Aug 7, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Mortgage your work we've done cheesy -- an Austin mortgages -- since 2001. Have a question for John about your mortgage calling live at 51239. And thirteen seventies and now here's John. Dan welcome to the show I'm your host -- should see from your Marcos -- producer. Director playing here at my office Michael Rick thank you -- -- agreement and we have a special guest joining us today -- Douglas. Returning guest realtor extraordinaire. And they're really -- a really good we're aggression very lucky to have you on the show today. I'm looking for here we have to tell our listeners about. The former house right now okay Austin energy back thanks for coming on -- So we welcome your calls and emails this is a Morgan's show which -- some real estate. We are we do this on a daily basis all day and return to you in the evening. Throughout -- share knowledge should give us call would look to your questions we are alive right now at 51239013. Serving at 5123. And a thirteen seventy. You can find us on FaceBook search also Morgan report. It's a new message right now it Joan and Jeff Austin -- report dot com. You know today we got a great show its impact and no we're doctor gets everything we're going to be talking about home equity loans you know. Rates aren't as -- as they were last year. That's not everybody's refinance. Some folks still -- -- rate that would be you know valuable to refinancing but on top of that -- -- starting to get like calls my office. On our home equity loans. And I've got some theories on why that is in some trends I've been seeing that return home equity loans. We're out of time but some of the biggest hurdles to homeownership super got a heart new survey. -- at that talks about. You know why why part of their warehouse right now but wire so many people so -- Our reservists and do's and don'ts when buying a house this is gonna be a lot of fun because. This is something we deal with every day consult your clients on. Got him through the mortgage process and these things come up owner again about things that. He should or should not -- and more process and a lot of people talk to friends and and there's stories out there are so if you had an experience. Or gone to the more as far as as restoring. A look at your turn into your feedback I'm on -- went. It was a good with the bad was -- he thought gives the call whenever a number here's three and a thirteen 739013. Seven. Theo and I have an idea we -- -- mortgage rates and where they're going. What direction heading because that is the big question are we going to be afford to have next year I don't think so and now we're sure some -- loss or some knowledge on that. And we're. Also remember -- market update from jolt. Douglass with Douglass residential. -- -- going on out there -- -- -- -- and experts on the show because. Feel like our real Sarah now in his it is I think we're gonna surprise you with we're gonna hear about or scenes from the trend so. First let's talk about home equity loans so. Refinances are really an all time low because if you if you didn't. Refinance already. You missed the boat when it when rates for a thirty year fixed redundant you don't in the mid threes. -- didn't refinance then you know why would refinance now well there's some reason I call him cause Sybase three Francis folks that. You know sometimes unfortunately there's there's a divorce or separation -- need to refinance because one partner is moving out of the house and the other. Part of in divorce oftentimes is too. There's the other person is Hussein now has to take on that debt and they need to refinancing to depart that's moving out office and that's one reason for cause there's so regardless of what interest rates are doing. Some people just need to refinance. There are other reasons -- folks refinance and one of them is a home equity loan. And publicly loans were really hard to get in -- we've r.s have very strict laws about American arms and we still do in one of the rules is that you cannot go about 80% of the equity. In your home. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Yes the guys appreciated but as appreciated so much to you know after 40% equity. -- would -- to your home acrimony ownership interest and equity but that's all you have you king of an 80% -- kind of -- out. -- I'm finding and what folks out there are finding is that. The guy you got so much that now they've got thirty or 40% equity and have a little room there. To take some equity out. Right makes sense -- Palestinian gotten to be hurt anybody doing that drove it out. You know you're seeing folks. That are doing you know what went on when I'm talking to people about why wanna move and what are they trying to achieve when they move from. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Com. And a lot of cases it it doesn't make any sense for them to -- -- homers. Matching their needs and it it it action may make more sense for this to you just pull out at an equity line and add that. Very able that's gonna make more -- to say to say long term in the house. The kind of goes back to Berlin talk about with these were some of the hurdles homeownership one on the high prices -- realize. If they sell it there's nothing to -- this. If they're gonna spend more money to give and -- so what time did you make that assessment -- so hard to keep their house and your home equity loan for example. And do some improvement so so home equity loans. Basically what people -- cash back so let's say you know. Africa actually you know Andrea for example the office are just to just today us -- a client they bought a house for eight years ago spent their