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
How To Use A Home Inspection To Negotiate Smarter
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A home inspection can feel like a punch in the gut: the report is long, the list is scary, and suddenly you’re wondering if you’re buying a house or buying problems. We talk through how to handle that moment with a clear plan, especially during the inspection contingency window where buyers often have the strongest leverage and the cleanest way to keep earnest money if the deal no longer makes sense.
We get practical about negotiation strategy after the inspection report comes back. Should you ask for repairs, a purchase price reduction, or a seller credit toward closing costs? We explain why dropping the price often barely moves the monthly payment, while closing cost credits can keep thousands of dollars in your bank account for moving, furniture, and immediate upgrades. From the lending side, we also cover how seller concessions can be used, including options like temporary or permanent rate buydowns, and what you can do if there’s credit left over.
We also share a simple but critical warning: don’t email the inspection report to your lender. Lenders typically do not need it, and once it’s in the file it can create avoidable complications. Finally, we clear up a common VA loan misconception. Even with a VA loan’s big benefits, VA buyers still have normal closing costs, and the VA funding fee may apply unless it’s waived.
Subscribe to Venture with Joe and Cody, share this with a friend buying a home, and leave a five-star review if it helped. What part of the inspection process do you want us to break down next?
Hello, hello. We are back for another episode of Venture with Joe and Cody. I am Joe. That's Cody. I'm with EXP. He's with Residential Mortgage. I'm in Oregon. He's in Washington. That was good.
SPEAKER_01It's like that was great. We're like opposites, yet we we pair well together. Yeah.
SPEAKER_00It's like wine, wine and cheese. Yeah. Speaking of speaking of wine and cheese, I kind of want to get a membership to uh is it Willamette States? Anyways. Um we had a thing the other day with friends. It was really good. Uh we basically he's got a salamier, some what's what's the Somalier, Somala, some whatever it is. The person that's like really good at wine.
SPEAKER_01Somalier, I think.
SPEAKER_00Yeah. Yeah. Anyways, a friend of his, he's like,
Wine Tasting For Normal People
SPEAKER_00you guys should try wines and just kind of like document what you you know, try to get good at it. Like in the sense of just like it'd be fun, just talk about what because everyone's preference difference, everyone's and Christine and I are not like classy wine drinkers. Same here. So I wouldn't know the difference. Everyone's like okie or walnut or you know, whatever. I have no idea. So, anyways, we had a night.
SPEAKER_01Just fill it up.
SPEAKER_00Yeah, we had a night that uh we tried four two French wines and two Italian wines, and we had to like document, like we went through it was almost like a game of like not a game, but we wrote down like what is this like? Like, is it light? Is it clear? Is it you know, like different things? And it was actually pretty cool. Like you did start to like and you no one was wrong, so it's like you heard what people were thinking, and then you're like, oh yeah. And then so, anyways, long story short, it was uh it was a good time, it was really fun. I feel like we did you do learn stuff, and I think I can see why winos like start to be able to deter determine flavors, you know, based on if you really think about it, like uh and and we had the chance to jot things down and talk about it. It was very nerdy, but it was uh it was very cool. But I want to uh yeah, probably kind of cool though. Yeah, it was fun. And uh we went um and then you just drank the bottles anyway, like after you did the after the bigger okay, I don't care now. Can't leave them open. So like they're gonna go bad in a matter of an hour. Yeah, exactly. Exactly. Um but Willamette, I think it's Willamette Estates. Uh there's they have a ton of locations. Um one in like us, we go that we have been Christina and I have been dying to be a part of this, and it's not anything like uh you anyone can do it, but we have every single time tried to go there, they are closed. And it's not like we've gone it always, and it's not that they're closed all the time. It's the fact that like I think that every time we think of going, it's like a Tuesday, and they're like, that's the day we close. The one day we're not open. Yeah, so we're hoping that we can get to uh get to there and become of that of that finesse.
SPEAKER_01So they have like uh like tasting rooms, and then you get like tasting rooms all over, and that's what we like, especially for clients.
SPEAKER_00And this is kind of a pitch to clients. If you even if you don't like Christine and I, you can even like wine, um, we can take our clients, we can take our clients to to there's one in like Oswego, there's one in Salem. It's the one in Salem, I think it's the one in Salem right off I5, the one you see like by Enchanted Forest.
SPEAKER_01Oh, yeah, yeah.
