The Sugar Daddy Podcast
Ready to normalize talking about money? Then welcome to The Sugar Daddy Podcast, where talking about money isn't taboo, and you can leave your past money mistakes at the door! Every episode will get you one step closer to your financial goals. Whether that is learning how to invest, budget, save, retire early or simply make better money choices, Jess & Brandon have got you covered in a way that's easy to understand. Tune in as they demystify the realm of dollars, so it all makes cents, while giving you a glimpse into their relationship with money and each other.
The Norwoods are a married, millennial couple, here to help you build wealth, so you can live the life you've always dreamed of. Brandon is an award winning licensed financial planner, and owner of Oak City Financial, with over a decade of experience and millions of dollars managed for his clients all over the United States.
New episodes published the first three Wednesdays of every month.
The Sugar Daddy Podcast
REWIND: Everything You Need to Know About Mortgage Lending with David Cain
Gain the upper hand in today's chaotic mortgage market with tips from David Cain, a top 1% mortgage banker in the US, with over 20 years of experience. As a trusted friend and exceptional professional, David joins Jessica and Brandon to shed light on the intricacies of securing a mortgage. Don't miss this episode filled with valuable insights and tools to help you face the challenges of the housing market head-on.
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Notes from this episode:
Connect with David Cain:
(803) 261-9267
dcain@rfsemail.com
Website
NMLS: #283753
Resource Financial Services
708 Lady St, Columbia, SC 29201
Don't make any assumptions. You know assumptions on down payment, assumptions on what you can afford, assumptions that you know you can purchase this particular property or loan types. Don't make any assumptions. Talk to a professional.
Speaker 2:You know what they say about assumptions yes, they do. Yep, yes, they do.
Speaker 3:Hey everyone, welcome to the Sugar Daddy Podcast. I'm Jessica and I'm Brandon, and we're the Norwoods, a husband and wife team here to demystify the realm of dollars so it all makes sense while giving you a glimpse into our relationship with money and each other. We are so glad you're here. Let's get started.
Speaker 2:Our content is intended to be used, and must be used, for informational purposes only. It is very important to do your own analysis before making any investment based upon your own personal circumstances. You should take independent financial advice from a licensed professional in connection with, or independently research and verify any information you find in our podcast and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
Speaker 3:We are so excited. Today we are starting something new with the Sugar Daddy podcast, which is even though we know you guys love us, it's time to start bringing in some guests. And so today we have David Cain, our first guest on the Sugar Daddy podcast. We are so excited, david. How do you feel about being our first guest?
Speaker 1:I am so jacked up. Yes, this is exciting. This is so exciting.
Speaker 3:I have a huge smile on my face. So, you guys, let me tell you about David, because he is a dear friend of ours. He is married to one of my dearest, oldest friends that I've known since middle school, which is a long, long time ago.
Speaker 1:That's a long time.
Speaker 3:Exactly, I was in David's wedding. He came all the way to the Dominican Republic for mine and Brandon's weddings.
Speaker 2:And I attended their wedding as well, before Justin and I were actually technically even dating. Oh my gosh, and I think it was maybe the first or second time I met David and he was like are you coming to our wedding?
Speaker 3:Oh, that's so true. I remember, oh my gosh, yeah, you totally put everybody on the spot and I was like, well, I guess you're going to have to come to the wedding. Which I mean obviously it all worked out.
Speaker 1:A little foreshadowing, there you go.
Speaker 3:I love it. So we've known David and his family now for years and we are so excited to have him on the show. But he's not on the show as our friend. He is on our show because the housing market right now, as you guys know, is insane, totally bananas. And David is a mortgage banker and he has been in this industry for over 20 years, has a ton of expertise and knowledge and fun fact last year he was in the top 1% of mortgage bankers in the United States. So David knows his stuff. That means that you closed a whole bunch of loans, right?
Speaker 1:That's right, that's what they tell me.
Speaker 3:That's what they tell you, that's what your paycheck says.
Speaker 2:Okay, I don't know if she mentioned it, but David is our mortgage banker also.
Speaker 3:Yes, I was getting there. Okay, I mean goodness.
Speaker 1:No spats.
Speaker 3:No marital spats.
Speaker 1:Keep those to a minimum.
Speaker 3:So, yes, so we have trusted David with our loans over the years. Refinances His process is so easy, so seamless, and we know that lots of people don't want to do business with friends and they're very much like no, we don't want to mix friendship with business. That has never been mine and Brandon's style. We always will go to friends in any kind of industry, whether it's, you know, healthcare or our mortgages, or anything where we feel like our friends are going to take the best care of us.
Speaker 2:So yes, there is a little bit of vulnerability that comes with that, obviously.
Speaker 3:you know David sees our bank accounts and knows my social security number and my credit score and all of those things, but what's most important to us is that we know he's going to tell us the truth, be transparent, guide us in the process, especially the first and second time.
Speaker 3:Right, it can be a little daunting. I mean, this is, in most cases, the largest loan that people ever take out, and so you really want to work with somebody that you can trust, and so today we are going to talk about a ton of things mortgage related and we're going to hear from David, because this is not our realm of expertise.
Speaker 2:Not at all.