loan of about 200000. Indicated down to 180. We see from Radio One eighty and they -- Charles going to college so college's starting very soon and -- recent college prices -- I'm. I'm choosing to be completely -- to those 'cause I've got one starting -- for years. Italy and reminded how are you well it was a lot cheaper -- to score another -- -- paying for tuition and it was. Think of life. For during a semester no longer is the third semester so. But did they need about forty grand that's just for the first year. Paper cause well you get student loans they're pretty relevant readily available well these folks who decided. Bet there they are going to get home equity loans to help pay for college so -- -- about forty grand surrendered refinance or loan up to. Video when eighty were to go to 220. And they're currently paying a 1073. We're going into another thirty year loan the rate is going to be -- -- force for them. And their pain was going to be exactly essentially forty grand cash to pay for college. It's a huge. Stress relief for them term because. Well. They dislike this idea rather than a minute -- -- -- student loan that they like it because it's a thirty year mortgage. That. It was not as much pressure pair off. They made -- two loans in the future but for now to get a lock him. College for their child for a quarter percent. As a great deal for them and their payments the same result if they got to sit alone on top of -- there have been independent pay. Three or four dollars a month more mysteries of the same cash flow and their -- going to be you know funded in college for at least a year so it's it's a great win that's just one example. But there's at your folks here that the economy. Even -- Austin, Texas there's a lot of folks out there that went through some tough times in the last few years and either got to do that or they've put off. Some big purchases they wanted to make for awhile and maybe some improvement. Maybe it's a maybe it's some sort of business investment. There was sort of business passes lots of reasons why folks who -- has been now with the equity is increased. Those opportunities are opening up to folks. And -- the lending guidelines. That they're there really haven't changed a whole lot so if you reduce interest -- the job. There are opportunities there when. Question here so win and it did and then this just before the consumers out there. Qualify for a loan every knows it's a little bit more difficult than what went -- was -- -- years ago. How difficult is to qualify for an equity loan is it the same process for you have to go only to microscope in front -- this data. It is coming at them and underwriting process is the same been the key is it's really not. Horror. There you know the credit scores aren't necessarily more stringent from a -- loan the job requirements artists are more stringent. And and lot of cases you know he he. Is it just it's not a star that's a message I've reached this whole downturn. The national press is gonna have big headline stories right and so they love the latch on this idea that somehow lending is tightening and -- now. And there it it's not that there are few tiger components -- tarnish yourself employed it in and you don't show much income on your taxes. Those folks I have an -- to me alone that we used to that he alone but if you got a job you got good credit you can verify your income. He really and change amateur -- our time -- we've got to take a break when we come back. We're gonna talk about these girls homeownership -- there's an interesting trends in that data that affect us here in Austin. Look to take your questions about. Refinancing about mortgage rates about purchasing -- home. Or we've got a real -- -- -- elicit your -- certain part of town -- next for all over town. That's why have on the show us into his car where 39013. 73 and a thirteen -- -- should see me. -- -- yeah well Baltimore's report. It's the Austin mortgage your support with thirteen year mortgage veteran John student fee on top thirteen seventy let's. Welcome back to the often mortgage your court on top thirteen seven -- Feel free to join in the conversation at 51239. And thirteen seventy. Once again here's John CC. And welcome back house to the show I'm here worth Joseph Douglas real sit expert. And -- and so how far greater for some reason if you want to introduce your show just hope that the first year adjustable to report. You know we're going to be talking shortly about some big curls and some of the biggest hurdles homeownership and how it relates to Austin because -- there's some interest in trains in this -- before we get to that let's take a caller. Thanks Tacoma show. Billionaire you're on air with. Jack with customers report. Jack either. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Huge period up 8% orchestra at three point 65 and we got a second. -- percent at that point back. Sort of gone up. About the fire tore it apart pretty grateful to put exports -- more Jewish. Finance and get there at second down Moehler but also to the church out to get people are -- it could. Got -- 88%. With a pool reporter -- optical. Well it's your great questions though. When you're doing a home improvement. You're not necessarily doing cache alone are not considered a home a real and you can do it that way. -- the equity you can just -- -- -- loaned -- to cash and just pay the contrary to directly. But what you've been with I think most people do an earlier -- Is they do home improvement -- and so -- different so we hung -- for a loan facility -- new funding finally you do in the cast and in -- and contractor instead of going through you. You just get a loan then pays the