Pay more and risk more is the only strategy. Otherwise change what your criteria is if you can't compete to a level where you can. Say if your max is 700k, avoid those homes and look for 600ks to bid up to 700.
@MattTheMortgageGuy
3 жыл бұрын
This is good advice. You have to start at a lower price point knowing you'll have to compete
@robinhood5499
2 жыл бұрын
That's exactly the definition of FOMO 🤦♂️🤦♂️ NOT a Smart move imo.
@jodhanbeshaan5535
3 жыл бұрын
The problem in places in ny is that the government is not opening up new housing development. It’s the same old houses from the 1950s they keep recycling to new buyers
@dlocktrends9703
Жыл бұрын
On the MAO (maximum allowed offer) thats the amount we give the seller. But what amount do we give cash buyers when I successfully have the contract signed by the seller?
@peteross4879
2 жыл бұрын
Can a person who is selling their home make an offer on a new build with 5% down and change it to 20% down as soon as their home sells? Is that even a thing?
@MattTheMortgageGuy
2 жыл бұрын
Sure, as long as you qualify with 5% down…
@jasontaylor4964
3 жыл бұрын
I look on MLS and see a house listed and I drive by to see the neighborhood and the next day boom sale is pending. The thing that gets me is I check when the home sold and it sold for what the seller wanted. That is saying no bidding wars and how do they get the sale pending that quick?
@MattTheMortgageGuy
3 жыл бұрын
What market are you in?
@jasontaylor4964
3 жыл бұрын
@@MattTheMortgageGuy Virginia Beach, VA
@MattTheMortgageGuy
3 жыл бұрын
@@jasontaylor4964 - with one individual listing you never know. Maybe the sellers were eager to get in contract quick and sell because they are leaving town and need to close. Also depends on where the price was set initally. List price can be exactly what it sells for and what the market deemed a fair price but had the seller decided to list for $40k less and it gets bid to that same price doesn't mean the buyer paid $40k "above" anything besides the list price. Hope that makes sense. Its late. I'm tired
@jollyrigger1560
2 жыл бұрын
Kind of disappointed that the ONLY option presented here was to manipulate the inspection clause. Short and sweet can also mean ineffective.
@MattTheMortgageGuy
2 жыл бұрын
Check out my latest video. It’s about the same subject 🤙🏼
@peteross4879
2 жыл бұрын
Can a person who is selling their home make an offer on a new build with 5% down and change it to 20% down as soon as their home sells? Is that even a thing?
@MattTheMortgageGuy
2 жыл бұрын
Sure, just have to make sure you qualify to buy contingent on your house selling
@johnhwang339
3 жыл бұрын
There is also loan contingency, inspection, buyer selling their home, etc.
@MattTheMortgageGuy
3 жыл бұрын
Correct, tons of moving parts
@victorcordero1458
2 жыл бұрын
Damn @ 5:04 lol
@jryan8672
3 жыл бұрын
Hope you can answer this. I have to do a Profit and loss for the year. It shows a loss due to a lot of COGs purchased in the 1st quarter. I profited every year for the past three years. My deposits when added up shows a higher amount than last year. Will this be a problem?
@MattTheMortgageGuy
3 жыл бұрын
This would be evaluated by UW on a case by case basis. If you submit a good LOE ( letter of explanation) I think you’d be ok. Depends on the lender and how strict they are on SE borrowers
@steveman7047
3 жыл бұрын
Matt I borrowed PayPal capital in the beginning of the year. I'm sure you know they take out a lot of fees. Sometimes, I use it for employee cost or I withdraw it and deposit it into my bank account and pay taxes on it. My bank statements, PP, and stripe if I add together will match my deposits (P&L).The only thing that would make me show a negative is my PP capital fees. Do I add it to a profit and loss statement? I owe 12K and I would have it paid off approx. in 2 months. What's the odds I would get approved while everything else is fine. Plenty of cash to put down as well. Cheers
@MattTheMortgageGuy
3 жыл бұрын
Should be able to explain that in an LOE (letter of explanation) to the underwriter. If you can describe that its a one time expense and wont affect your business from being profitable you should be able to take an average of 2019 and 2021 SE income
@lickwitgold1661
2 жыл бұрын
Thank you!
