1 00:00:00,240 --> 00:00:03,320 Welcome to Buying Local. I'm your host, Matt North. 2 00:00:03,480 --> 00:00:08,800 And today we are joined by Ohad Orine, a lone consultant and 3 00:00:08,800 --> 00:00:12,320 I've had the chance to build a wonderful bond business 4 00:00:12,320 --> 00:00:16,480 relationship through our referral groups, Gold Stars, 5 00:00:16,480 --> 00:00:19,520 which will actually be hearing more about that on Buying Local. 6 00:00:19,760 --> 00:00:23,040 But Ohad, welcome. Thank you very much for having 7 00:00:23,040 --> 00:00:24,800 me. When I first heard about this 8 00:00:24,800 --> 00:00:28,680 thing that you do, I was like, I want to, I want to check this 9 00:00:28,680 --> 00:00:29,840 thing out. Right. 10 00:00:29,840 --> 00:00:32,800 Yeah, very, very happy to get you on here and Long. 11 00:00:32,800 --> 00:00:34,680 Glad to glad to be here. Yeah. 12 00:00:34,720 --> 00:00:38,360 Well, if there's anything I left out, would you just, you know, 13 00:00:38,360 --> 00:00:42,200 kind of tell a little bit about you, what you do and to the 14 00:00:42,200 --> 00:00:44,360 viewers out there? Sure. 15 00:00:46,240 --> 00:00:50,360 I work, I work with Loan Depot, which is they're the third 16 00:00:50,360 --> 00:00:54,520 largest independent mortgage bank in the country and they're 17 00:00:54,520 --> 00:00:59,280 publicly traded. And the name is familiar to 18 00:00:59,280 --> 00:01:01,520 some. So like if you are, if you're a 19 00:01:01,520 --> 00:01:06,200 Miami Marlins fan, the stadium is a Loan Depot stadium. 20 00:01:06,920 --> 00:01:12,800 So they're the official, they're the official mortgage company of 21 00:01:12,800 --> 00:01:15,880 Major League Baseball. I've been with them for a short 22 00:01:15,880 --> 00:01:19,160 period of time, but I've been doing real estate finance for 23 00:01:19,160 --> 00:01:21,520 going on nine years. Wow. 24 00:01:22,120 --> 00:01:24,880 I am. I am local, pretty much my 25 00:01:24,880 --> 00:01:28,120 entire life since age 11. Grew up, grew up in East 26 00:01:28,120 --> 00:01:33,480 Greenbush, went to SUNY Albany, left for the Big Apple, came 27 00:01:33,480 --> 00:01:37,520 back like so many do, and, and I I never looked back. 28 00:01:38,440 --> 00:01:41,360 Wow, that's awesome. So you signed a little bit of 29 00:01:41,360 --> 00:01:43,000 real estate, a little bit of the loan. 30 00:01:44,080 --> 00:01:46,320 Have you always, always been in this field? 31 00:01:46,800 --> 00:01:50,480 No, I actually, I actually started out my, my degree 32 00:01:50,480 --> 00:01:54,040 started out engineering, believe it or not, at University of 33 00:01:54,040 --> 00:01:58,240 Buffalo. I failed out miserably for 34 00:01:58,240 --> 00:02:02,840 various reasons and then moved to computer science, which was 35 00:02:02,840 --> 00:02:07,680 actually easier for me. But also coincidentally, 36 00:02:07,800 --> 00:02:10,720 programming became more important than engineering 37 00:02:10,720 --> 00:02:13,120 because when I went into school, like engineering was this thing 38 00:02:13,120 --> 00:02:15,480 to do. Like, you know, like lawyer, 39 00:02:15,480 --> 00:02:18,960 engineer, doctor, right? But the computer science, like 40 00:02:18,960 --> 00:02:21,720 programming and then the Internet and then, you know, 41 00:02:21,720 --> 00:02:27,400 social media became like so many things in my life accidentally. 42 00:02:27,400 --> 00:02:30,920 The thing that was simpler for me to do became the thing that 43 00:02:30,920 --> 00:02:34,520 was what? So I started out for a financial 44 00:02:34,520 --> 00:02:40,240 place, but as a programmer. I, I, I developed for Goldman 45 00:02:40,240 --> 00:02:44,000 Sachs was my first job. So not a gold, but gold like the 46 00:02:44,000 --> 00:02:48,320 parent company Goldman in the city I developed or as part of 47 00:02:48,320 --> 00:02:52,960 the development team for regulatory and compliance 48 00:02:52,960 --> 00:02:57,680 treasury SEC systems, the things that report, hey, are we doing 49 00:02:57,680 --> 00:03:00,200 things correctly? Do we have the right amount of 50 00:03:00,200 --> 00:03:03,840 cash on hand to cover our trades and stuff like that. 51 00:03:04,080 --> 00:03:08,760 I was part of that system, which I found very interesting the 52 00:03:08,760 --> 00:03:15,480 work, but I don't know how many system programmers, you know, 53 00:03:15,800 --> 00:03:18,000 but they're, they're not usually a party. 54 00:03:18,440 --> 00:03:22,040 So. So there was a little bit of a 55 00:03:22,040 --> 00:03:27,720 personality fit which I initially interpreted as OMG 56 00:03:27,720 --> 00:03:31,880 nobody. Likes me like I'm used to like 57 00:03:32,000 --> 00:03:34,640 having a good time and connecting with people, but 58 00:03:34,640 --> 00:03:39,000 these people are like real, what I interpreted as really snobby 59 00:03:39,000 --> 00:03:44,800 or but it was like no. We're just like programmers and 60 00:03:44,800 --> 00:03:46,760 we are not. We're not very social. 61 00:03:46,760 --> 00:03:50,440 In general. So there was some fun, but it 62 00:03:50,440 --> 00:03:54,640 was just like I. It was a box that didn't really 63 00:03:54,960 --> 00:03:59,480 fit my style that much. So the work was interesting, but 64 00:03:59,480 --> 00:04:03,520 the my colleagues were not as interesting. 65 00:04:03,520 --> 00:04:06,080 Do you know what I mean? So started out basically as a 66 00:04:06,080 --> 00:04:10,160 combination of tech and science. And then ultimately when I moved 67 00:04:10,160 --> 00:04:13,560 back here, I took a job in finance, but with an auto 68 00:04:13,560 --> 00:04:15,720 dealership. I was part of the destination 69 00:04:15,720 --> 00:04:19,480 group where they included me, but they didn't include puppies 70 00:04:19,480 --> 00:04:22,320 and babies. And so I don't know if you know 71 00:04:22,320 --> 00:04:23,480 that tag. Yeah. 72 00:04:26,400 --> 00:04:30,520 So so I did finance, literally financing auto. 73 00:04:30,520 --> 00:04:34,760 Loans and so that was a combination of sales and finance 74 00:04:34,920 --> 00:04:38,320 that led me to be in the credit union world, which is was 75 00:04:38,320 --> 00:04:42,040 significantly less of a grind than 90 hours a week. 76 00:04:42,040 --> 00:04:45,800 Literally every day from 8:00 till the last customer leaves. 77 00:04:46,080 --> 00:04:49,960 Ten, 11:00 doesn't matter. Different dealerships are 78 00:04:49,960 --> 00:04:53,160 different, right? Some are like we're open 8:00 to 79 00:04:53,160 --> 00:04:57,960 6:00 and we close. I was part of a dealership that 80 00:04:57,960 --> 00:05:00,640 was like, we're open 8:00 to 6:00 or 8:00 to 7:00. 81 00:05:00,640 --> 00:05:04,520 But as long as there's customers, you're staying until 82 00:05:04,520 --> 00:05:07,160 the last customer leaves. And that could be 10 or 11:00. 83 00:05:07,160 --> 00:05:10,720 Do you know? And all Saturdays and every 84 00:05:10,720 --> 00:05:13,640 other Sunday. So, and I just had two little 85 00:05:13,640 --> 00:05:17,080 kids. So it was a grind and it was 86 00:05:17,080 --> 00:05:23,560 taxing on the work life, you know, leisure scenario, right? 87 00:05:24,120 --> 00:05:29,640 Definitely. So, So what happened was, was 88 00:05:29,640 --> 00:05:33,960 that it forced me to be like, I want to still use this skill for 89 00:05:34,560 --> 00:05:39,160 doing loans, which I really enjoy, but work at a place that 90 00:05:39,160 --> 00:05:48,240 not only doesn't want me to be there for overtime, but once 39 91 00:05:48,240 --> 00:05:50,920 hours arrive, it's like you have to leave. 92 00:05:50,920 --> 00:05:53,000 You can't work more than 39 hours. 93 00:05:53,120 --> 00:05:55,560 It's literally against our policy. 94 00:05:55,680 --> 00:05:58,320 So it's like, oh great, a vacation, vacation. 95 00:05:59,960 --> 00:06:05,640 Yeah, No, it really sounds like a lot of the skills early on are 96 00:06:05,920 --> 00:06:09,400 very transferable. It it sounds like I had to do 97 00:06:09,400 --> 00:06:12,200 this. You did it, it didn't work out. 98 00:06:12,200 --> 00:06:14,640 But yeah, it really, it really sounds like you're happy. 