Posted

https://www.youtube.com/watch?v=G_iBcB2Zlns&t=228s

 

Dustin Medlin:                  Hey, guys. Dustin Medlin with Keller Williams Diamond Partners. I’m here with Susie Cheatham today with Bay Equity Home Loans.

Dustin Medlin:                  Hi, Susie.

Susie Cheatham:              Hi.

Dustin Medlin:                  Thanks for coming.

Susie Cheatham:              Thank you for having me.

Dustin Medlin:                  You’re welcome.

Dustin Medlin:                  Susie is here, and she’s gonna answer some questions that we may all have about mortgages, and maybe some dos and don’ts during the buying process, as well as some myths, maybe, that you’re believing that are preventing you from getting a mortgage that just simply aren’t true.

Dustin Medlin:                  So Susie what are some things dos when it comes buying a home and securing a mortgage and going through that process?

Susie Cheatham:              Yeah. Some of the very common things that we remind our customers a lot is, keep track of your information, your income statements, your tax statements, your bank statements because we’re gonna need to document all of those things during the process. So having those readily available at all times is key to lessening your frustration during the process.

Dustin Medlin:                  Sure, okay.

Susie Cheatham:              Another thing would be, we’re gonna keep track of your assets used for a down payment. So any gift funds that are received from a relative, corporation that you may work for, whatever it may be, those have to be properly documented, so we need to know about those so we can further advise how we document those correctly for the file.

Dustin Medlin:                  Okay. And gift funds, you’re meaning when somebody gives you the money and you don’t have to pay it back. It’s not a loan or anything.

Susie Cheatham:              Correct.

Dustin Medlin:                  They’re just giving you the money to buy your house.

Susie Cheatham:              Yes.

Dustin Medlin:                  Okay, okay. Good to know.

Susie Cheatham:              Yeah.

Dustin Medlin:                  What would some don’ts be? You’ve got the house under contract, what do you not do in that point?

Susie Cheatham:              Don’t go to Nebraska Furniture Mart. Don’t buy a new car.

Dustin Medlin:                  Right.

Susie Cheatham:              Those are very common things. When buying a new house, we need a new refrigerator. We need a washer and dryer. Opening new credit opens a new can of worms, could cause delays and could ultimately lead to you not qualifying for that loan anymore.

Dustin Medlin:                  Right.

Susie Cheatham:              So we ask that you not open any new credit or spend excessively on the credit that you have.

Dustin Medlin:                  So stay away from buying all that new furniture for the house that you have not closed on yet.

Susie Cheatham:              Yes.

Dustin Medlin:                  You can go look at it, but don’t buy it yet.

Susie Cheatham:              Yes.

Dustin Medlin:                  So I have heard some horror stories about things like that happening, and people not end up getting the house because they actually did that.

Susie Cheatham:              It’s unfortunate.

Dustin Medlin:                  And in that, maybe they just didn’t know and that would be real unfortunate if they didn’t know.

Susie Cheatham:              We try to really coach our customers upfront on the dos and don’ts, so they don’t run into issues like this later on down the road.

Dustin Medlin:                  I do the same thing with my customers. I like to … We call it future pacing.

Susie Cheatham:              Right.

Dustin Medlin:                  So we always try to tell you what’s getting ready to happen next before I hang up the phone.

Susie Cheatham:              Right, gotcha, okay.

Dustin Medlin:                  So we do the same thing.

Dustin Medlin:                  And then, lastly, what are some myths, maybe, that people don’t … or believe about mortgages or about their credit that maybe simply aren’t true that are preventing them from acting?

Susie Cheatham:              Well, I think a lot of people were under the impression that if they’ve had a prior bankruptcy, or credit issues in the past, that that would automatically disqualify them from ever purchasing a home again, and that’s actually not the case. There are waiting periods, but more people can buy again once they’ve reestablished their credit than you would think.

Dustin Medlin:                  Right. And it probably depends on the certain types of bankruptcy.

Susie Cheatham:              Correct.

Dustin Medlin:                  Whether it’s a bankruptcy, or a foreclosure.

Susie Cheatham:              Correct.

Dustin Medlin:                  And those are different time periods for each of those things, right?

Susie Cheatham:              Yes. And every loan program has their own waiting period as well.

Dustin Medlin:                  Sure. So somebody could just simply pick up the phone and talk to you about their specific situation, right?

Susie Cheatham:              Yes, yes.

Dustin Medlin:                  And you could probably easily answer that for them-

Susie Cheatham:              Correct.

Dustin Medlin:                  … so they knew exactly where they stood.

Susie Cheatham:              Yes.

Dustin Medlin:                  Okay.

Susie Cheatham:              And I would encourage people that have been in that circumstance to do that. Even if you’re not ready to buy right now, we can coach you and give you the information to get that process ready when you’re ready.

Dustin Medlin:                  Right. And I feel the same way. I always tell people, whether they’re gonna sell or buy, contact me well before the process starts.

Susie Cheatham:              Yes.

Dustin Medlin:                  Because, for instance, if you’re gonna sell your house I could come over and say, “Well, fix this. Don’t fix that. If you need a … I’ve got a good contractor that could help you here, and make things simpler for you,” just like you can. Maybe you need to pay off this credit card-

Susie Cheatham:              Correct.

Dustin Medlin:                  … but leave this one open because that’s gonna help your credit, and then you probably have resources, same as I do, people that need credit repair, they can go resource … or source those types of people to actually work on their credit and get bad marks taken off of it, so that they can get a better rate and have a better score in the beginning.

Susie Cheatham:              Yes. There are a lot of situations where we see erroneous credit.

Dustin Medlin:                  Yeah.

Susie Cheatham:              And if we’ve got the time to fix that ahead of time, that is beneficial for everyone involved.

Dustin Medlin:                  Yeah. Because those things affect your rate.

Susie Cheatham:              Yes.

Dustin Medlin:                  I mean, so if you’re talking about a 30-year mortgage, if you can spend six months to get that credit at a higher rate you can save yourself maybe a quarter of a point or something like that.

Susie Cheatham:              Yes.

Dustin Medlin:                  That’s a lot of money over time, so that’s good.

Susie Cheatham:              And we try to do that for our pre-approved customers. We try to let them know the things they can do in order to have an improved rate during the process.

Dustin Medlin:                  Yep.

Susie Cheatham:              There’s just some times those items take longer than others.

Dustin Medlin:                  Sure.

Susie Cheatham:              Or, the customer doesn’t have the funds readily available at that time, but could work on it later.

Dustin Medlin:                  Sure.

Susie Cheatham:              So, the sooner the better that we can advise.

Dustin Medlin:                  Yeah, I’d agree too. I always tell my customers the same thing, so-

Susie Cheatham:              Yes. That’s good advice.

Dustin Medlin:                  Well, that’s probably all the time we have today, folks, but I wanna thank you, Susie, for-

Susie Cheatham:              Thank you.

Dustin Medlin:                  … being on our show today and sharing that information with us. And if anybody has mortgage questions at all, contact Susie. Let them know how to get a hold of you, Susie.

Susie Cheatham:              You can contact me at any time on my cellphone at 913-244-1344, or you can email me at scheatham@bayeq.com, and it’s S-C-H-E-A-T-H-A-M@bayeq.com.

Dustin Medlin:                  And I’ll put some contact information in the posting as well.

Susie Cheatham:              Thank so.

Dustin Medlin:                  So thanks again, Susie.

Susie Cheatham:              Thank you.

Dustin Medlin:                  Great to see you.

Susie Cheatham:              You too.