Home Story with Veronica (Aired 12-26-25)First-Time Buyer Essentials, Credit & Loan Types Explained

[00:00:00] Speaker A: Welcome to Home Story with Veronica. I'm Veronica Dicus and today we're diving into the people, places and decisions that make a house a home. You're watching now Media Television. Welcome to Home Story with Veronica where we break down the real journeys behind homeownership and help you make smarter, more confident decisions about where and how you live. I'm your host, Veronica Dickes and today we are joined by the beautiful Leslie Silva. She she is a dedicated mortgage loan officer who helps buyers use homeownership as a pathway to generational wealth. Leslie works with first time buyers, move up homeowners and investors and she is known for her clear educational approach that removes fears and confusion from the lending process. Bilingual in English and Espanol, Leslie is passionate about empowering buyers to make confident financial decisions from day one. And I know this because I've worked with her. And for many first time buyers, the home search starts way too early before they truly understand credit, pre approval savings and the real costs involved. The first segment we are going to talk about is slowing things down, clearing the noise and making sure buyers start smart before they ever step into a showing or Leslie. Welcome to Home Story with Veronica. [00:01:23] Speaker B: Thank you. [00:01:24] Speaker A: It's a pleasure to have you. [00:01:25] Speaker B: Thank you for the invite. [00:01:26] Speaker A: First time buyers are often overwhelmed by conflicting advice. I say that a lot. Social media myths and pressure to just start looking without understanding the pre approval, the credit readiness or true upfront costs. Buyers risk delays, disappointment or financial stress. So in this segment we are going to talk about, we're actually going to ground viewers in the essentials that they need before starting to shop for a home. So Leslie, what is the first step that everyone should take before even looking at homes in person? [00:02:01] Speaker B: So this one's going to come at no shock, but definitely get pre approved. [00:02:04] Speaker A: Get pre approved. We tell that to every single one of our clients. And why is that? [00:02:08] Speaker B: Absolutely. If you're shopping without a pre approval, it's like essentially going to buy groceries without your wallet. Right. So you're a good way to put it. Yeah. You're just looking around but you really have no idea how much you qualify for, what programs you qualify for and if it's even something that's within your reach at this moment. So definitely that makes sense. [00:02:29] Speaker A: That makes sense. And a lot of people just think, you know, if you get pre approved for and I'm just going to throw numbers that are easy for math, if you get Pre approved for 300,000, then that's a house you're going to get. Well, do you need to find out what your monthly payment is going to be because you, my beautiful viewer, might not be comfortable with that monthly payment. So that's why it's so important to talk to a lender. So explain a little bit. You know when you give a pre approval to somebody, what are the numbers that you give that person? Besides the purchase power? [00:02:57] Speaker B: Yes. So that's a big one. Right. So what I tell my or what I always ask in our initial consultation with a client is what is a comfortable monthly payment for you or what's ideal, what's your budget, what does that look like? Because sometimes like you mentioned, I'll pre approve someone for a certain amount. But in our pre approval, we're not taking into account how much you pay for childcare or whether you are helping a family member every single month. Right. So we want to make sure that it's not just what you qualify for, but what's comfortable for you. So the numbers that we're going to go over is always going to be your monthly payment, what interest rate looks like and what you're bringing to closing. [00:03:34] Speaker A: Exactly. And that way you know how much money you need to have saved on the bank or there's other things that you can do. We can ask for seller concessions and make up that money, but we need to have the numbers. Right. There's no way that we can ask for seller concessions if we don't know exactly how much we're going to need to supplement whatever the buyer is needing. [00:03:52] Speaker B: Yeah, yeah, yeah, exactly. And that's another big thing too is like when you ask what is like your comfortable monthly payment, then we can see, okay, maybe instead of just low balling an offer, you don't have to lowball. Instead of lowballing, ask for seller credits. Right. And use that to buy the write down. [00:04:08] Speaker A: Yes. [00:04:09] Speaker B: Or to save money out of pocket. So it helps you be able to strategize as well. [00:04:14] Speaker A: Exactly. And it's like you said, if you go grocery shopping and you don't have your wallet, you're not going to be able to pay for it. [00:04:18] Speaker B: So. Right, right. [00:04:20] Speaker A: You're getting out of there with no, no groceries, don't go see houses because you don't know if you can afford it and then you're going to fall in love with the house and then you're going to be heartbroken if you find out your numbers and the numbers just don't add up for you. So. [00:04:33] Speaker B: Or if you find the house but you're not pre approved by the time, you know, maybe Your case isn't that straightforward. By the time you go through the pre approval process, house is gone. [00:04:42] Speaker A: So some other buyer who had a pre approval saw the house, they put an offer and the seller accepted and now you're out of luck. So definitely get the pre approval is the first thing that you should do. And how does the pre approval work? Why does it matter more than just a pre qualification? Because that's different. Can you explain what the difference is first? [00:05:00] Speaker B: Yep. So this is a great question. So with a pre qualification it's like we're having a conversation or that's how I like to phrase it. Or that you see this way to look at it. So it's like, hey, what's your credit score? How much are you making? What does your debt look like? How much do you have saved? Right. So it's just the information that you tell me. [00:05:15] Speaker A: Okay. [00:05:15] Speaker B: It's a pre qual and I can tell you, hey, based on this information, you might qualify for X, Y and Z. Now with a pre approval, it's a little bit different because I'm going to pull your credit. I'm going to also review that credit report, make sure there's not anything on there that shouldn't be there or like just be aware of what's on there. We're also going to verify your income. So hey, you mentioned your business makes X amount a month. Let's see if that's like the amount that is actually what you're making. Right. So we're going to verify everything. [00:05:44] Speaker A: So you verify pay stubs, income, W2s, 1099s, whatever it is that the person has. [00:05:50] Speaker B: Okay, Exactly. [00:05:51] Speaker A: Okay. So that will save you from. Let me tell you what that will save you from because I've seen this so many times. If you get a pre qualification, you put an offer on a house, the lender is still going to check everything that Leslie just mentioned after you put in an offer, possibly with a deposit. Right. So now you have a deposit at risk. Now the lender checks everything. They look at your income and something doesn't add up or it's not what they