Venture With Joe and Cody
Venture with Joe and Cody is a captivating journey into the lives and stories of business leaders, entrepreneurs, and pivotal community figures, revealing the essence of success through candid conversations. Tune in to discover the setbacks, triumphs, and invaluable lessons learned on the path to making a mark in the business world and beyond.
Venture With Joe and Cody
First Steps to Homeownership: What You Need to Know Before House Hunting
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Buying a home can feel overwhelming, especially when faced with the mortgage pre-approval process. Many prospective buyers delay this crucial first step, relying instead on Zillow calculators or avoiding lender conversations altogether. Why? Fear of commitment, anxiety about sharing financial information, and misconceptions about what the process actually entails.
In this candid conversation, Joe Skipper and mortgage expert Cody Wilhelm pull back the curtain on the pre-approval process, revealing it's much simpler than most people imagine. Taking as little as 30 minutes with organized documentation, getting pre-approved gives you a clear picture of your actual buying power while opening doors to specialized programs that could save you thousands.
"The number one misconception we hear is that you need 20% down to buy a house," explains Cody. "That's simply not true anymore." The duo breaks down several other myths, including the surprising fact that you're considered a "first-time homebuyer" if you haven't owned a home in just three years.
What makes this market unique for buyers? Sellers are more willing than ever to offer closing cost credits that can effectively buy down your interest rate. Without proper pre-approval and communication between your realtor and lender, you might miss these opportunities completely.
Whether you're ready to buy now or just exploring possibilities for next year, this episode provides the confidence and clarity to take that crucial first step. Don't let fear or misinformation keep you from homeownership – get pre-approved and discover what's truly possible for your future.
Welcome Back to Venture
Speaker 1Hey guys , we're back with another episode of Venture with Joe and Cody . I'm with my sidekick , cody Wilhelm , with Residential Mortgage and with me Joe Skipper EXP .
Speaker 2Realty .
Speaker 1Owner of Skipper Realty Group Sounds so much cooler .
Speaker 2Ceo of Skipper Realty .
Speaker 1Group . Yeah , hey , man , it's been a little bit since we've done a podcast . We need to get back consistent with this . Summers are terrible for us , great for us , but terrible because we have family . Not terrible because we have family , but you know what I mean ?
Speaker 2It's just they're amazing and terrible coordinating .
Speaker 1It's . I'm not using the worst words for all of this , no , it's just a busy time for both of us and not only work , but we have family stuff and so hopefully we get kind of back into the groove in this fall . Once kids are , kids are back in school they're doing their things .
Speaker 2Yes , anyways , yes , somewhere in the Pacific Northwest , you have to take advantage of it .
Speaker 1My , my , yeah , and you and I have multiple times been like hey , I'm on vacation , but let's do a podcast . When we're on vacation and we're like nevermind . Like , like , we're not , ooh , this is not a great , not good for me , like on the lake . Yeah , I guess we can try it . Yeah , so , yeah , so we're not that . Uh , unfortunately we're not that dedicated , but we should . Yeah , I don't want to say we should be it was .
Speaker 2It was a good summer . We want to be . The want is there , it's just the it's there , you know .
Speaker 1But hey , that just makes the the . What is it ? Absence makes the heart grow fonder .
Speaker 2And I feel it 100% .
Speaker 1We are going to put out the content that's going to blow your mind when we do get on here . And so , yeah , today we wanted , I wanted to talk real quickly with you . I don't know if it's going to be a long one or a short podcast , but we get a lot , I get a lot . You probably don't get as much , but I get a ton of like I say , hey , you got to get pre-approved for a loan . That's the first step on doing anything in a buying process . You have to talk to a lender .
Speaker 1Yeah , 99% of people have gone on Zillow and said how much can I afford ? And typed in generic numbers and Zillow pops out this amazing number that they're like , boom , baby , yeah , I can do this Right . And then they end up talking to a lender and get the real thing , but they're so hesitant to talk to a lender . So I wanted to go over today and I think it's because of it's a fear of multiple things , but a fear of one , telling some random person all your information you know and you don't know them and don't know what to do . And two , I think it's like a , it's a , it's a , it's a feeling of a lot of commitment . I think they feel like if I talk
Why People Avoid Pre-Approvals
Speaker 1to a lender that's like now I have to buy a house , now I have to , like I have to , I'm just thinking about it , I just want to see what I can afford . I talking to a lender is like a nightmare because I don't know if I'm going to buy a house , and so I just want to ease any tension with people over this podcast . One of how simple it is to do it , how uncommitted you are . You are committed as a lender to help them , but how uncommitted you are to say , look , you're not signing your name in blood , it's , you know , here's what it is , here's the process . And then just any advice you have for people for the pre-approval process Cause I think that we have talked about on our live streams and different recordings before .