contractor directly. And as not sit home every month so great quite a great brought it up the great. -- point about how micro loans earlier this say you have have towards an equity media cast -- and a -- and some people -- home improvements that way but. If you went home -- -- you don't necessarily need that 3% because it's not always consider -- -- home equity loan so you've got a great great on your first one. You probably don't wanna touch that because. There -- no right so what you can do is a couple things one you should. -- and get a second lien home equity loan and just get a bigger loan. That would then pay off the current secondly you have -- kind of role at all and together into a bigger second one. Now the rate and that's going to be in the six to seven range. So you're gonna have a you're still gonna have a higher rate on a second woman I think even though that alone might be bigger than it is now. It's still going to be better. To keep to read your first -- you keep the first -- you know untouched because the rates are low right now. Now the other thing you might find those that may be a challenge you -- -- -- finding a second -- Linder that would -- be alone without -- she might actually need to keep their current second leaning get a third Leno McCree our home improvement on. -- you have three loans would be you know but the debt debt -- maybe what you're gonna find I think doesn't get into -- you get those type of loans. Oftentimes through local banks or credit unions. They just specialize -- and its home improvement loans. Where your big national mortgage companies -- mortgage banks generally don't we do we do what we do the bigger loans to -- the house opposed to circling like that. He might -- but until you -- welcome to call my office to -- -- -- go to. House. Fought tooth and that caused the mores -- -- -- also word report dot com and be coveted got to continue this conversation if he isn't an -- -- think -- are really appreciate call mr. Jack. -- Congrats on personnel -- part of a great time always say. What's the best and buy a house well right now what was the bettors aren't last -- presents her -- brackets death. So. Let's talk about this these hurdles and again our numbers 51239013. Seventy. And sort of scholarship a mortgage related or real -- -- question I'm so here's the -- so. With mortgage rates and you're still near the store clothes why aren't more people buying houses right now. One of with friends I've seen as we do see kind of -- return of what I -- the return -- the first time home -- folks that have rented for a while there are -- to come back and buy houses. But it hasn't been and -- very. The wave I know there's a lot of into derivative a lot of folks that are still renting Arabs are part of market and -- So. HSH dot com which is -- a statistical housing. You know website that does -- -- -- -- -- some homeowner homeowners in -- you know. What has been -- your experience. In finding your finance your home and what are the six biggest hurdles. That they perceive to be you know reason why I am by it and so the number one. The number one is this house prices were gonna come back -- that. Down payment is another -- -- the good news is. 20% of these folks -- there's no issues so they just don't know wishes would buy a home and no problem. But that the lowest. Three the last three of the six. Are kind of interesting. I think that again you kind of might think it will mean credit score interest rates near the interest rates have gone up about a 1% -- the last year. You maybe -- was -- issue -- property taxes well. In this survey those are the lowest for those really warrants mr. factors before -- and I mean. Credit score is rarely there are folks have low credit scores but for most of that's not a reason why -- he never -- Fernando 600 today in your home. For for most folks so that's usually not the issue back home prices elicited so no surprise home prices are high. Now as the number one reason it not quite large margin that was the number one reason why folks -- Your struggle of I wanna. But this is well -- Russian rising home prices are not just to -- for young homebuyers. Homeowners age fifty to 59. Reported the highest incidence of a struggle with higher ultimately is up interest in her death. You thing of -- the first time homebuyers with the younger ones anyway. -- well let you know. I guess is also pertains to folks I can qualify for a mortgage so the device serving folks there can call from -- and -- -- not to. Change subjects but -- one thing that came out what -- this past week or last week you talked about -- Americans aren't debt. -- -- He surveyed let's lower it was and it hasn't won in 313 -- collections. It's okay -- have collections have collisions and car down so the night just so remove doubt those people. From the equation where you can have a collection of a mortgage interest -- listeners actually so I'd like to talk about that. You could talk about that we can have a questions you can -- typically we have collections. Against you that will hurt your credit. Is that correct. I'm leaving in America so what what is what is your question -- -- all -- well so I will talk to folks will say no but. I had as medical -- from five years ago it was. A big chunk of money and IA I'd I couldn't pay off I'm sure that I can't admiration because I'm in pain that. So I think I think we can do it varies the -- on this and but I think big picture as well. I DC a lot of folks have collections a lot to have medal collections. And. There's two things that one is if you have a clutch when there's medical. Or whether it's a -- William -- it's gonna impact your score almost equally. Give a