99 00:06:14,640 --> 00:06:18,160 You're you're you're in a situation where you know, you 100 00:06:18,160 --> 00:06:20,720 can build a lot of success. And I and I see that and it's 101 00:06:21,040 --> 00:06:23,320 it, it really fits with your personality too. 102 00:06:24,520 --> 00:06:28,280 But just typically like who? Who would you work with like 103 00:06:28,280 --> 00:06:30,640 throughout the day? OK. 104 00:06:31,480 --> 00:06:38,760 So the the simplest way to look at what my business is like is 105 00:06:38,760 --> 00:06:42,680 that I have a client and I have a customer and they're 106 00:06:42,680 --> 00:06:46,240 different. The customer is the borrower. 107 00:06:46,360 --> 00:06:49,160 The customer is the person who is applying for a mortgage 108 00:06:49,240 --> 00:06:51,440 either to refinance or to purchase a home. 109 00:06:51,960 --> 00:06:56,080 Right now, based on where rates are, most people are purchasing. 110 00:06:56,440 --> 00:07:00,560 However, rates have been very high, between 6 and 8% for the 111 00:07:00,560 --> 00:07:05,720 last five or six years, right right after COVID where they had 112 00:07:05,720 --> 00:07:07,760 dropped really low, they started to go up. 113 00:07:08,200 --> 00:07:11,640 So all of the people who bought houses, just to give you an 114 00:07:11,640 --> 00:07:17,280 example, in the last at least three or four years locked in at 115 00:07:17,280 --> 00:07:21,000 rates between 5 1/2 and 8 1/2 percent. 116 00:07:21,480 --> 00:07:26,200 So imagine that the rates were to drop again, probably not like 117 00:07:26,200 --> 00:07:29,400 you can't predict, but probably not as low as the twos that they 118 00:07:29,400 --> 00:07:33,440 got to. But if they get to like one 2% 119 00:07:33,440 --> 00:07:37,760 lower, like meaning low fours, everybody and their mother and 120 00:07:37,760 --> 00:07:40,520 grandfather is going to be refinancing. 121 00:07:40,520 --> 00:07:44,720 And then my the shift moves to like yes, still buying houses, 122 00:07:45,360 --> 00:07:51,040 but also I did a loan three years ago, I could save 304 123 00:07:51,040 --> 00:07:56,360 hundred $500 a month on my payment and the interest over 124 00:07:56,360 --> 00:07:58,720 over time, which is hundreds of thousands of dollars. 125 00:07:58,920 --> 00:08:04,200 So mine shifts between right now based on the current market get 126 00:08:04,240 --> 00:08:07,240 help you get houses or at least educate you on the process, 127 00:08:07,240 --> 00:08:10,080 right? So those are the customers. 128 00:08:10,080 --> 00:08:14,280 I take the customer from the point of application to the 129 00:08:14,280 --> 00:08:18,560 signing table all along making sure that they're approved, 130 00:08:18,560 --> 00:08:20,920 understanding what the documentation requirement is, 131 00:08:20,920 --> 00:08:23,000 etcetera. And then getting them to the 132 00:08:23,000 --> 00:08:26,440 finish line and then being there for them if they have questions 133 00:08:26,640 --> 00:08:29,440 later on in life. And if they want to just a laugh 134 00:08:29,440 --> 00:08:31,960 because I'm silly sometimes, right? 135 00:08:32,280 --> 00:08:39,640 So that's the customer, right? From a business development 136 00:08:39,640 --> 00:08:44,400 perspective, my relationship is primarily with clients, and my 137 00:08:44,400 --> 00:08:50,040 clients are the Realtors or builders or finance people, 138 00:08:50,040 --> 00:08:52,560 people who refer to me, their person. 139 00:08:52,560 --> 00:08:56,400 But the relationship that's closest in general is with a 140 00:08:56,400 --> 00:08:59,160 real estate agent because they have the most skin in the game. 141 00:08:59,520 --> 00:09:04,560 They have somebody buying a house who needs to, who's not 142 00:09:04,560 --> 00:09:07,800 paying in cash, who needs. Like, and they need to know 143 00:09:07,800 --> 00:09:10,280 what's going on with their deal, right? 144 00:09:10,440 --> 00:09:12,680 So we're in it, we're partners, we're in it together. 145 00:09:12,680 --> 00:09:17,000 Like I don't get paid if that person doesn't get the loan and 146 00:09:17,000 --> 00:09:19,920 the house doesn't close and neither do they. 147 00:09:19,920 --> 00:09:24,080 So we are literally in lockstep. My business development is to be 148 00:09:24,080 --> 00:09:27,880 like, I'm a good partner. I will make sure that I make you 149 00:09:27,880 --> 00:09:30,840 look good. I deliver for your, for your 150 00:09:30,840 --> 00:09:33,320 client, right? Your, their client is the 151 00:09:33,320 --> 00:09:35,440 customer. I'll deliver for them. 152 00:09:36,200 --> 00:09:39,960 But the person that I'm taking care of above that is you, 153 00:09:40,160 --> 00:09:42,160 because we are actually in business together. 154 00:09:42,320 --> 00:09:45,120 My relationship, you see the distinction between custom 155 00:09:45,200 --> 00:09:48,880 customer and client. The customer is still somebody I 156 00:09:48,880 --> 00:09:51,520 treat well. I treat well, I take care of 157 00:09:51,520 --> 00:09:55,080 them, but I don't have an ongoing business relationship. 158 00:09:55,080 --> 00:09:59,120 They're not going to get another house likely in the next 5 or 10 159 00:09:59,120 --> 00:10:01,720 years. The transactions are less right 160 00:10:02,280 --> 00:10:08,600 the the focus for mortgage loan officers, which is Loan Depot 161 00:10:08,600 --> 00:10:11,520 calls and loan consultants and it's a little bit confusing. 162 00:10:11,520 --> 00:10:14,920 I love you Loan Depot, but it's not clear necessarily that 163 00:10:14,920 --> 00:10:16,000 that's. What you do? 164 00:10:16,360 --> 00:10:19,000 You have to sort of figure it out, but that's what the, the 165 00:10:19,000 --> 00:10:22,240 official title is mortgage loan officer or mortgage loan 166 00:10:22,320 --> 00:10:26,120 originator, of which I am licensed and I had to become 167 00:10:26,120 --> 00:10:32,200 licensed when I left a bank. So to explain the, the 168 00:10:32,200 --> 00:10:37,400 distinction, there's a thing called the SAFE Act and it is a 169 00:10:37,400 --> 00:10:42,200 set of laws over the course of the last 10 years that have 170 00:10:42,280 --> 00:10:48,480 required, they have strict requirements for who it is that 171 00:10:48,480 --> 00:10:51,680 can handle a mortgage and specifically who can talk about 172 00:10:51,680 --> 00:10:54,880 mortgages like rates and things like that and who cannot. 173 00:10:56,040 --> 00:11:03,600 There are, there's registered and then there's licensed. 174 00:11:03,960 --> 00:11:07,920 When you work at a bank or credit union in my case, and 175 00:11:07,920 --> 00:11:12,160 they have money, they have cash on hand in the institution, you 176 00:11:12,160 --> 00:11:15,320 don't need to be licensed because there's enough money 177 00:11:15,320 --> 00:11:18,040 potentially to support if something went wrong with the 178 00:11:18,040 --> 00:11:19,400 mortgage. I see. 179 00:11:19,800 --> 00:11:24,280 But when you work for an independent mortgage bank or 180 00:11:24,280 --> 00:11:28,920 broker like I do, now you have to get a license with New York, 181 00:11:28,920 --> 00:11:33,720 and I'm also licensed in Connecticut because now the 182 00:11:33,720 --> 00:11:36,680 standards are stricter. There's no backup plan, there's 183 00:11:36,680 --> 00:11:39,000 no net, right? You either know what you're 184 00:11:39,000 --> 00:11:42,840 doing and New York State said that you do, and so does the 185 00:11:42,840 --> 00:11:46,840 country, 'cause it's a national test or you're not getting it. 186 00:11:46,920 --> 00:11:48,480 Does that make sense? Yeah. 187 00:11:49,080 --> 00:11:54,280 So, so I had been doing the work, but because I was under 188 00:11:54,280 --> 00:11:58,280 the umbrella of the license essentially of the bank itself 189 00:11:58,280 --> 00:12:02,240 that had money to support the mortgages, I only needed to 190 00:12:02,240 --> 00:12:05,840 register with something called the NMLS, the National Mortgage 191 00:12:05,880 --> 00:12:11,600 Licensing database. But when I left to become to, to 192 00:12:11,600 --> 00:12:16,440 join like The Big Lead, so to speak, and, and not just be at a 193 00:12:16,440 --> 00:12:20,360 regional credit union, it required me to get to get 194 00:12:20,360 --> 00:12:23,120 licensed. I had to learn all of the rules, 195 00:12:23,120 --> 00:12:28,640 take a test, at least get a 75% on it so that I could so that I 196 00:12:28,640 --> 00:12:33,120 could do it. And one of the distinctions 197 00:12:33,120 --> 00:12:37,000 between being at a credit union in general and being at a 198 00:12:37,000 --> 00:12:41,360 mortgage bank is that the focus is more on business development 199 00:12:41,360 --> 00:12:44,440 because a lot of people, they love their credit union and they 200 00:12:44,440 --> 00:12:49,240 were like, well, you did my car loan and you did my credit card 201 00:12:49,320 --> 00:12:51,480 and you have my checking account. 