Tulsa Mortgage : Podcast 165
Tulsa Mortgage This is Steve Currington dot com in the Steven Tyler show episode number 1 65.
To Steven Tyler. With Steve Turner tom tom and Tyler one. Negotiating contract. Are. Very. Smart.
Good for you. They’re taught to know that. No one knows what it’s like to get ready. Here’s Steve Tyler.
What does happen in podcast land. Loan officers. Maybe you’re watching on total ending you. Maybe you’ve run into some problems lately on files.
Tulsa Mortgage Maybe your consumer and your like what should I not do when I’m buying a house. So I’m starting a series on what we call the do’s and don’ts and this is inspired by. People messing things up. So. We’re starting this. Calling it the do’s and don’ts. So this will be Episode One of the do’s and don’ts but really the fun thing to focus on. Is going to be on the don’ts. And these are the things. That if you are a consumer. You’re buying a house. These are the things that you should not do. And on the same token if you’re a loan officer. These are the things that you should. Tell your customer not to do. So do tell the client not to do these things because I will I will give you an overarching message about all these things. OK. So before I go into what I think I got to start with What did I say here Sam about five things that you’re not going to want to do and this one will be. I mean I can literally talk I can have an entire episode just on each one of those five things so we’re going to start on that. But what I want what I want to preface it with is this. If you do this thing that I say. If you do mess it up and do it. I can probably fix it because I’m like a wizard. OK. I can figure it out. But it’s going to be painful. It’ll probably be painful for you.
So really what these things are designed to do. Is they’re designed to cause less pain in your life when you’re trying to buy a house. So if you want to have less pain in your life when you’re trying to buy a house. Then these are some things that you don’t want to do. And I’ll start with a little story. OK so I have I have a customer.
Tulsa Mortgage And they are doing an FHA loan. And if you’ve watched other Listen to the podcast or you know that an FHA loan requires a down payment to requires three and a half percent down. So. This customer does not have. The say $4500 that they need. In order. To do an FHA loan. And they don’t they don’t have the down payment because they are 160000 alone 140000 alone whatever. So they don’t know they’re now.
But what they do have is they have an old truck that they own. You know I’m saying. Like you may have an old truck that they own that’s like free and clear that you own. So. This particular customer decided without without talking to their loan officer. That they were going to sell. That truck they’re going to take the truck. They’re going to sell it because they can make. Like $2500 on it. Right. And then when they make the 500 bucks they’re going to take that money they’re going to put it into their bank account. And when they put in their body count now they have the down payment that they need. Right. Makes sense. Why wouldn’t you do that. You own the truck. It’s perfect. Right. So here’s the don’t. So here’s the don’t. Do not make large deposits into your bank account when you’re in the process of buying a house. Payroll. Totally cool. You can get payroll you get a bonus from work. Direct deposit. Totally cool. You.
Tulsa Mortgage Can get some money out of your 401k and you talk to your loan officer about it and they get a check. Totally cool. You get to tell them because there’s a way we have to document. Right. Getting a gift for mom. Totally cool. Got to talk to me about it so we can tell you how to document. In
a truck. Actually totally cool if you talk to me about it because. If I can talk to you about it before it happens. Instead of. After. Then it will be less painful. So let me tell you what happened. This is a real actual client that did this.
So they sold this truck this you know I mean I don’t know a $2000 truck and I don’t even know what country was. I don’t know if it if if the FE fire sold the truck if it was really worth ten grand and they just needed the money so they sold twenty five hundred bucks. I don’t know. Really doesn’t matter. The dilemma I guess and the problem that we run into with this this here truck and the fact that they sold it is this they took $2500 cash. And they put it into their bank account. So guess what happens. I get the bank statement and on the bank statement there’s a $2500 cash deposit. Now. Here’s the deal. Do you think that I’m not going to notice that. Do you think and underwriters are going to know that. No they’re going to notice that it’s a $2500 cash deposit in your bank account. And by the way it also represents how much money you need for your down payment. And here’s why it’s a problem. We don’t know if the seller gave you that cash. We don’t know if if the realtor was just trying to make sure the transaction works or they gave you twenty five hundred dollars for you now. We don’t we don’t know. There’s no way to prove. Where that $2500 cash came from except for you telling us we would have to trust you.
