Today we are having a Q&A session with VP of American Southwest Lending Billy Holden to discuss the current state with the Coronavirus and how COVID-19 is impacting the real estate and mortgage industry.
There have been some changes in mortgage guidelines and some other situations that I wanted to discuss and bring to you guys so that if you are in the market to purchase a home or are a real estate professional you have the most up to date information so you can make the best decisions.
Things continue to ebb and flow and there will likely be more changes along the way after this episode airs and we will continue to update you on as much as we can.
Some of the questions/topics discussed on the show:
-Changes in mortgage guidelines
-Difference between a mortgage broker and a bank
-What does forbearance mean and should you as a homeowner apply for it?
-If your employer is offering a voluntary furlough should you take it before closing on your home?
-What are interest rates going to do?
-Are home prices going to fluctuate?
-Are we going to see a rise in foreclosures?
Tune in to the show for more details!
If you haven't already, make sure to subscribe to the show and leave a review letting us know what you loved most about this episode!
RESOURCES MENTIONED IN THIS EPISODE
The Glam Life Of Real Estate Insider's Facebook Group
Connect With Stephanie On Instagram
Automated Transcription - Please Excuse Any Errors
Speaker 1: (00:00)
Hey guys, it's Stephanie and thanks for joining me on another episode of the glam life of real estate podcast. Today's bonus episode is a special one. We are in the midst of coronavirus if you are listening and at a later date it is April, 2020 and we are in a national pandemic and for everybody in real estate that's really scary. I'm sure other industries are experiencing change as well and so I wanted to do a question and answer and just kind of bring some topics up for everybody that's in the market. That way if you have questions, if you are looking to buy or sell a home and questions about what's going on in the lending world, if you're a real estate agent or a new home sells counselor, you kind of know some of the things that are going on because there are some changes, there are some things we're hearing that are scary, but they may not be as widespread as what's being reported.
Speaker 1: (00:50)
So I have a special guest on today. We're going to talk through all of that because he is a mortgage expert and so I wanted to bring you guys the goods. We'll probably continue to do this every couple of weeks because things are continuing to change and evolve. This too shall pass. We will get through it and I just want to be here to bring you guys as much up to date information as possible. If you do have other questions that we are not answering today, please hit me up on Instagram. Find me at ms Stephanie Lindamood. You can find me on LinkedIn. I'm all over the internet so reach out to me because we do want to answer your questions and then we'll have them on future episodes so stay tuned, stay safe and thanks for listening guys. One side note, I'm going to apologize up front. The audio quality does cut in and out a little bit. I think we had a weak internet connection so I went ahead and tried to clean it up as much as I could, but there might be times where the audio freezes up. Just be patient. It'll get through it. If there was any information missed during that audio breakup. We did go back and reiterate what was being said so you don't miss it. Apologies. I think the Internet's just really full right now and I'll work on bandwidth for the next episode. So thanks for being patient and stay tuned.
Speaker 2: (02:08)
You're listening to the glam life of real estate podcast where we talk about everything from productivity tips, social media strategies, business hacks, and more to get ahead of the curve and crush it as a real estate sales professional. Whether you office out of a model home or your car car where leopard print and high heels never go out of style. Here's your host, top producing real estate agent, social media strategist, and for baby mama Stephanie Linda mood.
Speaker 1: (02:41)
All right guys, so thanks for joining us today. I know with all the quarantine and the COBIT 19 a lot of people have questions about what's going on in the housing market, so if you don't know who I am, my name is Stephanie Lindamood. I'm real estate agent here in Dallas, Fort worth and I have a special guest today. I have the vice president of American Southwest lending with me. His name is Billy Holden. I'm going to let him introduce himself in a second and we wanted to talk to you guys today about what's going on in the market and things to look out for. And so we just wanted to come in, see if we could answer anybody's questions. So feel free to shoot us any of your comments and questions. So, Billy, what are you, if you want to introduce yourself real quick and tell us what you're seeing in the market and I'm going to join us live on Instagram.