Speaker 3:And so we want to make sure that we are giving you the best information possible. So, David, is there anything that I missed in this intro?
Speaker 1:No, that sounds amazing Better than I actually am.
Speaker 3:Oh well, that's what we think of you.
Speaker 1:Yes, thank you so much and I'm very honored and flattered to be selected to be on the Sugar Daddy podcast. So thank you so much for having me.
Speaker 3:Absolutely. We are so glad that you're here, Babe. Did I miss anything?
Speaker 2:I don't think so All right, I mean David would know his stats better than I would. Yeah, well, no-transcript. Sometimes I feel people throw that word around, but something I was in his wedding.
Speaker 3:Yes, I'm saying, yeah, this is not an acquaintance, it's not a point.
Speaker 2:Yeah, friend, and I feel as though, like there's just that, not that dav David doesn't do this just in general, but just an extra level of care when it comes to the interaction. Now, granted, I believe that he does this with everyone, but, like the, thing that maybe we get like a one or 2% more.
Speaker 3:Well, when I text him at six o'clock in the morning and instantly get a response I don't know if he does that with everybody else, but that's pretty common.
Speaker 1:It's pretty common.
Speaker 3:It's the level of service I've come to expect. Yes, there's more at stake when you're dealing with close friends, that's for sure. Yes, absolutely. I know what I forgot, speaking of being in your wedding. You guys just had your 10 year anniversary.
Speaker 1:I cannot believe you have lasted this long me either right and my wife would say the same exactly massive accomplishment. Absolutely beautiful family, beautiful babies, beautiful Shout out to Sarah Exactly Massive accomplishment.
Speaker 3:Absolutely Beautiful family, beautiful babies, beautiful house, all the things. Not a baby anymore, I know Well, okay, that's a whole other episode. Time is a thief. Okay, david, are you ready for some hard-hitting?
Speaker 1:questions. Let's do it.
Speaker 3:Okay, so let's talk about this insane market, which is so timely because our house just went on, the market went live yesterday. Everybody send your juju our way for lots of showings, lots of offers, all the things, but we know we're building a new house. Interest rates are crazy. I text you all the time what are rates today? What are rates today? Because it's just wild out there. So tell us about what's been going on in the last couple of months with these rates and just all of it.
Speaker 1:Yes, this is probably one of the most chaotic years in the mortgage business, at least in the last 20 years, if not ever.
Speaker 1:Wow Rates have more than doubled throughout the year, which is absolutely insane, to wrap your mind around Painful yes very painful and the market in general as far as the economy, inflation, cost of goods, delays and supply chain issues has driven rates through the roof. And some good news recently inflation looks like it may have topped out potentially and that is going to be the first step or indicator that rates will stabilize or come down. So great news for the housing industry. The last few months have been rough as rates have gone up. There have been many buyers that have kind of pulled out of the market but there has been more inventory come on the market, which is a good thing for buyers.
Speaker 3:But not for sellers, which is what we are now.
Speaker 1:Yes, not necessarily so, but there are. You just have to be creative when selling a house. So, for example, offering buy downs um paying closing costs. All of these things can help you in a market with rising interest rates. So definitely want to talk to a professional you know, a mortgage professional and or a realtor that has experience in this type of market to best market your house and provide incentives for buyers to overcome high rates.
Speaker 2:Now notice how he said work with professional, because I'm of the same mindset. You know, I know my lane as a financial planner and when I'm working with David, I'm like David. What do we need to do? It's not me trying to tell him, like when I Googled or whatever. It's like David. What is your expert advice?
Speaker 3:And one thing about Brandon y'all he stays his lane like he's. Like I'm going to trust the realtor. The realtor says we should list at this price. Great, we'll list at that price. If david says you know xyz about whatever the rates are, or, however, we should be taking this loan out. He's going to follow that advice.
Speaker 2:He's he's not just googling things and being like well google said he's always been like that, the whole thing is is that you're going to hire an expert, you should trust the expert knows what they're talking about. So therefore, you should lean into what they're recommending, and if you're not going to do that, why work with the person? Yeah, absolutely Great advice.
Speaker 3:So we, our current house we have a 2.6% interest rate and right before we started turning on the mics, we were talking about what the interest rates are now. And you were like well, we're still in the sixes Dagger to the heart more than doubling what we currently have and you just mentioned. As sellers, we could offer a buy down for anybody looking to purchase our home.
Speaker 1:Correct.
Speaker 3:Okay, I thought that only lenders could do that. So there really are ways to get really creative.
Speaker 1:Yes. So for example, you know, let's say, on a $300,000 house the cost for a buy down may be seven or $8,000. Oh wow, you could offer that as a an incentive for a buyer. So instead of getting a rate let's say at 6.75, the first year of the mortgage would be 4.75, second year, 5.75, and year three, through the length of the mortgage, it would be at 6.75. So paying seven or eight grand for them to have the lower rate is better than dropping your price by 20 grand.
Speaker 3:Wow.
Speaker 1:So you're netting more money when you do that, y'all for the buy down.
Speaker 3:That's really interesting.
Speaker 1:I mean, I see, the incentive from the buyer standpoint because within that two year time frame.