Tulsa Mortgage And while I trust my customers and that’s really not an issue of whether or not I trust somebody or not other people not you Mr. client but other people have committed fraud in the past. That’s the problem. OK. That’s the deal. Other people. Let me tell you. Other people. Are not. Doing things correctly. I just thought that there’s some music and that or wake you up because listen other people might do fraudulent things in order to figure out how to get a qualified for us to happen. I’m just telling you. So therefore you perfectly good law abiding don’t break the rules. People you have to pay for it. So I can’t just say and it’s OK that you two thousand five hundred dollars you make camp because I trust you. So we have to document it and here’s why it’s a problem. So I’m getting to the point. Here’s the problem. They already did it like it’s done. So the title that was in their name that proved that they own that truck is gone because they sign the title over to the other guy. So I got to hope they made a copy of it that proved that they were the owners of that vehicle. Or I got to get some kind of a DMV record that proves that they’re the owner of that vehicle. Then I have to get a bill of sale it some people just don’t do so because they just don’t. So now I’ve got to go chase down all these documents just to prove that what you’re saying is actually the truth. Right. So to prove it we have to document it because we have to make sure that it meets the guidelines. That’s the deal.
Tulsa Mortgage And had we had the conversation with this client ahead of time. Because you know if you’re the loan officer and your client does this year the fault you’re the blame because you didn’t talk to him about it. Right. And if you did talk to him about it and that’s fine you should. You can say hey client told you about this and I told you not to do that but you did it anyway. Some will fix it. I’m going to fix it.
But the problem is if I can know about it ahead of time then I would have told the client hey it’s totally cool you can sell an asset borrow against an asset. You can do that for your down payment on a problem. You just have to document it. So here’s what I want you to do.
I want you to make sure you get a bill of sale. I want to get a bluebook value on the truck so we know what it’s worth. I want them to pay you with a cashier’s check so that it comes from the person buy it not cash. I want you to do a bill sale.
Tulsa Mortgage I want a copy of the title or some type of the registration that shows the vehicle then I can prove that you are not a bad person and that you are not trying to defraud the rules. Right. But all of that would have been perfectly good to do ahead of time. So the moral of the story is you were talking about a don’t write don’t make cash deposit. Just one example of a cash deposit. But the rule is do do tell your loan officer what’s going on. Because if you do tell me. You can’t hide stuff from us we’re going to find out. We literally get pretty much your blood right now. So I am trying to prove your low because I get paid when I close loans or loan officers at TLC we get paid and we call them. So. I want to get you approved. So if you’ll just tell me the truth if you will just not feel like Arcand I don’t really want to tell that. Oh gosh they’re going to deny me.
Just tell us and then we will tell you what the rules are and how to how to work within the rules to get you approved and get you into your house.
That’s how it works. I mean that is the simplest thing ever do not make cash deposit your bank account when you’re in the process of buying a house after you close 60 days before you close don’t during the process don’t after you hoes do whatever you want to leave to you. Because it’s going to cause you pain. And do always do share every single bit of information you can possibly share.
With your loan officer or with your mortgage bank. That’s the lesson. So the don’t is don’t make cash doesn’t your body count the do is tell your mortgage guy everything so that he can plan for you.
And then here’s the last thing. If you do it if you do mess up just we’ll figure it out. It may not be perfect. It might take longer but we will figure it out. But let’s try to figure it out with a lot less pain. And that’s what we’re trying to do at TLC.
Tulsa Mortgage Broadcasting live from the koala’s studios in Tulsa Oklahoma. You’re listening to this entire show