Speaker 3: (03:34)
Okay, guys. Yeah, my name is Billy Holden. Um, you know, as everybody can tell, we've, we've been in a tumultuous time right now, but the good thing about all this is that the, the market is very stable for a lot of the, uh, quality credit profile people out there right now. The government is fixing the back, Fannie Mae, Freddie Mac and Ginnie Mae, which is going to open up some more of those channels. Um, as you guys have probably heard lately, a lot of the, a lot of the credit, uh, the lower credits here are, they're not actually trying to do those loans right now, but probably by the middle of the next week we're going to be in a whole lot better spot. So everybody just needs to take a deep breath and not panic and believe everything you hear on the internet or on TV. Mmm
Speaker 4: (04:32)
Speaker 1: (04:33)
you're freezing up a little bit. Hey guys, if you're just joining us on Instagram live, I am here with VP of American Southwest lending, Billy Holden, and we're going to be answering some of your mortgage questions today. We're freezing up a little bit here on Facebook live, but just bear with us with some of this technology. Um, so bill, he just introduced himself. We just joined on Instagram live and we have some questions. If you guys have questions that you want to ask us, let us know if you wanna uh, type them in on Instagram live. I'm having some trouble getting in the Facebook comments, but um, so basically what Billy just said is we're going to be in a little better place this next week. Can you tell us, like currently if we're, we've got clients in process, Billy, what are, we've heard some stories about mortgage loan pro, like guidelines changing mid-process buyers or surprise, maybe they don't qualify. What are you seeing there? Is it like credit score requirements are changing and kind of what's going on there?
Speaker 3: (05:34)
Yeah, and last week when everything started to go downhill with the epidemic, um, the, the big investors, the four big investors that are the big servicers artificially inflated the pricing to where it was not attainable for the lower credit. Well, they have so much business right now. Now they are, it did that, it doesn't really have anything to do with the market. As soon as the numbers come back and the actual government backs it, it's going to be in a lot better shape. Right now, if you're at a six 60 score above, you're pretty much considered a premium buyer, but six 60 and below, it's going to be difficult right now.
Speaker 1: (06:10)
Okay. So if you're looking to close on your home and maybe you will get proved before and have less than a six 60 credit score, is that the case with all the lenders right now? Or is it just some that you may not be able to get?
Speaker 3: (06:24)
Um, it's, it's Tom, if you're working with a broker, um, it's going to be much more difficult. Um, we as a bank have the capability to service the loans. So if we commit to doing it, we will hold on to that loan until these markets subside and the big buyers come back. So if you, if you're out working with a broker, like I said, those are very good people, but just be cognizant knowing that it might change up until the very end. Yeah.
Speaker 1: (06:57)
Okay. And how do people know if they're working with a bank versus a broker?
Speaker 3: (07:02)
Just ask them the question if they fund their own loans, um, or is it going to be funding? And they different investors name, um, if they, if they're working with a broker that, that says that you need to double check that to make sure.
Speaker 4: (07:17)
Speaker 1: (07:18)
Okay. So we're seeing some credit score changes. Anything with our down payments still the same as far as if you're on FHA, it's, you're still putting three and a half percent down VA zero conventionally, you still have your five, 10, 15, 20% programs or any of those changing
Speaker 3: (07:37)
nothing. Nothing with the actual, you know, the, the types of loans that are out there are going to change. Um, due to the circumstances we're in right now, which will pass, um, it's just affected some of the lower credit and the down payments are gonna be the same. The ratios are going to be the same. Everything is going to remain the same. It just needs a little bit of time to get back to where it was.
Speaker 1: (07:59)
Okay. And then like is there anything we can do as real estate agents, new home sells counselors to prepare our buyers and sellers? So like let's say we normally do a simultaneous closing on two homes, meaning maybe they have an old home that they're selling that they're closing on, and then they're closing on the new home the next day or the same day. Are there any, is there anything that we need to tell them, like Hey, closing, taking a little bit longer. The funding process is taking longer, or do you feel like things are business as usual in that regard?