SPEAKER_00Um, and then they have uh Dundee or Dayton, you know, like they have like multiple locations. Yeah. Just make it super convenient to say, oh, we can meet here for dinner or lunch, or we'll take you there, Cody. Yeah, let's go. We'll take you. I like it. Let's go. We'll see see your wine tasting skills. It's they're they're very top-notch. If you're anything like me, you're like reaching under the table with the boxed wine and kind of pouring the box away.
SPEAKER_01Yes, we did that. Um because we've gone down to Dundee. I don't remember what the place is. We've gone to this uh a few different places down there, and and we had talked about it, but it was like, man, by the time we actually get those whatever you know, couple bottles a month or whatever it is that you're like once a quarter getting, like we just kind of go on a kick every once in a while. Where I do I do enjoy wine, but I don't really like it's not my go-to thing if I want to have something. Um but one time we were in, we're we took a little vacation to Eagle Crest, and we're like, let's get a couple different bottles, let's get a couple nice bottles and let's get a couple cheap bottles, and we can do our kind of kind of like what you did, right? Yeah, a little comparison. And I I it wasn't that the cheap wine was better, it was just the difference in flavor between a $8 bottle and a $40 bottle, which I know there's way more expensive bottles than that, but like just kind of like a I'm like, I would take the cheap wine over that any day because it tastes similar enough to me. I'm not a wine drinker, yeah. That is so worth it. It's just it's I guess probably like anything. The more you do it, the more you realize, like, oh, I don't really like that flavor as much. This one's smoother, it's got these different flavors. But from somebody that drinks you know, wine at a wedding or a random thing where there's wine, and I'm like, okay, sure, I'll try that. It's wine is wine, kind of like But I'm that way with it, even with beer. Like, I like certain beers, but I'm still like I'll take whatever you have.
SPEAKER_00Yeah. I'm like, you I just you can't take the country out of us, you know. I like I like Miller light, you know. Yeah, like I don't need anything fancy. No, I don't need anything fancy. But it's like if you just give me a keystone light, I'll be like, okay.
SPEAKER_01Like that's as long as it's just you know lukewarm, then I'm good. I'll take it.
SPEAKER_00Yeah, I don't want it cold. That's I don't want that's for sure. And as long as I can just shotgun it.
SPEAKER_01Right, yes, that's the problem. It gets too cold, you can't chug it.
SPEAKER_00Get to brain freeze, no one wants that. Uh yeah, I'm kind of the same. I feel like an idiot, but it's like it it I'm the same. It's like my palette is so cheap that I don't need anything fancy. But it was intriguing to kind of get into a nicer wine and yeah, that's kind of cool. Yeah, and it'll be good. So um it'll be fun. We give you know, we give clients like gifts and stuff for closings, and we put wine in it most of the time. So that'll be a good resource to have. Good write-off, you know. It's all free once you write it off, right? That's right. Yeah, it's fake money.
SPEAKER_01Yeah, everything's well. The nice thing with that though, too, like that one, is you have multiple locations as opposed to just only one spot. So you can yeah.
SPEAKER_00Is you can go like in in some places are only Dundee and things like that. It's like we want a place that we can take people, especially like us, we go being close to us, that we can take people to dinner, take people to lunch, you know, those sort of things that are nearby. So got the most resources, best bang for our buck.
SPEAKER_01So yeah, there's a tasting room up here in in the waterfront. Um, you know, they've done a lot of stuff in the waterfront in Vancouver over the last yeah few years. And there's uh okay, Merry Hill, I think is is sounds really familiar. The tasting room in there, and it's a pretty cool spot. Like it's a it ha it's more of like a restaurant type feel as far as size and and the tables and everything, but it's just like one big tasting room, and they've got hundreds and hundreds of different wines there, and it's pretty cool. Like it it makes you when you go to something like that, you're like, Oh, this would be kind of cool. Like I could see us doing this as a you know, fun little date night thing. It's just it's a different environment. It's I don't know, yeah. So I could see it being a cool thing.
SPEAKER_00We went years ago to well, I've been there uh more recently, but we went years ago for a friend's birthday party, and it was it was a night, and it was just such a hit place, and I was like, I this is not it. I loved it, but it was
Finding Tasting Rooms For Clients
SPEAKER_00like man, it was good to get back in the scene in a sense, because you're like, wow, okay, people still do go and do fun things and like kids all dressed up and like you know, you can just tell they're like excited about life, and um and so it was just so funny being there and seeing like, man, we were there, like we were there ones, like exactly all dressed, like they all have their fancy stuff on, they're all like so motivated and happy. Uh-huh. Not that I'm not, but it just was it's just an interesting, you know, going back a time period or to a place that has it goes back in generations that you can kind of see uh totally with yourself back then. It was just really interesting. But they have really cool hip places there um that are a lot of fun. The waterfront Vancouver's done a good job with that.
