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Hi Bridget! If your house is paid for, you could refinance or use a home equity line of credit. Shoot me a text at 503-799-3711 and I'll ask you a few questions that will zero in on which option makes more sense for your particular situation!

Glad I could give you a leg up on your new adventure as a loan officer. It's a really rewarding career and your background as a processor will serve you well!

Ever so welcome! 😁Thanks for taking the time to watch and comment!

Hi there! That's not a bad idea... that would give you security that the payment on the loan you're helping her get will be paid timely. Personally, I'd ask her to make the payments and use the $17k as back-up in case she doesn't. (Obviously $17k isn't going to be enough to cover $30k + interest!) As a mortgage lender, I'd recommend having her pay the creditor directly, so that should you want a loan in the future, she could provide evidence to your lender that she's paying the loan independently. If you have proof she's paid 12 months of payments from an account in just her name, the cosigned debt would be ignored in your debt-to-income ratio when you apply for a new loan. You would want to log in and check that the payment posted on time each month to protect your credit from damage. If she misses a payment, you can use the $17k to cover that month.

@workshopmortgage thank you, I will definitely screenshot this info..thank you again

@@pumpkin_it_slawson3588 Glad I could offer some helpful information! Good luck!

You're welcome. 😁

You're welcome Michael. 😁 The worksheet is a spreadsheet, so I need your email to send it to you. Please text your email address to me at 503-799-3711 and I'll shoot it over your way.

Thanks for sharing my videos with your managing broker. That's quite a complement to hear a seasoned professional found my explanation easy to follow and helpful. 😁❤ I'm working on aggregating some data on the market and including best guesses for what the year ahead holds. Once I get my thoughts organized, I'll put out some videos that discuss the relevant information in an apolitical way. As an aside, I'm organizing this information for a presentation I'll be sharing at a few real estate brokerages. If your manager is interested, I'd be happy to share this information with your brokerage too! And my sister-in-law, her hubby and their boys live in Chester Springs. Sounds like their just a little south of you, if I have my PA geography down.

Hi there! I'd be more than happy to share the points analyzer tool. It's a nifty little spreadsheet. I need your email address to send it over. Text your email address (503-799-3711) and I'll email it. 😁

Hi Allison! Thanks for the positive feedback on my videos. It's encouraging to know fellow professionals like you are finding value in them. 😁 And it's funny you should bring this up, as it's been on my mind. In my private life, I have political opinions, but I try to have political conversations over beers with friends, not at work, you know? 😆 But there are definitely some potential implications for bond yields and mortgage rates if even some of the campaign rhetoric becomes policy, so I'm working on video idea. I will also write about these topics in emails I send out. If you'd like me to add you to my email list, I'd be happy to do so. Oh and looks like you are right near my brother and sister in law!

Hey there Dustin! Sorry about the delay in replying. I'm usually a little quicker on the uptake! The standard guidelines require 2 years of filed tax returns, but underwriters are allowed to make an exception and approve a loan with just one year of tax returns so long as three things are true: Thing #1 - Your 2024 tax return will show a full year of self-employment (in other words, if you were self-employed on 1/1/24) AND Thing #2 - You have experience working in the same field or in a job that has similar responsibilities. AND Thing #3 - You have a history of earning income at a level the same as (or greater than) your new self-employment. Check these boxes and you should be able to secure approval for a conventional loan as soon as you file your 2024 tax return: The amount of salary you paid out to yourself in wages doesn't matter. We're just looking for the cash flow your business generated over the year. Profits you didn't pay out to yourself can still count as income so long as you either pay them out to yourself or your business can pass a liquidity test. I need to record a video about the liquidity test (it's on my list!). To avoid any sticky issues with the liquidity test, it's a good idea to distribute your profits. As your CPA what you need to do between now and the end of the year to assure the amount in box 1 of your K-1 (your profit) isn't wildly larger than the amount of distributions in box 16 on your K-1. And if you have any other questions or want to do a little pre-purchase planning, please reach out! You can text or call me at 503-799-3711 or email me at juleef@rate.com. I'd be thrilled to help you lay the groundwork for a new home in the new year (has a nice ring to it, doesn't it?) 😁

@workshopmortgage thank you for the reply.

@@dustinbradshaw2153 You're more than welcome! If you have any other questions, just let me know!

Hi Yana! I just sent you an email... let's see what we can figure out!

@ I appreciate you!

@@YanaJimenez You're welcome Yana... it's my pleasure to do my best to help out!

😊❤Thanks, Jacqueline! I'm happy to hear you're enjoying them and it's kind of you to take the time to let me know!