were expecting or they can't count a certain income because of whatever reason. And now they tell you, I'm sorry, but you are actually not going to qualify. Now. You wasted your time, you wasted your money, you lost the money that you put on the deposit. So don't do that, please. You need to make sure that you protect yourself and do a full pre approval. Yes. If you want to buy a house, you need to Run your credit. Let's just please get over that, that conversation. There's no way around it. I'm sorry, I know everybody hates to pull their credit, but you cannot expect to buy a house without pulling your. [00:06:44] Speaker B: Credit so that you can check that 100%. And you're just putting yourself at risk at that point. And I've seen it before too, where clients will think they're pre approved or pre qualified actually for a 0% down payment program. They actually go under contract with that pre qualification and then their credit is pulled. Now they need to bring 10% down. If you're qualifying for 0% down to make that jump to 10 usually that's. [00:07:08] Speaker A: That'S a big chunk of money. [00:07:09] Speaker B: Exactly. So yeah, get pre approved. [00:07:12] Speaker A: Let's get over that fear. Yeah, pull your credit. You have to. Now speaking about credit, what's credit? Credit. Credit score is realistic to shoot for. As a first time buyer, I would. [00:07:22] Speaker B: Say ideally try to get between a 680 to a 720. [00:07:27] Speaker A: Okay. [00:07:27] Speaker B: So the lowest credit score you're able to have for a conventional mortgage is going to be a 620. [00:07:33] Speaker A: Okay. [00:07:33] Speaker B: And then for an FHA loan that's going to be with the three and a half percent down, it's going to be 580. [00:07:39] Speaker A: Okay. [00:07:39] Speaker B: However, I feel like set yourself up for success, right. You don't have to have perfect credit by any means, but the better your credit score is, the more loan programs you're going to qualify for and the better your pricing and interest rate is going to be. So shoot for success. [00:07:53] Speaker A: Exactly. So if you are preparing to get your credit, you know, in check in order to do a pre approval and everything, what are some, and we don't have to get into crazy details, but what are some of the maybe top three recommendations that you can tell people to improve their credit while they're getting ready to buy a house. [00:08:09] Speaker B: So that's a good one. So make sure that you're paying all your bills on time. That's first and foremost. Make sure that paying things on time, don't be late. Yep. Then number two, make sure that your credit card balances are down. So make sure that you're keeping them where they need to be. Especially if like you're applying pretty soon, make sure those balances are low. And then number three, if you do have credit card debt, if you're able to pay it off, like pay it down as much as you can. [00:08:33] Speaker A: Yeah. So perfect. Get rid of that. Get rid of the debt. And how much should buyers realistically have Saved for the down payment. Do you suggest. [00:08:44] Speaker B: I always suggest between 2, 2 to 4%. [00:08:46] Speaker A: Okay. Depending on 2 to 4% of the purchase price of the house. Okay. So I'm not gonna pretend like I can do math. So if it's a hundred thousand, let's. Nobody can buy a house for a hundred thousand anymore. But let's just pretend 100,000. Then you would need at least 20 to 40,000. Is that what you're saying or. My math is completely off. [00:09:03] Speaker B: So I think. I don't have calculator in front of me. [00:09:06] Speaker A: We have a calculator, people. We're not. Yep. [00:09:07] Speaker B: I think for a $300,000 home that 2% is going to be what, like 4,000? So it's going to be that 2 to 4% is going to be okay between. [00:09:17] Speaker A: Take your calculators out. [00:09:18] Speaker B: Take them out. [00:09:19] Speaker A: But yeah, let's do that because we don't have one right now. So 2 to 4% or whatever the purchase price of the house. [00:09:25] Speaker B: Yeah. [00:09:25] Speaker A: Is what people should have. Should have. Yeah. There's other ways around it, but should. Ideally. [00:09:31] Speaker B: Yeah, Ideally if you're not getting any seller credits, no type of assistance, anything like that. Yep, 2 to 4%. So just flat out numbers, let's say a $300,000 home in the Charlotte area. I would say you'd want to have easily between 7 and 8,000 just to be safe. [00:09:45] Speaker A: Okay. [00:09:45] Speaker B: That can vary obviously depending on the loan program or the type of home that you're purchasing, but I'd say that's a good range. [00:09:52] Speaker A: Okay, perfect. And that is just for the down payment, correct? [00:09:55] Speaker B: That is closing costs. [00:09:56] Speaker A: Oh, that is closing costs. Okay, perfect. And then the down payment is going to depend on what loan program, their credit score and all that good stuff. [00:10:05] Speaker B: Correct. [00:10:05] Speaker A: What would you say would be. And I know this is going to be different for different loans, but what for a first time home buyer, what's typically going to be their percentage of their down payment? You think so? [00:10:16] Speaker B: Good question. It's generally going to be between 3 to 3.5% down payment. [00:10:20] Speaker A: Okay. [00:10:21] Speaker B: Just depending on the type of loan. [00:10:23] Speaker A: Perfect. So 3 to 3.5% for the down payment and 2 to 4% for your closing costs. [00:10:28] Speaker B: Correct? Yeah. [00:10:29] Speaker A: So make sure plug in on your calculators that we don't have right now. And that's about how much money you're going to need. And what is a common cost that new buyers forget about before closing? [00:10:41] Speaker B: Okay. So something that wouldn't be on the loan estimate. Right. So aside from inspections, I think People sometimes forget that your escrows so your taxes and your insurance. But aside from that, I say I think people forget about moving expenses. [00:10:55] Speaker A: That's a good point. Yes. [00:10:57] Speaker B: And furnishing a new home can add up. It takes time, too. So I think that's a big one that some people just don't account for. [00:11:05] Speaker A: Yes. Because you get all excited about the house and then it's time to move and you're like, oh, wait a minute, we can just put everything in the car. [00:11:11] Speaker B: I'm sleeping on an air mattress. [00:11:13] Speaker A: Yes. So plan, plan accordingly. Now coming up, we are going to break down credit and debt, what lenders really look at and what matters most behind the scenes. We'll be right back. Strategies and inspiration to help you write your next home chapter. This is Home Story with Veronica on NOW Media Television. And we're back. I'm Veronica Dinkines and you're watching Home Story with Veronica on NOW Media Television. Let's jump back into today's conversation. Welcome back to Home Story. Want more of what you are watching? Stay connected to Home Story and every NOW Media to be favorite live or on demand anytime you like. You can Download the free Now Media TV app on Roku or iOS and you can unlock non stop bilingual programming in Spanish and English on the move. You can also catch the podcast version right from our website at www.nowmedia tv. From business and news to lifestyle culture and beyond, Now Media TV is streaming around the clock. Ready whenever you are. Welcome back to Home Story with Veronica. We are continuing our conversation with mortgage loan officer Leslie Silva. And in this segment we