hundred to our hundred dollar -- bullied and pay and a hundred dollar medical question those are treated equally. As far as I know to credit from my experience and what does -- mean the credit score cut companies out there -- -- they won't tell you exactly kickers score that would be secret before what I see. Politically damaging and so there's an element matters so I've seen a lot of folks that they get these are very. Well to these folks are no problem paying under our medical bill they're just pissed about it and they think they don't know and they might have come don't know it or their interest commissioner played it it was there's confusion. And don't pay it and don't realize. The impact of that what it's doing because. For example. Yeah 740 is it is really the target -- -- -- -- -- -- seven for your -- -- -- of the best rates from from. If you have a medical question knocks you down to let's say six iron five finish in that can happen. Well that may affect your rate by an 83 quarter percent. Not enough that you wanna enough a hundred bucks now ran for a hundred bucks you wanna pick or heart rate for thirty years commute so. First what you have this fall collections paid and our thanks to the ground but. The other message here is that it doesn't keep him -- house. -- you know if you if it does doctors were down there's plenty long for about that a -- to borrow more credit score. Now the sinister or JF deficit I think that it's important to share that information with a Celtic has. I and I hear it over and over again with folks are saying hi I'm IE there party defeated before they even start looking into it so hopefully this resonates in clusters up there who. Talk to a -- you know talked a lender figure this out. Don't be scared that he's got something on the record that would preclude you from being able to make it must be able to buy a home. Payment that payment of that has its I say it's just not -- it's not you know if you look on the looks -- run your credit. You know totaling find out -- anthrax. You know use a -- that's gonna share that information with the Europeans they were scores -- they're gonna keep it secret. Did the data and credit scores about -- having your credit run. Is not. This thing is just gonna knock you down fifty points it's just not it's not the way it works a lot of fear out there around that you brought -- my -- -- after. And having your credit -- enter three times a year is not gonna -- it. In my opinion. So if -- Paramount president though the other thing about this is down payment so for the first jump him as number two reason -- you know cause the biggest hurdle for homeownership number -- -- -- And ages eighteen to 29 reported the least trouble down payments. Which makes sense he was to the show and tell me I told you guys all the time that there's -- -- played -- -- assistance programs out there down payment is now which. From for most people it is doesn't have to be reason why can't my house. But homeowners aged thirty to 39 and 5059. Have the highest incidence for down payment struggles. We -- I think this is his -- units. These are the folks that have the good jobs. Before the downturn. And the downturn cart him off guard. And they're now trying to figure out how to buy their dream house. -- and I think this this is not saying they couldn't buy a house this report is saying. They had this idea of the house they wanted. And now it's out it's a little outreach. So either they don't like it now quite a money down but that's different all right -- I was visa payments are behind us industry causing struggle right yeah -- took -- mean. I think that's a very realistic scenario. I think also that the the old demographic as you pointed out a -- -- the under a graphic from what was 828. They're not too concerned about the down payment they're comfortable only come -- with 5% or using a down payment assistance program and news and going that route however. I find an older demographic struggles with saying hey we need to put down at least 20%. To pass from equity into this purchase. In order to move forward and so they will save. Their pennies and they may take them several years. To come up with that down payment. When in reality there. Missing the mark on and in in this particular market because rates are so low. And prices are moving up that the missing the mark on -- I'm making it a making purchased ultimately they do say 20% -- -- is going to be much more when they're when they're capable of buying it and the couple years because they say the money and interest it's gonna be up and their payments can be up that home prices going to be up so. But by the -- -- -- well I think that they that this that -- -- -- -- struggles with. With pain. Having a lower down payment. Right does the -- I mean it's it's as usual and I think it does that. I hope that I have my own. Paid off from the -- not only thing function on house Brent -- you. Well we've got to go to break here since so I wanna encourage folks out there there was call he got. A crack team here. To help you with your realistic questions mortgage questions. When we come back -- Figured that if -- about what's on the market and there are -- president something's gonna tell us world's gonna have that. There's three big don'ts things not to do hereby announce. A -- no way to see this as these are things that I see that. Drive people crazy in the mortgage process summon help you give you a heads up on what not to do so you're not going crazy and -- process. -- John should see -- Douglas Michael -- -- -- -- It's the Austin mortgage report with thirteen year mortgage veteran John -- top thirteen. I'm not. Let me. Welcome back to the -- mortgage