Speaker 2:Essentially that that's the lower interest rate. You're hoping that rates drop and you would refinance anyway, absolutely Exactly.
Speaker 1:Yeah, pretty much everybody that has, you know, done any research either believes that we are either in some type of recession or are going to be in one in the near future. That's the bad news. But the good news is is that after every recession in the history of the United States, there has been a rate drop. So people that are getting mortgages now that's not a 30-year mortgage, that's more likely a mortgage you're going to be holding for one or two years and then refinance.
Speaker 3:Yeah, You've been really good. Sorry to interrupt you. You've been really good with me. David, kind of talking me off the ledge right as we're looking at what we're going to sell our house for. What are we purchasing our new house for? And the interest rates right, the interest rates at this point. You said you need to budget $1,000 extra in your mortgage from what you're paying now because of the interest rate, I mean obviously our home price is also increasing.
Speaker 3:but it's really just the interest and you've been really helpful in breaking down the cost for me and helping me understand this is temporary. After you've made your six payments, you know you can refinance. Let's see what the rates are doing and just thinking of it, as this is not a 30 year mortgage, this is a 24 month mortgage, right, right and like that, that helps me. That helps me a ton. So I appreciate your guidance.
Speaker 2:I appreciate you uh talking her off the ledge because she does not listen to me at all.
Speaker 1:Sometimes it takes a third party. Exactly.
Speaker 3:I agree.
Speaker 1:The spouse is the last one you listen to.
Speaker 2:So maybe get a little bit of context. You know, for individuals that are not familiar with you know how. What inflation is, how it's occurring and what is being done to fix it is that, when inflation occurs, what that means is that your individual dollar is buying less, so therefore you have to spend more dollars to buy the same goods, which is why things that you're purchasing on a regular basis cost more.
Speaker 3:The grocery store, you're leaving with less bags and spending the same amount.
Speaker 2:Correct. So what they do to try to what the Federal Reserve does to try and decrease inflation is that they raise interest rates, and interest rates on. You know the different loans that you may have a car loan, a home loan, just a personal loan in general, they're raising the rates on those. So you'd be paying more interest with the idea that less people would borrow money. So with less people borrowing, money that's going to be less money that's going into the economy.
Speaker 1:So people are buying less things.
Speaker 2:Thus the price of things will drop and inflation drops.
Speaker 1:That's, you know the concept behind it. Now the idea is to have what's called a soft landing.
Speaker 3:Brilliant. However, that was really I like saw like a visual in my head. That was really good.
Speaker 2:But unfortunately what they normally do, instead of having a soft landing where we just kind of ease back into a you know happy medium area, is that we have a hard landing where we go from you know economic peak to recession. Oh yeah, nothing happens but, like as David stated, you know, during a recession, there are 100% opportunities available to people.
Speaker 3:Right.
Speaker 1:No doubt, no doubt it's if you were in the market. There is more of an opportunity now to purchase uh than there was six months, 12 months ago. So that's the positive of the market is that you are able to get closing costs. There's more inventory, more options. You don't have to just buy the first house that you see because that's the only option that you have.
Speaker 2:We transform a buyer's market to a seller's market to a buyer's market.
Speaker 1:Right, Exactly, and it can also give you the option to. You know, if you have some liquidity, then you're still going to most likely get appreciation while you're waiting for rates to go down. So you pay a little bit more but you're still gaining appreciation in your house and you're gonna be able to refinance at some point in the near future.
Speaker 3:Yeah, that makes total sense. Okay, I think that covers the housing market. We know it's been crazy. We've all heard the stories, right, people? Were putting down 60K in earnest money and buying things sight unseen. I mean just bananas right, just wild down 60K in earnest money and buying things sight unseen.
Speaker 2:I mean just bananas, right, just wild, wild west. I heard some wild stories.
Speaker 3:Yes, so we know it's crazy. Let's just bank on things getting better, being able to refinance and knowing that there are some options to get creative.
Speaker 2:Now, there is one thing that I learned throughout this entire process is Planning is obviously, planning is what I do for a living, but it's even more important because I for myself I guess I didn't personally take into account this- when we first started the process of building the house, we were of the mindset of a certain interest rate. Yeah, never in my life would have thought that it would have doubled. But now it's something that has occurred to me, so now it's going to be something that's in my forethought from now on moving forward.
Speaker 3:Even in my interaction with clients.
Speaker 2:You know if it might take you a year to build a house. You gotta take into account what that? Interest rate fluctuation could be and how much more money you need to put towards um your mortgage is going to be yeah, it's so true.
Speaker 3:Great point. We put our money down to reserve the lot. It was either end of december or very early january, so we're coming up on a year. We're probably going to be in our house in January. So 13 months give or take, from start to finish, if we get in in January and the rates have more than doubled and you guys just built a house not too long ago. We did, we did. It was a beautiful house, yes, I appreciate it.