@MattTheMortgageGuy
2 жыл бұрын
You’re welcome!
@dominicano4life809
3 жыл бұрын
When should a person start negotiating the price of a home if it has been on the market for over 30 days ?
@MattTheMortgageGuy
3 жыл бұрын
Talk to your realtor and make an offer. That’s when negotiating begins 😁👍🏻 Good luck
@brittanybell26
2 жыл бұрын
So if I look for a 300K home to B up to 500k that will put me at Good ends market?
@MattTheMortgageGuy
2 жыл бұрын
not sure I understand the question
@brittanybell26
2 жыл бұрын
@@MattTheMortgageGuy I meant, if the house was going for 300,000 an I buy it for 500,000 k am I paying less in Mortgage? Does that put me at even in the market?
@lickwitgold1661
2 жыл бұрын
To be clear, this is NOT something you can do with FHA, right??
@MattTheMortgageGuy
2 жыл бұрын
Which part exactly ? With fha the issue with most buyers is they don’t have the extra money to bring a gap if appraisal comes in short
@lickwitgold1661
2 жыл бұрын
@@MattTheMortgageGuy gotcha! I'm a realtor in Texas, and I was under the impression that we couldn't waive appraisal on FHA, because FHA depends on the appraisal to determine the amount they will lend. I'm a new agent so I could be mistaken....
@bjhaBDSKJBajkhbsdkh
3 жыл бұрын
How accurate is it when you go to your town assessor and see the appraisal. I checked out a home and it's on the market for 425K and the town has it at 301K. Geez they are paying taxes on 301K and I will pay taxes on 425K if I buy, or is the appraisal on town taxes not accurate for the year?
@MattTheMortgageGuy
3 жыл бұрын
The city assessment is not a good gauge of current value. It’ll almost always be much lower
@bjhaBDSKJBajkhbsdkh
3 жыл бұрын
@@MattTheMortgageGuy Interesting
@x.y.8581
2 жыл бұрын
Can you make an offer contingent on finding a buyer for your current place so you don't end up having to make payments on 2 properties?
@MattTheMortgageGuy
2 жыл бұрын
Sure, you can write all kinds of contingencies in your offer. Only downside is it might turn off a seller in a competitive market.
@nancyhogan3696
3 жыл бұрын
"Financial gurus" suggest 28% of your gross income. I call that BS especially where I live. Homes are 600-700K range in nice areas. I would be at 40% of my gross income buying a home at that range with no debt. Do you see a lot of buyers stretching their loans? What is the highest DTI you can go. Sorry I was off topic.
@MattTheMortgageGuy
3 жыл бұрын
Front end (meaning just the mortgage) I’m seeing DTI between 35-40% get accepted Back end (meaning all debt + mortgage) I’m seeing 50% get accepted {depends on loan type/program} Ultimately it’s less about how much you qualify for and more about how comfortable you are with payment
@nancyhogan3696
3 жыл бұрын
@@MattTheMortgageGuy Thank you!!!!
@MattTheMortgageGuy
3 жыл бұрын
@@nancyhogan3696 - no problem!
@lorielms7153
3 жыл бұрын
I agree. I'm looking at homes for 450K and some say go by 2.5 your salary. That would be 290K where I live... not happening before or now
@MattTheMortgageGuy
3 жыл бұрын
@@lorielms7153 - Thats a metric that I think really depends on what part of the country you are in. That would NEVER work in CA. It's pretty typical to have someone with a $100k income buy a $500k house. Thats double the 2.5 rule
@tinarobinson7915
3 жыл бұрын
Can you negotiate your interest rate? I have 740+ credit and everywhere I check it's like 3.1 or if I want to buy points I can get it down to 2.8% which is not worth the extra money IMO
@MattTheMortgageGuy
3 жыл бұрын
You can try. Sounds like you found a great rate. If you like and trust the person I would stick with them. The more you go around hunting for the lowest rate (or for the person that promises to deliver the lowest rate) the higher likelihood you'll end up having things change or a bad experience. In general the rate sheet is the rate sheet and each lender has a sheet of rates with and without cost (LIke you saw). They generally aren't able to barter like the flea market. Best of luck!