report on top thirteen seven you feel free to join in the conversation at 51239. Note thirteen seventy. Once again here's John CP yeah. And welcome back the Austin motors reports. You know you're follows -- how's that -- FaceBook. Look at Baltimore's report. -- -- -- -- -- -- for my com and look at them Twitter and tweet me do the Twitter -- that's remarks -- -- And he can say Twitter with a straight face on everything the pistol from a -- -- Nichols at the Tweeter because he's pretty. You can you can treat me on this tissue -- we magicians. I looked interactive view are good questions all we can try to bring them to. But the most interesting questions to the show. Share with you. Right now. This time browse our -- -- Joba us. Thanks John. So. You know each. Almost each month. We kind of follow the market and and they revert back to I think we've done in the past two which would be. Profiling the amount house for sale for is that none -- house that are currently available. And this was called. And resurrecting the pending report for today's shelf could. So and I'm actually compare it to last year because we did at king's report last August 1 week in August 2 at this week. And if anything is not much has changed really in depth not much changed and I promised -- and you're surprised or -- say here yet vigil depth. Except for the fact that when you compare the amount of the image -- we have. This time. Last year was about seven just -- shy 7000 homes for sale right now or almost at 7700. Source close at 10% more. And right. The same thing could be said about the pending us. So none of homes that are currently our contracts at this market as every knows the red hot but imagine things as being 10% more than where they were last year. Inventories are up anonymous activity is up. And it. Which is interesting because this time a year is usually. You know it's about the dog days of summer as you Roland do. August typically August is like. Did the dog month this summer when it comes -- him because. Homebuyers have already gone under. They're looking for homes that -- -- -- before school starts school start to -- in August so and and home sellers of the opening of the market than -- -- in their home. Mid to late August because. They know that. The activities could be down to it right but don't for sale in July. About this year but not this year the three it's really interesting to see that's what's happening in the market. I had a question this week remains from a client through has been looking for house. He's looking for a deal. Can't find it -- -- factor no -- and he had a the other questions you know what I'm just. I'm gonna hold off -- -- in the you know before the default. The fourth quarter I've heard it's better combined. And I think in my response so -- -- marsh plaza like you know that hasn't been that that's been as a true the last couple years. There might have been a marginal falloff. In activity but I haven't seen prices. Drop out much in the fourth quarter have you received what what's your take him. You know -- I think there's always good deals out there and I think you have to be patient if you know you're looking for. You have to beat you just have to patient and you have to be you have to it's gotten really informing you gotta be zeroing in on market. You know we -- where you wanna be. I'm. And you have to wait. In a lot of cases you can and the only backup. One in four homes. One when we visit with 24 of almost 25%. Of homes and contract in the first five days. As that's that's as far as of right now that's -- -- -- -- however what's crazy is that when you look back at. March April may of this year. It was 40% of houses if you lose your home and on the weekend there's a 40% chance that you have a contract. On the house by Sunday evening. Now. It's one in four chances so. The mark technically BO one would say the market is slowing down CC. Of one home contract there's still three other houses that were listed at denied it back contract. When you look further out to others lose a lot of inventory. That is that is either of which overpriced given condition and I think that is where you're gonna see the most opportunities as a investor or someone is looking for a good deal because those sellers they were a little old aggressive. When they put on the market to begin with. And now the host and -- for a little while let's say six months. That home start this season and the seller if it still for sale in the sellers hasn't sold it. There's a good chance at seller might be willing to letting go for. Of a better price that might be below the market. So would be true that I did strategy her you know somebody who if you buy houses for all the reasons right. -- -- our location but some people. Haven't overcome an overlay on their search strategy in that is that I'm not buying a house less like it's a financially Smart decision and the way that they. Determine that is that they get a good deal they get some kind of discount so for those people that are just -- numbers are focused they're not gonna by analysts say. Do certain you know price under the with asking price and they were you know they wanna negotiate. -- a strategy being. To limit your search only homes that have been on the market more than thirty days to go after those yeah. Oh I mean you Obama don't you do do you need -- necessary low balled I think that you look for opportunities because the the sellers they will be if their homes on the north little while. Ultimately seller starts to get this themselves -- -- still anxious they -- sell the home -- -- to begin with and so they'll start to lower their price to be more in check with the market and pricing -- home