Speaker 1But , as a buyer , if you can't afford a house right now , this is your primary time to look and to buy . Lenders are offering their own little quirks and perks . Sellers are offering closing cost credits to buy down your rate to get it a more normal rate , or a more normal in your head rate versus the 7% . Yeah , it's just a good time to buy down your rate to get it a more normal rate or a more normal in your head rate versus the 7% . Yeah , it's just a good time to buy . Sellers are more willing than ever to work with buyers .
Speaker 1So , if you are thinking about it , if you're concerned about the pre-approval process , cody's here to demystify some of the things that we have heard or what you think is going to happen . So let's go over basically , how much is the commitment ? So the number one thing is like man , I'm just looking , I don't want to bother Cody , I don't want to bother anyone , I'm just looking . I just Zillow said I could afford $500,000 . You know , I just don't want to bother him . How did what's it like ? Like , how simple is the process for you as a lender and as the buyer coming to you ?
Speaker 2Well , in my head it's very , very simple , and that's because it is , and it's a normal thing for me , because it's what I do all the time . I think from a from a buyer's perspective , it feels overwhelming because you're like I mean the amount of times I hear people say that they need to have two years worth of pay stubs and 20 percent down , and I have to be at my job for this long , like there's a lot of misconceptions out there . So I think , going into it , some people are like I don't even know that we have everything . But the reality is , most of the time we can get you a pre-approval number . It might not be the number that you're looking for or hoping for , but it's very rare that it's a situation of you don't qualify for anything , and usually the only time that that would happen is if your credit score was really , really low and it just doesn't fit the box
The Simple Pre-Approval Process
Speaker 2for any . There's just no option for it . Outside of that , you're gonna qualify for something . But I always tell people too like you can do a pre-qual , which is just more of a verbal like tell me how much you make , tell me what your credit scores are , what you think they are , tell me these couple things and I can tell you , based on that , here's approximately what you would qualify for and what a payment would look like . So sometimes it's just even a matter of like having the conversation . It doesn't have to be a formal application . I mean , I prefer to do the formal application because a lot of times if , if the numbers do line up with what you're looking for and you really are wanting to buy , then you need to go through that process . We had all this conversation , we already went over all this stuff . Now I need you to put it on paper and follow it up with documents . So sometimes it can be a little bit repetitive .
Speaker 2If the numbers are , if they're like oh wow , we're in better shape than we thought , let's do this , then we're just taking that formal step . But as far as a commitment goes , there's no commitment that you are making to work with me . Obviously , that's my hope , that's all of our hope is that we continue to work . But there's no commitment . You're not signing some type of agreement that says I will use you and I'm locking into something with you . Use you and and I'm locking into something with you . Really , the only time that you're signing , that is when you are signing your final papers at closing , and once it's recorded then it's official . But up until that point there's really no . You know , like you guys have a buyer's agent agreement or like a listing agreement . There there is no . There's no formal agreement for the lending side , so it's it's . You're really not locked into anything .
Speaker 2So the process itself is actually really simple for doing a formal pre-approval . It's going to be . We need to be able to run credit , so we need to see what your credit scores are and what your debts are . We need to be able to view your income for the last month , so we get 30 days worth of pay stubs so we can see what your you know that your last month is consistent . And then we view your last two years , u2s . So we're just checking , making sure that we have income history from two years and that there's not this drastic decline from two years ago to now . We're seeing what your current income is to make sure that everything still lines up . We're checking your credit and we're looking at your debts and then from there it's all just kind of funnels together and it starts . The puzzle pieces kind of start to come together , um , and it seems overwhelming , I think , because you're getting a lot of documents and it's like you know , we got to get bank statements and we got to get pay stubs and there's so much it feels overwhelming .
Speaker 2but it's kind of like anything else If you just write it out on a list and you look at it and you go , all right , well , this isn't . This isn't as overwhelming as I thought . I need to fill out an application , I need to get a few documents .
Speaker 1Yeah , log into your bank , log into your tax stuff . Exactly , pull it and that's it .