202 00:12:51,800 --> 00:12:55,600 So it naturally goes that I would also like to talk to you 203 00:12:55,600 --> 00:13:01,120 who I trust the most with my biggest purchase of my life like 204 00:13:01,160 --> 00:13:09,240 with my house, right. But So what that's what that 205 00:13:09,240 --> 00:13:13,840 means is is that that business in general comes in. 206 00:13:13,880 --> 00:13:16,480 It doesn't mean that people don't make phone calls and try 207 00:13:16,480 --> 00:13:18,960 to develop relationships etcetera, credit unions, they 208 00:13:18,960 --> 00:13:25,720 do, but there is a flow of. People from anybody who's making 209 00:13:25,720 --> 00:13:27,960 a deposit all the way to somebody who got a credit card. 210 00:13:27,960 --> 00:13:31,360 There's a flow of potential leads and referrals of people 211 00:13:31,360 --> 00:13:33,360 who are banking with this institution. 212 00:13:33,600 --> 00:13:35,640 The mortgage bank does one thing. 213 00:13:36,000 --> 00:13:40,280 So when you come to it, you're just there to either get a 214 00:13:40,280 --> 00:13:42,760 mortgage or you're going with somebody else. 215 00:13:42,960 --> 00:13:48,280 So the challenge is, oh, I need to develop relationships because 216 00:13:48,480 --> 00:13:51,880 other than certain lead systems like getting it from Zillow or 217 00:13:51,880 --> 00:13:55,560 something like that, you're out, you're out on your own. 218 00:13:55,560 --> 00:14:00,400 So that's like the challenge and the beauty of the of of kind of 219 00:14:00,400 --> 00:14:01,960 running your own business, but being. 220 00:14:01,960 --> 00:14:04,160 Part of a larger umbrella. Does that make sense? 221 00:14:04,520 --> 00:14:07,200 Yeah, yeah, definitely. I mean, yeah, thank you. 222 00:14:07,200 --> 00:14:10,840 I, I, I'm learning a lot too. And I'd, I just assume, you 223 00:14:10,840 --> 00:14:14,360 know, kind of taking a step back, like you said, a lot of 224 00:14:14,360 --> 00:14:18,880 this is, you know, first home buyers, it's a big purchase, A 225 00:14:18,880 --> 00:14:22,360 lot of emotional strings tied to that. 226 00:14:22,680 --> 00:14:27,640 How, how important is it that you're, you know, taking that 227 00:14:27,640 --> 00:14:31,680 step above just being a loan officer and really honing in on 228 00:14:31,680 --> 00:14:36,240 that toning, honing in on that like educational aspect, How 229 00:14:36,400 --> 00:14:39,720 how, how much of your day is just, you know, being that being 230 00:14:39,720 --> 00:14:41,520 that shoulder to cry on, I guess. 231 00:14:42,920 --> 00:14:49,640 So some of that answer you were already kind of get the the hint 232 00:14:49,640 --> 00:14:54,600 like this is the biggest purchase and even if it's not 233 00:14:54,600 --> 00:14:58,320 your first and that one's the most emotional, it's still a 234 00:14:58,320 --> 00:15:01,720 huge amount of money and it's stressful and you want a house 235 00:15:01,720 --> 00:15:06,080 and etcetera. What sometimes people believe is 236 00:15:06,080 --> 00:15:09,160 that, oh, I want it to get done quickly. 237 00:15:09,800 --> 00:15:12,840 That is here's what you want to get done quickly. 238 00:15:12,840 --> 00:15:16,520 You want to get to the point that you're like, oh, 239 00:15:16,520 --> 00:15:18,800 everything's fine. I don't. 240 00:15:19,040 --> 00:15:22,520 It's all under control. I move in when I move in. 241 00:15:23,080 --> 00:15:27,320 In fact, counter intuitively, you'd be like, yeah, let's get 242 00:15:27,320 --> 00:15:31,400 it done right away. Closing quickly is important to 243 00:15:31,600 --> 00:15:35,800 the my real estate partners who I love, but they also want to 244 00:15:35,800 --> 00:15:39,600 get paid right. The priorities are slightly 245 00:15:39,600 --> 00:15:42,120 misaligned, right? So you just have to keep. 246 00:15:42,400 --> 00:15:46,400 It's like this marionette where you're satisfying different 247 00:15:46,400 --> 00:15:48,760 people because think about it from the perspective. 248 00:15:48,760 --> 00:15:53,640 Of what I call the customer. Think about it for you, if I 249 00:15:53,640 --> 00:15:56,360 were to tell SO right now, are you renting? 250 00:15:57,000 --> 00:15:59,280 Yep. OK, so you rent an apartment, 251 00:15:59,760 --> 00:16:03,840 you have all of your stuff, you possibly have a pet, you have a 252 00:16:03,840 --> 00:16:08,200 significant other, whatever. You come to me and you say I'd 253 00:16:08,200 --> 00:16:11,160 like to buy a house and you point to that house. 254 00:16:11,760 --> 00:16:18,080 If I said to you, Matthew, great news, I have you approved and 255 00:16:18,080 --> 00:16:21,360 here are the keys to the house. Are you ready to move tomorrow? 256 00:16:23,600 --> 00:16:25,840 I mean, I don't know. It's all right. 257 00:16:26,040 --> 00:16:28,920 Like there's a bunch of plant and now imagine you're actually 258 00:16:28,920 --> 00:16:31,000 moving a lot. Like the more stuff you have 259 00:16:31,240 --> 00:16:34,880 kids, the school, all this stuff, like do you know what I 260 00:16:34,880 --> 00:16:38,920 mean? Like you possibly single person 261 00:16:38,920 --> 00:16:41,080 just in my apartment. Maybe you're like, yeah, I'll 262 00:16:41,080 --> 00:16:43,360 just take the TV and leave these T-shirts. 263 00:16:43,560 --> 00:16:47,520 I'm ready to go, right. But imagine like a family of 264 00:16:47,520 --> 00:16:51,760 four or five, right? And what if you moved to school, 265 00:16:51,760 --> 00:16:55,120 to the new school district registration, all that stuff, 266 00:16:55,360 --> 00:16:57,440 like your pet, Where are they going to? 267 00:16:57,640 --> 00:16:58,800 Where am I going to go to doctors? 268 00:16:58,800 --> 00:17:02,720 I'm still going to like imagine compounding all of those 269 00:17:02,720 --> 00:17:07,880 different things to being like, OK, I'm not ready to move in 270 00:17:08,079 --> 00:17:10,680 tomorrow. Just the fact that you got me 271 00:17:10,680 --> 00:17:15,920 approved and now it is one last thing, a very big thing for me 272 00:17:15,920 --> 00:17:21,000 to worry about so that I can be so I can focus on the other 50 273 00:17:21,000 --> 00:17:24,760 things that I need to think about in moving. 274 00:17:26,880 --> 00:17:29,160 Thank you for doing that. Yeah. 275 00:17:29,200 --> 00:17:36,160 So what my goal is for them to understand as much as they need 276 00:17:36,160 --> 00:17:39,120 to make it as simple as possible, but not simpler. 277 00:17:39,400 --> 00:17:41,960 I don't need to get into all of the different rules and 278 00:17:41,960 --> 00:17:44,840 regulations and all the fluctuations of the market and 279 00:17:44,840 --> 00:17:48,160 what it is that leads to one particular product. 280 00:17:48,200 --> 00:17:50,920 I just have to present. And there's, by the way, 281 00:17:50,920 --> 00:17:53,200 hundreds of different mortgage products. 282 00:17:53,200 --> 00:17:56,280 And the bigger the organization you work for, the more there are 283 00:17:56,600 --> 00:17:59,280 there's conventional and there's government loans, and then 284 00:17:59,280 --> 00:18:01,800 there's special programs and there's ones for investors. 285 00:18:01,800 --> 00:18:05,360 And then there's there's two large houses, Fannie Mae and 286 00:18:05,360 --> 00:18:08,880 Freddie Mac, that offer similar but not exactly the same. 287 00:18:09,640 --> 00:18:15,280 Imagine I hand you a. Encyclopedia, right, or 288 00:18:15,280 --> 00:18:17,960 Wikipedia. Like imagine I hand you 75 289 00:18:17,960 --> 00:18:22,080 Wikipedia pages basically and be like here is all of the 290 00:18:22,080 --> 00:18:24,520 information you need, blah blah blah. 291 00:18:24,920 --> 00:18:26,760 You read it and then get back to me. 292 00:18:26,760 --> 00:18:31,360 Let me know which one you want. No, if you wanted to know what 293 00:18:31,520 --> 00:18:34,560 the value that I that I look to bring. 