are tackling one of the most misunderstood parts of home buying. Credit and debt, the two words that nobody likes and how lenders truly evaluate financial readiness. Many buyers fixate on credit scores alone without understanding debt to income ratios, student loans, collections and and payment history. Misunderstanding how lenders assess risk can cause unnecessary fear or actually missed opportunities. So, Leslie, first question that we have for you, what credit score matters most and which scores typically get the best rates? [00:13:05] Speaker B: Okay, so credit score that matters the most is going to be your middle score. [00:13:08] Speaker A: The middle score. [00:13:09] Speaker B: Okay. So I'll have clients sometimes tell me, oh, well, Experian says 620 and then I have TransUnion saying 700. We're not going to look at the highest or the lowest. We go off of the middle score. Okay. [00:13:21] Speaker A: Okay. [00:13:22] Speaker B: So same thing when it's like a husband and wife. So two people on the loan, same thing. We're going to take the middle score of the person with the Lowest middle score. [00:13:30] Speaker A: Right. So if my husband is at 800 and I'm at 500, we're going to go with the 500. [00:13:35] Speaker B: Correct. [00:13:36] Speaker A: Right. Because there's one bad apple in the family. I'm kidding. But seriously. Okay, so they're going to look at that and I was going to ask you, do you notice that when people check, like on Karma or credit Karma or whatever application that they have their score, is that typically pretty accurate to whenever you do a credit pool? Or do you see. Have you ever noticed that there's any difference? Because a lot of people go by that and then they go. And it might be different. [00:14:05] Speaker B: It's a good idea. Right. And Ollie. Or like it's a good. It gives us a general idea of where your credit score is going to be at. [00:14:11] Speaker A: Okay. [00:14:11] Speaker B: But it's never going to be exactly what you're seeing on credit karma. [00:14:15] Speaker A: Okay. [00:14:16] Speaker B: Right. Nine times out of ten, we see a lower number than what's there just because we're looking at a different FICO model. [00:14:24] Speaker A: Okay. [00:14:25] Speaker B: But I say still use like those applications are still very useful because you can at least monitor your credit. [00:14:31] Speaker A: Right. [00:14:31] Speaker B: Improving, decreasing, whatever the case is, just. [00:14:34] Speaker A: Don'T count it to be exactly whatever application you're using, don't count it to be exactly what's on there. It might be a little bit lower. Yeah, gotcha. Okay. And how do lenders calculate debt to income ratio in real terms? [00:14:47] Speaker B: Okay, so this is a really good question. Essentially for your debt to income ratios, what we're going to do is take your monthly debt. So let's say just even numbers, let's say $5,000 a month. And let's say you're making $10,000 a month. So we would do your debt divided by your income. [00:15:03] Speaker A: Okay. [00:15:04] Speaker B: 5,000 divided by 10,000 times 100. [00:15:08] Speaker A: Okay. [00:15:08] Speaker B: So we can get that percentage. Okay. So in that case it would be 50%. [00:15:11] Speaker A: So we look at it and what are the debt to income ratios typically that you're going to need for somebody to qualify for a house or does it change for everybody? [00:15:20] Speaker B: Can vary. [00:15:21] Speaker A: Okay. [00:15:21] Speaker B: It depends like what your risk factors on that loan are, but just generally what we want to see for fha, depending on the situation. But Max, we're going to get an approval on is going to be 56%. [00:15:33] Speaker A: Okay. [00:15:33] Speaker B: Which is very, very high. There's got to be other things in your file that kind of support that high. Dti. VA loans don't have dti. [00:15:44] Speaker A: DTI is debt to income ratio. Just so you know, you can say dti, now that we've clarified. [00:15:48] Speaker B: Okay. And then conventional, no more than 50%. [00:15:51] Speaker A: Okay. So when you're looking at. Because a lot of people forget about certain payments that they have that count as debt. So what are some of the major things that you count as dead? [00:16:00] Speaker B: So, so it's going to be things like maybe if you have another mortgage, it's going to be your credit cards, your loans, student loans. We might take them into account as well, depending on the situation. [00:16:11] Speaker A: Okay. [00:16:11] Speaker B: Just anything like that as far as like insurance that wouldn't be on there. Child care, things like anything that's on your credit report and an obligation. [00:16:20] Speaker A: Okay, so child support? [00:16:23] Speaker B: Child support would be as well. Yes. [00:16:24] Speaker A: Okay. That would be included. And what about car payments? [00:16:27] Speaker B: Car payments, definitely. And then another big one that we're seeing a lot more lately is going to be like the buy now, pay later type of. Right. So that is something that's I think more common now and we're, we have to account for it. [00:16:41] Speaker A: That is true. There's now that when you, when you go shopping. Excuse me, you see that option and you pay monthly or whatever. [00:16:48] Speaker B: Yes. [00:16:49] Speaker A: So that shows up on your. [00:16:50] Speaker B: So that might not report on your credit, but once we see it on a bank statement then we do have to. Hey, what is this? And get documentation for it and take it into account. [00:16:59] Speaker A: Okay. So those are some of the things I need to consider. Gotcha. Now, student loans, do they automatically hurt first time buyers? [00:17:09] Speaker B: Not always. So the thing with student loans is if you already have a payment, you're paying towards it. That's completely fine. We're just going off of whatever that payment is on your credit report. [00:17:18] Speaker A: Okay. [00:17:18] Speaker B: Let's say it's deferred or you're not making any payments towards, towards it right now. Then we do take a percentage depending on the loan type. [00:17:24] Speaker A: Okay. [00:17:25] Speaker B: It's going to be half or 0.5% of the total balance or 1%. [00:17:30] Speaker A: Okay. [00:17:31] Speaker B: So we do have to account for. [00:17:33] Speaker A: Something because eventually the person will have to pay. Right. And I mean I think the majority of us have student loans. [00:17:38] Speaker B: So. Yeah. [00:17:39] Speaker A: So that's something we need to consider. [00:17:41] Speaker B: Not an automatic disqualifier. It just does get like considered. [00:17:46] Speaker A: Gotcha. And income wise I get this question a lot when I have buyers contact me and I always refer them to a lender like Leslie. But what let's say somebody has your typical corporate job and they work 9 to 5 and they get a W2, but they also work part time and on their part time work they work as A nanny, for example, taking care of children and they get paid cash. Does that. Can you explain a little bit what, what incomes can be counted without a problem and are, you know, black or white or which ones are some that are on the gray area? [00:18:18] Speaker B: Okay, so this is an excellent question. So in that particular example of your paid cash, the only way that we can use it is if you've reported it on your taxes. So if it's anything where I've been being paid cash all my life, I've never claimed it on taxes. We have no way to verify that income. We have no way to use it. [00:18:36] Speaker A: Okay. [00:18:36] Speaker B: So