Speaker 1:And what you just mentioned obviously still applies to being a financial advisor as well. You know, obviously you're looking long term, not short term. Nobody wants to look at their retirement account and see a 25 percent drop, right. But you know, in the long run the market's going to win, yeah, and so you have to look at the same thing with housing. Yeah, short term it's ugly looking at a, and so you have to look at the same thing with housing. Yeah, short term, it's ugly looking at a 7% rate in the face. But long-term you're going to win. With appreciation, you're going to be able to refinance. Long-term You're going to be able to get the payment down. So, again, it's looking long-term. Whether it's being a financial advisor, the housing market, you have to be able to look beyond the current circumstance.
Speaker 3:Yeah, that's so good Long game. We always talk about it, right it's?
Speaker 2:always a long game, yep.
Speaker 3:Okay, let's get into what to do, what to know, before you start scrolling Zillow and Realtorcom looking for your dream house. Because David does videos. He is getting into the social media game y'all, it is great if you need a laugh, but also information.
Speaker 3:We will link all of his details in the show notes for you so you can tune in to David's videos. But he talks a lot about the mistakes that people are making and things that you need to consider and do before you really get out there, start working with a realtor and start putting offers in on homes. So, david, why don't you tell us a little bit about what you need to be doing? If you're you know, if this is your first home or this is your 10th home, what are the steps you need to take before you go out there and actually start shopping home? What?
Speaker 1:are the steps you need to take before you go out there and actually start shopping. I always say you need to start with your loan officer, because he's going to let you know, or she or she. My bad, my bad, sorry, ladies.
Speaker 3:Not going to let that one slide.
Speaker 1:Yes, I got you.
Speaker 3:I got you yes.
Speaker 1:I got you. I got you, so that individual is going to let you know A what your exact credit score is, because all of the online scoring modules Credit, karma, equifax, all of those do not have an accurate score. They definitely do not.
Speaker 3:Are they scoring you higher or?
Speaker 1:lower. I've seen both. 90% of the time I see those scores are higher than the actual score. So don't be deceived, because 50 points can make a huge difference in the loan type, down payment, everything associated with the loan. So it's a great credit monitoring tool, but it is not the way to assess your accurate credit score.
Speaker 3:Okay so, Because all of our like even mine, right, All of my credit cards, my bank, everybody offers a FICO score now Right Right. But even then, I mean, I have good credit, but even then, yes, you're right, those scores are usually higher than when we work together and you're actually pulling the report for said loan and it's still always good. But, yeah, usually it's a couple points higher on those apps and things.
Speaker 1:So always start with your loan officer. Okay, that person can give you an accurate score. That's number one. Okay. Number two they can give you the actual score. That's number one, okay. Number two they can give you the actual loan options that you have. There are multiple loan options obviously out there, but they are dependent on credit score. Down payment, debt to income ratios, all those fun terms that nobody knows about unless you're in the mortgage business, so that would be number one.
Speaker 2:Question for you when it comes to debt to income ratio, are they looking at the amount of your debt or are they looking at the monthly payments?
Speaker 1:like minimum monthly payments for that debt. Great question. So when debt to income ratios are calculated, it is based on just the minimum payment that is listed on the credit report. So if you are making a payment for I mean obviously you make payments for your electricity or your water bill, those are not going to be included, it's only the ones that are listed on the credit report. Now there are exceptions.
Speaker 3:Cars.
Speaker 1:Exactly.
Speaker 3:Loans credit cards yes.
Speaker 1:All those count. The ones that are not on the credit report typically do not count. But there are exceptions like IRS tax, payment plans or child support, alimony, those types of things. But yeah, that's debt to income ratio.
Speaker 2:And the reason I ask that is because I think of people who maybe have like high student loans and they're thinking of a debt to income ratio as the entire balance of their loan as compared to what their monthly payments are.
Speaker 1:Right, exactly Now. One other thing, one mistake people make is they will have a payment in mind that is not realistic for the house price that they're looking at. So they may be scrolling through Zillow saying, oh yes, this is $500,000. House has everything I like, but they are wanting a $1,500 mortgage payment.
Speaker 3:Oh, that would be nice. Yeah, yes, I would like that too. Thank you, where do I sign up?
Speaker 1:So they have the old proverbial champagne taste and beer budget. Oh yes, so you don't want to be looking for that dream home? Fall in love with it, say this, is it? Talk to a realtor and get ready to write a contract without talking to a loan officer. And then, boom, here comes the bad news you can't afford it.
Speaker 3:So the loan officer, after you run the credit and you talk about all the different loan types, you will also say you should be looking at a house comfortably in this area price rate, and then you're going to, because I've been there where you're like okay, what about you know? Taxes and insurance and escrow, and, and, and, and, and, so yeah the mortgage payment sounds really good. Might be 1500,. Let's call it.
Speaker 2:But then you add in all the other things, and now you're at 2200.
Speaker 3:That's what you're going to be paying every month, right?
Speaker 1:Yes, and that's what the debt to income ratio is based on too.
Speaker 3:Okay.
Speaker 1:So now, one positive piece of information you can get when talking with a loan officer at the very beginning is that there is a misconception by a lot of people, especially millennials, that think they have to put down 20% to buy a house.
Speaker 3:Oh yeah, To avoid PMI.
Speaker 1:Right.
Speaker 3:Because and mom, I know you're going to be listening because you're a loyal listener, thank you Shout out to mom PMI is like no, you don't want PMI right, it's like the worst thing ever.