@cavy95
2 жыл бұрын
@tinarobinson remember, every time they do a hard pull to check your credit, that will lower your credit score! So every time you shop for a better rate you have to agree to a credit pull. Go with a credit Union, closing costs are less!
@sam56094
2 жыл бұрын
I’m trying to buy a house for my mom now , and every time we go above $30k-$40k , to our max $480k . We still lose ! . I tried starting at home prices at $440k to then go up max $480k and we still lose !
@evelynvargas147
2 жыл бұрын
Did you find a home, might have to change real estate agents
@charlesstanlry3704
3 жыл бұрын
Is there first time home buyer programs and no closing cost or is that for lower income?
@MattTheMortgageGuy
3 жыл бұрын
Those programs vary by state but generally come with higher rate and fees, not to mention a clear disadvantage to getting an offer accepted in a sellers market.
@MattTheMortgageGuy
3 жыл бұрын
Those programs vary by state but generally come with higher rate and fees, not to mention a clear disadvantage to getting an offer accepted in a sellers market.
@charlesstanlry3704
3 жыл бұрын
@@MattTheMortgageGuy Kind of figured that
@larryqueen1638
2 жыл бұрын
We are looking for at a home listed at 425, and we were considering offering 435. We do have more than 20% down conventional and were considering an appraisal gap. Would you recommend 10K gap so if it appraises for 425, we are safe?
@MattTheMortgageGuy
2 жыл бұрын
As a buyer you have to balance what you are comfortable with and what has a chance of getting accepted. A great realtor can help you find the balance in those. best of luck!
@sarahpudtsoccer7006
3 жыл бұрын
Hi every time I call a lender they tell me they want a p&L statement. I understand being self employed but what is the most important thing to show on the p&L? I don't have an accountant and most tell me they don't have time or pretty much don't want to do it. Thank you!
@MattTheMortgageGuy
3 жыл бұрын
Google “sample p&l” and you’ll find some pretty good examples. Nothing fancy. Just make sure it doesn’t contradict your bank statements (I.e. your p&l says $10k/month in gross revenue but bank account shows $2500/mo in deposits.)
@sarahpudtsoccer7006
3 жыл бұрын
@@MattTheMortgageGuy So if bank statements show 5K revenue and I earn 15K revenue. I would have to get the extra proof of 10K from merchants like PayPal since a lot goes in there as well?
@barrysmith4173
3 жыл бұрын
First time buyer here. I'm self employed and don't have a business account. My deposits and withdrawals are deposited and taken out of my savings to checking. Also I have my closing / down payment in that account. Hope the underwriters sees this from customers and it's not just me. Thanks for the video
@MattTheMortgageGuy
3 жыл бұрын
It’s common but not advised. For your own sake I’d open up a separate business account Cheers!
@KnockoutNationn
3 жыл бұрын
Not sure if you buy real estate as well. Any tips what kind of homes appreciate the fastest once we get normal again like homes near good school systems, corner lots, pools, etc. I'm looking in the suburbs with a family. Just seeing what I should look for and avoid based on your experience.
@MattTheMortgageGuy
3 жыл бұрын
I love real estate and my wife and I own 5 properties. (Primary, 2 SFR's and 2 fourplexes)-- That's a hard question to answer as the more important metric is probably the population and job growth of the city you are trying to buy in. If the city as a whole is appreciating then it wont really discriminate for corner lots and pools, etc. I'd compare it to the stock market. If you believe in technology then find great companies that have great technology and hold the stock for 20 years. If you believe in real estate and a city invest there and reap the rewards in the next few decades. Best of luck!
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