cash in that situation, if you've claimed it, we can use it. We just need two full years of your self employed tax return. [00:18:43] Speaker A: Okay. [00:18:44] Speaker B: W2 income, we can use that. Just that one's the simplest. W2s your pay stubs, that's easy to use. Now commission is going commission and bonuses. So anything that isn't always consistent or always the same amount, that's going to be variable income. Okay. And we do need to see generally between a 12 to 24 month history of receiving that income. [00:19:05] Speaker A: Okay. And you do like an average. [00:19:07] Speaker B: We do, yeah. So anything with lending is always going to be worst case, unfortunately. [00:19:12] Speaker A: Gotcha. Yeah. Yeah. I mean a little bit of a pessimist, you know, type of world, but. [00:19:17] Speaker B: So that you're earning commission, if last year was okay and then this year improved, we take the average. [00:19:24] Speaker A: Gotcha. [00:19:24] Speaker B: But let's say this year income dropped from last year. We take only this year. So always worst case. [00:19:30] Speaker A: Okay. [00:19:31] Speaker B: Yeah. [00:19:31] Speaker A: Okay. [00:19:32] Speaker B: Yeah. [00:19:32] Speaker A: I just want to make sure that people understand what can count as income or not. Because sometimes they call me, oh, but I make all this money. But if it wasn't on your tax returns and you don't have a W2 or a pay stub for it, then it's going to be really complicated to count it. [00:19:44] Speaker B: Yeah. Another one that I see pretty often now that you mentioned, that is going to be rental income. [00:19:48] Speaker A: So some rental income. Okay. So if you have a property that you rent out to somebody. Okay. [00:19:53] Speaker B: Correct. Yep. So let's say you have a rental property and you don't claim that income on your taxes, we can't use it depending on the situation. Right. There's some exceptions where we can use it, but if it's been a long standing rental that you've held for a few years and you've just never claimed that income, we there's no way for us to take that, there's no way to use it. [00:20:11] Speaker A: Gotcha. That makes a lot of sense actually. Okay, okay, that's very helpful. What is the biggest credit mistake that you see new buyers make? [00:20:21] Speaker B: I think this one's a little controversial. [00:20:23] Speaker A: Yeah. [00:20:24] Speaker B: But I think letting someone borrow your. [00:20:28] Speaker A: Your credit, oh my gosh, I've seen that so many times. For example, give me some examples. [00:20:35] Speaker B: So a thing like, what I've seen happen before is I had a client, he helped his sister, he was a co signer for his sister on a mortgage, completely like had multiple like mortgage lates. [00:20:46] Speaker A: Oh, so there were late payments. So it affected his credit. [00:20:50] Speaker B: Yep. So when he had to buy his own home for himself and his family, he couldn't purchase because of all of those late payments on that mortgage. [00:20:57] Speaker A: Right. [00:20:57] Speaker B: He had to wait, I think it was a full year. Um, so yeah, so it sucks. Right, because you helped someone because of your own heart and then it affected your credit. So. And we see that all the time, unfortunately. [00:21:08] Speaker A: Yeah. And if you, so being a co signer, just make sure you know, hey, I've done it. We want to help our people, but it can hurt your credit. Also the, if you co sign for somebody, rent an apartment, for example, is that rental going to count as an expense for you, the cosigner? [00:21:28] Speaker B: As long as you're going to be like buying your next home as a primary residence, then you're fine. [00:21:33] Speaker A: Okay. Okay, perfect. What are some other consequences that you've seen when people do stuff with their credit that typically hurts them in the lending process for a mortgage? [00:21:43] Speaker B: I think related to the one I just mentioned is people thinking that because someone else makes the payment, we don't consider it. And that's not the case. There's ways we can go about excluding, excluding it depending on the loan type and the scenario, but it's still an obligation and a debt that you have that you consider. [00:22:01] Speaker A: And what about if you co sign. [00:22:02] Speaker B: A car, a car loan, we do take it into account. [00:22:06] Speaker A: Right. So even if you're not the one responsible for making the payments, it's still going to show as if you are. Because if something does happen and that person defaults, they are going to go after you. So the bank needs to consider that. So make sure, if you co sign for somebody, make sure they're in, you think about it very well. And, and it can unfortunately can hurt your qualification criteria. Okay, that makes sense. Leslie, for viewers who want personalized guidance, where can they connect with you to review their credit, their buying options and for you to do the pre approval for them? [00:22:38] Speaker B: Yeah, absolutely. You can Call me anytime. Can I share my phone? [00:22:42] Speaker A: Absolutely. Please share your phone number. [00:22:43] Speaker B: My phone number is 800-349-31666. That's my cell phone. So reach out, text me, call me, whatever's easier. I'm happy to help. [00:22:50] Speaker A: Perfect. Do you have any social media that they can follow? [00:22:52] Speaker B: I do, yep. So my Instagram is Leslie the Lender. [00:22:56] Speaker A: Leslie the Lender. Okay. [00:22:57] Speaker B: And then on there you're going to see a link, tree, link and I have everything else attached to there that you can follow. [00:23:03] Speaker A: Perfect. So Leslie the lender, if you want to follow her, she does fantastic. She is so good to work with. So please follow her. You're not going to regret it. And up next, we are breaking down loan types. This is a fun one. Fha, conventional, USDA and more so that buyers know which path truly fits them. Don't go anywhere. We're going to be right back. Worries, strategies and inspiration to help you write your next home chapter. This is Home Story with Veronica on NOW Media Television. [00:23:35] Speaker B: And we're back. [00:23:36] Speaker A: I'm Veronica Dinkerez and you're watching Home Story with Veronica on NOW Media Television. Let's jump back into today's conversation. Welcome back to Home Story with Veronica. Many buyers ask one big question. Which loan is best? For me, the answer isn't one size fits all. And misunderstanding loan options can cost buyers thousands over time. Loan programs differ in down payment requirements, insurance costs, eligibility rules and long term impact. Buyers often choose based on hearsay instead of strategy which can limit future wealth building opportunities. So Leslie, what is the biggest difference? The most type of loans that we use all the time are FHA and conventional. So for first time home buyers, what would you say is the main difference between an FHA loan and a conventional loan? [00:24:29] Speaker B: Okay, so this is a good question. With an FHA mortgage, it's going to be ideal. If your credit score is a little bit lower or it's below, I'd say 720 to 700. [00:24:38] Speaker A: Can we explain real quick for people who don't know what an FHA mortgage loan is? [00:24:43] Speaker B: Yes. Okay. So whenever you're buying a home, the most common types of mortgages like you mentioned are going to be FHA and conventional. It's not that one is bad, one is good. That's not the case at all. It's just depending on your situation. So an FHA mortgage is going to be backed by the