Speaker 2:Yes, it's not the worst.
Speaker 3:But even for our new loan we've already talked about it might make sense again because the market is a little crazy, interest rates are a little out there. It might make sense to just have what a $90 PMI payment a month added to our mortgage and the taxes and insurance etc, etc, without putting down 20% and keeping that money liquid Exactly. And then the PMI, like we did with this house, can drop off after you hit correct me. Is it 80% of your home value?
Speaker 1:You can apply to have it removed at 80. It's mandatory at 78.
Speaker 3:Okay. So again, it's just a matter of time before your home value allows you to get rid of that additional PMI payment, correct?
Speaker 1:Yes. So there are options for as little as no money down and then there's options, you know, three, three and a half percent as well. So don't let a down payment prevent you from buying a house and getting in the housing market because I'm sure Brandon has um and getting in the housing market Because I'm sure Brandon has probably talked to many of his clients about net worth and what portion of your home equity is, in relation to your net worth Right and net worth of homeowners versus renters Drastic difference. So if you always want to get into the housing market, you just may need to buy a smaller house to get in when rates are higher, but you're still going to enjoy the appreciation from even a smaller house.
Speaker 2:And the sooner you get in, just the better, like it's really never a bad time per se to get into the market. Obviously you have to take into account your own personal situation but, as David said, you know I can't think of any of my clients that have a significant net worth that don't have at least one property Right, absolutely.
Speaker 3:Now there is. I think there is, and you know this, we've talked about doing this as a separate episode. Not everybody needs to own a home at 25 or at 30, even right Like yes we understand the value and the benefits and how it aligns to your net worth, but there is something to be said, especially in high cost of living areas, where maybe it does make sense to rent for a certain amount of time.
Speaker 2:And we're talking about primary residence. Yes, so often to me I hear the saying that people always say you know your primary resident is an investment and I would almost argue that in some aspects only because, based upon the definition of an investment, often your primary residence is most people in their mind. In all honesty is a preference.
Speaker 3:I was going to say. You always call it a preference. It's a lifestyle choice often. Now mine, in all honesty, is a preference.
Speaker 2:I was going to say. You always call it a lifestyle choice often. Now there definitely are people that do purchase primary residence with the investment in mind of what they're going to do with it in the next you know years to come, but most people, in all honesty, are kind of just picking or just buying it and choosing off of their lifestyle choice. So there is a difference between you know your primary resident and then, like you know, between you know your primary resident and then, like you know, a rental property, which 100 is an investment.
Speaker 3:Oh yes, very different. But you know people especially, I mean like our parents, right, they're the ones that say, oh well, if you're renting, you're throwing money away. Well, okay, I get what they're saying, but also, you have a roof over your head and you need some place to live. So I think we need to get away from throwing money away, right when, again, it's a what, how? What kind of lifestyle do you want to live?
Speaker 2:and where are you living? Yeah, what do you want to do for a startup? What is your goal? What do you? Is your goal to buy a property, or is your goal? You want a roof over your head? Your parents keep telling you to buy a property, right?
Speaker 3:it's two different things. Yeah there. Yeah, there's needs to be some assessment done there. Sure but again a mortgage banker can help you do that.
Speaker 1:Absolutely.
Speaker 2:Okay, Perfect Um just to kind of reiterate, so what I kind of what I took from what you said as far as not preventing, not allowing, not having a down, lack of a down payment, prevents you from getting into real estate. What I heard was is that, you know, working with a professional can allow them to take a look at your situation and assess how much can you can actually afford from like a? Um a monthly mortgage standpoint, and that doesn't necessarily, you know, equate to having to have a down payment or a substantial down payment as long as options as long as you're able to fit within that uh and then you can also compare it to what the local rent market is.
Speaker 1:How does it compare? Is it significantly higher? Is the mortgage payment lower? Is it similar? Right you know what kind of house can you get for that payment that you're comfortable with. So it's really kind of a consultative approach to really understand is renting the best option or is buying the best option and what is like you mentioned long-term goals and what is like you mentioned long-term goals and what is, you know, appreciation in the market. Look like that's something else.
Speaker 2:One of the things I really like about working with David is that he is consultative. Is that the word?
Speaker 3:He always used to say consultative. And I would say consultative, and then he would make fun of me and I'm like, but I'm right. Yeah, but I'm like, but I'm right.
Speaker 2:Yeah, but I think David takes very like. I think me and David take very similar approaches when we were working with clients is that we are coming from an educational standpoint? Absolutely, we're doing our best to fully educate you on the situation so that you have a very good understanding.
Speaker 3:So it helps you make your decision and no doubt, and that's what I was just about to call out that if you're working with somebody who isn't asking you all of those questions and isn't digging into all of those things that you just mentioned run right, Go the other way and find somebody else, do another Google search and talk to somebody who's going to take the time to understand really what your situation is, and not just oh yeah, you can afford this.
Speaker 3:And here's a you know, a 30 year conventional loan and you need to put 20% down and there's no options, right, like get somebody who's going to talk through the options with you.
Speaker 2:I really like what you said about the comparison of um what you're paying in rent as compared to what you probably have in a mortgage, like you know say, if you're paying him $3,000 in rent? And you're thinking like oh, you know, I don't have a down payment, I can't do any of this.