Speaker 2Yeah , so it 30 minutes right , Like if there's no variation to the income , if it's like you got pay stubs , you got everything , pull credit , there's no issues , there's no changing of anything . I mean , pulling a credit report is going to take you a couple minutes . Reviewing income , especially if they're salaried and there's no variation , like it , can be a very , very quick process If you're self-employed , if there's business returns , if there's , you know each layer that goes on can add a little bit more to it , but in general it's really not a big overwhelming process .
Speaker 2And I always encourage people to do it , even if they're like we're a year away from even thinking that we want to do it . I'm like , hey , if you , if you can and you feel comfortable doing it now , I would do it now , because last thing you want to see happen is they wait for a year and they fill out the application to get pre-approved and then they find out that their credit's not where they thought it was , or their income that they thought was really good and stable isn't actually , or who knows what it might be .
Speaker 2You need something to fix .
Speaker 1It's super easy but it might take some time , like a credit score . You know , maybe get your credit score up over the next year or something like that That'll change your approval to this or your monthly payments to this and things like that .
Speaker 1So , yeah , it is a good idea to do it and I think that you know what people you know maybe are not able to understand or don't understand in the first place is like a pre-approval is a true representation from a lender . A lender puts their name
Pre-Qual vs Pre-Approval Explained
Speaker 1on a piece of paper saying you know , pending anything crazy , we're good at this amount of money to loan . We think we're pretty confident that you're going to be a good buyer for this amount of money and that when you're purchasing a home is now standard . It used to be like , oh , that's like a big perk to say you're pre-approved or you're you know , now it's standard . So , whether you like getting pre-approved or not to write an offer , there is no other option but attaching a pre-approval letter to the , to the offer . And so Zillow . You cannot attach a Zillow report saying that you , you know this is the income you make .
Speaker 1And this is . You know , this is my credit score . According to me , no one cares , and so it's Zillow and I'm not knocking Zillow . Zillow is a good way to start in general , just to kind of be like okay , this is my , this is . These are all my little inputs and see what ? See what Zillow pops out . But the only true way to do it is to go through a lender and the only the only offer that's going to be accepted as one that's pre-approved through a lender . So how long is it ? So how long from application to you know , say , say , I still need to log into my bank , get my bank statements , get my tax stuff . How long do you say it generally takes to get pre-approved or to get the documents into you to get pre-approved ?
Speaker 2If somebody is organized , which I'd say half the time . People are organized , they're usually getting , because when they fill out the application I will usually send them a list of what they need to get . But when they fill out the application our system notifies them . It kind of has its own little checklist for them so they can upload through there . So a lot of times people will upload , I would say , half , if not more , of the documents that are needed , and then it's usually I'll get everything worked up and follow up with them and show , hey , here's still a couple of things that we need , and then that'll come .
Speaker 2Some people are not really organized and so it ends up being maybe a week's worth of time of I got to find my taxes , or my W-2s are somewhere , or you know bank statements , I don't know , you know . It kind of varies , but most of what we need , aside from taxes , which we don't usually need taxes if you're self-employed or if you have rental income , then we'll get taxes , but if you're just a W-2 employee , that you don't really have anything , our tax , our need for taxes is is zero for most people . So most of what we need is stuff that you have access to just through the internet . So most of the time it doesn't take very long . It's just is it on people's radar enough to want to do it ? Yeah , cause it ends up being a follow-up of a couple of different times . Hey , you know , when you get that , when you get a few minutes , can you make sure you pull your pay stubs and send those over , because I can work up a pre-approval with no documents .
Speaker 2But I can't feel good about issuing a pre-approval without verifying the pay and verifying that they do have the money and everything . So it to me it doesn't slow down the process of of doing what I need to do , but it does slow down the process of me being able to say to you , as the person who's helping them find the house , like hey Joe , I've I've ran through these doc , I've ran through this , but I don't have anything to support this yet . So , from what I see , everything looks great . But until I can like physically see it and and from a buyer's standpoint too , to kind of go back to what you were talking about with the whole Zillow thing , I don't see a reason why , other than just kind of being intimidated by it , why you wouldn't want to get an official pre-approval , if you really are shopping and or even if you're not , even if you just want to find out . Because I feel like there's just as much value in the people that cannot qualify for what they're looking for right now to be able to go through that process and understand where they're off , what they need to do and what that timeline might look like . Because I think that there's a there's a fear around I'm probably not going to get qualified , so I don't want to hear that answer . I'd almost just rather like pretend like I don't know and eventually , when I get there , I'll try it out .
