BASIC MORTGAGE TALKING POINTS - GET REAL VALLEY REAL ESTATE AGENTS

March 2, 2020

 

 

Okay. So to start off, we're going to talk about basic mortgage talking points. Mortgage knowledge helps you build immense credibility very quickly. It also saves you a lot of time to not chase leads that are not worth your time. This is what's going to help you look very credible very quickly. Just remember how to conduct yourself. Speak careful. This is private information. We're going to talk about things like people's income, their credit score, how much money they have in the bank account, and you always want to say, Hey, after the market crashed, the banks are very careful now, which is very true. That's why we have to jump through all these hurdles to get you guys approved. How to sell a mortgage versus renting. Hey, mortgage is a good thing. First of all, the mortgage interest is a tax deduction. So probably say you are on 150 to $200 a month on your income taxes.

 

150 bucks, $200 a month is a lot of money. Closing costs are also a tax deduction that will closing costs occur when you buy the house. When you own your own, you can alter it any way you want. Hey, you know your kids can draw on the wall all you want. At least it's going to be your wall, which is true. On top of that, when you rent, you are paying off somebody's house. Wouldn't you rather pay off your house? Studies show kids that grow up in owned households. Kids have better rates of success that are temperaments and most importantly tend to grow up happier. First one to download the Zillow mortgage app, you want to go to the affordability calculator. This is actually pretty much all you need if you know what you're talking about. So let's kind of go through each one a little bit, but if you look, you can set your income down payment and it'll just kind of really tell you how much they're qualified for.

 

The thing is is that the only thing you need to know is what their monthly debt. A monthly that is usually just through car payments. So if your car payment is $500 well that affects it. Okay? So the most important thing to know how much somebody qualifies for us, it's this and your mortgage payment can be at most half of what you make every month. So if you make $5,000 a month, your mortgage can be $2,500 a month. That is basically how you qualify somebody to see how much they can afford. If you're, if you make $10,000 a month, well you're qualified to have your mortgage payments to be $5,000 a month. Do we recommend that? No. Your mortgage payments should be, everything should be at most about one third of how much you make a month. Okay? One more thing about debt is that if your monthly debt is $400 a month, then that wipes it off.

 

So if you make five grand a month and your, which means you qualify for $2,500 a month, but you have a $400 car payment, you're actually only qualified for a $2,100 a month. Minimum credit score is five 80. If the husband and wife applied together, they take the lowest credit score. So if somebody has a five 80 and another person has a six 40, they only care that you have a five 80, which is fine. If for example, I have a 600 and my wife has a five 50, well we're going to find 50 and we probably don't qualify because you need a minimum of five 80. We always recommend that at 600, six 20, just to be safe. Interest rates usually around four and a half percent nowadays are anywhere between four and 5%. You can always throw in there that about 50 years ago, interest rates used to be 15 to 10 to 15%.

 

Granted, prices were lower back then, but you always want to throw that in there and people complain about interest rates. Just know that when it comes to people shopping around for interest rates people can get their credit checked as many as times as they want within a 30 day span. Just remember that. So sometimes people are afraid of getting their credit checked multiple times. Cause it yes it does. Lower your credit score. You can get a check as many times do you want from the first ones in the last one documents necessary to officially pre-approve somebody. So how to ask somebody for the personal documents, you know you're asking for the tax returns, their bank statements, their social security, their driver's license and two recent pay stubs. That's a lot of personal information, which is why I said in the beginning you have to make sure that you're respectful of people's privacy.

 

You have to make sure you earn their trust. So what you want to tell them in order to collect these documents is you want to say again that blaming on the market crash, Hey look. So after the market crashed, the feds have been really, really strict about people getting approved. They want to make sure that you actually have the income UCD you do, you actually have the amount of assets that you do in your bank account that you say you do, that you actually have the credit score that you say you do. I mean really honestly, if you want to get a great interest rate, we need all the information possible and at the end of the day, these banks gonna lend you anywhere from, I mean $500,000. It's a lot of money. Do you want to tell them, Hey, I'm going to scan everything, I'm going to get it encrypted and I will give you back your documents within 24 hours just to make them feel comfortable.

 

If you want to see more, check out or link with the page with all the details, but that pretty much covers it. That's how you talk about the mortgages. Just as a summary, be respectful of people's privacy. Half of your monthly income is how much your mortgage payment can be or basically your entire opinion it can be. You need at least a five 85 eco score in that five 80, it has to be the lowest of everybody that's qualifying for the loan. Standard interest rate is around four and a half percent. Closing costs is around one and a half percent of the purchase price tacked onto the down payment at the end. It's a lot of upfront and you have to learn how to sell a mortgage is a good thing. It's part of the mortgage business. Thank you guys. Happy selling.

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