Speaker 3:We're like if you have a down payment for a house.
Speaker 2:maybe you may have a $2,000 or $1,500 mortgage, but without a down payment, so it might be around $3,000.
Speaker 3:Well, I was when you Um. You're welcome. Thank you so much.
Speaker 1:Appreciate you, love you.
Speaker 3:It was good for us too, but the house across the street from us is the exact same house we have is renting for 2,800, which you know shout out to those owners because hello.
Speaker 2:And also what I liked about David is that when we first were purchasing this house, we went to David and he let us know that you know the first house we were in their preferred lender was giving a bunch of incentives and that he couldn't beat those incentives. And he told us take those.
Speaker 3:They were terrible. Oh my gosh, I hated that lender they were garbage and David was like just go with them and as soon as you can refinance, we will refinance. And again, he's not just going to take our business because we're offering it, he's going to consult us and be transparent and be a good friend and be a good businessman. And so we went with this garbage lender who we would never work with again.
Speaker 3:And we refinanced as soon as we could and obviously it's worked out. But, yes, we so appreciate you telling us like, just go with them. They're giving you know good incentive and that's where you're going to save money.
Speaker 2:These are the things to look for in like professionals you're choosing to work with Absolutely. You know, especially when it revolves in any aspect of finance.
Speaker 1:I say just in general if you're giving somebody your money you should be looking for, you know, the top of my service in general. Absolutely yeah. Preferred lenders many times do come at a cost, you're getting credits.
Speaker 3:You're mental, you have to be aware of both.
Speaker 1:Oh my gosh.
Speaker 3:OK, well, that information is fantastic Is? Is there any information that you want to share that is specific to first time homebuyers, that you want to share that is specific to first-time homebuyers? Anything that somebody listening who's never purchased a home but would like to in the next, you know, 12 to 18 months should consider? Call? David Aside from call David. We'll link his information Very simple.
Speaker 1:So I think the very first step is talk with a mortgage professional. Number one because you can understand your credit down payment, what you can afford. You can plan because many people aren't ready to buy right now, aren't able to buy right now. But it is vital that you talk to someone, even if your plan is 12 months down the road. So 18 months, yes, Call early. So that would be number one. What I hear is planning.
Speaker 3:Yes.
Speaker 1:Yes, yes, Ding. That would be number one. What I hear is planning yes, yes, yes, Ding, ding ding planning. And number two I would say don't make any assumptions. You know assumptions on down payment, assumptions on what you can afford, assumptions that you know you can purchase this particular property or loan types. Don't make any assumptions. Talk to a professional, you know what they say about assumptions. Yes, they do. Yep, we all know, okay. And then I think the third thing is well, I guess that was the first plan early.
Speaker 3:Plan early. Yes, that's good, because even in my head I would think, okay, when I'm ready, I'm just going to reach out. But that planning piece is really great because if you are working on maybe your credit score right and you say, hey, right now your credit is right here, if we get it up 20 points, 30 points in the next 12 months, that could make this much of a difference on what kind of loan you can get, what kind of interest rate you can get, and that's how this will result in your overall payment, something like that.
Speaker 1:Yeah, Many people think that they're ready you know, from credit score perspective, down payment perspective and they're wrong and they're heartbroken when they see that perfect house and they've got six months left. So always talk with someone early and, um, I talk with many, many clients that are not ready to purchase but they're looking to create a plan and very, very wise process or steps to take. When you are just looking for a plan, there's no cost for a plan. It's a conversation, and make sure you're fully educated on whether you are ready or the steps it's going to take to get ready.
Speaker 3:So smart. I love that. Is there anything else for first-time homebuyers that they wouldn't think of? But you see it all the time, or you know it's going to come up that we can kind of highlight for them.
Speaker 1:I think it's the assumptions that we just talked about. Okay, you know assumptions on credit score, down payment, loan programs, those things. There also are different options for some first-time homebuyers that you know. They provide grants for down payments. Now, there's pros and cons for those, but that is an option and it is good for a specific type of buyer. So if you don't have money, then sometimes there are programs that allow for some home buyers that don't have money to buy a house.
Speaker 3:And I'm assuming that's probably a long application process and all of those things again that need planning.
Speaker 1:Yes, they need planning for sure you need to make sure you're aware of all the kind of asterisks that come with the grant, to make sure that you're not paying the grant back Okay, or prepared to pay it back if you need to.
Speaker 3:Okay.
Speaker 2:Yeah, I'm going to say from my very, very, very limited knowledge of this area, I just realized how complicated it is. Just by doing my own little education, just just to have my own basis of education, I didn't realize there's so many different things. And the way I kind of frame it for people to think about is that when you have professionals that do a specific area for a living, nine times out of ten the reason they do.
Speaker 2:You have individuals that do. That is because it is complicated and it's not something that the everyday person can just pick up and google.
Speaker 3:Google learn right away and go about their business and do it correctly lean into professionals, because there's a reason why they exist.
Speaker 1:Yeah and we've been. We've seen many, many hurdles and problems and issues and we know how to avoid them and or get around them. So it's the experts like Brandon and hopefully myself we have experience.
