The Double Comma Club

Interest rates have been on a downward trend since 1981 when the 30-year fixed rate hit 18.5%.  Just three years ago they were almost 5%. Now, news cycles are headlining rates jumping from 2.625 to 3.25% in 2021 and climbing from 3.25 to 3.5% in 2022.
If you bought your first home in the 80’s, 90’s, or even 2000’s, you're laughing out loud when the words “jumped” and “climbing” are used with rates in the low 3’s.
The low rates in 2020 and 2021 both propelled and offset the insanity which was extreme housing demand with a limited supply.  I don’t have to remind you of what happened, but it does beg the question…
Where do we go from here?

Agents, do you want more listings? Who do you know who is retired, nearing retirement, in an age-inappropriate home, and has equity which gives them options? Our Retirement Mortgage Specialist, Gabe Bodner joins me today and we are discussing how you can help your clients take advantage of a Reverse Mortgage, and get you more listings, especially in the crazy low inventory Denver market!
Feel free to reach out to Gabe and his team directly at: [email protected] or 720-600-4870

Back out now? Or stay in the game? Well, the politician's answer is, "It depends." Every home and buyer situation is different, so this question should be assessed as such. If you or your buyer are unsure about anything in the inspection report, are unsure of any conditions, or feel it's just not the right move, have an "A-Team" on standby to answer questions and assess situations on a case by case basis. Get some quick tips to determine the best course of action in this episode of the Double Comma Club, "When should you back out of a deal?"
In this episode you'll also get a taste of Nicole's dream in an unlimited future ala Kenny Rogers.

This episode is for agents AND sellers.  With inventory so tight, we have to be on point with our lending solutions because BUYERS NEED AN EDGE.  Here's what that looks like appraisal gap insurance, appraisal waivers, earnest money guarantees, and loan objection waivers. PLUS all the creative loans to match the opportunity.
What is a TBD underwrite? This is where you disclose the loan, gather all income and asset documentation, we completely underwrite that file for a particular TBD purchase price, with estimated insurance, taxes and amount down, qualify to verify income and assets, then all you need is the property. That can give you the ability to waive the loan objection. Would this help you the buyer gain an edge? You bet it will!
Nicole and her team are specialists in this to help your buyers, agents. Buyers, ask your agent to get help with this. There are more tips in this episode that will help you purchase the property you have found. This will tell people you are good as cash when it comes to the loan.
We still need to go through the inspection and appraisal process, but as a verified cash buyer you have a huge advantage. She also covers appraisal gap insurance and the logic behind it.
There are bonus tips for credit repair.

Some people are better off renting. You'll have to decide where you are today. You can go back and forth from owner to renter and back again. Please consider these big points.
Homeownership advantages:
Building equity/wealth
Adding to your credit profile
Stability - especially with children in school districts
Possible tax advantages
Ability to upgrade to add-on, remodel - make it your own.
Disadvantages to buying:
Costs more upfront
You have to pay for the maintenance
Apply and get approved for a loan
You can lose money
Renting Advantages
The epitome of flexibility and freedom
Less up front costs, other than security and first and last.
No responsibility for maintenance even thou
No ancillary fees such as higher insurance and taxes.
Negatives to renting:
Not building equity
You'll possibly have to move several times that are not in your control
No long-term tax advantages
 

This story of using real estate to fund a dream makes me smile each time I think about it. I'm joined by my friend Olivia Kuynevicius, an agent with MilehiModern. It demonstrates the power of real estate and the opportunities owning a home creates. On this episode of Financing The American Dream, I and my dear friend Olivia spotlighted her client Cynthia, who just opened a coffee shop in Denver, Colorado... using the Equity in her Homes! Owning real estate quite literally opens so many doors toward financial well-being, you just have to see it for yourself! Join us for this episode spotlighting Cynthia Diaz, Owner, Tonantzin Casa de Café in Denver.

Do you know what your dollar per hour is? How do you value yourself and your time? Do you have a fear of delegation? These are just a few of the key points that this incredible panel will be speaking on at THE NEXT BIG THING. With how quickly our market moves, it's crucial to learn time (and money) saving tactics to increase your dollar per hour. LEARN MORE & PURCHASE TICKETS at: www.thenextbigthingcolorado.com

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.