Speaker 3: (08:30)
It's, I would never recommend trying to close on an existing house and then trying to close one in the afternoon because there's so many things that can go wrong. We do it, but we also have to rely on third parties, you know, closing in the early in the day. They got to get their wire. I mean there's a lot of things. So if I were a day or so in between the transit, actually that's always the easiest and way less stressful. Okay.
Speaker 1: (08:57)
And then as far as the closing process, how are you seeing lenders do that virtually? Is that, is it, are they closing them in parking lots? Is it by DocuSign? Like, what's that process look like right now?
Speaker 3: (09:09)
Depending upon the buyer that they come out to the parking lot, they will do the signing right then and there. They'll elect to sign all the documents except a couple of the critical ones in person. They'll send it to you an email, but they can definitely take care of your customers in a parking lot if they're not comfortable coming in.
Speaker 1: (09:26)
Okay. Um, and then as far as the loan approval process, I've noticed on some contracts here recently that we've gotten in for some of our sellers, the realtors are putting in a longer, like us on the third party financing addendum they're putting in, they want longer than 21 days to get that approval. Is that real or is that them taking extra precautions? Legitimate or should we be pushing back and saying, no, you should still get loan approval within the 21 days? What are your thoughts on that?
Speaker 3: (09:54)
Yeah, there's not there, there's no material change in the business ball flow that has happened because of all of these conditions. The only thing that I would say is on a VA loan, the appraisers are very slow and so they really got slow now, so that's on a VA loan. I would allocate some more time, but everything else it hasn't changed. Okay, cool.
Speaker 1: (10:15)
Um, okay. When we listen to the media and they say and just rates may go down, the Fed's going to lower the rate to 0% when we have clients that come in or walk into the cell's office and they literally think that the mortgage rates going to go to 0% and we have to educate them that that's two different things. How do we do that in a way that the client can understand that we're not trying to pull a fast one or we're being accurate? Can you explain what it means when the media says, Hey, the Fed's going to lower the right to zero or one and a half percent. What that means for it's different than mortgage rates,
Speaker 4: (10:50)
Speaker 3: (10:53)
Right. When the fed talks about that, that's what they, that's what they loan money to, banking institutions, real estate investment trust, all that. So that, that is the benchmark of what they loan the money to them. So the bankers, the mortgage companies, the car companies, the credit card companies can loan out to you. And the difference between the right that you get and what they're barn and that is their profit. So the 0% is basically on a much larger level. It doesn't really have said when they loan the money, it doesn't have anything to do with the public. It can affect the rates to go down, but you're never going to get down to zero cause that's not going to happen.
Speaker 1: (11:31)
Right. Okay. So what are you seeing the rates right now for, you know, six 60 credit score or higher roughly? Like I know it fluctuates.
Speaker 3: (11:41)
Um, um, today on a government loan, a government, which is an FHA or a VA loan, we're looking at probably three and a quarter. Okay. Um, I mean it's, it's very strong. It's, it hasn't moved on a conventional loan. It's all credit score driven. If you have a six 80 or 700 score, you're looking at probably somewhere about 3.75. So it's an all, it's an all time lows. I mean this is, people need to understand it's, you know, you can buy a much more much higher quality house at a higher price house with such a low payment in these times.
Speaker 1: (12:16)
Right. Let me take a quick second. Hey guys, if you're just joining us live, whether you are on Instagram or Facebook, thanks for joining us. I'm Stephanie Lindamood, real estate agent and DFW and we have um, the vice president of American Southwest lending on with us. We're just talking about some changes in the mortgage market, talking about some things people have either heard about, maybe dispelling some myths just as we're in the Smiths of covert 19 and just trying to help everybody out in the industry. So thanks for joining. If you have any questions, let us know. Type them in the comments. Um, okay. So what are things, there's a lot of like stimulus programs out there. There's the forbearance program where if you're currently in a home, you can delay your house payment for a few months. Is there any, there's also like voluntary furloughs that some companies are asking employees if they want to take. Is there anything that you would recommend buyers not do if they are looking to buy here in the next few months? Kind of like we would tell them, Hey, if you're about to buy a house or close, don't go buy a new car. Don't go buy new furniture. That's kind of, we all know that being in the industry, are there any new things that I wouldn't think to tell a client not to do that could impact them in the future? That they, that they can not do now with some of the current things out there?