Speaker 3:Well, and Brandon says that all the time right. We have experience, you're an expert.
Speaker 3:Well, and Brandon says that all the time right, when people and we just did an episode on DIYers, which is one of- Brandon's favorite topics, because so many people are like I can do this myself or I'll get on Reddit or Google or these forums or whatever, and Brandon always says you know, you only know your finances, whereas Brandon or other financial planners, they see all different kinds of finances right, so they're basing their knowledge off of all the things they see within their client base similar to you, whereas you know me as just an individual I'm like. All I know is the mortgages that I've gotten and the refinances I've done. I can't speak to anybody else. Whereas you guys have this portfolio of knowledge, of all these other scenarios because you work with other people who are not like you.
Speaker 1:Right, and that's huge. There is tremendous value in experience.
Speaker 3:Yeah.
Speaker 1:Tremendous value.
Speaker 3:Tons.
Speaker 2:A hundred percent. You'll have people like oh you know, I've bought three.
Speaker 3:Or four homes and they're trying to tell their other friend like, oh, this is all you need to do for a mortgage, and it's like you've only bought three or four homes. And they're trying to tell their other friend like, oh, this is all you need to do for a mortgage, it's like you've only bought three or four homes through your lens with your credit score with your job. Yeah, that's it.
Speaker 2:Yes, I highly doubt that anybody else is an exact carbon copy of you and, like you said, like david, you've seen over your you know your 20 or plus. Plus 20 years of experience, you've seen all types of you know scenarios it funny.
Speaker 1:I had a conversation with a guy just yesterday and he said oh, I've bought over a hundred houses in my lifetime. I know what I'm doing, but I saw three or four hurdles that we were going to have to clear, even for someone that had bought over a hundred houses.
Speaker 3:Was he telling the truth over a hundred houses?
Speaker 1:That I don't know, maybe dozens.
Speaker 3:I mean that's a lot of houses.
Speaker 1:Yes, but there were clearly some hurdles that he was not aware of that we were going to have to face. So, even though he had tremendous experience, so yeah.
Speaker 3:And that's yeah. That's where being with a professional just makes all the difference. Okay, so we talked about potential grants that first-time homebuyers can apply for. Let's talk about people who are potentially not first-time homebuyers. What other programs are out there? Because you just acquired a company?
Speaker 1:That is correct.
Speaker 3:Tell us about Heroes Home Advantage and yes, this is a shameless plug, because we love David and he does good work and he helps a lot of people and now he's trying to help even more people. So tell us about Heroes Home Advantage.
Speaker 1:Yes, well, I appreciate you introducing that and mentioning it a program that is actually the highest rebated program for our heroes in the country when they buy and sell real estate. Now, who's a hero? So great question A hero is anybody in the military, fire department, police department, education and healthcare. So those are the five different categories.
Speaker 3:Okay, active military.
Speaker 1:Or veterans.
Speaker 3:Okay, wow, excellent yes.
Speaker 1:And you can be retired from any of those professions. Oh wait.
Speaker 3:I'm a retired teacher.
Speaker 1:Ah, there you go.
Speaker 3:Do we need to talk about this? Do I need to get back on your calendar?
Speaker 1:You have to start the process with Heroes Home Advantage. You can't go to a realtor first, can't go to a lender first. You have to start the process with Heroes Home Advantage.
Speaker 3:Okay, so that's good. So anybody listening that falls into those five categories of heroes, right?
Speaker 1:Correct.
Speaker 3:You need to start with Heroes Home Advantage before doing anything else in order to get this benefit.
Speaker 1:Yes, and they can receive up to $5,000 or more in closing cost credits to pay their closing costs which is huge.
Speaker 3:Those closing costs are so frustrating.
Speaker 1:Yes.
Speaker 3:Yes, Give me all the money please.
Speaker 1:Yes, so it is. I'm super excited about it. We're going to be able to reach more heroes. We're looking for more real estate partners all over the country. It's a nationwide network and it is something to give back to the people that give and sacrifice and serve in such huge ways for us.
Speaker 2:So you hear that well, not just individuals who are maybe looking to participate in this as a benefit standpoint, but individuals also help. So you know, real estate agents, stuff of that nature. Correct, it's going to be in the show notes. Definitely reach out if you're interested in finding out more about the program and becoming a part of it.
Speaker 1:Absolutely.
Speaker 3:What determines the $5,000 or more?
Speaker 1:So it's based on the purchase price. Okay Is there a minimum, anything like that. We should be aware of. No minimum, okay, but it is generally about $750 per $100,000 in a purchase price that is given back, and then you have the lender giving money back and the attorney or title company giving back as well if there is a partner in your area. So we have what we call a core team. They're all wanting to give back to our heroes and when you have a core team in your area it adds up to substantial money.
Speaker 3:Yeah, Well, it sounds like I mean, it's like a pod right, Like you've got the realtor, the lawyer, the lender everybody's chipping in, which is amazing.
Speaker 1:That's correct, and there are other programs out there, but it is almost embarrassing how little they give to the hero and how much the company makes yeah. So when I purchased the company, I want to make sure it was the highest rebated program in the country. Wow, and the company and program's been around for about 12 years. We've given back over $20 million to our heroes.