Speaker 2But for me I mean that's what happened to my wife and I . I remember the first time we started trying to look at a house . I want to say it was 2000 . It was like 2011 , 2012 , maybe , and my credit was terrible because I didn't know anything . I hadn't been in the industry , I didn't know any , I didn't know what credit really did . And we found a house that we were just kind of casually looking at and reached out to a lender and he's like your credit is not where it needs to be , so you need to work on this . And it's like , as much as it sucks to hear that because you're emotionally like wow , we might actually be able to buy this .
Speaker 2It's such a big thing because it quickly puts it off your radar . And now it's like , okay , I need to really actually focus on these things , because there's nothing worse than falling in love with a home and finding out that you can't buy it .
Speaker 1No , for sure man , why didn't ?
Speaker 2I do this why ? What was the reason why we didn't do this a year or two ago ? To put ourselves in ?
Speaker 1a good place to do it . Now we have to wait , and so , yeah , yeah , and there's , and I get it . It's an insecurity that you're you're telling a person that you either don't know , or you maybe even worse , that when you do know , like here's my here's . Here's my financial life laid out in front of you . You know it's a very vulnerable spot . Yeah , but rest assured Cody's seen it all and done it all . And most lenders have seen it all and done it all and been like it's fine , Like no one is .
Speaker 1no one is judging you for what you know . Whatever comes up on that thing , we've all been there and all had our issues and maybe still have issues . So the I don't know if it's a thing now , but this is more personal and maybe not personal . But a personal question is pre-qualification versus pre-approval . Most people think they're hand in hand . Lenders are like no , like don't think of it that way . And Christina old being an old lender is always like are they pre-approved or pre-qualified ? I was like it's all the same thing . Okay , stop with your . She's like no , it's not you and your words , is it ? It sounds exactly the same to the average person . Is our pre-qual and pre-approval okay ? First question is are they different ? Second question is is the pre-qual even a thing anymore ?
Speaker 2No , I mean , I guess technically it is , it doesn't carry any weight , I think , for being able to move forward . Because a pre-qual , pre-qualification is essentially me having a conversation with this person that's wanting to buy and they're telling me what their situation is and , based on what they're telling me , I'm telling them what they could , in theory , qualify for , almost like the zillow like kind of just like generic like , hey , this is , these are my debts , these are my incomes .
Speaker 1I think my credit for this and it's cody saying , okay , pre-qual , right , pre-qual of this , yes , but it doesn't mean anything .
Speaker 2It doesn't mean anything . No . A pre-approval , though , means that I , as the loan officer , have actually viewed everything . We've looked at credit , we've gone through your income , we've ran it through the automated underwriting system . Everything's been verified . So , essentially , at that point , all that needs to happen is we need to get a property to approve and just have an underwriter verify the documents . That I've gone through and done so . It's like you're three quarters of the way there , whereas a pre-qual and I will say to some people with a pre-qual they're salaried , they know what their credit is like a pre-qual can can essentially , yeah , can be the same , it's just not official like I couldn't tell them hey you're good to go .
Speaker 2I'd say everything looks great , but I do have to get these things in order to actually give you a letter .
Speaker 1So you don't issue pre-qual letters , you only have pre-approval .
Speaker 2And that's probably standard .
Speaker 1I think , yeah , I think in the real estate world maybe the lending world it doesn't happen . But I feel like the real estate world , the prequal and preapproval is the same thing , like they're intertwined . And when people talk about it in the in the real estate side of things , are you prequalified and they're like yeah , I'm prequalified and it's like that to me is like you're preapproved , you know ? Yes , is that similar ?
Speaker 2Or do you guys delineate still Like we do just because there's , because there is , I think maybe more of a meaning to it from our side . But I can , I can totally see from the outside of the lending perspective . Like pre-qualified , pre-approved , it's all what is the difference ?
Speaker 1It's essentially the same thing . We're thinking of the same thing . Like when I say pre-qualified , I'm thinking you have a letter which to get a letter from a lender . It's a pre-approval , but yeah . But when I'm talking pre-qualified , I'm not thinking you just had a casual conversation with a lender .
Speaker 2It's like you need to get pre-qualified , or you know , yes , and I take it as the same thing as well , like if somebody else is talking to me about it like , hey , what do I need to do to get pre-qualified ?