SPEAKER_01Yeah, now you just show up in flip-flops and shorts and uh and whatever you're like.
SPEAKER_00It always bugged me with the when I was with the gov. Um the they always we went to events that were like you know formal. It would say invitation formal or whatever it might have been or semi-formal, whatever. And it's like Oregon. And she uh she even joked, she was like, it's Oregon formal, which basically means anything. Like and like and I was like, that is not okay. Like people have these big events and they have these big fundraisers and they're like, hey, this is your your attire, and then we'll have an Oregonian, you know, senator or politician or lobbyist, like wearing, you know, a sports coat and jeans and ratty tennis shoes or whatever. I'm like, really? Like, come on, yeah, this is a formal event. We're all in like suits, ties, everything. Yeah, yeah. As as the hired help, you know, as the hired media to protect the governor, we're dressed up better than them. So yeah, yeah, it's so interesting
Getting Older In The Nightlife
SPEAKER_00in Oregon. Like, if you went, my brother's in DC, and it's like when it says a formal or not, you're dressing like that. Like DC is like a different game of politics, and they're they dress up for sure. It's pretty cool. I don't know how you got into dress up for politics, but right.
SPEAKER_01Um side note, I uh so went down to my dad's for the fourth of July and got to see some family and everything, and I was talking to my cousin, and um he was saying that he works with with Kevin. Oh really?
SPEAKER_00Your brother, yeah, yeah, McMinnville Water and Light.
SPEAKER_01Yeah.
SPEAKER_00Nice. Yeah, uh, you know uh Ryan's hired there too.
SPEAKER_01I knew that too, yeah. Yeah, but he's like, Oh hey, I work with with Kevin Skipper, and I was like, Oh, no way. He's like, Yeah, I actually hired him I don't know how long ago, whenever it was, and yeah. It's like he's he's just like taken off and ran with it, and I'm like, oh no way, that's cool. So Yeah, that's cool.
SPEAKER_00Yeah, small world, even though maybe he is gonna be, but we joke that he's gonna be mayor of Carlton at some point, so nice. But he has he's a city council person or whatever you call it.
SPEAKER_01Okay.
SPEAKER_00Nice. Um he'll do it. I bet he'll do it. So uh I was like, I I already am the worst because I'm like, okay, so what do we get out of it? Like, what's the you know, politicians always do something like where's the where's the freebies? Do I get a do I get an armed armed guard at my house? You're you're the mayor of Carlton. Like right. You get a free wine membership. I need a driver and I need a free wine membership. So yeah, hopefully, hopefully your uh mayor mayoral career lasts a long time, but I'm gonna try to take advantage of it. I'm just kidding. I'm not gonna do that, but I just think maybe because he gets super serious about it and he's like, no, never. I would never. I'm like, I'm just kidding, man. It's not a big deal. I'm just literally joking between me and you.
SPEAKER_01Yes. We're not being recorded right now.
SPEAKER_00Yes, I don't think. But we are now.
SPEAKER_01Like we are now, yeah. So it's cats out of the bag.
SPEAKER_00Evidence case number. Like uh, I have nothing to do with uh the Carlton mayor or anything like that, just anyone listening.
SPEAKER_01So nor do I.