is all about. The condition. Of the property given what's going on the market. And I'm a big fan of helping folks and advising folks and saying look. You're looking at buying a little older home in my between thirty years older it has its. This finish out that is geared up from thirty years ago. Go in and update that home that we want him. And -- and you might wanna say youth. Globally and don't -- it so you can invest some of that money into home and making your own. Here lies where the opportunities exist a lot of these especially going to some of the older neighborhoods where that -- their homes are. 34 years old they haven't been really updated hourly updates that they were done with the ten. Twenty years ago. Give us an example it appears that. An area trying to figure -- so there's an area you know if you look in south -- south than light. There's does that concern is some 45 CB north slaughter lane sound and light. Kind of up and down the Brody man track. I'm -- court order. There are a whole litany of 1970s. Houses that are anywhere from 12118. To square feet that have 33 maybe four bedrooms. And they have all the time to finish out. This -- this market red hot by the way however a lot of folks own these closings their heads the condition just really isn't -- -- really isn't. Particularly in a premium but the seller is. The -- scene now because their homes and selling so as an investor or buyer I would look to be in that area and and maybe taking slow -- shots because. I'm gonna have to -- at home numbers to put them 102030 K into it to make my own but when I make my own I'm adding value to it and it's going to be. My home sweet is to be exactly the we want to direct your comment earlier people -- have a hole in the left. I that's true he anyone have every list has a nice home. So if you can get a home at a lower price point that's. That needs work not necessarily it's the best deal but it needs some work but your being comps they were four for Bangalore lower price. Don't hesitate to invest in that. An update it and make it. -- -- great -- -- -- another trend I've seen. Is what you as you said the activities sort of carrying two Summers I'm dying off artists like -- typically sealed it. What you know our our folks are that you or -- as far as listening to be new listings right now. So. And listings are kind of I think that the real you know as a singer and when the dogma the summer. And I think the listen to slowing down. And usually this time of year from August September October. Most folks real state are having conversations with home sellers about selling their home. Next spring for Friday reasons mainly because -- to get more money and it allows the seller more time to prepare the sale. Oddly enough. We're seeing more folks Gingrich the home market in the next. Six weeks to twelve weeks. We just because of their ready to go they have made another child coming there have been job change they just about growing their house and they're ready they're ready emitter of and I I have a feeling that. Com. Once we get through August and Macedonia through though the start of school that I -- mid to late September. We're gonna see inventories rise. Once again. But it it's good for buyers to -- good message for varsity as absolutely I'm finding what you want now on the I think America welcome it's it's -- company where every year where this fourth quarter's going to be. There's going to be nice selection out there. You know in it for a word that's an equity play that's folks. The message is getting out to my house with -- thought. With cash out -- viva -- through thinking well and also historically sellers would say look and I take me 3045 days summer homes on the market and you know October November and and that is totally erroneous he could return home on the market up. Most likely the way the markets -- you can still put her home in the market in October or November and look forward to look forward to hey. Fairly quick sale and also benefit from having a large selection homes -- from. How does that what does that look like jewels so my thinking about losing their house what is it was the typical how do you approach it what -- -- conversation do you have. You mean personally what do you do with the first step. When listing a home -- visit to content -- and it's more information. -- first thing is it you know for -- -- very good realtors look at this as an interview for them as well as it allows the solid -- into the real turf because it's really important that the for me in my team depth that we can successfully sell home. And sell for the price that makes sense so. -- always encourage. Haven't no frills let's have a sit down for thirty minutes to an -- idol I need to see the house. I need to understand what's going on with the house and -- also understand what the seller's obligations are with or -- the expectations are. People are gonna contacted. Wells went. You know it's -- a kind of a fun earlier. Yeah you care so much fun respond went 22644160. Or go to our website at Douglas. Residential. Dot com. Joseph thanks so much for joining us we stay around the next segment of course Erica thank you -- -- Well if if you're human jewels had to say so far he's gonna be around to this -- 51239013. Seventy. If you think about selling your house would love to hear from there. It's great to hear your motivation what you're thinking. -- -- what's what's cause you know wanna do that and agree to -- feedback overseen in your particular individual knows it's a whole town back and forth. Passing of Scott we now know thirteen seventy. -- -- some more before we were right back. It's the Austin market report for thirteen year mortgage