Speaker 1I'm just assuming that everybody is meaning pre-approved , pre-approved yeah , because it is to the average person that's . It's just getting semantic , it's like it doesn't mean anything .
Speaker 2So I totally get that and I don't think that realistically , like pre-qualified in our business is really such a we essentially pre-qualify everybody , like the first time we have conversations with them or at least get an idea of what that would look like . So I think for most lenders it's really not even much of a thing because it doesn't carry any weight and it's like again it's . It's a nice , useful thing to be able to have for people that are really they do not want to commit .
Speaker 2Maybe they know that they're in good shape or they're just not ready yet , but they wanted to at least have the first conversation . So I think , I think the pre-qual thing is really more of just like a there's a word for it .
Speaker 1Well , it's leading on that , and tell me if I'm wrong . Here is another benefit . A huge benefit to a pre-approval from you guys is that is when you can start getting into the nitty gritty of what you not only what you can afford but hey , we have these programs because you are this or because you are that . So this is when . So people are like 20% down the traditional . You know that 20% down , this is what I have to have in savings , blah , blah , blah , blah , blah . This is where Cody or a lender can basically see your stuff , pre-approve you for this and then start playing around with different programs and or down payments and or rates and all sorts of stuff . So go into that of kind of what the pre-approval opens up to the buyer once they're pre-approved .
Speaker 2Yeah , it really does , because now we know the specifics on what your credit scores are , what your debt to income is , what your official income is , because there are programs that are income based . So if you make more than whatever the requirement is , you might not qualify for that program or , you know , credit score not so much . Credit scores do kind of open up different opportunities , but it really does give us the full picture of being able to see you actually make less money than what you thought you did , which actually works out great , because now it does allow you to be able to use this grant program or this option that we didn't think was a possibility . And
First-Time Homebuyer Programs
Speaker 2also there are there are different pricing adjustments that are made within , like in your rate based on income . So if you do have a lower to moderate income and I'm not talking like low , like minimum wage income , but there are income benefits within the rates , they call them loan level pricing adjustments , within the rates . They call them loan level pricing adjustments .
Speaker 2And so if you make under a certain percentage of the area median income , you can actually get a discount on your interest rate . So those things do factor into , because that might be the difference between you know that's that's going to to change at that time anyways . So but it's nice to be able to see that because that might mean you get a quarter percent better on your interest rate and now your payment differences , and maybe that's the difference between being able to bump up from from three , 50 to to 400 , you know and it's like changes your whole parameters of what you're shopping for . So it does open up a lot and I think it's just just like anything . I mean you're you're buying the biggest thing you're ever likely going to finance . It's nice to plan it out and understand and really know , rather than kind of going well , let's hope , let's hope we are where we need to be Like I'd rather have that Cool .
Speaker 2So you're telling me that I can go put an offer in a house and I don't have anything to worry about , like I've done everything that I can do . Great , that's going to make me feel good about it , rather than a boy . I sure hope the financing goes through on this , because if we're doing our job right there , there shouldn't be any issues right , some stuff's out of our control with property , or if they just quit their job or something out of our control of what we verified , but if nothing else changes , then there's no reason why that loan shouldn't close and it shouldn't go just as planned .
Speaker 1Okay , I'm going to ask it . Even as I'm going to say it , I feel like an idiot . Do it , because it's not a there's no stupid questions , hear me out here .
Speaker 1Cause it's it . You know everyone's gonna be like you're an idiot . That's the dumbest . Anyways , first-time homebuyer programs those are generally the what , the 3% down , the 5% down , those low down payments . I'm thinking of a couple of clients in particular . Does that , for lack of a better term , does that ever reset ? Is it a first-time homebuyer ? You're one're one time home buyer and then you're done . Do you never get to use that again ? Or is it something that say , you know , especially young kids that are like I bought this crappy little place . You know I use the first time home buyer program . Now I'm like is it done ? Like , is it you know now that you've used it , is it done ? Or is there an opportunity to get those similar sort of programs five years from then ? You really want to buy the house like your first house .
Speaker 2Yeah Well , to give you credit here , I thought that the question was going to be a lot dumber than that . The way that you were phrasing it . Well , it's like first time home buyer .
Speaker 1You're like yeah , idiot , it's your first home , you don't get a second time home buyer , you know rate .
Speaker 2My answer is going to sound more dumb than your question , because it's actually a really good question , because you would assume that first time home buyer literally means this is the first time .