Speaker 3: (13:27)
Right. I mean, I'll tell you this, I mean the mortgage companies had been directed by the government to give the, the uh, the, the actual payment. You know, you can, you can actually delay it for up to 90 days, but I would, I would tell everybody out there that there's going to be a forbearance. It goes on your credit report. If you take advantage of that. Okay. If you can at all possibly avoid putting your house into forbearance. Um, I would definitely not do that because that they're going to roll that to the backside of the loan. And if you do have the ability to pay it, I would just continue to pay it. I mean, I know it's enticing thinking that you could go out and spend some money.
Speaker 1: (14:06)
Sure. All right. So basically it sounds like on the forbearance programs, which means you can apply for that and not pay your mortgage for a couple of months because it will go on your credit report. You would recommend, if at all possible, going ahead and paying your mortgage during this time so that that's not something that you have on the credit report.
Speaker 3: (14:26)
Yeah. Cause the investors, after all this is said and done, it's not going to affect your credit score, but when they see that you have a forbearance on there, it's, it's, it's going to affect the approvability of the loan. I can tell you right now that all costs try to avoid that.
Speaker 1: (14:40)
Okay. Um, let's talk about, I know like I've got clients, my husband's got clients, everyone's got clients that are sitting here. Like they're in process, they're going to be closing in the next, you know, two to eight months, let's say. And they're sitting there going, we don't know if we're going to, maybe they're essential or non-institutional they don't know if they're going to get, um, their work hours cut or have some things shorten, whether that be, you know, going to work if it's considered non-essential. What types of things are impacting the mortgages right now? Cause I know that there's been some changes on verifying employment and that and the amount of employment you have very, very close to closing to where, what does that look like and what's going on there?
Speaker 3: (15:24)
Well, I can tell you how it, if you have, if you haven't, if you're getting furloughed I mean, there's no doubt about it. You can't, you know, you can't control that. But if you have an option of an early part low or you're balling tiered, uh, basis pack, what's your office see your year to date earnings? Um, we as a bank, we understand the situation, so we're probably going to take that time period out if you're fertile and then you come back to the company. But most brokers and most other lenders are probably not going to do that. They're going to take what you made divided by the months of the year, so it will affect you. So be very cognizant of that. If you do go out there and you do, you do lose your job for a short period of time, it will have an effect on your provability.
Speaker 1: (16:09)
And what happens if you're supposed to close like in the next month where it's real time. Like, does that mean you're probably just not going to get approved? Or what are they doing?
Speaker 3: (16:20)
They're going to make a phone call to your employer and they're going to make a phone call the day of closing if you're approved. And if someone on the other end, which is usually the HR person says if you're on a furlough, you're not going to be close because you can't get that loan done based on that situation. So it'd be very cognizant.
Speaker 1: (16:40)
Okay. Um, and then if people, I mean if people are furloughed and they say, Hey, what if I go get a part time job or whatever, delivering or bagging groceries or whatever and maybe that makes up, are they going to be able to use that income if it's, if it's fast income. Okay. Because they haven't had it.
Speaker 3: (16:58)
Correct. I mean the best thing is to try to avoid it at all costs, but I mean you've got to get back to your job. There's no other way around it. They're not going to approve the loan if they find, if the fertile conversation comes up.