294 00:18:34,960 --> 00:18:39,400 It's that like? Oh, oh, Haad knows the mechanics 295 00:18:39,400 --> 00:18:43,400 of what's going on under a car. He'll just present me with like, 296 00:18:43,600 --> 00:18:47,320 here are three options. Make a suggestion what it should 297 00:18:47,320 --> 00:18:49,560 be, but it's but I'm going to figure it out because you might. 298 00:18:49,560 --> 00:18:51,720 This rate's a little bit higher, but you have to play glowing 299 00:18:51,720 --> 00:18:53,520 costs. This rate's a little bit lower, 300 00:18:53,520 --> 00:18:57,360 but you have to go out of pocket for this thing. 301 00:18:57,360 --> 00:18:59,520 So like we weigh out the options. 302 00:18:59,640 --> 00:19:01,920 The answer is not always obvious. 303 00:19:01,920 --> 00:19:08,360 Sometimes it's two similar decisions, but Ohad will provide 304 00:19:08,360 --> 00:19:13,200 me with the bullet points of what I need to know, what I need 305 00:19:13,200 --> 00:19:18,640 to be prepared for and that there are in a in a transaction 306 00:19:18,640 --> 00:19:21,640 that has a lot of surprises and they don't. 307 00:19:21,920 --> 00:19:26,400 Usually go exactly how you plan. Nobody has perfect credit, No 308 00:19:26,400 --> 00:19:30,560 title is always perfect, no house has not a single issue in 309 00:19:30,560 --> 00:19:31,400 it. It's just. 310 00:19:31,960 --> 00:19:36,080 Every one of those things and on and on is yet another component 311 00:19:36,080 --> 00:19:38,800 that's not going to go exactly as you planned. 312 00:19:38,800 --> 00:19:42,640 That's the only real irony in life is when you're like, I 313 00:19:42,640 --> 00:19:44,440 think it's going to go exactly this way. 314 00:19:44,760 --> 00:19:49,200 And then two months later it went exactly as I thought. 315 00:19:49,320 --> 00:19:52,240 You, you know that from your own life and you're not even that 316 00:19:52,240 --> 00:19:55,400 old. Like it's just not how life 317 00:19:55,440 --> 00:19:58,680 works in general. The only irony, the only like, 318 00:19:58,720 --> 00:20:01,160 Oh my God, that was crazy. Where you're like. 319 00:20:02,640 --> 00:20:09,280 ABCDE is going to happen, and two months later, ABCDE is 320 00:20:09,280 --> 00:20:12,720 exactly what happened. You're like, OK, what is this? 321 00:20:12,720 --> 00:20:15,160 Like is this like a parallel universe? 322 00:20:15,160 --> 00:20:16,800 Yeah, are we living in a movie? Right. 323 00:20:16,800 --> 00:20:21,840 Do you see what I'm saying? So like, So what you are getting 324 00:20:21,840 --> 00:20:23,800 from me is like, oh, he's an expert. 325 00:20:23,800 --> 00:20:26,280 He knows what he's doing. Like a really good mechanic, 326 00:20:26,280 --> 00:20:28,440 like a doctor, whatever it is, right? 327 00:20:29,880 --> 00:20:34,680 I have faith in that and he'll give me the information I need 328 00:20:34,680 --> 00:20:38,200 and he'll be available whenever I have a question or if I panic. 329 00:20:38,480 --> 00:20:42,280 And he'll do it in a light way where we can joke and take the 330 00:20:42,280 --> 00:20:45,520 pressure out of the situation. But I can tell that he's also 331 00:20:45,520 --> 00:20:48,040 serious about the business as well. 332 00:20:48,280 --> 00:20:50,040 And that's kind of balancing act. 333 00:20:50,520 --> 00:20:54,040 And so similarly it is what I provide to my. 334 00:20:54,400 --> 00:20:59,160 Clients, but a different version, which is I can count on 335 00:20:59,160 --> 00:21:02,880 this person to take to provide that to my client. 336 00:21:02,880 --> 00:21:04,080 That's what they're going to get. 337 00:21:04,400 --> 00:21:09,160 I've signed up for an experience that is going to be that is not 338 00:21:09,160 --> 00:21:13,000 only going to be great for the client who they have for life as 339 00:21:13,000 --> 00:21:14,360 well. Even though they don't buy a lot 340 00:21:14,360 --> 00:21:16,480 of houses. The whole point is they have a 341 00:21:16,480 --> 00:21:19,680 cousin, they have a sister, they have a friend moving in from 342 00:21:19,720 --> 00:21:22,760 Kentucky. Like life keeps happening. 343 00:21:23,000 --> 00:21:30,680 So you want to be like, oh, Lindsay is who I talk to about 344 00:21:30,680 --> 00:21:33,040 buying houses. That's And so somebody had a 345 00:21:33,040 --> 00:21:35,760 question. Lindsay is who I'm going to have 346 00:21:35,760 --> 00:21:38,400 them talk to. And if they were like, oh, wait 347 00:21:38,400 --> 00:21:40,440 a minute, this has to do with finance. 348 00:21:40,680 --> 00:21:42,520 It doesn't even matter. It's like I'm getting a credit 349 00:21:42,520 --> 00:21:44,280 card, but this has to do with finance. 350 00:21:44,720 --> 00:21:48,480 I know somebody who because like one of the hardest types of 351 00:21:48,480 --> 00:21:52,480 loans, he probably knows about a personal loan or should you know 352 00:21:52,480 --> 00:21:55,320 what I mean? So that that's how business to 353 00:21:55,960 --> 00:21:59,960 kind of circle. Back to Gold Star that is it 354 00:22:00,360 --> 00:22:05,200 operating at its best in the like that's when the the the 355 00:22:05,200 --> 00:22:08,120 jazz band is the most tuned so to speak you know what I. 356 00:22:08,120 --> 00:22:10,960 Mean where you're like, oh boom, boom boom, and you're making 357 00:22:10,960 --> 00:22:11,960 the. Connections. 358 00:22:12,600 --> 00:22:15,160 That's what you that's the place you want to go to. 359 00:22:16,720 --> 00:22:20,520 Yeah, and I feel like that's the biggest thing again, back with 360 00:22:20,520 --> 00:22:23,600 your personality, it's, you know, you light up a whole room, 361 00:22:24,360 --> 00:22:29,440 but that's that's the key aspect of, you know, you your business 362 00:22:29,440 --> 00:22:34,000 model, you make sure to provide everything, like you said, 363 00:22:34,000 --> 00:22:37,520 bullet points. You know, there's so many loans 364 00:22:37,520 --> 00:22:40,680 out there that, you know, people could, you know, be approved for 365 00:22:40,680 --> 00:22:44,640 but may not make sense. So I love that, you know, the 366 00:22:44,640 --> 00:22:48,480 education piece is before everything and then, you know, 367 00:22:48,480 --> 00:22:50,320 you start getting into The Dirty work. 368 00:22:51,520 --> 00:22:55,640 But what what would could you just kind of walk me through 369 00:22:55,640 --> 00:22:59,200 that, you know, the that inert initial steps of getting 370 00:22:59,200 --> 00:23:01,080 approved? How would someone get approved? 371 00:23:01,520 --> 00:23:07,880 Sure, I'm going to. I'm going to speak in a general 372 00:23:07,880 --> 00:23:08,800 way. And. 373 00:23:08,800 --> 00:23:14,520 Then and at the same time specific way like with me and a 374 00:23:14,520 --> 00:23:17,720 lot of it will overlap and some of it will be different. 375 00:23:17,840 --> 00:23:27,320 OK, you and I know each other. You and our relationship is 376 00:23:27,320 --> 00:23:31,280 going to continue to grow is my hope, at least unless I, you 377 00:23:31,280 --> 00:23:35,200 know what I mean, get thrown out of the party, right. 378 00:23:36,160 --> 00:23:41,720 So already in your head you're like, oh, how does mortgages and 379 00:23:41,800 --> 00:23:46,080 I'm saving money and in two or three years I think I want to 380 00:23:46,080 --> 00:23:49,240 buy a house. Let let me take you through 381 00:23:49,280 --> 00:23:53,400 actually, basically because you're like, oh, what happens 382 00:23:53,400 --> 00:23:57,240 when somebody calls you and, and I'm like, I could answer that. 383 00:23:57,320 --> 00:24:00,600 They call, they want a mortgage, I send them a link, they put in 384 00:24:00,600 --> 00:24:02,960 an application, it takes 5. Minutes and I go over it with 385 00:24:02,960 --> 00:24:06,200 them. That's the boom, boom, boom. 386 00:24:06,200 --> 00:24:09,920 That's the story, right? But now I'm giving you the 387 00:24:09,920 --> 00:24:13,800 actual story. Of how you want it to go. 388 00:24:14,040 --> 00:24:19,520 So one either either Lindsay who I keep naming this person who's 389 00:24:19,520 --> 00:24:23,040 actually a real estate partner of mine, but I'm naming her as a 390 00:24:23,040 --> 00:24:25,360 general person. Lindsay gets a buyer. 