Tulsa Mortgage : Podcast 34 – Part 1
Tulsa Mortgage Steve Currington: This is stevecurrington.com Episode number 34 of the Steve N’ Tyler Show.
Narrator: Welcome to the Steve N’ Tyler show with stevecurrington.com and Tyler [unintelligible 00:00:22]
Steve: Who negotiated the contract for you?
Tyler: A realtor.
Steve: You’re pretty smart.
Steve: Good for you man.
Narrator: Tulsa Mortgage They’re talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgages like these two. Get ready because here’s Steve and Tyler.
Steve: What’s up Tyler?
Tyler: Chilling like a villain.
Steve: Chilling like a villain up in here. It’s early in the morning in Tulsa, we’re doing Tulsa mortgages. It’s a party like a rock star, were doing an episode about, what Tyler?
Tyler: What not to do in the loan process and today it’s: Don’t spend or withdraw a significant amount of money from any account you’re using to show assets for your home purchase.
Steve: I’ve got a bank account. I’ve got 20 grand in it. I’m putting like 20 grand down on a house. That’s what I’m doing. Don’t spend that money?
Steve: Well, I’m going to buy some furniture.
Tyler: I need to see 20 not 19,999.
Steve: If you’re putting 20,000 down you actually have to bring 20,000 to the table, but not in cash, but you have to, right?
Steve: Tulsa Mortgage You shouldn’t spend this. That seems like pretty logical, we still got [unintelligible 00:01:47] going on upstairs, don’t we? Guys, I am sorry for anyone’s that listening on the podcast that just heard that holy cow cassette, holy cow was really loud, that will wake you up.
Tyler, if I need 20,000 doll hairs and I spend 2,000 doll hairs on something and maybe I’m getting paid, I’m closing on a Friday. I’m going to get a direct deposit Friday. I know I’m going to get another three grand that’s going to go on my bank account.” Right?
Steve: I’ll have enough money.
Tyler: Tulsa Mortgage Sure. That one is going to be difficult.
Steve: Why? I’m going to have the money in there Friday and we’re closing on Friday. It will be in my account.
Tyler: You’re going to need it before you close.
Tyler: So that we know that you have it before we close. You can’t just say,”Oh, I’m going to have money Friday.”
Steve: Just verify it Friday morning then? Tulsa Mortgage
Steve: Can’t you just verify it the day of closing?
Steve: [laughs] Tyler, I got to get that on Facebook live.
Steve: Hold on a second. Tyler goes, “I don’t know what you want, I don’t know what you’re asking me.” Sometimes I tease Tyler up and he’s like,” I don’t know, we didn’t talk about this. Why are you doing this to me? It’s funny. The reason why we have the same kind of closing disclosure has to go out.
Steve: You have to get cleared to close. And it’s going to be very difficult for your lender to verify your funds that they go into your bank account on a Friday and still close on the same day. That’s going to be tough. Also sometimes, people have. 20,000 in the bank but they’re only bringing 15, and I have them approved Tyler.
And through the wonderful automated underwriting system they have $1,000 mortgage payment, and their bringing 15,000 to the table and they have 20,000. Desktop underwriter calculates that they have five months of reserves in the banks.
That means, if something happens, they lose their job, they lose their income, they can make their mortgage payment for five months therefore that they have an approval. But, they go spend 4,000 of that money and now they have $16,000 in the bank, right?
Steve: And they’re like, “I only need 15 down, I have 16, I’m good.” Well I ran it through desktop underwriter and they only have one month of reserves. And they’re limited on credit, maybe there are some other issues, maybe their debt ratio is a little high. What happens? Denied.
It just does, it can happen, you can get denied. You can get denied if you take money out of your bank account. Be careful about taking money out of your bank account, because your loan approval can be affected by it and your loan closing could be delayed.