Federal Housing Administration, whereas a conventional mortgage is not. And FHA mortgage requires 3.5% down payment, whereas a conventional requires 3%. [00:25:08] Speaker A: Okay. [00:25:09] Speaker B: Yeah. [00:25:09] Speaker A: Okay. [00:25:10] Speaker B: Now, FHA loans can only be used for a primary residence. Conventional, you can use it for investment property, second home or primary residence. [00:25:18] Speaker A: Perfect. That's important for them to know. Okay. What other main differences? [00:25:22] Speaker B: So big main difference whenever you're buying. So like I mentioned, that credit score, FHA is going to be more flexible if you have a lower credit score and if you have a higher debt to income ratio. [00:25:31] Speaker A: Okay. [00:25:32] Speaker B: So. So if you have, you know, a little bit more debt, then FHA might be preferred. Another big difference is the mortgage insurance. [00:25:40] Speaker A: Okay. [00:25:40] Speaker B: Yep. So with an FHA loan, you are going to have mortgage insurance for the life of the loan. And if you don't know what mortgage insurance is, it's just an additional, like, factor that goes into your monthly payment that's included. So, yeah, so you'll have it for the life of the loan if you don't put 10% down with an FHA loan. Now with conventional, it does go away within, like, once you have certain equity in the home. [00:26:08] Speaker A: Right. I believe it's 80%. 20%. [00:26:10] Speaker B: It'll be once you have 20% equity. [00:26:12] Speaker A: Okay. [00:26:13] Speaker B: Get it removed. [00:26:14] Speaker A: Okay, perfect. And for people who buy with an FHA loan, for example, which is what I've seen a lot, can you touch on a little bit about what the lenders are looking for regarding the condition of the house? [00:26:26] Speaker B: Yep. So that's a big reason sometimes why we see people prefer a conventional mortgage over FHA is because the FHA appraisal is going to be a little bit stricter. So railings won't be permitted. Or like, we can't not have railings. [00:26:41] Speaker A: Right. [00:26:41] Speaker B: Have to be installed if there's a certain height, as well as chip paint. So there's just more that the appraiser is going to be looking for. [00:26:48] Speaker A: So they're a lot more strict on the condition of the house. [00:26:50] Speaker B: Correct. [00:26:51] Speaker A: That a conventional loan would be. [00:26:52] Speaker B: Absolutely. [00:26:52] Speaker A: Okay. And I think it's also restrictive on the type of home that you can get. There's certain restrictions, like if somebody wants to get a manufactured home, it has to be over a certain year. [00:27:02] Speaker B: Correct. [00:27:03] Speaker A: Things like that. [00:27:03] Speaker B: Yeah. [00:27:04] Speaker A: Okay. [00:27:04] Speaker B: Keep in mind, like, you're going to see different restrictions depending on the loan program, too. So for just that same example, manufactured home, the down payment for a conventional mortgage does increase to 5% from the 3. [00:27:17] Speaker A: Okay. [00:27:17] Speaker B: Whereas for FHA, it would stay at that 3.5%. [00:27:20] Speaker A: Okay. Oh, that's an important. I'm glad I asked that question. Okay. So in fha, you're looking at the condition of the house, you're looking at the credit being a little bit more flexible. [00:27:29] Speaker B: Correct. [00:27:30] Speaker A: Debt to income ratio may be a little bit more higher. [00:27:33] Speaker B: Correct. [00:27:33] Speaker A: Okay. Any other things that you can think of that are really, you know, that differentiate the FHA from the conventional? That's important to notice. [00:27:40] Speaker B: I just think overall FHA is a little bit stricter, so. [00:27:44] Speaker A: It's stricter, yeah. Because it's backed by. [00:27:46] Speaker B: Yes, yes. [00:27:47] Speaker A: The Federal Housing Administration. [00:27:48] Speaker B: So just overall, it's just a little bit stricter with what we're able to do and not do and then with income calculation as well. So. [00:27:56] Speaker A: Gotcha. And question that. I have FHA versus conventional. If you buy a house and then six months down the road, you hate where you live, you don't like your neighbors, you want to move, do both have restrictions on that or how does that work? [00:28:12] Speaker B: Okay, so if you're going. If you bought FHA and didn't want to move quick. [00:28:16] Speaker A: So let's say I bought with an FHA loan and then six months in, I say, you know, I don't like this place. I want to move somewhere else. [00:28:22] Speaker B: Okay. So, yeah, you can still purchase your next one. I think there just might be a little bit more questions in underwriting. [00:28:28] Speaker A: Okay. [00:28:28] Speaker B: Why you're buying your next primary so soon, especially if it's close by, but you can do it. The only thing with that is that with fha, like, let's say you wouldn't be able. If you have hold an FHA loan, you wouldn't be able to buy with another FHA loan because there's restrictions if you're buying too close to it. [00:28:46] Speaker A: That was me. Okay. Okay. [00:28:48] Speaker B: Yeah. Whereas with conventional, there's no, like, exact guideline on the distance. [00:28:55] Speaker A: That makes sense. Okay. Now let's talk about USDA or VA loans. Who qualifies for USDA or VA loans? And what should buyers watch out for with those type of loans? [00:29:05] Speaker B: Okay, so with USDA loans, that's going to be for areas that are a little bit more suburban, more rural. [00:29:10] Speaker A: Okay. [00:29:11] Speaker B: And you'd be surprised. There's more areas that qualify for it than we would think. It's not just farms. [00:29:14] Speaker A: That is true. And you can actually go online and check USDA maps and you can put the address, if you. If you're ever interested, it'll tell you if it's in an eligible area or not. [00:29:23] Speaker B: Correct. So those are the areas that qualify for it. And so usda. [00:29:28] Speaker A: So let's talk a little bit about more of the usda. What are some of the Advantages with that type of loan. [00:29:33] Speaker B: Okay. So the biggest advantage is that it's 0% down. [00:29:36] Speaker A: So it's not 0% down. [00:29:38] Speaker B: Yeah. So that's. [00:29:38] Speaker A: Go live far, people. [00:29:40] Speaker B: Go get your barn. [00:29:41] Speaker A: Go get your barn. [00:29:42] Speaker B: It doesn't have to be a bar, but it is 0% down. So. So it's not down payment assistance. It's a 0% down payment program, which is going to be, in my opinion, a lot better than down payment assistance. [00:29:53] Speaker A: Because they want people to move to those areas. Right. Is that what they're trying to do? [00:29:56] Speaker B: Okay. Okay. Yep. And then aside from that, the mortgage insurance on those loans tends to be lower. [00:30:02] Speaker A: Okay. [00:30:02] Speaker B: As well as interest rates, they tend to be a little bit better than FHA is. [00:30:06] Speaker A: Okay. And the qualification is about the same for the other loans. [00:30:09] Speaker B: Or is there anything stricter? [00:30:11] Speaker A: It is stricter. Okay. [00:30:12] Speaker B: So your debt to income ratios are more limited on usda. And aside from that, you do have income limits. Those income limits are going to be determined by the county that you live in and your household size. [00:30:24] Speaker A: Gotcha. So you can't make too much money for USDA loans. [00:30:27] Speaker B: Okay. So that's one of those that you might get told you make too much money. Which is crazy to hear sometimes. [00:30:33] Speaker