Speaker 1: (17:09)
Okay, fair enough. Um, and then, so let's talk about, so we talked about earlier, I want to go back to it real quick, things to look for in a lender if maybe they aren't in the process of underwriting and all that to make sure that it all costs the investors don't change their mind at the closing table. It's going to be to make sure that you are with a bank versus a broker. Correct.
Speaker 3: (17:34)
All right. Cause this is like, like I said, people need to know that there's a lot of really good lenders out there that are bank driven. I mean, you know we've had loans that, that we closed two weeks ago and we can't sell so we're servicing them on our platform until the market comes back. So I'd just be very concerned if you go to a different company that has a investment company that's closing the loan in their name because they have no have nowhere with all with them to make them close the transaction.
Speaker 1: (18:06)
Okay. So in general do you think, what do you think is gonna happen? Like this is what, what does say April 9th I mean obviously none of us have a crystal ball, but from what you're hearing, what are you seeing as when do you think maybe we'll open back up like normal? What is the impact on housing? Like what do you think go, going to go on in the next nine to 12 months that we'll see as an impact of all this?
Speaker 3: (18:30)
I think obviously our, our, our daily life, but this pandemic is going to change probably to an extent, two months from now, everything's going to be back because before all of this, thanks for coming, the market was humming, the deep vaults were way down, everything was, was working out perfectly. So this is something that could not, you know, you couldn't predict that this would happen. So I think we're going to start up and we're going to come out roaring like we never have had before because people have this pinup demand and they need to take advantage of these rates because there's no telling how long they'll be around.
Speaker 1: (19:07)
That was my next question. So what, what do you think rates are going to do as the rest of this year? Do you think they'll stay where they're at just to try to stimulate things or do you think they'll go lower or do you know, go up?
Speaker 3: (19:18)
Um, I, I think they're not going to go lower. I really don't think that they're probably going to go up maybe a half a point at the most because you know it's, you know, it's just, that's how the rates, that's how they go. They go up in the summer, so I think by July you're going to see a little bit of an uptake. But I think as of June 1st you're going to be trying.
Speaker 1: (19:39)
Okay. Do you think foreclosures are going to go up or do you think that this is gonna be a situation where it's a blip on the radar? Maybe people have to fall for forbearances or apply for forbearances to get some relief? Or do you think it's going to be more like Oh eight where we saw a longer foreclosure period and I'm just asking all though I'm asking all the loaded questions, aren't I do what?
Speaker 3: (20:01)
Yeah. Well, there's no doubt about we're going to have a surge in foreclosures because we're going to come back. But a lot of the self employed business companies out there are, I don't think they're going to be able to make it. And that's going to cut, you know, right now we're at a 10% employment unemployment rate. Right? We're gonna, we're gonna, we're going to struggle to get back down when we were pre Corona. So it's going to take some time and we're going to have some foreclosures because people are going to get behind. Yup.
Speaker 1: (20:28)
Yeah. Okay. And then what do you think about, like, especially in DFW, we've had so many new apartments being built, there's a ton under construction. Is that good for RA? Is that going to be good for our market or do you think those are just going to sit now?
Speaker 3: (20:43)
Well, a lot of those apartments that are being built are from massive, massive real estate investment trusts that are just placing money. And those, those big companies, um, they are, they basically put money where they think the job. That's why they have such a big influx. Aye. But I think the houses, I mean at the end of the day, I think the payments are pretty close to what she's going to be paying on an apartment. Right? So I think, I think it's, it might backfire a little bit bottom, but we're going to have a lot of apartments around. Yeah.
Speaker 1: (21:16)
Yeah. Um, and then what do you think pricing will do, at least here in DFW? D I've, I've noticed I had four listings this past week that all got offers. Some of them got multiple offers. I was surprised at how low some of the offers were. Um, some of them came back fine, but it looks like there's a trend where buyers are thinking they're going to get this great deal. I haven't really seen prices decline that that much. But what do you think will happen over the next maybe three to six months?
