Consumer Education

Say hello to Jay Clark, Nicole's personal financial advisor! Jay has been her advisor for some time now and specializes in portfolio management that includes real estate investments. He's a rare breed of financial advisors that is able to weave real estate into the big plan for building your financial empire. You'll want to hear this taken from an Agent Ignite panel discussion in October 2021.
About Jay:
Jay Clark, Founder of Lucet Advisors has been helping business owners and individuals since 2002. Certified Exit Planner (CExP™) and Financial Advisor. He focuses his practice on business owners, healthcare professionals, and pre-retirees. Not a Denver native, but grateful to call it home since 2000. Proud father of 3 boys, active outdoor lifestyle.

When you want to start looking to purchase a home, one of the very first things that you're going to want to do is get a lender letter, and that realtor that you're shopping with is going to ask, have you talked to a lender yet? Do you have a lender letter? And you're, what's a lender letter? Well, that's what I want to talk to you about today. What is a lender letter and is that all it is?
No, there're several levels to lender letters. So let's talk about it. The very first out of the gate, a lender letter simply states your information as well as the qualification for your loan. So it's going to say something like John Doe, with all of your address and your information, is qualified to purchase a home for the purchase price of $400,000, with a down payment of 10%, using a conventional loan. That would imply that when your numbers were run and your financials were reviewed, you qualified for a $360,000 loan.
Now, at that point, you can put any amount down based on the loan program chosen, and you can go up or down in purchase price based on that. But ultimately, it's the loan amount that caps you out. And then if you only have 3% down or 5% down or 20% down, it will start to shift what that purchase price is. So that's the basics of a lender letter, and maybe it says something about the lender or the lending organization. Maybe it says what it's qualified based on. Maybe it has some criteria on it, that it's based on the sale of another home, or maybe it's based on you getting that job that you already have a job offer on, or maybe it has some other qualifying factor, but that's the basic premises of a lender letter. Now, what are the levels of lender letters? That's an interesting question because usually, people don't talk about that.
They just simply say, do you have a lender letter? Well, you start out with a pre-qualified lender letter. What is that? That means you filled out a loan application, whether you did it on your phone, online, or you did it in person, or over the phone with your loan officer, you completed a loan application. And in that loan application, you stated things about your financials. You stated how much money you have in the bank. You said how long you've been on your job, how long you've been at this address, and other pertinent information.
And based on all the information that you entered into that loan application, you're qualified. You're qualified for this loan amount. Now that's level one. It's the very basic of levels. It means that as a loan officer, I have not verified all of that information yet. Now, I'll send you a list of documents that [00:03:00] I want to review and those list of documents, we're going to cover on another video, but I'm going to send you a list of documents that I'm going to want to review that authorize or give credence to all of the facts you put in that loan application.
And so once I've verified how long you've actually been on the job, I verified exactly how much money you have in those bank accounts. Maybe I verified how long you've lived at different addresses or who else might be on the loan with you. All of these things, we've verified all of the facts through third party, documentation, or verifications. Once that's done, I now have a pre-approved lender letter. So it upgraded from pre-qualified to pre-approved.
There's one more level. That means if I've taken all those documents and I've submitted it into underwriting, and that can take a couple of days to a couple of weeks, depending on underwriting turn times. [00:04:00] But if I've submitted your full loan, the loan application, all of the supporting documentation, and I've submitted it into underwriting and in turn, I've gotten a loan approval from the underwriter, well, that means I have a fully approved lender letter. Sometimes depending on the lender that you're working with, you could also so get an earnest money guarantee stamp on that.
And that's what we do at the Rueth Team. If we've fully underwritten your loan file, we'll say that your loan condition [00:04:30] is fulfilled and we'll guarantee your earnest money based on the loan condition deadline. Now you'll still have other conditional deadlines on your contract, around the home, the appraisal, the inspection, any HOA docs if there is a homeowner's association. But per the loan, we're good to go. And that's an earnest money guarantee on a full approval lender letter. It makes a huge difference when you're going out shopping in a competitive real estate market. So make sure you ask the right questions. Ask your lender to upgrade your lender letter, and if you have any questions at all, I want you to make sure to ask for the Rueth Team. If you like this video, or you watch any other videos in this series, please make sure to like, subscribe, and follow our channel. I look forward to talking to you again soon.
Don't get sucked into a quick, easy online path of securing a lender letter. I know.. you're like.. but it's easy. I'm here to share that that "easy" online lender letter won't help you get under contract. When competition is fierce, stand out with a full Pre-Approval or TBD Underwritten Lender Letter. Pre-Qual? Pre-Approval? TBD Approval? It really matters! Have questions? Or want to get started today? Then give my team a call
Nicole RuethThe Rueth Team of Fairway Independent Mortgage Corporation 750 W Hampden Avenue, Suite 500 Englewood, CO 80110 303-214-6393 www.TheRuethTeam.com

All those loan documents you're receiving can seem super overwhelming! So, here's some insider knowledge to elaborate on what the documents are, and simplify what they all mean! You need to know these things - it's not complicated.
How much do I need to spend per month?
How much do I need to bring to the closing table?
A fee worksheet is a very first thing you will get from a lender or potential lender. Go through it line by line to really understand and get comfortable.
The fee worksheet is not regulated - depending on the lender, you'll want to ask a lot of questions.
Then you move on to a loan estimate which IS regulated. The fees can only go down, they cannot go up. Nothing the lender controls can change, except in your favor.
Get all the details in this episode. Subscribe to Nicole's Youtube channel to get all the guides through every step in the process of buying, selling and refinancing your home.