A: True. Because I mean, if you're trying to get people to move there. Okay. That's interesting. What about VA loans? [00:30:38] Speaker B: VA loans is going to be for our military, for whether you've served before or you're currently serving. So it's going to be for military. And that is the most amazing loan program. I think it's not taken advantage of enough. I think I saw a stat pretty recently that only 3% of home buyers or I don't know, but there was a three in there. [00:31:00] Speaker A: Not enough people using VA loans. Yeah. [00:31:02] Speaker B: Which is crazy. [00:31:03] Speaker A: Yeah. [00:31:04] Speaker B: It's such a huge benefit that you're able to attain being or serving in the military. So definitely if you're eligible to take advantage of it. [00:31:12] Speaker A: So what are some of the things that you want to make sure that people who can take advantage of a VA loan, what do they need to know about VA loans? [00:31:20] Speaker B: So it's also zero percent down payment. [00:31:22] Speaker A: Zero percent down payment. That's always beautiful. [00:31:24] Speaker B: Yes. That's always awesome to hear. The debt to income ratio is. There's not a debt to income ratio. Some lenders might have an overlay to where there is. Right. A cap. But we also look at your residual income. So aside from that, another big benefit is that there's no mortgage insurance. [00:31:42] Speaker A: No mortgage insurance. Okay. [00:31:44] Speaker B: You're not paying mortgage insurance on a VA loan. [00:31:46] Speaker A: Perfect. What about the condition of the house? Does it vary with the other loans? [00:31:50] Speaker B: Anything that's government. So usda, FHA and VA is going to be a little bit stricter than a conventional mortgage, but it's, it's not. [00:31:57] Speaker A: Impossible, it's just a little bit stricter. [00:31:59] Speaker B: Correct? [00:31:59] Speaker A: Yeah, Gotcha. Okay. Any other thing that, that you want to mention about USDA or VA loans that our viewers should know about? [00:32:06] Speaker B: USDA and VA loans or. [00:32:10] Speaker A: We've said the most important things already. [00:32:12] Speaker B: Which is 0% down payment, the biggest thing. I think that's off the top of my head right now. [00:32:18] Speaker A: Beautiful. Okay, so make sure that you guys. So VA loan is going to be easy. I mean, you're going to know if that's something that you could take advantage of or prepare to qualify for. But if you're in the military or if you have been in the military or served, you know, in whatever realm of the military, or you had a. [00:32:34] Speaker B: Spouse that served in the military and they happen to pass away, unfortunately, you might also be able to attain a VA loan. [00:32:41] Speaker A: Okay. Okay. So if you're a widow of a veteran. Okay, that, that's good to know as well. Okay. Contact Leslie. She'll let you know if you qualify or not for those type of loans. And now, Leslie, we were talking about pmi, which is private mortgage insurance. We're just going to say PMI because we're used to saying PMI and mip. How, how are they different? And how do they affect monthly payments? And what is mip? [00:33:05] Speaker B: Okay, so that's great question. Good way to start. So mortgage insurance is going to be. It's an additional amount that you pay every month on your loan. So it's included in your total monthly payment. [00:33:17] Speaker A: And what is the purpose of mortgage insurance? If something happens to the person, then the bank gets paid. Is that what mortgage insurance is? [00:33:23] Speaker B: So this is going to differ from your homeowner's insurance, which you also have to attain if you have a mortgage. Yeah. Homeowner's insurance protects the property. Right? [00:33:32] Speaker A: Right. [00:33:32] Speaker B: So if anything were to happen to the home, to the property itself, mortgage insurance protects the lender in case you were to default. You can see that make your payments. [00:33:39] Speaker A: Okay. [00:33:40] Speaker B: So, yeah, so with PMI or private mortgage insurance, that's on conventional mortgages, whereas mortgage insurance premium or mip, that's going to be on FHA loans. Gotcha. Okay. What determines that amount is going to be the risk factors on your file. So credit score, down payment type, of home. [00:33:58] Speaker A: That's what determines what varies depending on those factors whenever they're calculated. Okay. And that's something you would know when you pre approve somebody. [00:34:05] Speaker B: Correct? Yeah. [00:34:06] Speaker A: So that way they can factor that already into their monthly payment. [00:34:09] Speaker B: Yeah. But I've had clients that tell me like they didn't want to move forward because of the mortgage insurance. Right. And then we take a look at numbers. Your mortgage insurance is 50 bucks a month. [00:34:19] Speaker A: Right. [00:34:20] Speaker B: So it's like it can vary very, like drastically, just depending on your situation. [00:34:25] Speaker A: Yes. And when you give the numbers to somebody who wants to buy a house, you break it down. Right. I mean, you tell them this is your principal, this is your interest, this is your insurance estimate, your taxes estimate and your or MIP or pmi, Correct? [00:34:40] Speaker B: Yep. Okay, now what you were mentioning earlier, what is the biggest difference? So I mentioned that MIP is going to be fha. The thing with the mortgage insurance premium for FHA loans is that it's a percent of the loan amount. Okay. Or yes. A percent that gets added to the loan amount. [00:34:57] Speaker A: Okay. [00:34:58] Speaker B: So that's why whenever you look at like a closing disclosure for an FHA loan. [00:35:03] Speaker A: Right. [00:35:04] Speaker B: It's always going to be the initial loan balance is going to be more than just what the initial balance was. Does that make sense? [00:35:11] Speaker A: Gotcha. [00:35:11] Speaker B: Yeah. It's not just the purchase price minus the 3.5% down, there's always a little bit more added on. [00:35:17] Speaker A: Gotcha. [00:35:18] Speaker B: That's your mortgage insurance premium. [00:35:19] Speaker A: So make sure to check with Leslie. She's going to give you all the numbers. Now coming up, we are going to pull back the curtain on underwriting, appraisals and weighting, which is the part of the process that makes buyers the most nervous. And I understand why when you have to wait for all of these things to happen. And we want to make sure that you understand what happens behind the curtains when we're doing all of the underwriting and everything, when the lenders are doing all the underwriting. So don't miss out on that. We'll be right back. Stories, strategies and inspiration to help you write your next home chapter. This is Home Story with Veronica on NOW Media Television. [00:35:56] Speaker B: And we're back. [00:35:57] Speaker A: I'm Veronica Dinkerez and you're watching Home Story with Veronica on NOW Media Television. Let's jump back into today's conversation. Welcome back to Home Story with Veronica. Don't miss a second of this show or any of your NOW Media TV favorites. Streaming live and on demand whenever and wherever you want. Grab the free Now Media TV app on Roku or iOS and enjoy instant access to our lineup of bilingual programs in both English and Spanish. If you prefer podcasts, you can listen to Home Story anytime on the Now Media TV website at www.nowmedia.tv covering business, breaking news, lifestyle, culture and more. Now Media TV is available 24 7, so the stories you care about are