SPEAKER_00Um uh well, I wanted to talk today on the real estate world. We've been kind of going into like more or less kind of in a path of the contract of going into a sale and what buyers should be aware of. Last two
Oregon Formal And Politics Culture
SPEAKER_00weeks ago we talked about appraisals. That's kind of why we jumped ahead. Appraisals. Uh last week we talked about the difference between down payments and closing costs and how those and that was, I think, really beneficial. So if you don't know anything about that, go back to that episode because it was really good. Um, I think learning between what a closing cost is and a down payment is is something way overlooked by most buyers and just don't know. And most buyers see it at the end of the closing statement and are like, what, what, what, what's going on here? So um definitely something to check out. But today I was thinking of going in the inspection because inspection is the basically the primary way as a buyer that you can back out of a deal um within the first 10 business days and and grab your earnest money and go. So um
Family Connections And Mayor Jokes
SPEAKER_00the inspection, for those of you who don't know, is a time that you have the ability to inspect a home. You can, depending on the contract and depending on what you asked for, you can do a general home inspection, radon, sewer scope, mold, you know, in inspection, whatever you want to do uh based within the contract that you made in the offer, you have a certain amount of time to do it. Um I think it's an important time to uh to really look at the house and uh get that done. But it also has it may or may not have ramifications with your loan and things like that. I think because Cody's here and it's lending, I won't get into the nitty-gritty of an inspection um the details of it, but more of like kind of post-inspection what
Why The Inspection Period Matters
SPEAKER_00we can do. So um, Cody, you can speak to this, like what it can be used for. But basically, in an inspection, you see XYZ of stuff that needs to be done. You can either ask for money off the top of the home, you can ask for closing cost credit, you can ask for it to be repaired, you can ask for a combination of all three of those. Um and we have talked before about price of home versus closing costs. So kind of tell me what your opinion is on, you know, say, for example, we have an inspection, it's about let's just let's just use a $10,000. Let's go $20,000, $20,000 worth of work that the inspector found needed to be done. Um buyers come to me and say, hey, there's $20,000 of work, what do we do? Um what do you have clients do generally and kind of what your thoughts are on it generally speaking? Obviously, everyone's different, everyone's specific is different, but um what's what's your thoughts on it?
SPEAKER_01Um so usually part of it will depend on if there's already seller concessions like at the beginning of the contract. So we'll say in this case, uh there's no seller concessions. So meaning that the sellers are not paying, they're not agreeing to pay for any of the buyer's closing costs. Um and then you get to the point where the inspection stuff has come up and whatever that number is, call it $20,000. Um, what I would do is I would walk through with the buyers on obviously it's gonna, you know, we can use all $20,000 of that in most cases, right? Like if you're buying a if you're buying a $200,000 home, that can be a little more challenging because the cost for the fees are lower. So $20,000, you might be exceeding
Repair Requests Versus Seller Credits
SPEAKER_01what the limit is, anyways. But call it a a $700,000 house. Um, we can use that to cover all of the closing costs. You can also use it to buy the rate down more. Um, you could do a temporary buy down with it, you could do a permanent buy down with it. We can cover the uh if there's still money left over, you can use it to get reimbursed for your inspection that you already paid the inspector. So you can get that reimbursed. Pretty much anything that is paid through the loan, other than your down payment. You can't use the the seller credit for that to cover any of your down payment. But outside of that, you can have it cover everything. So usually what we'll do is like if if the seller has already agreed to pay closing costs, maybe we'll use whatever's left over to pay the rest of them if there's still something needed, or maybe buy the rate down a little bit more, and then we'll probably just have to use the remaining to reduce the purchase price. Because there's a certain threshold where you're like, I we just don't have we can't really apply it to much else. So let's drop the purchase price. But usually paying for the closing costs makes a much bigger impact than bringing the the price down. Yeah. Call it five thousand dollars. Yeah, I mean you drop the purchase price five thousand dollars, it's gonna change your payment by you know, not much. Five bucks, ten bucks, pretty minimal. Um, but saving five thousand dollars in your bank account and uh and using that towards something else, you know, it would take you years and years and years to recoup, you know, if you're saving ten dollars or fifteen dollars a month based on your lower purchase price, it's gonna take you forever to save up five grand through that. Yeah, for sure. Whereas five grand could be applied towards whatever, you know, moving costs, furniture upgrades, whatever it might be. So usually that's the route that I will walk them through of just kind of the comparison, because it's a pretty straightforward comparison when you show the numbers. Here's how much you're gonna save by reducing the purchase price, here's how much is gonna go in your bank account, you know, by them paying your closing costs and that not coming out of your pocket.
