio.com. You’ll be able to see all of the past episodes that we’ve done long time and you’ll be able to see where we are currently in the real estate market. Welcome to Sunday all southern California cities. They’re reporting in 16,394 real estate listings, all total for sale. We have real estate and escrow under contract and pending and all of southern California 6,767 looking into all the Santa Clarita Valley, we are looking at 676 this is an uptick from where we were in the fives, even low fives until about April, may of this year. That additional inventory is indicative of all of the State of California besides you know, particular areas.

    Connor Macivor: (01:05)
    Beverly Hills, HOMVEE Hills, the platinum triangle over there, you’re going to see a lot more restricted releases of listings, just not that much for sale, keeping those prices ultra high, but moving into the other areas of southern California, that Los Angeles, San Fernando Valley, even up in Sacramento, we’re seeing a lessening of real estate listings and moving up north, uh, San Francisco, not so much. So you can kind of see how the market changes a bit depending on where you’re going here in southern California. Now just real quick before I get into today’s real estate radio show, and there would be two important topics I want to talk about, how to get your best deal on a home loan and talking about getting closing costs paid for yourself prior to getting into that. I’m Connor McCarver and I do want to talk a little bit about what the other avenues are we have for real estate procurement and search to assist both your real estate buyers and sellers out there.

    Connor Macivor: (01:56)
    And also just a little bit about the market. Now if you’ve got a SCV blog.com, s C v B l o g.com, you’ll be able to see our main blog site and there you’re going to see a lot of articles. You’re going to be able to search by index on the right hand side of the page. You also see our radio show players who can listen to past episodes. So there you’ll be able to find almost everything you’ve ever wanted to know about real estate. The nice thing about that system is yours truly is written. All of those articles, we don’t do affiliates. We don’t allow other people to write articles for us. We don’t steal information articles from other sites. This is all from yours truly, Connor McGuyver. So you don’t have to be concerned about trying to be gamed or having somebody tell you something that isn’t true in order to elicit some kind of a selfish response for the person that’s putting out that bad information.

    Connor Macivor: (02:46)
    For example, stating that now is the best time in the world to buy. We’re, we’re a great prices and so on. Trying to get you to say, okay, well now’s a good time to buy. We don’t answer those questions that way because ultimately it might not be a good fit for you to buy right now. Maybe here in the near future, if we have an election change, presidential change, maybe that’s going to impact the market. You have to look at those in the guise of historical data. What’s happened in the past. You have to look at kind of real estate offsetting the stock market. The stock market becomes a little weak. Real estate becomes stronger, vice versa. People want those more tangible assets, those things they can hold on to. And when they go out there and they’re looking at the stock market where they have all their money, they’ve been doing very well, uh, since the election, of course that’s gone through the roof.

    Connor Macivor: (03:35)
    However, what happens if that, uh, if that power shifts, what happens to the stock market? We’ll have to see, we’ll have to play that out. But currently right now most of the loans out there are 30 year fixed. This is what I believe in and love a 30 year fixed loan, uh, adjustable rate mortgages are coming back. But don’t forget those arms, those adjustable rate mortgages got some people into trouble back before the last fall of the real estate cycle, you had people that were using subprime loans, which means their credit wasn’t as good as somebody getting prime money, which is better. But they were getting these and then they were being offered adjustable rate mortgages. So now their interest rate is even lower than the prime borrower. The person in great standing better than them. Then what happened? Well, the real estate market started to fold in on itself and a lot of those arms, those people that had those could not do that mandatory refinance depending on the terms of that loan.

    Connor Macivor: (04:34)
    So it became really difficult and they didn’t have any choice but to walk away from their home or have it sold short via a short sale. The loan program you get, we tell our clients, if you’re gonna afford this payment and that’s where you’re going to be, you’re in a 30 year fixed loan, good for you. And if you’re not, depending on over time, you’re not depending on future raises. That’s smart and that way you’ll be able to stay here for as long as it takes you start out growing the home. Then hopefully the market will have shifted that provides you with more equity, you’ll be able to use that equity to move up into a larger home. But again that payment is super important and you want to look at the factors involved in your payment and your monthly expenses that have the ability to change.