Not everybody closes loans on time like stevecarrington.com and Tyler Wyburn, we know this for a fact. Sometimes it’s out of our control, and it doesn’t close on time like the house is incomplete like Zack Collins, but we’re still doing pretty good though, within six days of the original closing date.
Tyler: Yes, under construction.
Steve: And they were the ones building it. But you don’t want to delay your closing and you don’t want your loan approval to be affected, and you don’t want to ask your podcast partner questions that he doesn’t know the answer to or know what you’re talking about.
Be more clear when you’re talking to your podcaster about the questions that are already written on the paper. Would you say that’s right Tyler? I did deviate from the script a little bit Tulsa Mortgage.
Tyler: Yes, you did.
Steve: I deviate from the script a lot and Tyler is just sitting over there most of the time doing this. “What, I don’t know what you want.” All right, so you need to be able to verify that you have all the assets you’re using to qualify for your loan all the way up until closing.
Once I verify the funds we need it to stay in your account until we get to closing. Because if it doesn’t, first of all you’re not going to have the money and you’re going to be like,” I don’t have enough money.” And you go to your bank and you need 12,000 and there’s only nine in there, it’s going to be a problem, because your bank’s going to probably going to give you another three grand.
You don’t have overdraft protection, that’s a whole another thing. I hope you don’t have overdraft protection to three grand, that’s going to really hurt. You need to be able to verify all your assets that you used to qualify are in your bank account all the way up to closing.
Tulsa Mortgage And we talked about — I didn’t even read this on here but I went straight to the reserves that some people need to have reserves, as well as closing funds in their account. If they were approved with reserves, then they can only show money for closing then their loan can get denied.
Just like I said, you go from having 20,000 on the bank to having 16,000 in the bank. You go from having an approval to having a denial just because you don’t have – There is some reason because your ratios are too high or whatever it is, right Tyler?
Steve: Talk to me about a story, something that happened recently.
Tyler: Something that happened recently?
Steve: Like this-
Tyler: Like John Smith?
Steve: Yes, John Smith, you know who you are. No we cannot John Smith. We actually have a John Smith.
Tyler: Sure right.
Steve: John Smith was a total fake name we’re just using a fake name.
Tyler: John Doe, there we go. Anyways, he had five grand in his bank account, and he needed every penny of that so he could close. But he spent 1,000 of it so we really could show 4, 000 in his bank account. He had some money in his pocket, had an extra $1,000 just sitting under the mattress, chilling in the freezer, just hanging out. Thought that he could just pull it out and use it to close to make up the difference.
Steve: That’s right.
Tyler: Didn’t work.
Tyler: It’s cash, we can’t document cash.
Steve: It could have come from anybody else like the seller or the realtor, your lender. Now-
Tyler: I got beat up over that yesterday. Remember that one?
Tyler: The lovely couple who we happened to verify some funds for them.
Steve: They were upset?
Steve: Because you said they deposited cash and you couldn’t verify it?
Tyler: No, they think that I’m digging too deep. That’s the thing.
Steve: It’s none of our business.
Steve: Okay, well-
Tyler: It is.
Steve: Yes, you’re right. How big is their loan?
Tyler: It’s over 200, two and some change.
Steve: Why don’t they just pay cash then?
Steve: If they’re so used to having cash and they just deposit cash all the time and they think we’re digging too deep, why don’t just pay cash for their house? Well, I’ll tell you why, because they don’t have it. Unless you can pay cash, give me what I’m asking for.
Tyler: We got to verify funds, has to happen. You bring in money, we got to verify the money. Any money you’re using, we got to verify your money. When we go to do that and you don’t have enough money, we got to figure it out. In John’s case, we figured it out.
Steve: By the way, John is a fake name.
Tyler: Yes, fake John.
Steve: In fake John’s case, we figured it out.
Tyler: He got a gift, he ended up getting a gift, to make up the difference.
Steve: That’s right. And we could document a gift. Gosh. Just talk to your lender and we’ll give you ways to figure things out. We’ll give you ways to figure it out. It will work, right?