391 00:24:25,520 --> 00:24:28,000 That's what happens. They're ready to go. 392 00:24:28,000 --> 00:24:32,040 She asks them are you pre approved and they go no. 393 00:24:32,040 --> 00:24:34,400 She said you need to talk to my friend Ohad. 394 00:24:35,880 --> 00:24:38,600 You should, I mean, there's, there's different options, but 395 00:24:38,640 --> 00:24:40,680 you know, from my experience, Ohio, this is very good. 396 00:24:40,680 --> 00:24:44,080 You should talk to him and get pre approved or at least pre 397 00:24:44,080 --> 00:24:47,920 qualified before you get started and then go shopping that way. 398 00:24:47,920 --> 00:24:51,320 Similar to a car, you know how much car you can buy and you 399 00:24:51,320 --> 00:24:52,960 know what the payment is going to be, right. 400 00:24:52,960 --> 00:24:54,960 Or at least you have a pretty good idea. 401 00:24:55,280 --> 00:24:58,440 That's the jump off through a real estate partner, right. 402 00:24:58,800 --> 00:25:01,960 But let's say you came to me, we've known each other for a 403 00:25:01,960 --> 00:25:03,800 while. You know, I have some sense of 404 00:25:03,920 --> 00:25:05,960 of of what I'm talking about. And you're like. 405 00:25:07,200 --> 00:25:08,840 I. Think I want to get a house like 406 00:25:08,840 --> 00:25:13,600 in three years, if you start that conversation with me, like 407 00:25:13,640 --> 00:25:16,240 I'm thinking about getting a house in three years, I'm not 408 00:25:16,240 --> 00:25:19,680 going to be like, you know, who you need to talk to right now is 409 00:25:19,680 --> 00:25:23,080 my friend Lindsay, 'cause she's going to want to start showing 410 00:25:23,080 --> 00:25:26,360 you houses, right? But it doesn't make sense in 411 00:25:26,360 --> 00:25:28,640 three years. So I say listen. 412 00:25:29,320 --> 00:25:31,840 A lot of people. Think that they need to save 413 00:25:33,040 --> 00:25:38,080 1020% in order to buy a house, which means if you're buying a 414 00:25:38,080 --> 00:25:42,880 $300,000 house, you need $60,000, right? 415 00:25:42,880 --> 00:25:46,000 20% down. It's not necessary. 416 00:25:46,320 --> 00:25:49,880 In fact, you can get a house with no money down with certain 417 00:25:49,880 --> 00:25:52,600 government programs. You can get a house even 418 00:25:52,600 --> 00:25:55,680 conventional with as litter as 3 1/2 percent down. 419 00:25:55,800 --> 00:25:57,720 But the question is. Oh. 420 00:25:58,040 --> 00:26:03,200 I can get a $300,000 house and I only need to save like $15,000. 421 00:26:03,200 --> 00:26:05,960 I'm doing the math off the top of my head but you get the 422 00:26:05,960 --> 00:26:11,520 general thing and I'm like yes. However, the payment is going to 423 00:26:11,520 --> 00:26:17,600 be $4500 a month. So yes, you could save less, but 424 00:26:17,600 --> 00:26:20,840 the payment is not going to be affordable and you won't be able 425 00:26:20,840 --> 00:26:23,960 to even be approved if you don't make enough money for that 426 00:26:23,960 --> 00:26:27,120 payment. And that's when just even the 427 00:26:27,120 --> 00:26:30,920 beginning of me introducing you to see how we're doing it right 428 00:26:30,920 --> 00:26:34,000 now. And that's exactly how it works. 429 00:26:34,240 --> 00:26:38,880 So like I'm showing you at the same time of like that's exactly 430 00:26:38,880 --> 00:26:41,520 how it goes in life. You like you came to me and I 431 00:26:41,520 --> 00:26:44,080 said here are some things that you want to think about. 432 00:26:44,480 --> 00:26:48,120 You don't need to overwhelm yourself, but just know that in 433 00:26:48,120 --> 00:26:53,240 general you want to have about this much available and you need 434 00:26:53,240 --> 00:26:56,680 to be aware of the fact there's closing costs as well in 435 00:26:56,680 --> 00:26:58,840 general. So it's not just the down 436 00:26:58,840 --> 00:27:01,640 payment that you stayed for. You come back to me. 437 00:27:02,000 --> 00:27:07,240 Oh, had great news. I saved $20,000 and I'm like, 438 00:27:08,120 --> 00:27:11,120 but whoa, whoa, whoa, Matt, the news is not as great as you 439 00:27:11,120 --> 00:27:15,000 think because you just save for the down payment. 440 00:27:15,280 --> 00:27:19,240 But to close a mortgage, there's also closing costs as well. 441 00:27:19,680 --> 00:27:22,520 The most of. Them are not. 442 00:27:22,520 --> 00:27:27,000 What the mortgage bank charges, it usually charges like one fee, 443 00:27:27,000 --> 00:27:31,520 which is a fee for the application itself, like which 444 00:27:31,520 --> 00:27:35,760 they call an origination fee. So we charge let's say $1000, 445 00:27:35,760 --> 00:27:39,840 right? But everything else, the getting 446 00:27:39,840 --> 00:27:43,760 Dan, for example, getting the tax, the sorry the title. 447 00:27:44,320 --> 00:27:48,000 Yeah. Attorney, the price of the 448 00:27:48,000 --> 00:27:51,840 appraisal, the price of the credit report, we're not allowed 449 00:27:51,840 --> 00:27:54,040 to profit off of any of those things. 450 00:27:54,040 --> 00:27:57,360 They have a cost. We have to be very accurate with 451 00:27:57,360 --> 00:28:01,840 what those costs are. I can't charge you if Dan 452 00:28:01,840 --> 00:28:04,360 charges, let's say $50.00 an hour. 453 00:28:04,560 --> 00:28:09,360 I can't say Dan charges $50.00 an hour, but if you go through 454 00:28:09,360 --> 00:28:12,720 Loan Depot now, it's $75.00 an hour. 455 00:28:13,000 --> 00:28:18,680 Everything is a thing and we say this is how much we are charging 456 00:28:18,680 --> 00:28:21,680 for the thing. And the real money that a 457 00:28:21,680 --> 00:28:24,640 mortgage bank makes is not off of you. 458 00:28:25,160 --> 00:28:28,760 A mortgage bank makes money. We don't, unlike a car 459 00:28:28,760 --> 00:28:33,040 dealership, we don't up charge the rate or if we do it's a min 460 00:28:33,040 --> 00:28:35,840 it's minimal. The money that a mortgage bank 461 00:28:35,840 --> 00:28:41,040 makes is from either keeping a loan and getting the interest on 462 00:28:41,040 --> 00:28:47,520 the loan, right. We lend you $300,000, it's at 6 463 00:28:47,520 --> 00:28:51,720 or 7%. Every time you make a payment we 464 00:28:51,720 --> 00:28:56,480 get that extra interest. So that's one way that that's 465 00:28:56,480 --> 00:29:00,320 why they don't need to like try to put in a bunch of stuff and 466 00:29:00,320 --> 00:29:03,800 it's illegal anyway. But even if not, the money is 467 00:29:03,800 --> 00:29:09,120 off of like it's a huge loan and 6% is like they're getting 468 00:29:09,120 --> 00:29:12,160 thousands of dollars each month essentially in profit. 469 00:29:12,160 --> 00:29:18,920 Do you see what I'm saying? And then which is even more 470 00:29:18,920 --> 00:29:24,000 common is they just sell it basically to the secondary 471 00:29:24,000 --> 00:29:26,840 market. Basically think about it, the 472 00:29:26,840 --> 00:29:29,240 Stock Exchange, but for mortgages. 473 00:29:29,440 --> 00:29:33,560 There are investors that buy a loan and so as long as the loan 474 00:29:33,560 --> 00:29:37,840 is good then it gets bought and it gets bundled and it gets 475 00:29:37,840 --> 00:29:40,080 traded. That's why most people who buy 476 00:29:40,080 --> 00:29:44,000 their house get a letter like 3060 days later. 477 00:29:44,240 --> 00:29:47,360 Great news. You did your, you did your 478 00:29:47,360 --> 00:29:51,520 mortgage with you did your mortgage with XYZ lender. 479 00:29:51,560 --> 00:29:55,640 Mr. Cooper is now your servicer because it's on the market and 480 00:29:55,640 --> 00:29:58,280 it got sold. So the money that gets made 481 00:29:58,280 --> 00:30:01,480 there is not what you would get over 30 years. 482 00:30:01,640 --> 00:30:06,440 Example, there was a there's a mortgage, it was, it was a 30 483 00:30:06,440 --> 00:30:10,720 year mortgage. The mortgage was for 300,000. 