Speaker 3: (21:45)
Okay. I don't, I mean we're, we're the most stable market in the U S and every year we go up about one and a half to two and a half percent is what I see. So we might take a little bit of a, you know, stable because of all this going on. We might not be able to get up. But starting in 21 and 22 it's so 3% higher priced housing at that point. Right,
Speaker 1: (22:13)
right. Is there anything that I haven't asked that you want to talk about that you think, you know, any myths, any, any news out there that maybe we're hearing from a national standpoint but we're really not seeing in DFW to educate the viewers today?
Speaker 3: (22:30)
No, I just wouldn't. I just would want people to know that, that, you know, as, as we've been dealing with this, this will pass and yes, it's had a financial toll on our economy and it's, we need to get back to work. Everybody knows that. They're just trying to, to, to slowly roll it out to make sure our health is in place. Well [inaudible] after that point, I think we're going to be trucking. I think we're going to be doing very well and there's a lot of negative news media, but at the end of the day, I mean it's a great time to buy a house, especially if you want to take advantage of the tax incentives of writing it off on your tax return, both your interest and your real estate taxes you pay. That's a huge benefit and you definitely need to move forward now and, and not, you know, there's been a lot of doom and gloom, but I don't think it's going to last long. I really don't.
Speaker 1: (23:24)
The other thing I would add, and I'll let you tell me your thoughts. I am sensing that some of our builder partners are going to probably start limiting the inventory that they build. So I would think that four or five months down the road, we may not have a shortage of homes, but there may not be as many homes available to choose from that are finished if are pulling everything in a bit. What are your, what's your perspective on that?
Speaker 3: (23:48)
Yeah, well they're just right now the builders are concerned because of, you know, the, you know, they've got, they've got a lot of overhead and they don't want to be stuck with all this out there. I mean they're, they're concerned. And I know a lot of builders that they have, they have stopped building speculative homes, which are homes that are built without a buyer. So in saying that, you know, you know, it takes builders six to nine months to build a house. You might be stuck 12 months if you, if, if it's going to be hard, a labor's going to be stretched and all that. But there, there's going to be a definite shortage of houses ready to move analysis.
Speaker 1: (24:26)
So the reason I bring that up, guys is if you're thinking you want to buy, think about it like the toilet paper, right? Like at some point we're going to get toilet paper. I don't know when we just went to Costco today and there's still none. But same thing with houses. So if the builders build a lot less homes that don't have a buyer, which are the inventory homes, then that means that more people are going to be happy to either build, buy pre-owned or wait. And so if you're in the market, this is a great time to catch this window where there's still inventory on the ground, rates are still really low, assuming you're in a field, you know, where you're not worried about either being furloughed or incomes on an issue or that kind of thing. And we're still seeing a ton of buyers that are fine. Um, so what I would say is we're essential here in DFW still. We're still having listings go active or we thought surge and showings. This past weekend we saw a surge in contracts. I suspect that we'll back down this next weekend with it being Easter weekend. But are you seeing, how are you, like with your loan applications and contracts coming in, Billy, are you seeing those increase, decrease, stay the same from the last few weeks?
Speaker 3: (25:34)
It's, it has increased. So I mean, there's more people out there looking for homes. There's more people that that you know are interested and you know, of course they have their concerns and questions, but the ones that we're looking at are, are real cognizant of the rights that they're trying to take advantage of it. Cause they're scared they're going to go up. Well like I said earlier, they're probably going to go up a little bit, but that's why, you know, people need to, you know, as soon as we turn this thing back on, you can go look at homes all the time. You need to go buy a house.
Speaker 1: (26:05)
Right. Well and that's the other thing I was, I tell my sellers is like, look, there's a lot of people off right now and they're on their fricking iPads and like crazy. And with the photos we do and all that good stuff, just like the billers, like they know what we look like, which is amazing. Everyone's got time. And if you've got someone submitting loan app, you've got someone walking into your model home or making an appointment or someone coming into one of our listings. It's like when it's pouring or when it's super hot, that means they're an interested buyer to be getting out in this stuff. Because if you're just a lucky loo, your agent's not going to take you out and you're not going to go out. Right. Cause everyone's just wanting to hunker down. So if you do traffic and people interested, I think it really means that they're out there and they're real.