always within reach. Welcome back to Home Story with Veronica. In this final segment, we are addressing the most anxiety inducing part of of buying a home. The waiting, the underwriting, the appraisals and approvals can feel like a black box. But understanding the process changes everything. Buyers often panic during underwriting due to silence, document requests, a lot of document requests or appraisal delays. This segment reframes underwriting as protection. It's not a punishment, we promise you, and it helps buyers stay proactive and calm. Leslie, what does underwriting actually do in plain English for our viewers to understand? [00:37:22] Speaker B: Yes. Okay. So once when you're pre approved, we are going through all your documentation. Right. Once you're under contract and we submit it to underwriting, their job is essentially to verify the information that we submitted and that we noted on there. And then they're also making sure that we're following the guidelines of the loan program that we are obtaining. [00:37:42] Speaker A: Okay. [00:37:43] Speaker B: Yeah. So essentially they're just making sure that if this loan requires X, Y and Z that we are fulfilling that guideline. [00:37:51] Speaker A: Exactly. So that's when you know, you give some of the documents to the lender at the beginning for your pre approval and then I'm not some buyers be supplies like why are they asking me for all of this other documents? So be prepared. Yes, they're going to get nosy. [00:38:03] Speaker B: Yes. 100%. They're always going to come. Yes. You know, they'll come back. And if they see something in your bank statements that we didn't catch up front, then they're going to ask for it. So it's essentially just someone that's going to be requesting more documents. Yes. [00:38:16] Speaker A: They're going to want additional proof of a bunch of stuff. And if you're under contract for over a month, they're probably going to want the updated bank statements for the month that you were on a contract to make sure you didn't spend all your money on furniture before you actually closed on the house. So it is expected. And I do want to count on this because a lot of the times my first time homebuyers, you know, are really shocked. Like why are they asking me for all this information? It's Completely normal. [00:38:40] Speaker B: Yeah. It's just someone that's following the rules for that loan type. [00:38:44] Speaker A: Yes. To make sure that you know all the. [00:38:47] Speaker B: Yep. [00:38:47] Speaker A: Yes. All the regulations are met for you not to have any issues with your loan later. So it's really to protect you. [00:38:53] Speaker B: Absolutely, yes. [00:38:54] Speaker A: And why do appraisals sometimes come in low and what happens next? First, let's say what an appraisal is. [00:39:00] Speaker B: So an appraisal is going to be. It's kind of like a little inspection. So essentially. And it varies from your home inspection because that one's going to be a lot more detailed sale. Yeah, an appraisal. Ultimately it's to make sure that there's nothing hazardous happening at the property, number one, but number two, that the value is there. So if they're giving you a loan for 300,000, is that home worth 300,000? [00:39:21] Speaker A: Exactly. [00:39:21] Speaker B: That's what. [00:39:22] Speaker A: So again, it's to protect you so that you don't overpay for a house. [00:39:24] Speaker B: Correct. [00:39:25] Speaker A: Now, keep in mind, as a realtor, I have to say this, that's one person's opinion of the market value of the house. Sometimes we challenge it. Very rarely do I ever have I ever had to challenge an appraisal because the vast majority of them are fantastic. But it can happen. So let's talk about. And sometimes it is accurate that the home didn't appraise. Especially we saw that a lot when we had. Yes. During COVID That people were overpaying 50, 60 thousand dollars over asking price. And of course it's not going to appraise. [00:39:56] Speaker B: Right. [00:39:57] Speaker A: Because no house goes up $50,000 in a month. But what happens when you're in the middle of the loan, you're in the middle of underwriting. An appraiser goes to the house. Let's say you were on a contract for 300,000, but it appraised for 280,000. What happens in. [00:40:11] Speaker B: So essentially let's say that the appraisal came in low. Right. Number one would be the buyer could pay the appraisal gap. Right. That would be an option. [00:40:20] Speaker A: So you have to come up with 20 grand additionally to all the other costs in the down payment that you already had. [00:40:26] Speaker B: Just because the lender is only going to give you the amount that the property appraises for. [00:40:30] Speaker A: Exactly. So if it appraise a 280, the lenders is going to tell you we can only give you 280 out of the 300,000. [00:40:36] Speaker B: Okay. Yep. So that's an option. We were seeing that during COVID oh, Covid. [00:40:40] Speaker A: That happened a lot. We actually had to. Yes. We had to do a lot of appraisal amendments. [00:40:45] Speaker B: And. [00:40:46] Speaker A: Yes. [00:40:46] Speaker B: Anyways, those were crazy times. So that's option one, buyer could come out of pocket the difference. Option two, seller could lower that price. Yep. [00:40:53] Speaker A: To match the appraised. [00:40:55] Speaker B: It's honestly usually what we see. I feel like that's the most common. Another option would be we meet in the middle. [00:41:01] Speaker A: Yeah. [00:41:01] Speaker B: So meet at the what, 290. [00:41:04] Speaker A: At the 290. [00:41:05] Speaker B: Yep. So buyer comes out a pocket that 10, and then seller reduces the price by 10. Or we could challenge the appraisal, like you mentioned, if we think that they missed a comparable or multiple comparables and maybe get a little bit more value. [00:41:19] Speaker A: So you don't have to do any of this, my beautiful viewer. As Realtors and lenders, we'll do everything for you. So a good realtor is going to really study that appraisal. They're going to check the comps. The comps are the houses that they use to compare to the one that is under contract. We are going to check it, and if we see something that's obvious that they missed, for example, the house that you're under contract for has a garage, and the comp that they use didn't have a garage, and they didn't add about $20,000 difference in value on that, we are going to point that out. That might be the $20,000 that was missing to make it 300. So we do all of that for you. I just don't want you to freak out when you're. When you're viewing this. And the lender is going to help. [00:41:58] Speaker B: Us through that process as well. [00:42:00] Speaker A: And if it comes to negotiating, then we will go to bat for you and negotiate for you. But there is a solution. Most of the time, you'll find a solution. [00:42:07] Speaker B: Yeah. [00:42:08] Speaker A: I rarely had any actually contracts canceled because there was a low appraisal. [00:42:12] Speaker B: I don't think I have either. [00:42:13] Speaker A: Yeah. And lately I haven't seen many low appraisals at all. So thank goodness. Why? Let's see what common document mistakes delay approvals. [00:42:23] Speaker B: Very good question. [00:42:24] Speaker A: Yeah. [00:42:25] Speaker B: Not submitting all the pages of your bank statements. I think that's a big one. [00:42:28] Speaker A: Bank statements, people. No screenshots. [00:42:31] Speaker B: No, no screenshots. And then let's say sometimes on bank statements, we'll see that you have