KERI: Hey guys!  It’s Keri TV and I am so lucky today.  I have my wealth of mortgage information person guru here with me, Jason Vanderpoort.  You do not want to miss today’s episode if you are in the market to buy a home.  Stay tuned.

 

[music]

 

KERI: Even when we’re not working together, I’m always asking him questions.  He’s so amazing.  He’s always there to help my clients out.  Luckily we get to do a lot of deals together.

 

JASON: Yes, thank you.

 

KERI: Yeah.  Thank you for being here on Keri TV.

 

JASON: Of course!  It’s an honor to be here.

 

KERI: Yes.

 

JASON: It’s awesome.

 

KERI: Jason’s got some information for us about what’s happening in the market.  First, I know there’s all this talk about the new conforming loan limits.  We’re super excited about that.  Fill us in.

 

JASON: Yeah, I think it’s great.  These new conforming loan limits, we’re in a high-cost area in Los Angeles county.

 

KERI: Yes it is.  High-cost area.

 

JASON: Yeah.  I’d like to preface this, when your clients are talking to mortgage professionals and they’re buying outside of LA, they need to find out what that high-balance conforming loan limit is.  It’s different.

 

KERI: Okay.

 

JASON: Versus Orange County, San Diego, and LA.

 

KERI: Good to know.

 

JASON: In LA county, the max is seven hundred and twenty-six thousand.  Yeah.  It’s great, because it will really help people to get into properties with a little bit more purchasing power.

 

KERI: Right.

 

JASON: Fifty thousand more.  It was six fifty.

 

KERI: It went from six fifty to seven thirty.

 

JASON: Yeah.  Fifty thousand dollars more in property.  They might find something they really love and they can still do that five percent down where it’s a hard loan to get if they’re going to go into those portfolio jumbo type products.

 

KERI: Conforming loans allow a little bit more leniency to the clients.

 

JASON: Exactly.  The reserves and qualifications.  Yup.

 

KERI: People may make a lot of money but not have a lot of savings.

 

JASON: Exactly.

 

KERI: Or the reserves needed for certain loans, so it’s really good to have a lot of different options, yeah.  We know recently, one of the second points we wanted to talk about today was some changes made on December 19th that impact anybody getting a mortgage.  Tell us a little bit about that.

 

JASON: The feds are meeting December 19th. 

 

KERI: This may come out in January.

 

JASON: [laugh] They’re basically meeting as they have throughout the year every few times, and the rumors are going to increase the prime index fed funds rating at two-five percent.

 

KERI: The fed rumor, they’re increasing by a quarter point?

 

JASON: Point two-five percent.

 

KERI: That’s huge, you guys.

 

JASON: We never know, right?  Everyone was saying, with the administration and everybody talking about it now they’re not sure if they wanted to, but the feds are kind of back and forth.  There’s a slight possibility they might not.  I personally think they are.  How it’s going to affect people?  It will affect your credit cards right away.  Check out those credit cards.

 

KERI: Oh my god!  The credit cards!  I get points and miles.

 

JASON: Your percentage will go up on that.  It doesn’t always affect the mortgage industry, for the fixed. It already might be built into it.  Sometimes they’re preparing for it, so they go, okay, the rates may have gone up a week prior are stagnate because they’re already built in assuming that’s going to happen.

 

KERI: Okay.

 

JASON: A lot of people think oh, a quarter percent, they’ll call me up and say, Jason, will the rates go from four to four and a quarter?  No, that doesn’t happen.  It’s different on a thirty-year fixed type of mortgage.  Good for them to know.  Still, keep an eye on it.

 

KERI: Yes.  It depends on what type of loan you’re getting.

 

JASON: Yup.  It depends on how the market’s going to react to it.

 

KERI: How the market reacts, yeah.  They never really predict it.  These are things you have to be watching for, whether you’re moving up from a smaller place to a bigger place or you’re in the market for the first time.  These are all the trends you need to constantly be keeping in touch with your agent and your mortgage broker about, because these things impact you.  They’re huge.

 

JASON: You talked about points on interest rates, right?

 

KERI: Exactly.