SPEAKER_00So yep. And tell me if I'm wrong, but what I like to do is kind of find work with the lender to say, uh especially in this market, there's a lot of offers being accepted that are already giving closing costs right off the bat. Um and so then when you run into that event of like Cody's like, I can only give you five more thousand in closing cost credit, you know, there's just nowhere else to use it, but you're asking for 10. Um you can, like I said earlier, you can do a combination of both. So we find out, hey, Cody, what's the max we can get? We ask that for a seller, you know, in closing cost credit. And rather than say, okay, well, we have like $3,500 to buy the the the price down, or you know, to just take off the price of the house. It's so minuscule. So what I generally success uh suggest is that we uh have the work done, like pick pick a couple things that equal that $3,500 or or get close to it, um mold remediation or something, you know, in that price range to say, why don't you get that work done? Because dropping that off the price of the house is not gonna it's it's not gonna help you in any way, yeah. In a real way that's gonna matter, and then it also gets a a project fix that you don't have to then do when you move in the house. So totally so there's lots of lots of options to do um with that. So it's not always price, and generally it isn't price unless people are priority, is like, you know, you've had these people of like we're paying off our mortgage, so whatever we can take off the mortgage price, that's what we want. Um and so then you start going to you know ask for a drop in the price. But most people are a combination of a closing cost and repair addendum um to get things done. But yeah. Yeah, and we doesn't go ahead.
SPEAKER_01Oh, I was just gonna say we don't uh as the lender, and this isn't just our company, this is in general, we don't have to get a copy of the inspection. We're not really we don't need to be involved in the inspection. If anything, we as a company don't want anything to do with the inspection because you know, as a loan officer, we can be as much as as somebody wants us to be, but from a paperwork standpoint, from a review of any kind, yeah, we don't want to see it because once we see whatever is going on, it's kind of hard to unsee. And usually with an inspection, I mean you've seen them all the time where it's like you can take a really nice house and an inspector can do a good job of making it feel like holy smokes, is this thing is this thing even livable?
SPEAKER_00Is it gonna is it gonna stay right?
SPEAKER_01Like Yeah,
Why Closing Cost Credits Matter More
SPEAKER_01we're gonna have to bulldoze this thing, but they do a really good job of that. Um but yeah, from our side, we don't have we don't need to get a copy of it, we don't need to be involved um from a hey, what are the things that are required? Because like we talked about last last week, the appraisal is it whatever is required from the appraisal is what we're going to have to call about. Yeah, not the inspection, because the inspection is that's nitpicky little thing.
SPEAKER_00So that's why it's and you know it's important to have someone on uh an agent and a lender on your side and to trust them on that on the inspection portion of things because it can really damage your deal if by accident you took things upon yourself to say, I'm a buyer, I'm gonna go right to Cody and send in the inspection and say, What do you think we should do? Like because once Cody has that, like then it it adds a whole bunch of complications. And it's not like anyone's trying to be shady, it's just yeah, an inspection report is 40 to 60 pages of everything, whether it's new construction or whether it's yeah uh you know a 1920s home that's uh that's run down, it's just that's what it is, and it's just it can really damage your deal to kind of take things into your own hands um and start doing things. So for inspections, especially for inspections, is to trust your agent and trust your lender to kind of navigate that to what we know is a simple process. But yeah, if you make one little mistake, one email that gets sent the wrong way, or one you know, one one thing that happens, like we've all had it where it's like, oh no, it got sent on accident, and some, you know, a buyer sent it on accident, or even a seller's agent sent it on accident. Um and you can get in a lot of trouble with it, you know. Yeah.
SPEAKER_01Yeah. And if you like to do general maintenance to your home, you use that inspection and just, you know, once you bought it, then you're like, okay, I'm gonna just work my way down my checklist here of because a lot of it, I mean, it it is a lot of minor stuff, but it's all good things too, where you're like, oh, I would have never noticed that that thing, that little little thingy is something that could be pointed out, and you know, most of it you probably wouldn't even notice, but I've noticed that like with our stuff, like when looking down through it every once in a while, I'm like, oh, okay, that's right. I forgot that that was on there. Because you just don't see a lot of it throughout your normal living in the home. So yeah. Nice little checklist for you if you're if you're that type of person.
SPEAKER_00I go through inspections all the time and I'm like, I have not looked at that in my house, like, especially like new construction. They're like, he's like, every four months you should check the uh specs on the rotary girder that you know, and I'm like, I have no idea what that is, and I am never checked in my life. Like exactly. He's like, yeah, no clue what it is. Has never been touched. So hopefully it's still good. Oh, I can hear that. Yeah, for sure. One of the things for buyers that they don't under or don't know about generally is there are two costs that are upfront costs. We talked about one of them being the appraisal. Um those are that's an upfront cost that you have to pay right away to get the appraisal done. Um the other one is the inspection. So those are two larger purchases or larger uh investments that you need to make in the very beginning of your home sale that come out to what 2,000 bucks-ish. So yeah, right around there. So if you're thinking that all this stuff is like, oh, it happens during close, it happens during this or whatever, I'm gonna get money in it towards the end of close. It's like those are two things that the inspector gets paid right away and the appraiser gets paid right away. So um just be aware of that. Um, generally speaking, and uh in the latest has been kind of in the eight to a thousand dollar range for a typical home inspection, sewer scope and radon. So just be prepared to spend that money. You had mentioned, Cody, and I I have never heard of this until you mentioned it to me, that that could be reimbursed.