😁

Hi Yana! That's one option, of course, but it's not the only one. There are alternative methods of documenting income for self-employed borrowers. That actually happens to be the topic of the next video I'm going to post (working on it now!). So if you haven't already done so, subscribe and turn on notifications so that you get an alert when I upload it. I should also add that sometimes the issue is that the lender you're working with isn't calculating your income correctly. I have been able to qualify quite a few self-employed clients for a loan after another lender turned them down. I have a playlist of videos for self-employed borrowers here: th-cam.com/play/PLK5a62WXWP1z1HsJRwQLp5WaWReBisyQE.html A couple of the videos go into detail on exactly how we calculate income for certain types of businesses (sole proprietors and S Corporations). And if you have questions about any of this or just want to brainstorm about your own situation, I'd love to connect. You can reach me at juleef@rate.com or 503-799-3711 (text or voice). Hope to talk soon! 😁

@ Yes, I will definitely watch your videos and love to tell you my story, so you can info others what to watch out for from my experience! Thanks for the reply! 🫶🏽

@@YanaJimenez I look forward to talking. (And I'll do my best to help out!)

Hi Gabe! You're ever so welcome! Glad you found this helpful. And yes, you can use the funds to purchase a duplex or other multi-family property. House-hacking in your first home is a great way to offset some of your house payment with rent.

Leveraging equity in one property to purchase another is a time-honored way to use a HELOC. (I've done this myself!)

Glad you found it helpful! 😁

You're very welcome, Gabe! I am glad you found this video and hope it shed a little light! :)

It's a big ask and a true act of friendship and trust if you agree to help him out. If all goes well, it may not have any impact on your financial life, but if he runs into trouble making the payment he could wreck your credit which could create all kinds of problems and expense. And depending on the type of debt, the creditor may pursue you for the debt if he doesn't pay. It's good that you're thinking about and weighing the potential consequences.

@ thank you!

@@beyourself2788 You're welcome!

You're welcome! 😄

Well, YT shorts have to be under a minute, so there's only so much I can fit in! But if you called me about getting a mortgage (which you're welcome to do) (503-799-3711 😊), you'd hear me talk about the difference between COULDs and SHOULDs. Lenders, like me... we're good at telling you what you COULD qualify to borrow according to loan guidelines. We are not, however, the place to get advice about what you SHOULD do. Home buyers should definitely spend time thinking about their budget and how a given monthly payment for a mortgage will fit into and impact it. If you need or want professional help with establishing a budget or figuring out an appropriate amount to spend, on a home, financial advisors are trained and licensed to assist with this. But I should add that a high DTI isn't always a disaster waiting to happen. Because lenders have to follow very proscribed rules when it comes to calculating income and DTIs (check out my other, longer, videos for a taste of these), real world budgets are often quite different that the numbers in a loan file. Maybe you're self-employed and last year's tax return doesn't reflect this year's income due to growth. Maybe you have roommates or a partner moving with you who aren't buying with you but will be chipping in on expenses. Maybe you have a spouse or partner who's iffy credit means they're not participating in the loan but they make great money. There are endless examples. Thanks for taking the time to watch and comment! 😁

Thank you for your kind words! I'm so happy you found the video helpful and clear. That's definitely my goal!

I'm happy I could clear up the confusion!

Congratulations! 😁🎉

So happy you found the video helpful, James! If you have questions or want advice about your personal situation, don't hesitate to reach out! You can call or text me at 503-799-3711. I'd love to be a resource to you!

Well, yes, that is an integral part of a successful investment property experience. 😆

I'm happy you found the video helpful and look forward to connecting. 😁

Thanks for the comment! My perspective differs... if there's a catch, I'd say it's the slight premium in interest rate that comes with these loans. The down payment and reserves are often lower on DSCR loans. For instance, Fannie Mae and Freddie Mac require 25% down on a 2-4 unit rental purchase. DSCR loans are a-okay with just 20% down, so long as the rental income is sufficient to cover the payment. And Fannie/Freddie require 6 months PITI reserves as well. Another subtle but important difference that favors DSCR loans: Fannie/Freddie limit seller credits to 2% of the price and DSCR loans often allow 3% or even 6% credits.

Hi Belo! I'd be happy to answer any questions you have! Feel free to email me at juleef@rate.com or call or text 503-799-3711. 😊

Hi Heather! We just need the rent to cover the mortgage payment (although there are some options where the rent can be a little less than the payment). We need to document the funds you'll be using to close (20% down is the minimum) plus 6 months of "reserves" (savings equal to 6 months of the new payment left over after closing). A credit check and verification of good payment history on other mortgages is the only other significant requirement. These loans are pretty simple. I'm happy to answer any other questions you have. You can text or call me at 503-799-3711. 😁

Hi Kirss! Here's the (very) complete guide to house-hacking: th-cam.com/video/iH2tiOAd03M/w-d-xo.html I put included everything I could think of, from personal and professional experience. Let me know if you have questions and/or if you want to talk about your own situation. You can reach out to me any time at 503-799-3711 (voice or text). 😁

Hi Douglas! Here's the guide: th-cam.com/video/oezPgvHQ8t0/w-d-xo.html It's roughly 45 minutes long, so you might want to pop some popcorn and settle in before you click the link. 😆 The video breaks down 8 options for spending seller credits, pros and cons of each and finish with examples of how different options look side-by-side. I hope you find this helpful! Are you in the market for a house right now? Or just looking to learn?