Speaker 1I've ever bought a home and first and last time you're ever going to use that .
Speaker 2Right , so it's a . It's a very stupid thing in my opinion . I mean , I like it , but it's stupid that it's labeled this way If you haven't owned a home in three years , you're considered a first time home buyer .
Speaker 1Okay .
Speaker 2So you do get that option If you you have to not have owned a home for three years . So you say in your scenario that you were talking about you sell a house . Wait a few years , now you're renting or living with family or whatever it is , and it's been three years , Then you're considered a first time home buyer and any first-time homebuyer benefits that come . You get all of those to you Okay , so there's not .
Speaker 2You know , I feel like there's a , there's a , there's a misconception , maybe that's not the right word . It feels like there should be a lot more incentives for first-time homebuyers and there's just really not . Like even the down payment assistance programs . Most of them don't require you to be a first time homebuyer . They're targeted towards first time homebuyers . Yeah , like a three one of the 3% down conventional options . You do have to be a first time homebuyer . A lot of them just they're not really a requirement , which I feel like to me it . They should have incentives and maybe , maybe the market that we're in , we will start to produce more of those incentives to kind of help spur things .
Speaker 2Because I know , before I got started I'm not sure when it went away , because I got in the business in 2013 and I want to say it kind of went away shortly before that but they were doing tax incentives where , if you were a first-time home buyer and you bought a home in that calendar year , whatever it was , you got like a 10 or 20,000 I don't know what the number was , but it was a home in that calendar year , whatever it was .
Speaker 2You got like a 10 or 20,000 . I don't know what the number was , but it was a decent chunk that you got to use as essentially a write-off on your taxes for that year as a , as a credit which is going to offset what you're being taxed on . So even something like that , I feel like , would kind of help to stimulate things from the first-time homebuyer side of it . But that is a question that I get asked . A lot is like what do you guys have for first time home buyers ? You know , you kind of start to look around at everything and you're like we just have good stuff .
Speaker 2There's . Yeah , it's like I don't want to take away from the feeling of , like a first time home buyer , we have all these things but , at the same time , like you don't have to be a first time home buyer to use 90% of these .
Speaker 1Yeah , yeah , yeah , I think that's the biggest misconception and I think it's actually changing . I'm hearing the 20% down is the biggest thing , like . I don't have 20% down for a house . I don't have 20% down . It's like you don't need 20% down , like it's .
Speaker 2No .
Speaker 1I know that came historically from that history , but yeah , there's just so many programs that offer significantly less . So , yeah , but that's what a pre-approval will do is kind of get you into that realm of saying , okay , here's your scenario , here's your money , this is here's like five different options that we can go to get you the either the payment that you want or the down payment you want , or a combination of both . And , hey , if the seller is willing to contribute X , then we can do this program or we can , you know , get your rate down to here if you're you know so . So there's just a lot of opportunity that opens up . So that's why the lender and the agent are so intertwined and being good with the relationship between the lender and the agent is so important , because things can get missed if you , if there is no relationship with that and no one talks , the agent doesn't talk to the lender because they don't know each other , and then you get into a deal .
Speaker 1You could have gotten closing cost credit to buy down a rate the lender didn't know . You know , it's just like it's just . It gets super complicated for the average buyer . But I think we've talked about this before is it doesn't have to be Cody and I . It should be Cody and I , but it doesn't have to be . It's just make sure that this complicated process and you don't get you don't miss out on something that could save you thousands . And I think people do it a lot and probably people don't even notice . They're like , yeah , my monthly payments was fine , like , but you didn't realize that you could have kept more money in your pocket at the end of the deal . Or you didn't realize that some of those seller could have paid down your rate from a two one buy down or some some sort of thing . That because there was no communication between the agents and the lender , because they don't know each other , or because you didn't know anything , then I don't know . Just my two cents , just my two cents .
Speaker 2No , I , I , I'm with you . I think there there should always be a good amount of communication back and forth of of good understanding between the lender and the agent of what's what's preferred here , what can work , what can't work . Do they have , do they have enough money to be able to do this , to do the down payment and the closing costs ? Do you need to ask for these things Like , what conversations have you had with them ?