    Connor Macivor: (05:20)
    I’ll give an example before I get into our tips and tricks today with regard to getting your best deal on a home loan and also closing costs. Couple of things to watch out for are going to be these. If you have a homeowners association, I know people all, I don’t want to homeowners. The thing is about a homeowners that’s a good enforcement mechanism depending on where you live. Some of them are overbearing and ridiculous and it’s really difficult to live in some of the areas that have hos others are bad. And what they can do is they can assist you with issues that occur in your neighborhood. For example, if there’s rule with the Hoa that you’re not able to park a large recreational vehicle in front of a house for more than a day or two days to prep it, then there’s your enforcement mechanism probably faster than calling local law enforcement, depending on where you live.

    Connor Macivor: (06:13)
    So these are some things if your neighbor, if there are particular, uh, ways the houses have to look, maybe it’s some kind of a theme. Maybe it’s a lake theme. For example, like we have Bridgeport out here in Valencia. If somebody went in and painted their house, the exterior orange and black, the homeowners association would go after them. So there’s another positive reason, the negative reasons. Well, you have to see for yourself, there are some that go up. So if you have a particular homeowner’s association of $100 a month, you want to find out historically, if that’s increased, has that gone up in the past? Heck, if you find out that maybe it was $20 only a couple months ago, now it’s a hundred it’s going to go up another hundred you want to find out that before you purchase, right? So those are questions to ask. You’re gonna want to ask your agent.

    Connor Macivor: (07:04)
    You’re working with us. We find out that information because it’s really, really important. All right, let’s talk about getting your best deal on a home loan. Now, I’m not a lender, I’m a realtor. I’m your realtor. I want to be, I am representative here in Santa Clarita, greater Los Angeles areas. So I have licensed, we’ll travel if we get too far from where I’m comfortable because I need to know about their real estate. Wherever I’m representing a client, I want to, I need to have a professional working knowledge of the particular area and the housing they’re in. If that exceeds my scope and my knowledge, then I have an awesome referral network. So I really am for all of California, one stop shop, California real estate, radio.com California real estate, radio.com you can go there and there’s ways to send clients to us, refer clients to us and I will of course be very grateful.

    Connor Macivor: (07:56)
    Now with regard to home loan, that’s part of the process. You’ll see some agents out there that are doing both. They’re playing real estate agent and they’re playing lender. That’s completely legal, not my thing. In fact, I want to do one thing good and that’s being a buyer and seller representative. That’s what I do. I’m able to watch the lending part. I’m able to make sure the lender isn’t gouging any of my clients. I can watch the lender and look at all their documents and make sure that you know they’re not out of line with anything. That’s very, very important if you’re a protector as I am. Now on the other side of it, whenever you’re talking to a lender, a couple things to note. There are a few different types. You got mainline banks, they pretty much borrow their own money. You’ve got credit unions, same thing. They pretty much borrow their own money. You have mortgage brokers. My Dad, when I was growing up would have said, son, stay away from those I, you know what? I don’t agree with that anymore, Dad, please dad. But I don’t agree with that anymore. Here’s the thing with regard to mortgage brokers, they get to pull on 200 plus sources of money. A lot of times they’re going to be a better deal than credit unions and mainline banks. You just have to see, test the waters on a couple.

    Speaker 2: (09:03)
    Okay,

    Connor Macivor: (09:04)
    and no freak out about people pulling your credit if it’s regarding mortgages multiple times. The reason why that’s not a big deal is the fact that at the very end of it, there is a method in place that they’re able to do something called a rapid rescore and they would be able to make it so your credit profile is returned to the final score was before. When we’re talking about rapid rescore, let me just cover that just a little bit. Sorry for the quick break. So we’re talking about rapid rescore that actually works when you’re talking mortgage inquiries, mortgage inquiries, you’re comparing those two things. You have to be weary. If you’re doing mortgage inquiries and you’re going to Bank of America and you’re going to your credit union at some point it would be kind of cool for you to get copies of that credit report that they’re pulling.