484 00:30:11,920 --> 00:30:16,600 Can you take some guess as to how much money a bank would 485 00:30:16,600 --> 00:30:22,000 collect over 30 years on a $300,000 mortgage at 5 or 6%? 486 00:30:23,200 --> 00:30:26,920 I mean off the top of my head don't know, but I'd assume a. 487 00:30:26,920 --> 00:30:29,640 Lot if if your guess is in the millions. 488 00:30:29,680 --> 00:30:35,120 Yeah, you're right, right. So we're talking millions of 489 00:30:35,120 --> 00:30:41,920 dollars like like to go for $300,000 over at at 6% / 30 490 00:30:41,920 --> 00:30:43,800 years. It keeps collecting. 491 00:30:44,600 --> 00:30:49,480 You don't start paying primarily principal meaning just the 492 00:30:49,480 --> 00:30:54,960 balance, not the interest until the last 10 years, five years of 493 00:30:55,160 --> 00:30:57,680 it's called amortization. That's how loans work. 494 00:30:57,920 --> 00:31:01,680 They've they front load most of the interest in the beginning. 495 00:31:02,040 --> 00:31:06,800 So that they can get paid quicker and they and because 496 00:31:06,800 --> 00:31:11,480 that's the way the system works. Because if they waited till year 497 00:31:11,480 --> 00:31:18,000 25 and the people moved and and whatever it is then so in the 498 00:31:18,000 --> 00:31:23,480 1st 351015 years you're paying the most because the reality of 499 00:31:23,480 --> 00:31:27,880 the business is the mortgage bank is not going to see year 500 00:31:27,880 --> 00:31:31,400 20. Usually they're going to sell it 501 00:31:31,480 --> 00:31:34,480 they're etcetera. So the mortgage itself has a 502 00:31:34,480 --> 00:31:38,520 value, right? It's a $300,000 mortgage, it's 503 00:31:38,520 --> 00:31:42,360 at 6% and the person has decent credit and had everything that 504 00:31:42,360 --> 00:31:47,240 they needed provided the documentation right that let's 505 00:31:47,240 --> 00:31:55,120 give it a value like that's worth $100,000. 506 00:31:55,400 --> 00:32:01,160 So when the when the mortgage bank says I'm offering you 507 00:32:01,160 --> 00:32:05,120 something that's worth $100,000 and I'm selling it to you for 508 00:32:05,120 --> 00:32:08,440 75, they're like, that's a great deal. 509 00:32:09,000 --> 00:32:11,560 And then they buy it. And that's a very simple 510 00:32:11,560 --> 00:32:13,800 explanation of the mortgage business itself. 511 00:32:13,800 --> 00:32:16,400 Does that make sense? Yeah, yeah, definitely. 512 00:32:16,600 --> 00:32:21,880 So, so to answer to answer your question, that's basically the 513 00:32:21,880 --> 00:32:26,280 process is 3 three years before Matt buys a house. 514 00:32:26,400 --> 00:32:29,200 He consults me about like how much should I save? 515 00:32:29,400 --> 00:32:32,720 I give him some information like this is what payments going to 516 00:32:32,720 --> 00:32:34,880 look like and if rates stay where they are, this is about 517 00:32:34,880 --> 00:32:37,320 how much you want and you need to be aware of closing costs. 518 00:32:37,480 --> 00:32:42,040 So 20,000 is actually 35,000 because you have to cover both 519 00:32:42,120 --> 00:32:45,680 and that can be a surprise. And from the, from what I've 520 00:32:45,680 --> 00:32:50,640 learned is that nobody other than children for their birthday 521 00:32:50,800 --> 00:32:54,920 like surprises and the surprises that people like the least is 522 00:32:54,920 --> 00:32:57,840 surprises that have to do with their money, right? 523 00:32:58,000 --> 00:33:01,720 Surprise, more charge surprise this is. 524 00:33:01,800 --> 00:33:03,800 It's going to cost a lot more surprise. 525 00:33:03,880 --> 00:33:06,320 It's taking way longer than I expected. 526 00:33:06,440 --> 00:33:14,080 So I my commitment is to under under play what the situation is 527 00:33:14,200 --> 00:33:18,240 or to or to overplay. Like expect a lot of money, 528 00:33:18,240 --> 00:33:21,880 expect it to take time, but we will get through it together. 529 00:33:22,680 --> 00:33:28,200 So that way if I set the bar like low or higher and you come 530 00:33:28,200 --> 00:33:31,720 in, you close quicker than you thought, the documents and you 531 00:33:31,720 --> 00:33:35,760 had to provide were easier than you thought, then you're like, 532 00:33:36,160 --> 00:33:38,880 Oh my God, that was, that was better than I had expected. 533 00:33:39,840 --> 00:33:43,000 But on the flip side, if I'm like, if you're like, how much 534 00:33:43,000 --> 00:33:46,600 money do I need? And I'm like about $5000, you 535 00:33:46,600 --> 00:33:49,200 get to the beginning of the mortgage and I'm like, it's 536 00:33:49,200 --> 00:33:51,480 actually 10. And then I'm like, you said it 537 00:33:51,480 --> 00:33:53,880 was going to close like next week. 538 00:33:53,880 --> 00:33:56,600 And I'm like, well, but there's also the blah, blah, blah and 539 00:33:56,600 --> 00:33:58,320 the other blah, blah, blah and the blah blah, blah. 540 00:33:58,320 --> 00:34:00,760 But like, but why didn't you tell me about all the blah, 541 00:34:00,760 --> 00:34:04,280 blah, blah before? I was like, well, we know what's 542 00:34:04,280 --> 00:34:07,600 whatever you're like, what do you mean whatever? 543 00:34:08,400 --> 00:34:09,920 You. See what I'm saying? 544 00:34:10,360 --> 00:34:14,239 That is what you're getting Like, oh, I'm going to know what 545 00:34:14,239 --> 00:34:16,920 to expect. It's likely going to cost me 546 00:34:16,920 --> 00:34:20,920 less or take less time than he's presenting, and that's great. 547 00:34:21,440 --> 00:34:24,280 Now to double click on the nitty gritty itself. 548 00:34:25,080 --> 00:34:28,320 In general, there are three things that you need for a 549 00:34:28,320 --> 00:34:29,840 mortgage. You need. 550 00:34:30,080 --> 00:34:34,120 There's a credit score that you have and it determines your rate 551 00:34:34,120 --> 00:34:37,480 and whether you qualify. There's your assets, the money 552 00:34:37,480 --> 00:34:40,800 that you have to put down or is it coming from a gift, what you 553 00:34:40,800 --> 00:34:43,360 can, etcetera. And then there's your and then 554 00:34:43,360 --> 00:34:46,120 there's your income, your capacity as as it's called in 555 00:34:46,120 --> 00:34:48,880 the mortgage business. How much can I afford? 556 00:34:49,360 --> 00:34:52,520 How much do I make? How much are my debts compared 557 00:34:52,520 --> 00:34:55,960 to my income and how much will they be when this mortgage is 558 00:34:55,960 --> 00:34:59,360 done? Those three and there's other 559 00:34:59,360 --> 00:35:01,520 factors, but those are the pillars, right? 560 00:35:01,520 --> 00:35:05,240 Those are the three pillars of like what I need for a loan. 561 00:35:05,400 --> 00:35:09,120 When you apply, I go over all those with you and then I ask 562 00:35:09,120 --> 00:35:11,120 you to prove it. Show and prove. 563 00:35:11,640 --> 00:35:15,880 You say I make $50,000. Matt's an honest person. 564 00:35:16,080 --> 00:35:18,760 He says he makes $50,000. I believe him. 565 00:35:18,760 --> 00:35:23,160 I send a pre qualification, but you know who doesn't believe it? 566 00:35:23,360 --> 00:35:25,880 Those. Those finicky investors over 567 00:35:25,880 --> 00:35:29,600 there, they're not. They're not Like, I'll take your 568 00:35:29,600 --> 00:35:31,720 word for it, Matt. Sounds great. 569 00:35:32,040 --> 00:35:34,080 They need the proof. They need proof. 570 00:35:34,240 --> 00:35:37,640 They're like, no, no, no. But believe me, Matt is solid. 571 00:35:37,640 --> 00:35:39,800 They're like, well, we see he has good credit. 572 00:35:39,920 --> 00:35:44,840 We see that, but I don't know that he can actually afford this 573 00:35:44,840 --> 00:35:46,320 banner. I was like trust. 574 00:35:46,320 --> 00:35:48,000 Me, he's got it. Yeah, right. 575 00:35:48,480 --> 00:35:52,920 So it. So it's like, oh. 576 00:35:53,320 --> 00:35:55,160 Well, what do I need in order to prove? 577 00:35:55,160 --> 00:36:00,240 My income, well W2 income is the easiest. 578 00:36:00,520 --> 00:36:03,040 It doesn't mean that it's required, it's just the easiest. 579 00:36:03,040 --> 00:36:06,200 Why is that? Because proving your income as a 580 00:36:06,200 --> 00:36:07,840 self-employed person is difficult. 