Chris Gordon loves what he does. He especially loves it when he has no juicy stories to bring home other than, "I worked with a bunch of nice people today that wanted to get their ducks in a row, so we set that up." He wishes younger people would set up their estates to have peace of mind, not just for themselves, but for those who will either care for them in the situation of an illness or accident, or those they leave behind. He has some great tips to add some humor to what can be an uncomfortable part of growing up. Even couples married for decades put this off and then there is no easy way to make transfers and act on behalf of the loved on or children if these pieces aren't in place. You'll gain a lot of comfort and information from this episode of The Double Comma Club.
Learn more about the services Chris Gordon offers at Stewart + Gordon.

 
We hear about owning short-term rentals. Many of us take advantage as we have started traveling again. Gone are the days when you could grab some random property in a decent area, furnish it with Goodwill furnishings, and make a profit after covering your mortgage. Listen as Nicole's guest Michael Vialpando makes it simple to understand how to do this, and enjoy the process.

What are the costs beyond the cost of the home you select? After you make an earnest money deposit, here are some of the costs and fees you can expect:
Inspection $450-600 Well, septic, sewer, radon may have additional fees.
Schedule the appraisal. $750 fee.
Title company $1000 - $1200 which includes lender fees - processing and underwriting fee.All lenders have a fee. They may bend on it, depending on your interest rate. They are doing a service and need to be paid.

Do you currently own investment properties? OR Are you looking to begin your investment journey, but are hesitant due to low inventory? Well, we are here to tell you that deals ARE happening, and you CAN add exponential value to your real estate investment (or future investment). Jacob Mueller of Atlas Real Estate starts by explaining the differences and benefits of both ADUs and AFSs, as well as the rules, the effect on taxes, and more. But he mainly talks about maximizing your investment property with a simple math problem of the ratio of bedrooms and baths to square footage. We all are paying more for every piece of real estate. Get the most out of it now and in the future when you sell it. We know the level of commitment & financial assets needed to invest in real estate, so it's okay that the process comes with a bit of hesitation. But, there are plenty of options available for you to start with one or modify your current strategy that will add value to your property.

We know just how stressful deciding to purchase a home can be, especially when you're already a homeowner! It can be nerve-wracking to think about purchasing a new home when you have hundreds of thousands of dollars already in your current asset...
BUT, THE FEAR STOPS HERE!
When it comes to buying and selling at the same time, or even purchasing before you sell, it is all about strategy and diving into the details. Sellers are in a very strong position in our market right now, so buyers who also have listings on the market have to come up with a strategy to make their offer stand out.
Join Nicole Rueth and Justin Knoll as you are given options to simplify this coordination.

There is a lot of math in this episode, important math. Listen while Nicole walks you through the cost of waiting to purchase a home, especially if you are currently paying rent. The last 18 months of everyone's lives have been exhausting. But putting off purchasing a home shouldn't be one of the things falling to the wayside. If you've been on the fence, now is the best time to buy. Why? It's not just because interest rates are low, it's because of the two-fold effect of appreciation and principal reduction. No matter how good of a deal you have on rent, you're not getting the best bang for your buck or making the most of the roof over your head. In fact, you'll lose out on quite a lot by waiting. But just how much...? 
Learn more about building wealth through real estate on Nicole's YT Playlist:
https://www.youtube.com/playlist?list=PLDnB7ZSa5nonyH6H8F9-RAS6AtdlOMo7Q 

Use Real Estate to Pay For College! First-time homebuyer and investment property purchase.
How can I use equity to pay for college?
When should I start investing?
Nicole's personal experience.  She had three in college at the same time - one graduated, two are still in. At 20, Nicole's two boys were able to purchase their first homes. They bought income property where they could live, and then become the landlords and rent out the other rooms in their homes to not only pay the mortgage but to help with cash flow.
Each home cost $400,000  with a 3% down as first-time homebuyer or could be done using downpayment assistance.
If you put less down, you'd still cover the mortgage with the income, but maybe not as much pocket money.
You can use your own home equity to purchase investment properties do follow this same model and cover room and board, and increase your real estate portfolio. Consider this option instead of a 529 plan. That home you purchase for your child when they are born could appreciate over the next 15-18 years and will pay for college, or a whole lot more using the rental income and principal reduction. It could help pay for their first home and even their wedding, PLUS their education.