Speaker 1: (26:48)
I think that it's going to behoove the sales counselor or the real estate agent to make sure that they're sinked up with the lender that they know can get the job done. And based on the current environment of that client's, you know, what's going on in their work history, that kind of thing. They're secure for the next few months. All right. What else? Anything else that you've been answering lately? I know you've been on the phone a lot talking to people that are worried about stuff. If people are comparing this to OAA cause it's, I mean I've been in the market since before then. Is this different than a way? Is this going to be worse than Oh way. What are your thoughts on that? Or can we even compare it?
Speaker 3: (27:23)
You're going to have the mortgage world when it, it has a short term hiccup. It's gonna, you know, it's going to come back and it's going to be very, very strong. It's not like going away. It's not, it's not to where they were doing rough loans. The loans had been performing everywhere for quite a while. So it's, it's gonna come back like, uh, like it was before, before all this stuff happened. So we're not going to have the same reason why we're not going to send it back.
Speaker 1: (27:51)
Yeah. So that's good news. So your advice is just take a breath. Yes. There's, I mean, we've done some damage to the economy, but at the same point in time, we all want to be safe and healthy. Um, try not to take voluntary furloughs if at all possible. Try not to apply for the forbearance programs if at all possible. If you have a lower than six 60 credit score, you may need to call your lender and, or switch lenders. Right? Or is that is the sixth for you guys too?
Speaker 3: (28:25)
No, it's not. I mean I right now actually go down to 600. It's just the pricing on it is not conducive to what a customer would want. That's the problem is that they wouldn't like the rates right now, a week from now, that's probably going to be a different story.
Speaker 1: (28:40)
And tell me why that is again, just in case somebody just joining us a week from now, things may be changing for the positive in the mortgage industry.
Speaker 3: (28:48)
Yeah, the government, they, they backed these, they're called pools, Fannie, Freddie and Jamie. Um, the, the big servicers are blown. Um, they have too much and they're concerned that a lot of people are not going to make their payments because of this, you know, this is the situation with you having to, for parents and that becomes a liquidity crisis for them. So what ends up happening is if the government backs them and changes some of their guidelines, which they already said that they would, that's going to get them back into the game probably by the middle of next week. So next week's going to be a different story than right now with bars below six 60 score. Okay.
Speaker 1: (29:25)
And then longterm big picture, like how does this impact the average American in like five years? Like when we hear about the stimulus and housing and all that, like is this gonna make interest rates go through the roof in future years to come? Do you think it's going to make pricing up crazy in future years to come? Or how does this really impact the average American once we're through this with some of the stimulus in these programs?
Speaker 3: (29:49)
Um, it's not, our government for a long time is, has spent a lot of money, a lot more than what on the stimulus packages. Um, whether we had spent it on this, you know, not like 10 years ago we had hurricane Katrina, it was $6 trillion. So it really didn't have an impact on the regular average Americans. So I don't, I don't see this having the same, it's going to be very similar. You're not going to feel it. So where we were before all this happened, we were in such a heavily upward movement. We'll get back there and that's why people just need to understand it. You know, there's 24 seven news that's doom and gloom, you know, just, just relax and we'll get back to [inaudible]. It'll be a really, really good situation.
Speaker 1: (30:43)
One more last question real quick. When P if people are in process and something's changing with their job or their lenders just, you know, said Hey, the investor's not willing to take the loan or whatever, are you seeing the contracts just get canceled or are you seeing them beyond hold? Was either the builders or the sellers and the pre-owned market?
Speaker 3: (31:04)
So far what I've seen, yeah, probably 90% of them did. They just walk away. I mean, they're just, they're done. The sellers, I mean it's, it's a bad situation, so hopefully that will continue after middle or at the end of next week. I hope it goes away for people.