You're welcome! I'm happy you found the information helpful! 😁

That's so nice of you to say! Feel free to reach out any time. You can text me at 503-799-3711 and my other contact information is in the caption. Perhaps we'll speak soon! 😁

You're welcome!

Hi Karma! I am a big fan of holding real estate for as long as you can. (I still own a home I bought on 1998!) You're right that you won't make a lot of headway on paying your loan down the first few years. But really even over the first decade of ownership, a 30 year loan doesn't shrink by much. But that misses the point... or even arguably the magic of owning real estate. It may feel like you're treading water on your loan balance, but most years, your equity will still grow form appreciation. And because you don't have to put a crazy amount down relative to the price, your appreciation can grow very rapidly, relative to your upfront cash outlay.

I think they call that "Cobbler's Children" Syndrome. 😆

@@workshopmortgage Definitely!!! 😅

Hi Mashu! The points analyzer tool is a spreadsheet, so I need to email it to you. Text me your email address at 503-799-3711 and I'll send it over to you!

Hi! The guide is about about 45 minutes long, so you might want to bookmark it and come back when you can make a cup of tea and hang out for a little while. 😁☕ th-cam.com/video/oezPgvHQ8t0/w-d-xo.html In it, I talk about all 8 ways you can spend seller credits, pros and cons of each and then give real world examples of how different options look side-by-side. I hope you find the information helpful! Are you in the market for a house right now? Or just looking to learn?

Hi David, that is curious for sure! If you'd like a non-partisan, professional set of eyes on any of this, I'd be happy to look at your statement. You can email me at juleef@rate.com. I can think of a few things that might be going on. The documents I'd want to see are your most recent statement for the HELOC and the HELOC "agreement".

Thanks for taking the time to comment, Rob, and for the kind words. 😊❤

Hi Dawn! Let's do this! Text or call me at 503-799-3711 or email me at juleef@rate.com. I'll send you the checklist and can get started working through it together. 🎉😁 Once we figure out your DTI, we'll show you want it is and how we calculated it.

Hi Jennifer! Text me at 503-799-3711 and I'll send you the checklist!

Home prices are high and that's certainly an affordability challenge. I'm in the trenches helping my clients figure this part of things out every day. That said, it's been 26 months since the peak for home prices in inflation adjusted dollars. Nominal prices are at all time highs, but per Case Shiller data, inflation adjusted prices are 1.5% below their peek in 2022. The best source for good data and analysis is www.calculatedrisk.com -- an amazing substack run by Bill McBride. Inventory is something he tracks closely, as it's the best leading indicator for price pressures and it IS rising. This second chart in this post (calculatedrisk.substack.com/p/watch-months-of-supply-289) is a great visualization of the trend this year and the powerful correlation between inventory and prices. www.redfin.com/news/data-center/ is another good resource. Relevant to this video, go pull up almost any of their chart and you'll notice each year tends to start and end lower than it is in the middle. That seasonality is relevant for buyers... "off season" is the fall and winter, making it a time that buyers have less competition. Rates were at all-time lows during the pandemic, 2.5 to 3 years ago and rates are higher now. But they're also down substantially since last year and (if you look at a longer-term history for mortgage rates (fred.stlouisfed.org/series/MORTGAGE30US) arguably more "normal". From 2000 to 2009, rates were mostly in the high 5's, 6's and low 7's. It was only in the aftermath of the great financial crisis and during covid that rates fell below 5%. That timeframe had one thing in common... the Fed was purchasing billions of dollars of mortgage bonds, pushing rates to artificially low levels. Now that the Fed has turned its attention to tamping down inflation, we are likely going to see more "normal" mortgage rates going forward. And you bring up inflation... it's coming back down, but it's one of the biggest arguments FOR purchasing a home. A 30 year fixed rate mortgage is a remarkable inflation hedge residents of most other countries don't have. You can lock the majority of your cost of housing into a payment that'll never go up but could (if rates dip and you can refinance) go down. All the while also owing an asset that has a track record of appreciating at a rate around that of inflation, with a down payment that is only a small faction of the purchase price. (The powerful upsides and associated risks with a leveraged purchase are a whole other conversation.) Since homebuyers today don't have a time machine to go back and buy when rates and prices were lower, the questions to ask are: -Does homeownership make sense as a part of your bigger financial picture? -Do you plan to stay in your current area for at least another 5 to 7 years? -Is your income and employment stable? -Can you afford the monthly payment? -Can you scrape together a down payment? If yes, then the next question is: When should you buy? I don't have crystal ball, but in the past few years, I had two periods of time where my Spidey sense told me that a good window for buyers was opening up: Early 2023, Late 2023 and now. My hunch proved accurate the two other times. We'll see if my instincts prove accurate this time around! Not sure if you'll see this, but I hope you do and get a chance to check out the links.

Hi Vikash! Text me at 503-799-3711 and I'll send you the checklist!

Hi there! Please text your email address to me at 503-799-3711 and I'll send you the checklist!

Glad you found the video helpful! (And thanks for taking the time to comment. 😁)