SPEAKER_02Mm-hmm.
SPEAKER_01Yeah, if there's money left, yeah, if there's money left over from the seller, so the seller's paying they're they're paying all your closing costs, and you've used up everything that you can. There's just nothing else that really can be done. Um, because sometimes you can continue to buy the rate down, but there's a bigger spread the farther you go. So yeah, there might be a situation where you, in order to buy the rate down more, it's gonna cost an additional four thousand dollars, and you only have a thousand dollars left of the seller credit. So
Why Lenders Avoid Inspection Reports
SPEAKER_01when we don't have anything else that we can apply that to, what we can do is we can get the seller using that say $1,000 to cover the home inspection that you already paid for. And so the way that that works is we just get a copy of the inspection, we get you know a receipt showing that you you know you paid for it, and then we we get that out to the way that it technically works is the inspector ends up canceling or reimbursing the buyer their their cost for it, and then you guys. And then at closing, okay exactly, at closing, then the there's essentially a new invoice for the inspection, which is then paid for by the seller. So they just get reimbursed, they their their money gets refunded back to them, and then the the inspector gets paid again right at closing. So because anything that you paid towards the transaction out of your pocket prior to closing is something that is considered part of the transaction, which can be um reimbursed by the seller if you have left over. So that can be home warranties as well. Um inspections, radon, earthquake. I mean, you could do whatever it is.
SPEAKER_00That's interesting. I like I don't know how I haven't haven't heard of this. Is this like residential or is this all no?
SPEAKER_01It's it's just a normal loan loan parameter guideline.
SPEAKER_00It's just most of the time on the selling side or the buying side, but I guess most of the time people just get their rate bought bought down to a certain point and you know closing costs covered.
SPEAKER_01So part of the time it like for me, I usually try to overestimate a little bit on what
Upfront Costs And Inspection Reimbursement
SPEAKER_01the closing costs are gonna be because I'd rather have a little bit left over and knowing that we can we can apply it towards something rather than being short. Because it sucks when you have your plan going into it is that the the sellers are gonna cover everything, and then you know, something comes in a little bit more than what you were expecting, and then by the time you're you're at the end, you're like, hey, you still need to bring in an extra thousand dollars for closing costs. So sometimes it's a matter of that where it's like the fees come in, you know, because when we get everything started, we're getting estimates from title, estimates from the appraiser, estimates for all this stuff, right? And so we can usually get pretty close, but there are times where it's like, oh wow, that was we we overestimated on what that was gonna cost, which is a great problem to be in. So then you have, you know, sometimes you don't you have some money left over. Yeah. Um, and again, if you don't have enough to like buy down to the next rate, then you're just kind of stuck with that. And then and then again, home warranty or um covering the cost of the inspection, those are usually the two things. If there's money left over, those are the two things that are that are most used for because you just kind of run out of options after that.
SPEAKER_00Yeah, yeah. And does the seller get that back then? Or just doesn't it doesn't ever come out?
SPEAKER_01Yes. If yeah, so if whatever would be left over afterwards, okay, it's just then it would it would go back to the seller. Okay.
SPEAKER_00Um does the seller have to agree to the paying that you were mentioning something like the seller gets the invoice, or is it just like, hey, seller, we're you're paying for the inspection.
SPEAKER_01Yeah, they don't even know because it's just part of the original agreement that they're paying, call it $15,000. So they as far as they know, $15,000 is being taken from their do whatever from their plate. Yeah, exactly. And so it's use it up as well as you can. And then if it came out to $14,500 and there was just nothing else left, then they'd get back an additional $500,000 or $500. Okay. Um so yeah, they don't get anything, it's all just done through title at closing, um, with the the reimbursement and you know, charging it to the to the seller from their proceeds. Okay.