maybe, whatever, five pages, and the last one's blank. Even if it's a blank page, we. [00:42:40] Speaker A: Need it because it says four out of five. [00:42:42] Speaker B: Yes, exactly. [00:42:43] Speaker A: Exactly. [00:42:44] Speaker B: Five out of five in that situation. [00:42:46] Speaker A: Yes. [00:42:46] Speaker B: A big one. Yeah, I'd say that's the biggest one. [00:42:50] Speaker A: That's the biggest one. And you have to make sure that download them on PDF. [00:42:54] Speaker B: Yes, Correct. [00:42:55] Speaker A: I know that's the main one that, you know, a lot of people still screenshots. Send the screenshots from their phones. Yeah. [00:43:01] Speaker B: Gotten pages of every single page on the tax return too. So just make sure like have your documents ready to go when you're going through the process or looking to get pre approved. [00:43:10] Speaker A: Yes. And I would say honestly try to organize yourself before this so that you have everything already download it so that you know, you don't have to spend hours doing that when they ask for it. Because they will ask for it. [00:43:20] Speaker B: Yeah. And another, I think just a big tip for people that are self employed. Don't commingle your funds so it like. [00:43:27] Speaker A: So explain what that means. [00:43:28] Speaker B: So keep your like funds from your business in one account and anything personal, keep it in another. Don't like, oh, well, this is my bank account that I use where I get paid for my jobs, but also I pay the gas price bill here. Like everything's separate. And especially because self employed can get a little bit trickier. Yeah. When you're buying a home with a mortgage, it will just save you so much time and such a headache. [00:43:54] Speaker A: Remember when I told you they get nosy? They get nosy. So they're going to check everything on your bank statement. Do not buy furniture or a car while you're under contract. [00:44:03] Speaker B: Please, please. [00:44:05] Speaker A: Now can an offer be accepted before a loan is actually fully approved? [00:44:09] Speaker B: So fully approved? Yes. So you know, you can go under contract with that pre approval and then that final approval or the CTC clear to close. You'll hear that big celebration moment. Yeah, you get that right before closing. [00:44:22] Speaker A: Clear close means the lender said, yes, we are good to go. When you go to the closing table, we're going to send the attorney the money so that you can close on this house. That means there's no turning back, you're good to go. And I love, I love clear to close. [00:44:35] Speaker B: I love sending that text and making that call. [00:44:37] Speaker A: I absolutely love it. Now, what should buyers be doing while they are waiting for the final approval? So they put an offer, they're under contract. Let's talk about two things, actually. [00:44:47] Speaker B: What not to do. [00:44:48] Speaker A: Yes, please. What should they and what should not happen? [00:44:52] Speaker B: I would say what you should be doing is making sure that you're communicating with your loan officer or their team. Right. So Answering phone calls, getting documents sent over quickly. That's a huge one. [00:45:02] Speaker A: Yes. [00:45:03] Speaker B: Anything you have to say, sign. Obviously call if you have questions, but make sure you're signing quick because there's some documents there that are time sensitive. Now, what not to do would be don't finance anything like you were just mentioning. [00:45:14] Speaker A: Do not. Do not open a credit card. [00:45:17] Speaker B: No, absolutely not. [00:45:18] Speaker A: Do not get a new car. Do not pay for a trip to Japan. [00:45:21] Speaker B: No. Nothing like no new lines of credit. Absolutely not. And then no large deposits into your bank account. Since that's another big. [00:45:28] Speaker A: Oh, please, let's talk about cash. Because, listen, a lot of us, you know, have lived in the old ages where, you know, we could use cash and hey, it's okay, you have $10,000 saved on cash. And you, in the middle of the contract, you go to the bank, you deposit $10,000 because you had them saved and you want to use it towards the purchase. Guess what? They don't like that. Can you explain? [00:45:52] Speaker B: Yep. So we can't use it if it's just mattress money that you have. We're not able to just show that new baked statement or show a picture of your wad of cash. We can't take that, unfortunately. So if that is the case, that you have cash or anything that you think, like, honestly, just anything, talk to your loan officer, talk to your team so that we can strategize and create a plan so that we can use those funds or whatever going on. Like, talk to your loan officer before it ever gets to underwriting. [00:46:20] Speaker A: Yes. [00:46:20] Speaker B: Because once it gets to underwriting, it's too late. Or it could be too late. So I'd say just be upfront, be honest, but definitely don't deposit cash. [00:46:27] Speaker A: Don't deposit cash. And also another one that I've seen a lot is people pay off their credit cards in the middle of the contract without the lender having asked you to pay off your credit card. Because a lot of times that gets paid at closing per the lender's request. So if you have a credit card that you want to pay off in the middle of the contract, please call your lender before and they will guide you as to if that's a good idea or not. [00:46:50] Speaker B: Correct. [00:46:50] Speaker A: For your. Because I've had delays because of that. [00:46:52] Speaker B: Yeah, that's a big thing, too. Like sometimes you might think you're doing a good thing. Right. And it's like you have good intentions with what you're doing. And I know everything with lending is so confusing. It is like you're paying off your credit card, that should help. Right. But unfortunately that can lead to more documentation that we need. [00:47:07] Speaker A: Exactly. And it can delay the whole process or you didn't need to pay that credit card off and now. [00:47:12] Speaker B: So now you're short funds. [00:47:14] Speaker A: Exactly. Make sure you talk to your lender Now, Leslie, this has been so helpful. I'm sure our viewers are going to love this conversation. Again, where can people follow you for your work and reach out as they prepare to buy Real quick? We're about to finish the show. [00:47:28] Speaker B: Yeah. Yeah. So again, you can follow me on Instagram. It's Leslie L E S L I E the lender. And then as far as phone number is 800-349-31666. I'm licensed in North Carolina, South Carolina as well as Florida. So I can help you purchase whether it's first time buyer, if you're buying your next home an investment property. So yeah, let me know. I'm happy to help. [00:47:49] Speaker A: I love it. Leslie, thank you so much for breaking this down with such clarity and heart. Today we learned that successful homeownership starts long before house hunting. It begins with preparation, with education and the right guidance. From understanding credit loan options to staying calm during underwriting, knowledge truly is power for everyone. Watching your first home isn't just a purchase, it's a start stepping stone toward long term stability and generational wealth. Take your time, ask questions and surround yourself with experts who put your future first. I'm Veronica Dicus and this is Home Story with Veronica, where informed decisions build stronger homes and brighter futures. We'll see you next time. Beautiful. [00:48:31] Speaker B: You are a natural. [00:48:32] Speaker A: Thanks.