Speaker 2What conversations have I had with them ? Because usually the collection of of that , those two conversations , usually for one , it gets everybody on the same page , but it also can open up more doors of hey , here's kind of what I'm thinking . Or here's something that they were really you know , they were hesitant on this . Maybe when we're
Staying With Your Lender
Speaker 2looking at at properties , can we , can we see you know where the flexibility is with this ? Or hey , they can't do closing costs , they can do their down payment , but we're going to have to get the seller to pay those For sure . Obviously , those conversations are much more meaningful beforehand than trying to go back and and change things after it's already happened , so for sure .
Speaker 1Or the opposite , like I found , some people I've been saving forever have 20% down and it's like , okay , like let's work , like , yeah , let's work with this , you don't need to use that 20% to the down payment .
Speaker 1You can , you know we can , and this market . You can ask for closing costs so you could come out . You know you could come out significantly better have money for a remodel or have money for whatever you want the sports car at the end of the deal . That you didn't think that you could have , you know . So it's just really important , really important to get a pre-approval and talk things over with the lender . There is no commitment . I have a caveat . I would say from the agent side yes , you don't sign , you don't close with that lender until close . However , if you switch lenders mid-transaction , it does cause a little bit of issue . The seller has to agree to it . You know there's a lot more complication on the real estate transaction side . That's not Cody's fault , that's the transaction side's fault . So there is no commitment . I get that . It's just like we . We should have it figured out before an offer is made . Yes , I Though you can , though you can switch mid mid sale to a to a new lender .
Speaker 1It's just it adds a potentially timeline issue . A new pre-approval seller has to agree to it , so there's just all sorts of things that can go south .
Speaker 2Yeah , if you're uncertain on the lender that you have chosen , for whatever reason that is , find that other lender before you make an offer Because yeah , I agree it makes things messier . And I will say from the side of the lender , who is being left to doing all that work , putting all that time in to get everything squared away and put together , and then have them leave right at the end . For sure , it's a little heartbreaking . Yeah , so cause you know , we want everybody to to for sure .
Speaker 1Well , it messes with the deal , and I'm not saying , don't do it . There's times I think I've had maybe one maybe , but it didn't go from lender to lender , it went from like lender to cash or something like that .
Speaker 2You know yeah .
Speaker 1It can happen and there's no pressure , but it does it will . It potentially could . So talk it over with your agent . Yeah , hey , this is why I don't want this lender . And then maybe you can rectify some things or do different things and that lender can help make things work .
Speaker 2So Right , make things work . So right , yeah , Not the end of the world becomes real for people and it's them not understanding like , oh yeah , because it's it's happened right . Like hey , we finally got under contract . Now let's start talking to like , now let's figure out what best deal we can get on our mortgage , yeah , and it's like , well , I know the best time to do that was actually before you got under contract , but I get it though , and the culprits is your buddy yes , it's always like my buddy .
Speaker 1Yeah , my buddy has a friend that got me this deal and he got a house for this much money . Or it's the wife's dad , like the wife's dad ruins it in inspection , that is for sure , if he shows up in inspection it's like dang it .
Speaker 2Like they're not buying this house .
Speaker 1It's the buddy . Inspection . It's like dang it , it's the buddy . It's always the buddy . My buddy did this , my buddy did that . It's like where is your buddy ? I need to talk to him . They always are the ones that come out of the blue .
Speaker 2Let's look at this paperwork . My buddy got a 1% rate , a 1% interest rate .
Speaker 1He's living in a multimillion dollar home . He got a 1% interest rate . It's like your buddy is imaginary . Yes , exactly . Anyways , well , that's helpful man . That was a good uh good lesson in the pre-approval . I would say , um , where would people go if they wanted to get a to to start the pre-approval process with you Not to put you on the spot of what your website is , but I'm sure you know it .
Speaker 2Yeah , I do actually . Uh , it is very easy . It's Cody Wilhelm loanscom .
Speaker 1And that's where they'll start the actual pre-approval process .
Speaker 2Yep , so that'll take you to my website , which has the application on there calculators , bunch of information . But the application to get started is on there and , for any of those that are not computer savvy , we can do them over the phone , we can do them in person , so it doesn't have to just be done online , but that's , that's where the majority of them come in from . But yep , cody Wilhelm loanscom , Cool .
Speaker 1Okay , man , it was good talking to you .
Speaker 2Uh , let's do as well .
Speaker 1Let's get some more venture out for the people . Let's do . It Sounds good , okay , and if you are still paying attention , like and subscribe to um , our podcast , so that we can keep putting out this , this content , for you guys . Absolutely Okay .