Speaker 3:Over $20 million in 12 years.
Speaker 1:Yes, that is impressive.
Speaker 3:Wow, that sounds really exciting. And for people who are in those service areas and who are constantly giving back right do with the paint and the rugs and the this and the that, and I want new built-ins and I go to that part, which is also very expensive. But I mean, when you get to that closing table and you see how much you're going to be spending in closing costs and attorney fees et cetera, et cetera, it adds up so fast.
Speaker 2:And the thing is too, with the five categories that he has stated. As far as professional wise, these aren't professions that people are going into for money.
Speaker 3:No, they're going in to get that.
Speaker 2:They're going in to be helpful and help people Like this is not anything. That's money driven Right so to be, able to have access to programs like this is so important for these people.
Speaker 1:Absolutely, and many of these professions, like you mentioned are underpaid. They are extremely underpaid, right, and they give so much every single day in their job. They sacrifice through crazy shifts, through deployments, pandemics Through pandemics, through teaching our kids, to protecting us and keeping us safe, to going into the face of danger. Right, all of these people give us so much so that we can enjoy the freedoms that we have, and so we are super excited to give back.
Speaker 3:Yeah Well, it sounds like a fantastic program. We'll definitely link it in the show notes as well. Like a fantastic program. We'll definitely link it in the show notes as well. I do want to call out, you know, if you are looking for a mortgage lender and you are interested in speaking with David, you've gotten a taste of his personality today. It's fantastic. We would not steer you in the wrong direction, but we'll link all of his information. You are licensed, just like Brandon right In multiple states, so you don't have to be. We're actually this is kind of fun. You're our first guest. We are sitting in one of your conference rooms in South Carolina right now, all right we are not in our office, where?
Speaker 3:we normally record.
Speaker 1:On the road.
Speaker 3:That's right. This is like our first like road show.
Speaker 2:I kind of like it.
Speaker 3:I know it's so fun.
Speaker 1:On the road with sugar daddy.
Speaker 3:I love it, I love it Uh, David's going to be our new MC and yeah, so this is super fun. But, david, so we're in South Carolina. Obviously, we normally record in North Carolina. We also live in North Carolina, which is where our most recent mortgages and refis have been.
Speaker 2:Uh, but you, I think you're licensed in like eight plus states.
Speaker 1:Twelve.
Speaker 3:Oh, excuse me, yes, twelve states.
Speaker 1:Twelve states no shortchanging. I know, yes, right, I know.
Speaker 3:Top one percent guys. We will make sure to list all of those states so that if you are listening and you are looking for somebody, you can see where David actually operates. I know he's looking to add more states, especially because of the new company that he just purchased, so you'd be in great hands with David. Is there anything I know I'm always like well, how much is this going to be Right? I'm always texting him about money and numbers. Is there a way for people to kind of quickly calculate what their mortgage is going to be? I don't know if that's a silly question, we can move on.
Speaker 1:It's kind of difficult and there's so many different factors. Taxes and insurance are always calculated in their private mortgage insurance. What I would do is, if you are wanting to get an estimate, there's always mortgage calculators online. The problem is is it's only as good as the information you're inputting. So if you're putting wrong information, you get wrong numbers.
Speaker 3:So trash in, trash out. That's what I like to say in my life.
Speaker 1:But if you want like an accurate payment, just call a loan officer, mortgage banker in your area or me or anybody. They should be able to give you something that's fairly accurate. Any type of consultation is always free, with me Running numbers. I do that for many, many clients way before they're ready to purchase, so it's too hard to do on your own, but there are mortgage calculators if you have a general idea of what accurate numbers are.
Speaker 3:Okay, I know we're coming up on time. We want to give all this great information to you in under an hour, david. Is there anything else that we did not talk about today that you do want to note to our listeners?
Speaker 1:No, I just appreciate the opportunity. It was super fun and exciting and, um, I'm humbled to be featured on your podcast and, uh, very thankful.
Speaker 3:So thank you so much we are so glad to have you. I feel like we need to do like a plaque or something right and have like a little named tag card of all of our guests. You know, as sugar daddy like gets huge and explodes and then we have our list. You're still gonna be the first, so hey, all right yes, but not the last, because we're definitely gonna have you on again I would love it.
Speaker 1:Yes, anytime it's gonna be great babe.
Speaker 3:Anything else to add before we say goodbye?
Speaker 2:no just thank you, david, for taking the time. Like I said, um, I have very high standards when it comes to working with you, know professionals, especially within the finance realm, and David every time has far exceeded David for being here with us. We are so excited that you got to share your 20 plus years of experience and knowledge with our listeners, and we hope to talk to you again soon.
Speaker 1:Thanks again.
Speaker 3:Don't forget. Benjamin Franklin said an investment in knowledge pays the best interest. You just got paid Until next time. Thanks for listening to today's episode. We are so glad to have you as part of our Sugar Daddy community. If you learned something today, please share this episode with your friends, family and extended network. We hope to reach as many people as possible for positive impact. Don't forget to subscribe and connect with us on social media at the Sugar Daddy podcast podcast. You can also email us questions. You