Speaker 5: (31:20)
Speaker 1: (31:22)
So if somebody is listening, especially in the DFW area, they want to get in touch with you and your company, your loan officers to inquire about alone to figure out what they can get approved for. What did that look like? How can they reach out to you guys? What's the best way?
Speaker 3: (31:37)
Um, we have, you know, obviously it's just to give us a phone call. We can definitely answer any questions over the phone for you. But we have a website and it's very easy to navigate. It's a M S w mortgage.com and if you, if you'll fill out the little questionnaire on there, we'll be right in touch with you and notifies all three people here internally that are the managers here in our office. And we'll get on the phone and give you many options or see what we can do to help you out.
Speaker 1: (32:07)
Sounds good. So that's a as in Apple, M as in Mary, S as in Sam, w as in water burger, a M S w
Speaker 3: (32:16)
mortgage. Spell it, [inaudible] dot com.com
Speaker 1: (32:20)
and I did it on my I D we did the loan app a few months ago for a property and it was super easy. So you could do it on your iPhone. It's really easy to do that. So. All right, cool. Well thanks for joining us today. I know that we've had a lot of people, including myself, like we're getting articles and reading stuff and hearing about, we had a client that a buyer was buying one of homes and the buyers actually had two days of foreclosing, agreed to a voluntary furlough because they didn't know any better and they didn't, they could still afford their bills and that kind of thing. And when they were closing on our seller's house, they did a verification of employment that day of closing. And like you said, the HR person said, Oh, she's on a voluntary furlough. And it was like, sure, the investor's like, I can't do this.
Speaker 1: (33:06)
And so it was a whole big mess. And so, um, of course, even if that's only one out of a hundred, that's what we all hear about. And so it's just good to kind of get an idea of, of what's going on, how to mitigate it, what's real versus what's the one horror story out of everything. And then I think to know, I've been surprised, pleasantly surprised that the business is usual in a sense, because I really feel like th the serious buyers are out and at the end of the day we all still have to live somewhere. Right. So whether it's paying rent, paying a mortgage, it's like buying food. I mean, yeah, I don't have to go on vacation but I have to live somewhere. And so I still think if you're in the real estate industry, it's still a great place to be. Just be safe, wear your masks, that kind of thing. Um, and we appreciate all your insight and for joining us today.
Speaker 3: (33:54)
Sure. Yeah. Just like I said, as I say, this will pass and if everybody just sit still for awhile, you know, to, you know, to do the, the social distancing, which is going to be the top probably word of the year. Yeah. Don't, don't just, don't just sit at home, but you know, be careful and keep buying houses cause that's, that's the American dream.
Speaker 1: (34:16)
Absolutely. Absolutely. Well, we appreciate it and we'll talk soon.
Speaker 3: (34:21)
Okay. So you guys,
Speaker 1: (34:22)
Hey guys, so I hope you found this episode helpful. We talked about a lot of things and covered a lot. Everything from interest rates to changes in credit score guidelines to you know, talking about what forbearance means and if you should apply for it or not, if you can still pay your mortgage. We also talked about um, if you are looking to close on a home soon things to watch out for. If you do have voluntary choices to make with your employment status, um, just know that you know, closing and funding could be delayed if they're trying to get verification of employment the day of. So just if you're a real estate agent or new home sales counselor, make sure you're setting those expectations appropriately. And all the title companies are trying to do their best on virtual closings and really accommodating everybody there. So again, like I said before, and this is Billy iterated, this too shall pass.
Speaker 1: (35:10)
We're just trying to bring you guys as much up to date information as possible. If you guys liked this episode, screenshot it, share it with a friend that may need to hear some of this information and learn from it as well as screenshot it to me. Let me know you're listening. Let me know of any questions that you have. Find me on Instagram at ms Stephanie Lindamood. I would love, love for you guys to go to iTunes and submit a review. Let Billy and I know what you liked about the show. You guys take care and we'll talk soon.
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