    Connor Macivor: (09:58)
    They might tell you that their terms of service or their agreement that they have with the entity that pulls all three bureaus and gives them these complete mortgage approved copies of credit reports aren’t for your consumption, but I’ve found that’s a lot of, that’s a window dressing. So push. Now, if you go out there and you go to Nissan or Mercedes or Chevy and you have them also pull your credit because you’re considering purchasing a car, you’ll shoot yourself in the foot. Same thing in a mortgage. Here’s a tip for you. When you’re in escrow, don’t get happy and don’t go out there and finance and try to get a William Sonoma credit card or pottery barn credit card or Bob’s furniture credit card or whatever. Stay away from changing anything in your credit profile. That includes even paying things off and unless you talk to your lender and then after you talk to your lender about, hey, I want to apply for this Williams-Sonoma credit card, it’s going to give me a $10,000 limit.

    Connor Macivor: (11:04)
    If they say, oh, that’s okay, go ahead and do it. Then you need to send an email to that lender before you apply and say, Hey, Carl, I’m just making sure I understood correctly over the telephone when you said, go ahead and apply for the Williamson Oma credit card. Now that’s going to give me a $10,000 limit. Please man, follow up with your lender. Ask them these questions. All right, so getting your best deal on a home loan. It’s important you know the players that covered that. It’s also important that you ask them for a good faith estimate. Now, they can’t tell you today what’s your interest rates going to be a month from now. They’re not able to do that, but they can at least give you a sheet sewing. If you were to buy today and the house was $500,000 and it did have a $70 a month Hoa and it did carry maybe 0.5% tax in Mello Roos that says special assessment tax, what does that look like?

    Connor Macivor: (12:03)
    What’s that down payment look like? What’s the pain that looked like? What are the fees you’re going to charge me? What are those look like? How much is it going to cost to get this? What’s my interest rate today going to be not bad, right? So there’s your good faith estimate and you can use that against other lenders that you’re interviewing. Say, Hey, I got this year, but can you beat it? Be Wary though. There are a lot of teasers out there that like to throw around pillow talk. Like it’s nobody’s business. So if your agent is referring you to a lender, not a bad idea because your agent has the ability to enforce certain things because they give the lender business. So the lenders should be taking care of all their clients are, they’re going to move somewhere else. Ask any agent moving up. Move Long.

    Connor Macivor: (12:53)
    I’ll, I’ll disappear overnight. I’m not prepared to have a lender treat my clients badly or take advantage of anybody. So any lender I refer, it’s going to be a lender that I’ve vetted. I’ve used time and time out and so of my clients, but at the end of the day, if I get feedback that they’re horrible or if I see charges that aren’t making sense as has happened in the past, all done folks finished Finney, Tay, is that a thing? Anyway, I will get done with that lender and we’ll move on. The best of the best of the best that are out there. We have some great ones here in Santa Clarita Valley. We have great ones all over the state of California. Again, be wary of those zero three o’clock in the morning infomercials that are telling you about how great these lenders are. Watch out and also if they’re telling you to take more money, pull more equity out of your house because you’re a veteran to help you pay off bills.

    Connor Macivor: (13:50)
    Be Wary. I, I think if you were to be real with yourself and you were to go to somebody, you really trust. You know, like if you had a rich dad out there or whatever and say, you know, this is what I want to do, it’d probably say no. Try to pay off those bills some other way because now you’re playing with where you’re living. Again, look at the intention behind it. Do they really want to help you? Do they really want to help you pay off bills and credit cards by loaning you the a hundred percent of what your home’s worth because you’re a veteran? Or are they doing it because they make money and they really don’t care about you paying off your bills? In fact, they’re hoping you go out there and finance a brand new Chevy, a Cadillac, Eldorado or whatever. Anyway, watch out for that.

    Connor Macivor: (14:37)
    So there’s how to get your best deal. Look at that. Good faith estimate. Compare a couple, don’t have anybody make you sign anything that promises your allegiance to them and all that horse crap moving over. The other thing, closing costs. Whenever you’re buying a house, you don’t pay your agent. So I’m representing you in real estate. I’m your representative, be it a new housing, resale, housing, whatever, and you and I are going out. We’re looking at houses. I don’t cost you a thing, I don’t cost you anything. I’m zero cost to you. Your closing costs, the things you have to pay to buy a house in it. Plus, okay, what the house costs are going to be a few things. You’ve got your part of title insurance, you’re part of escrow fee and your lender. Three things. Well, I’d be pay it. Well, you can have it built into the price of the house.

