Tulsa Mortgage : Podcast 169 – Part 1
This is Steve Currington dot com and the Steven Tyler show up Oiseau number 169.
Tulsa Mortgage To Steven Tyler with Steve Curry Tom and Tyler while. Negotiating partner. Are. Very smart.
Good for you. They’re talking about everything you need to know. No. One knows what it is like to get ready. Steve. Yo yo what up Tyler.
Never mind. Tyler Tyler’s not here. Hey So we’re in our our series on the do’s and don’ts I’m Steve Currington com you listen to the Steve and not Tyler show today. I’m caught up on. Up from 3:15. And we’ve also got Robert Redmen who’s from 515. So I thought since we’re doing do’s and don’ts I would bring in two guys that don’t know crap about mortgage opportunities and do have questions for them to do ask questions about that.
So I’m your Tulsa mortgage lender and guess what we’re going to hop right into cash bed. That’s the deal. Cash is bad. So the don’t is cash. That what does that mean don’t. Well here’s what it is. People when they’re in the process of buying a house I call it a Benjamin collection. OK. I think most people have like a Benjamin cushion. It’s like you know people call it mad money. They have like that $100 bill that’s folded up in like to the tiniest little square in the back of their wallet. It’s like bail money. You know just in case you ever have that friend that you go out with that he’s like door bell I got bail money.
He’s like the dude that always has like a hundred dollars and it has a thousand dollars it’s always got like the right amount. It makes it a point to go. Hey man I got bail money. It’s in that little tiny pocket on your jeans. I’ve never had a friend that said that to me. I mean maybe with a different crowd a guy that carries the bail money. That’s why nobody’s ever said he did get are you somebody so he was a good kid. Legree Christian Center as well.
Tulsa Mortgage Nice funny story of it are you. Well we’re on the subject about cash is bad. I love all the or you students I used to always see him at the bar. It was awesome. I would be like don’t you get or you know like you did not see us here like I will not tell Dr. Green that I saw you here drinking which is against the rules of are you.
What whatever. Right. I saw one of the bars as well while I was out on it. Peter are you here.
So listen if you bring up a good point. So if you’re at the bars who works at the bar is waitresses right bartender. That’s what they. People with a lot of cash. Yes. They get paid cash because they get tips. You know. And so they get tips and so they have cash. And so they take that cash and they put it into their bank account because they have to pay the bills. So what I would tell you is if you’re in the process of buying a house and you’ve got money in a shoe box maybe you’ve got we just had a couple that did this systematically over like four months while they were thinking about buying a house. And then during the time that they were looking for a house. And then during the time that they were in contract on a house. Even though we advise them not to like they couldn’t bring cash. They were taking money out of their check again. They’re like $500 here. A hundred dollars here and they were putting it. Because sometimes people you know it is something you just physically have to be like I don’t have this money I need to take it out of where I see it and put it in the hidey hole otherwise I’ll spend it or otherwise I spent it. So they’re really for them. They’re doing what they thought was a good thing. But what they did is over this four month period they took five grand out of their bank account and they just stuck it in a shoe box.
And then when we got their purchase contract and we started talking about where’s your down payment coming from because I’m looking at your bank statement there’s 308 bucks in there. Oh if I thousand bucks we just deposited it yesterday. And so from a lending standpoint loan officer is just wrong. You cringe because you’re like oh my god this is going to be a documentation nightmare because you know what the problem with cash is is we don’t know where it came from. Right. I don’t know if the seller gave it to you because the seller was like I really need to make sure I sell this house and I’m want to make 100 grand when I sell it. So I’ll give you a good down payment just don’t tell anybody here’s five grand cash. There’s your down payment go putting your bank out. So it’s fraudulent. OK so maybe you’re starting a sleeper cell for a terrorist group in Oklahoma and they’ve given you cash to put down on a house.
Tulsa Mortgage Whoa whoa whoa Steve. What’s a down payment right.
I’m sorry. I just want to very clearly is not a homeowner. He’s not concerned about terrorist operations either. It’s clearly not a homeowner because he doesn’t own the payment.
But the point is when it comes to cash guys we have to document every single thing. OK. If Chuck let’s say you gave me your bank statements and you have a hundred eight thousand dollars in your bank account in their savings account. And then yesterday you deposited $5000 in cash. I actually don’t care. Because if your down payments 50 grand that you now have a hundred and thirteen grand. And even if I back that 5000 out five times you still have more money than you need to. So there’s no question. Right. Because I’m like well they call it sourcing and seasoning so I have to source it. BI Where is it. And then is it seasoned by what’s the average balance over the last 60 days. You know what I’m talking about like seasoned salt and got some salt.
OK. But money does. We don’t know at that point I told you I was going to bring on some guys that don’t get mortgage right if they don’t know OK. We’ll talk about a season. All right. We’re talking about Robert. So just to be clear the two questions that we’ve received on this broadcast so far is what’s the down payment and you’re not talking about season psaltery. So. A chap is clearly a horse of overlap. Right. So I like seasoned salt. I’m sorry I don’t know what we’re getting.
Tulsa Mortgage We have to document cash. Right. And you really can’t document cash and that’s the problem is because you just can’t document it. So like I said if you’ve got a 200000 bucks in the bank you put 100 grand down and you’ve got you know 10 different deposits that are for three or four thousand bucks it’s fine. Also there’s a rule of thumb that I don’t really tell clients this but you know just say you know depending on loan program we may not have to document a deposit if it’s below 1 percent of the purchase price or if it’s below a certain percent of your monthly income. You’re like an encyclopedia.