581 00:36:07,840 --> 00:36:10,320 You need 2 years of tax returns. You have to show what did you 582 00:36:10,520 --> 00:36:13,920 what did you profit, what was your revenue, what was what, 583 00:36:13,960 --> 00:36:16,160 what did you take home at the end of the day. 584 00:36:16,880 --> 00:36:21,920 On the other hand, if you've been, if you've been working as 585 00:36:21,920 --> 00:36:27,840 a manager at Staples for the last six months even, it's like, 586 00:36:28,120 --> 00:36:31,160 here's my W2, here's what I get paid. 587 00:36:31,360 --> 00:36:33,480 Before that, I worked at Best Buy. 588 00:36:33,800 --> 00:36:38,520 I've been the same type of work for five years and and here are 589 00:36:38,520 --> 00:36:42,280 two W twos to prove it. And here's my pay stub from 2 590 00:36:42,280 --> 00:36:45,400 weeks ago. Like, you know that the money's 591 00:36:45,400 --> 00:36:48,320 there, you know how much comes out, you know how. 592 00:36:48,320 --> 00:36:52,360 Much I can afford. W2 is the easiest but it doesn't 593 00:36:52,360 --> 00:36:54,600 mean it's required. But that's why it is. 594 00:36:54,760 --> 00:36:58,160 So you provide W twos, you provide your pay stubs. 595 00:36:58,400 --> 00:37:02,000 That's my income. Then I say well we need to take 596 00:37:02,000 --> 00:37:03,680 a look at your credit. No problem. 597 00:37:03,840 --> 00:37:05,960 You fill out the application with your social on the other 598 00:37:05,960 --> 00:37:08,400 six pieces that you needed to to pull your credit. 599 00:37:08,680 --> 00:37:12,800 And I'm like 720. You qualify for most stuff, 600 00:37:13,000 --> 00:37:15,640 simple as that. What 3 bureaus? 601 00:37:15,920 --> 00:37:20,400 And now we know. And by the way, about the Bureau 602 00:37:20,400 --> 00:37:25,600 thing, the way mortgages work is the score that is used in order 603 00:37:25,600 --> 00:37:29,600 to determine how much or what your actual credit score is. 604 00:37:30,120 --> 00:37:32,880 It's what's called the median. It's the middle 1. 605 00:37:33,360 --> 00:37:39,160 So, so example, we use all three bureaus, it's called a Trimerge. 606 00:37:39,600 --> 00:37:45,000 Those bureaus are Experian, TransUnion and Equifax. 607 00:37:46,080 --> 00:37:49,080 So if your score, so it's not the average and I'll give you an 608 00:37:49,080 --> 00:37:59,520 example if your score is on, on Equifax 700, on Experian 710. 609 00:38:00,000 --> 00:38:04,920 And on TransUnion 760, so like 50 points higher, it's not the 610 00:38:04,960 --> 00:38:10,200 average like 7:30, it's just the one in the middle. 7:10, 7/10 is 611 00:38:10,200 --> 00:38:12,800 your score. So it could be one point away 612 00:38:12,800 --> 00:38:16,040 from the lowest one or it could be exactly in the middle or it 613 00:38:16,040 --> 00:38:19,200 could put the point all the way. It's just whatever the scores in 614 00:38:19,200 --> 00:38:22,400 the middle and that's your score if. 615 00:38:22,400 --> 00:38:25,800 You bring another person, another borrower, your 616 00:38:26,320 --> 00:38:29,480 girlfriend, your boyfriend, your husband, your wife, your 617 00:38:29,480 --> 00:38:33,800 partner, whatever it is. Then whoever's middle score of 618 00:38:33,800 --> 00:38:36,880 the two of you is lower, that's your score. 619 00:38:37,040 --> 00:38:42,280 So if your score was 710, but your girlfriend, for example, 620 00:38:42,280 --> 00:38:46,560 was a seven O 5, seven O 5 is now your combined score. 621 00:38:49,160 --> 00:38:53,400 It's not, it's not, it's not fair per SE, but they go with 622 00:38:53,400 --> 00:38:56,480 the least risky because it's based on risk. 623 00:38:57,160 --> 00:39:00,440 Every element says it's not. It's not not guaranteed. 624 00:39:00,960 --> 00:39:02,760 You've been at Staples for 10 years. 625 00:39:03,080 --> 00:39:07,840 They could just become a a online company tomorrow, right? 626 00:39:08,480 --> 00:39:10,880 No, they know that there are no guarantees. 627 00:39:11,080 --> 00:39:14,200 It's all the loans are risk based. 628 00:39:14,400 --> 00:39:19,160 Like how much should I give? It feels solid enough. 629 00:39:19,160 --> 00:39:21,640 Like it's edgier. Well, they have to put more 630 00:39:21,640 --> 00:39:24,600 money down or their rate, their rate is going to live higher or 631 00:39:24,600 --> 00:39:28,080 they have less programs that they can qualify for because the 632 00:39:28,080 --> 00:39:30,560 risk is higher to the to the lender. 633 00:39:31,520 --> 00:39:35,760 So anyway, back to the same scenario you talked to me about 634 00:39:35,760 --> 00:39:39,000 3 years ago. You have a set plan and then a 635 00:39:39,000 --> 00:39:42,080 year you're like a lot. I, I saved this much money. 636 00:39:42,320 --> 00:39:46,360 I think I'm going to. I think I'm getting close to at 637 00:39:46,360 --> 00:39:49,920 least wanting to look at houses. I say, OK, let's give it. 638 00:39:49,920 --> 00:39:52,320 Let's give it a few more months. You save a little bit. 639 00:39:52,840 --> 00:39:55,320 Let me introduce you to my friend Lindsay. 640 00:39:56,480 --> 00:39:59,920 Just talk to her and you will get the same experience that you 641 00:39:59,920 --> 00:40:03,320 had with me, except she knows more about houses and stuff. 642 00:40:03,480 --> 00:40:06,760 You think I know about doors and windows and flooring? 643 00:40:07,080 --> 00:40:08,840 Your boy doesn't. You know your. 644 00:40:08,960 --> 00:40:11,680 Your boy knows there's a house and that house has a value. 645 00:40:12,000 --> 00:40:15,880 But to me. Whether the house had wood 646 00:40:15,880 --> 00:40:19,440 floors or carpeting, or do you think any of that is on the 647 00:40:19,440 --> 00:40:20,920 application? It isn't. 648 00:40:21,080 --> 00:40:23,120 I just get a value from the appraisal. 649 00:40:23,200 --> 00:40:27,240 An appraiser goes out and says this house is worth $300,000. 650 00:40:27,600 --> 00:40:31,320 Not because it has a beautiful painting, not because the lawn 651 00:40:31,320 --> 00:40:35,000 is like the best lawn in the neighborhood, not because they 652 00:40:35,000 --> 00:40:39,440 have a little gnome. All of that stuff that's not for 653 00:40:39,440 --> 00:40:41,120 me. I don't know about that stuff. 654 00:40:41,200 --> 00:40:43,440 I mean, not completed yet, but you know what I mean? 655 00:40:43,640 --> 00:40:47,120 Like, it is not relevant to me. You know who does know about 656 00:40:47,120 --> 00:40:48,600 that stuff? Lindsay. 657 00:40:48,680 --> 00:40:51,960 She knows about gnomes. She knows how old a roof is and 658 00:40:51,960 --> 00:40:54,480 whether it should be replaced. She knows who you should talk to 659 00:40:54,480 --> 00:40:59,240 about like, gardening service. She knows how loud the the buses 660 00:40:59,240 --> 00:41:03,600 are that drive past that road. All this information that isn't 661 00:41:03,600 --> 00:41:07,360 relevant to my job. You don't talk to me about that. 662 00:41:07,400 --> 00:41:09,720 You don't need to. You have somebody else to 663 00:41:09,720 --> 00:41:12,280 consult for that. That's how the partnership 664 00:41:12,280 --> 00:41:15,080 works. And then somebody asks her 665 00:41:15,240 --> 00:41:18,440 about, well, are rates going up and blah, blah, blah, blah, 666 00:41:18,440 --> 00:41:20,560 blah. She's like, whoa, whoa, whoa. 667 00:41:20,880 --> 00:41:24,000 I know about lawns. I know about this neighborhood. 668 00:41:24,280 --> 00:41:26,760 I know about your price range. You know who you should. 669 00:41:26,760 --> 00:41:30,000 Talk about to this finance person about Ohio. 670 00:41:30,880 --> 00:41:33,240 And that's basically how the whole enchilada works. 671 00:41:33,600 --> 00:41:37,640 And so you apply, you provide that information, it gets 672 00:41:37,640 --> 00:41:42,520 underwritten, it gets viewed. Everybody's like, oh, this is 673 00:41:42,520 --> 00:41:46,520 clean as a whistle. You know you're good, you can 674 00:41:46,520 --> 00:41:49,600 relax. I provided the documentation and 675 00:41:49,600 --> 00:41:52,160 they gave me an idea of what I'm going to need to bring to the 676 00:41:52,160 --> 00:41:55,600 closing table, or at least he told me eventually somebody's 677 00:41:55,600 --> 00:41:58,400 going to tell you exactly what you need for the closing table. 