    Connor Macivor: (15:35)
    Maybe if the seller agree simple numbers. If your closing costs are $3,000 in $100,000 purchase a thousand to the lender, a thousand to the title company for your part and the thousand to the escrow company for your part $3,000 and the property is a pretty good deal at a hundred grand, you might be able to offer $103,000 and ask the seller to allow you to finance the closing costs and they just throw it at the seller will pay a celebrity not going to pay it. In that regard, the seller’s not paying it. You’re basically giving them the money so you can finance into your total costs as far as the mortgage goes. Yeah, that works, right? It’s, I’d rather have $3,000 and be able to finance the closing costs if I could and keep my money, my liquid money in the bank. But again, that’s who I am. Another way to do it, and maybe the seller is only willing to cover half, so you go up $1,500 and then you pay $1,500 out of pocket.

    Connor Macivor: (16:31)
    So you have to finance 1500 and so on. There’s a lot of ways to do it, and you can also write a check. You can put that money into escrow and pay him that way. If the house might be a little overpriced, you could offer them the full price and ask for $3,000 back and closing costs. So now you’re still financing $100,000 but now the seller’s netting $97,000 right? Minus 303 $3,000 so that’s how closing costs work. Again, if you’re a seller, now on the other side, your closing costs don’t include the lender fee. If you’re selling a house, you don’t have a lender involved in that transaction, but you do have agents. So they’re going to be both sides. The agent represented the buyer and the agent representing the seller. So that’s going to be your price of admission, plus your escrow plusher title, which are more expensive than a buyer’s closing costs.

    Connor Macivor: (17:25)
    You’re covering both ends of it. And of course, don’t forget negotiation as part of every process. So don’t be scared to ask, you know, folks, life lesson to you, no matter where you go, Ya know, hey, do you have any coupons? What do you got going? Every time we go I go shopping, I’ll go to the register and I’ll ask him, Hey, do you have any coupons in there? Maybe something I didn’t get in the mail. Maybe something the mail man forgot to bring. Maybe something you sent out last week. Something I don’t have access to. Do you have anything like that? You’d be surprised. It’s a shock to me how long I should have been doing this because they’ll say, oh yeah, yeah, we go run it here. And they scan it and they get 25% off. Like whoa. And that’s a lot of places.

    Connor Macivor: (18:04)
    Maybe not your Walmarts, maybe not your Kmarts and they’re all about the disc if there is a Kmart anymore, but they’re all about the discount anyway, so that’s going to be tough. But you’re going to, Nordstrom’s may see Sachs, you’re going to these, these higher end department stores. Even Sears Montgomery wards in the thing. Sears, you know, they might have something there that they did in their last mailing that you might’ve missed out on. Maybe the postman didn’t bring it. And if you don’t have it, maybe the post, man, I didn’t bring it. So it’s okay to say that may, maybe the postman didn’t bring it. Do you have any coupons back there folks? Ass Go to, you know, you’re gonna get your oil changed, your tires going to go to the dentist. You got to go to the doctor. It’s worth asking because if you don’t ask, you’re not going to get.

    Connor Macivor: (18:48)
    So might as well say, hey do you uh, you know, instead of a 5,500 $5,700 to get my teeth done, cause I have all this work. In fact, this is true. I said, how about 4,000? Huh? I can’t do that. All right, how about 4,500? So we just go back and forth though. It took a few minutes, but I saved $700 $700 that had to be paid out of my pocket. So now I have an extra $700 because what? Because I asked. It’s okay to ask. I’m counting macgyver housing, radio.com local agent. I’m here to refer. I’m here to represent. Just let me know where you are. We’ll find it. If it’s within my comfort zone, be happy to be there for you and I will take charge like a beast. I’m counter macgyver. Be Safe, always watching out for my clients, protecting and serving their real estate needs. Please share with a friend. You know, anybody in California wanting to make any real estate moves referring to me and I will make sure they get the best treatment and best representation possible condom with honor. We’ll talk to you soon over now. Okay.

    When you are ready I will be there for you regarding your Santa Clarita and other Southern California real estate needs. Your friends and family swear by our team that has been representing both buyers and sellers of real estate since 1998. Program me into your phone as your speed dial real estate agent in California. Connor MacIvor – real estate – realtor my direct cellular phone is 661.400.1720

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.

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