SPEAKER_00And then uh finally, I just want to ask, or just like kind of say basically to the buyers out there, there's a 10 business day inspection period. Generally speaking, that can always be flexed lower or higher depending on the property, depending on the market, all that sort of stuff. That's the time that you'll be able to be able to walk away and grab your earnest money in the event that you don't like the inspection. So just keep that in mind. Your agent should keep you on track, keep you in the know on that, and uh that's the time that kind of you're heavy into talking to your lender, talking to the agent, talking to the inspector to see kind of where we are at, what we what we need and to make this deal happen and and to make you feel comfortable with the sale. I have a random question before you go on a VA closing cost. We talked about it ye last week, I think generally, maybe not VA. Um you you have benefits being a VA, you know, getting a VA loan, no down payment, you know, no uh mortgage insurance. No mortgage insurance. Uh-huh. Closing costs. I think a misconception with a lot of VA, especially first-time VA home buyers, is that they're just gonna come and say, I want to write a $500,000 offer and I walk up to the closing table and there's no money out of my pocket. Can you explain, you know, kind of generically that that's not the case?
SPEAKER_01Yeah, so VA closing costs, everything, it is going to be treated pretty much like any other loan would be. Um, there was a there was a little
VA Closing Cost Misconceptions
SPEAKER_01misconception a while ago. I don't feel like I hear it as much anymore, but there was a this thought that the seller had to pay all the closing costs. And there are certain fees that the seller would have to pay, but those are not normal fees that happen throughout the transaction. Um in my 13 years, I've never ran into any of those fees that were a seller required fee. I can't remember exactly what it is.
SPEAKER_00Yeah.
SPEAKER_01Um, there's like just a couple fees that they that they would be required to pay. And I don't know if it's a state thing where Oregon and Washington just don't have those certain fees as part of their their you know, transfer fees, title fees, stuff like that. Because I know there are other states that have different types of fees that are required. So maybe it maybe it's more applicable in those states that I don't typically lend in where a seller would have to pay those. But overall, you're still gonna pay your normal um appraisal, title fees, setting up an escrow account.
SPEAKER_00Um lending fees, generally the same amount of closing costs. Um, we talked about the difference of closing costs and down payment um last week. So pay attention to that if you haven't, if you don't know what that is, but yes, you will still pay closing costs as a as a VA buyer. Um you still have that. Yep. And that's you know, and I'll say just generally speaking, again, this is off but twelve to fifteen thousand dollars, right?
SPEAKER_01Yeah. Yep. Yeah, and the only real difference with VA is is there's um there is a funding fee, which is what the VA charges to to use their loan. But um if you do if you have over 10%, 10% or more in disability through the VA, then you that funding fee is waived.
SPEAKER_00Okay.
SPEAKER_01Um, but it also can be financed into the loan. So it's like, you know, it's all the same fees that are normally going to be applied to every other loan. The only real difference is that funding fee. Um, and that's gonna depend on if it's the first time being used, um, if it's you know, subsequent use, and how much you're putting down, if you're putting money down versus not putting money down. So it there are there's like a whole chart to it on what your funding fee would be if you have any at all. But yeah, overall you're still gonna have normal closing costs.
SPEAKER_00Yeah, just so everyone knows, there's always closing costs with everything. So there's right, yeah, that's right. It's like death and taxes. Yes, exactly. Um, okay, my man. Well, that was good. Um if you guys have any questions about inspections, closing costs, loans, everything. Cody and I are here, so reach out to us. Uh wine, yes, soon. Wine, definitely lost wine. Um, but maybe nicer wine in the future. Yes. Um, but yeah, pay attention to Venture with Joe and Cody. If you're a buyer seller in today's market, this is a market that needs a little new, it has a little nuance and needs smart people uh handling it because the the incompetent ones are dying out fast. So they are. Yep. Somehow we're still here. We're still making it. We're hanging off life. Um but yeah, if you haven't already subscribe, like uh our podcast, and uh yeah, give us any feedback if you have it. Five star review. I haven't even asked for a five-star review. We need to ask in the very beginning. That's true. We need a five star review.
Questions And Five Star Review Ask
SPEAKER_00So we do give us a five star review. Cody, give me a five star review, and I'll give ourselves one too. So perfect. Let's do it. Until next week, we may not have a next week. Uh Cody's out of town, but we'll see if we can get a recording done. But um, yeah, hopefully next week we'll see you later, man.
SPEAKER_01Awesome. That sounds like a plan.
SPEAKER_00Okay, bye.
SPEAKER_01All right, we'll see ya.