678 00:41:58,800 --> 00:42:02,600 I don't know yet. There's other factors and be OK 679 00:42:02,600 --> 00:42:06,480 with the I don't know, I don't know doesn't mean I'm lying to 680 00:42:06,480 --> 00:42:08,280 you. I don't know doesn't mean I'm an 681 00:42:08,280 --> 00:42:13,640 idiot, although I am sometimes. All I don't know means is there 682 00:42:13,640 --> 00:42:15,920 are variables that are not known yet. 683 00:42:16,240 --> 00:42:19,000 There's how much the house is going to actually appraise for 684 00:42:19,240 --> 00:42:22,760 are is there any issues? Is there issues with the title? 685 00:42:23,280 --> 00:42:26,520 How much exact cash are you going to need to close? 686 00:42:26,680 --> 00:42:28,840 We don't know. We have an estimate. 687 00:42:28,880 --> 00:42:32,960 It's going to loan estimate. It's literally the exact legal 688 00:42:32,960 --> 00:42:34,560 term for it. It's a loan estimate. 689 00:42:35,680 --> 00:42:38,560 It's going to be very close though, right? 690 00:42:38,680 --> 00:42:41,600 The loan estimate is like, oh, it's about 70 and then it's 691 00:42:41,600 --> 00:42:44,680 like, I meant 700,000. Whoopsie. 692 00:42:44,840 --> 00:42:54,160 No, it's gonna be it's gonna be within 0% or 10% at most over 693 00:42:54,160 --> 00:42:56,320 what it is that I what I quoted you. 694 00:42:56,520 --> 00:43:02,120 You will know if the quote was. I need about this much money and 695 00:43:02,120 --> 00:43:04,600 this is about what my payment is going to be. 696 00:43:05,440 --> 00:43:08,720 It's it's going to be very, very close because we're regulated 697 00:43:08,720 --> 00:43:11,800 that way. But you won't know the answer to 698 00:43:11,800 --> 00:43:16,720 that exact like detail. You don't know that till like 3 699 00:43:16,720 --> 00:43:18,960 or 4 days before you close because there's still 700 00:43:18,960 --> 00:43:22,360 information coming in about like, well, what is it going to 701 00:43:22,360 --> 00:43:25,240 cost? It's going to cost close enough 702 00:43:25,240 --> 00:43:27,720 to this. But when you get the closing 703 00:43:27,720 --> 00:43:32,720 disclosure, which is the last part, it has to match almost 704 00:43:32,720 --> 00:43:34,840 identically. And there's only certain things 705 00:43:34,840 --> 00:43:36,800 that can be different. I'll give you an example of 706 00:43:36,800 --> 00:43:41,720 something that can be different. Let's go back to the Dan is the 707 00:43:41,720 --> 00:43:47,000 title agent. I say to you the title agent, if 708 00:43:47,000 --> 00:43:50,560 you use this one or this one or this one is going to cost this 709 00:43:50,560 --> 00:43:56,920 much, but you say I want to use, I want to use my own real estate 710 00:43:56,920 --> 00:43:58,760 attorney. And then I say. 711 00:43:59,200 --> 00:44:03,760 Well, then I can't tell you for sure how much it's going to cost 712 00:44:04,000 --> 00:44:08,120 because you brought in somebody from the outside and I can't be 713 00:44:08,120 --> 00:44:10,320 like, oh, it's going to be 50 an hour. 714 00:44:10,320 --> 00:44:13,000 Like, oh, I brought the guy who drives the Lexus. 715 00:44:13,000 --> 00:44:16,440 I was like, well, now it's not $50.00 an hour anymore. 716 00:44:16,680 --> 00:44:19,800 How is that my fault? You see what I'm saying? 717 00:44:20,160 --> 00:44:22,600 But there's certain things that always cost the same. 718 00:44:22,800 --> 00:44:26,800 Property taxes will always be the same like you. 719 00:44:27,160 --> 00:44:30,800 There's no up charging property taxes like property taxes in 720 00:44:30,960 --> 00:44:35,080 Warren County are what they are on that house in in Washington 721 00:44:35,080 --> 00:44:37,080 County. They are on what they are on 722 00:44:37,080 --> 00:44:40,080 that house in Rensselaer County in Saratoga County. 723 00:44:40,200 --> 00:44:44,120 They are the property taxes and school taxes are what they are 724 00:44:44,160 --> 00:44:46,760 on a certain amount. That doesn't change. 725 00:44:46,960 --> 00:44:49,520 That's what you know that how much money you're going to have 726 00:44:49,520 --> 00:44:52,920 to pay and how much was paid already is in exact signs to the 727 00:44:52,920 --> 00:44:55,040 0. But if you're like, oh, I also 728 00:44:55,040 --> 00:45:00,000 want an inspector as well. Oh, you didn't tell me that me 729 00:45:00,000 --> 00:45:04,320 bringing in an inspector that costs like $2000 was going to 730 00:45:04,320 --> 00:45:07,840 cost more. I was like, yeah, obviously I 731 00:45:07,840 --> 00:45:09,920 didn't tell you that you brought in a person. 732 00:45:09,920 --> 00:45:13,840 You're allowed to, but but you can't be like, hey, you said 733 00:45:13,840 --> 00:45:15,240 this, you said it was going to be less. 734 00:45:15,280 --> 00:45:17,880 But like, yes, you're allowed to bring stuff, but it makes the 735 00:45:17,880 --> 00:45:19,240 cost. So you do. 736 00:45:20,120 --> 00:45:22,960 This whole thing that I'm talking about, I have to 737 00:45:23,240 --> 00:45:27,480 basically pick the three or four things that make sense to you at 738 00:45:27,480 --> 00:45:31,520 this very moment without overwhelming you and you getting 739 00:45:31,520 --> 00:45:36,600 the impression within 5 to 10 minutes, oh, he's got this, he's 740 00:45:36,600 --> 00:45:38,240 got this. And if I have a question, he's 741 00:45:38,240 --> 00:45:40,720 available. He's not going to tell me all 742 00:45:40,720 --> 00:45:44,240 the I will. Tell them to you as they come up 743 00:45:44,360 --> 00:45:46,680 and if you have a question before that. 744 00:45:47,600 --> 00:45:50,440 Ask any time. Well, that's awesome. 745 00:45:50,440 --> 00:45:55,200 Ohad and I know we're running short on time here, so just want 746 00:45:55,200 --> 00:45:58,200 to throw it out there. People were, you know, looking 747 00:45:58,200 --> 00:46:02,000 to connect with you, learn a little bit more about you, get 748 00:46:02,000 --> 00:46:05,000 in contact with you. How would they find you and get 749 00:46:05,080 --> 00:46:09,080 get a hold of you? The magic of having the 750 00:46:09,080 --> 00:46:17,160 stupidest name in America is that there's only two of me in 751 00:46:17,160 --> 00:46:19,120 the entire country. Really. 752 00:46:19,480 --> 00:46:23,720 Yes, 2. There's OK, so if my name was 753 00:46:23,720 --> 00:46:27,480 John Smith, I would be like, listen, John Smith at Loan 754 00:46:27,480 --> 00:46:31,400 Depot, the office in Westchester, not the other one. 755 00:46:31,560 --> 00:46:34,960 That's me and that's the link take No, not that right. 756 00:46:35,360 --> 00:46:40,280 But I there's one privilege to my name is that there's 10 hot 757 00:46:40,280 --> 00:46:44,240 orn in all of New York and there's two in the whole 758 00:46:44,240 --> 00:46:45,320 country. OK. 759 00:46:45,320 --> 00:46:47,680 And that's how you? Use a weakness to your strength. 760 00:46:48,040 --> 00:46:54,880 So if you Google even Ohad Oren loan depot, I come up. 761 00:46:55,360 --> 00:47:00,480 If you Google just Ohad Oren, much to my mom's great pride, 762 00:47:00,480 --> 00:47:06,440 She's so proud. A a doctor, oncologist, medical 763 00:47:06,440 --> 00:47:10,840 professional with a Harvard degree who practices cancer 764 00:47:10,840 --> 00:47:15,160 medicine is the other Ohad Oren. So listen, either it's me, the 765 00:47:15,160 --> 00:47:19,680 mortgage guy, not great, but it's the other one, or literally 766 00:47:19,680 --> 00:47:21,440 the guy working on curing cancer. 767 00:47:21,600 --> 00:47:25,200 So you have your pick. Which one do you think it is? 768 00:47:25,560 --> 00:47:28,680 Don't be disappointed. But good news, he can't help you 769 00:47:28,680 --> 00:47:33,000 get a house. Well, this has been awesome. 770 00:47:33,000 --> 00:47:35,920 Thank you everybody for listening and of course, you can 771 00:47:35,920 --> 00:47:40,840 find us at buying local dot US. We're on Spotify, Apple rumble 772 00:47:40,840 --> 00:47:43,440 and YouTube and Ohad thank you again. 773 00:47:43,440 --> 00:47:45,200 This has been amazing my. Pleasure my. 774 00:47:46,240 --> 00:47:48,080 Friend and we'll talk to everybody next week.