 

JASON: It’s good for buyers to know this when they’re talking to their mortgage professional and when they’re looking for properties with you.  It’s good for them to know.  Okay, let’s say their max purchase price is a million dollars.  Their rate’s four percent.  If that rate goes from four percent to five percent, just one percent up, they lose about ten percent of their purchasing power.  That million-dollar property they love?  Nothing’s changed.  The income is the same.  Everything’s the same.  It went from a million to nine hundred thousand overnight, once that rate hits.

 

KERI: Say you’re out looking for a property and a million is your max, and you’re right there.  You’re writing on things.  You’re looking at things.  You’re just not quite there on what you want.  Maybe if you went to a million fifty or a million one you’d get it done.  By the points going up one point, or the rate going up one point, you just – nine hundred grand is what you’re looking at.  So you now need another one fifty or two hundred to really get what you want.

 

JASON: Correct.

 

KERI: This has a huge impact.  Half a point or one point may not feel like much, but this is one of the most impactful things about your buying power.

 

JASON: Yeah.  I think that’s why I always tell people hey, if you love a property and you find a property that you just want to make an offer on, don’t want and try to time the market.  I see rates change overnight or within a week within a half a percent.  Still, they’ve gone up.  They’ve gone down and up.  It’s been like this.

 

KERI: Yes.  They’ve been kept low for so long.

 

JASON: It’s inevitable.

 

KERI: Yeah. I have a really good question.  A lot of the people that come to me feel like they can’t qualify.  They don’t have enough money or whatever it is.  Are there loan programs that I can share with people that they may not know about?

 

JASON: Great questions.

 

KERI: Give us some tips on how people can get into a home when they don’t make a standard wage.

 

JASON: Yeah.  There’re so many loan programs out there.  Lenders are really trying to lend, right now.

 

KERI: Lenders want to lend.

 

JASON: Yeah, they really do.  Besides full documentation, which is your tax insurance, your pay stubs, and your income that’s your normal.

 

KERI: Blood sample.

 

JASON: Conventional jumbo type loans.  The best rates, but not everybody falls in that category.  A lot of people are self-employed and write a lot off in their taxes.

 

KERI: Yes.

 

JASON: There’s great loans for these people.

 

KERI: Sorry, does anybody write a lot off on their taxes, though?  Not me.

 

JASON: [laugh] Sorry.

 

KERI: Maybe five dollars last year.  Okay.  Sorry to interrupt.

 

JASON: We don’t want to pay, true.  We don’t want to pay Uncle Sam.  I get it.  I’m in that same boat.

 

KERI: Yeah.

 

JASON: Finally, lenders are getting it.  Okay, put more down payment.  There’s actually some that are becoming more aggressive.  Twenty percent down payment.  Typically it’s thirty percent on these bank statement loan programs.

 

KERI: Ah, okay.

 

JASON: It gets them in the property.  People understand this.  Jason, I love this property.  How can I make this happen?

 

KERI: How can I make this happen?

 

JASON: I’ve got a bunch of money in the bank but my tax returns show nothing.  Hey.  We’ve got great loan programs for you.  So many investors do these bank programs, even stated incomes, coming back.

 

KERI: Yeah.

 

JASON: A lot of people go oh, gosh.  I’m having a meltdown.  They get nerves when they hear that.  Banks are doing their due diligence now so they don’t get into trouble like they did before.

 

KERI: Ah, I see.

 

JASON: At least that’s what we hope and that’s what they’re saying.

 

KERI: They better.

 

JASON: There are some true stated income products coming out here.  We went over the bank statement programs.

 

KERI: Okay.

 

JASON: Stated income.

 

KERI: Okay.

 

JASON: Actually, another one a lot of people talk about full documentation loans.  A lot of people ask me, Jason, I need twenty percent down, right?

 

KERI: Right, that’s what people would think.  Twenty percent down.

 

JASON: Many people still do, and you don’t.

 

KERI: You don’t.  It’s amazing.

 

JASON: Five percent, ten percent.  Investors can do ten to one-point five percent down.  Two million, three million, depending on the investor.

 

KERI: It’s never too early to get in front of your mortgage rep.

 

JASON: Never.

 

KERI: Never too early

The episode 018- The changes you must know if buying in 2019! with expert Jason Vanderpoort from the podcast #KeriTV - Getting “REAL” about real estate has a duration of 10:26. It was first published 15 Jan 16:00. The cover art and the content belong to their respective owners.

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