veteran John you'd see on top thirteen -- -- okay. Welcome back to the Austin mortgage your court on talk thirteen seventy. Feel free to join the conversation that I've won seasonally and I know thirteen 7 -- -- again here's John CC. Hey guys welcome back it's. Just fifteen minutes got eleven minutes this is going to be. Is going to be it but it was me a lot of great topic you're subject matter in this review period here because. We got a -- talk about but first I want to cover topics that. Is is a reality our market and that is what are some of the unique situations that come up when dealing with a mortgage. Or buying and selling a home for our narrator of earth are divorced. Borrowers right so. You're one of the -- -- start with one scenario that comes and I've seen. What are -- a divorce -- so that it's it's very common for Warner one of the spouses should be. Hiring comer. Your bread where breadwinners kind of an outdated word fame because a lot of times both those doesn't work for one makes more than the other officer should. And I've seen this scenario where. Don't stress dispels that makes less money is gonna keep the house. And the women's Mormon is gonna move in with the I think the idea probably is that why me or my second afford another repayment or something. Where you keep your house and used to go to where so. But the challenges that can be you know. If you want to refinance I've seen this scenario you whether maybe maybe part of did divorces that. Your take some cash out and in buyout the other partner. That's economists say OK the house is a hundred grand inequity a move announced how my fifty. So OK well let's get a divorce then after the divorce is complete that the spouses have to remain the house is going to be and how there's a -- I'm -- they have to refinance. That's a common scenario well what can happen is. They qualify and those of their incomes. The winning at the divorce. And the high income earner or maybe even if the lower wonder if they split -- that debt that person moves out. Now we've got to try to qualify them find the warning comments last to have the -- -- in the house and in some cases they don't qualify. Which -- not factor in. -- we don't have alimony and Texas -- so there's knows that we just Brussels Portman that I am. Great question. And answer that here's dementia. If the spouses and left in the house has kids and they're -- child support. Most Fleming -- -- -- you -- spores income can usually -- we should. Two in his annual circular you have to -- twelve month -- receiving obamas that's kind of knew these field just get a divorce. And you senator immediately made it look I think guys really has not cost us pay on time. So is that income stable or not we need a little history to make sure that person making campaign right so but here's a fix for that. An option mind being before the divorce. Go ahead and refinance it before they get before the divorce is final. Get the Kashmir or in -- -- just want to refinance because the rates are. That the lower rates what -- divorce first that less profits -- -- stuck with a higher rate it can't refinance so bottom line is my point here would be. Talk through your lender. About during early divorce process synergy -- eating with your mortgage refinance in -- out of one of their names or something. He needs are true winner it's a similar. The issue is you can't discard lenders say hey I endorse you pretty much has been no longer lives in this house I want him off on more catchy -- and hasn't worked either. The lender can release them and it's a long process since it's it's I think it's more burdensome and wanna go through she actually have to refinance in some cases. To give that person off an -- goes back to register a team or -- person. So now the how's it work then. I've. And the answer I think but I think we get a -- talk about radio. Because becoming a lot more popular it's as more of maybe generational thing. -- -- a cultural thing where you have. Boyfriend girlfriend they are legally married they may have. I wanted to couple kids the other. But if there -- legally not married and only one of them has to credit to -- the house committee can they use income or money from now epiphany. The other partner. Great question regression in many cases you can but not always there are some specific rules around. Now if both partners -- on the loan. And I say partners initially think in Austin you've got a huge huge part push for same sex couples in this comes -- all time. They're not married they're not considered married in Texas so they're buying it almost as if they're just two friends buying a -- that's where our new rules are. If they're both -- it as a matter of you which one provides some money but if one person alone. And they're using the income that -- -- to -- but their -- -- computer the other party there are some interesting rules if you come into play as far as gifting. -- funds and and in some cases the mortgage -- may not allowing you. To accept the money from the person who's not on the one department of -- so it's a good thing what can just another person out there are programs allow gifts. From close friends. As long as he established a friendship. You know there's different ways to do that but. So it it can be allowable but it depends alone time so ask your lender for sure great question. I got 12. You know I'm Tony six and I just got engaged to my girl. The proposal is beautiful of course but what if I wanna buy a house before we're married. Did you say my girl. In the group policies my girls I and fifth that that's awesome my girl so yeah but what if I wanna buy a house before unmarried and and how to add her to the mortgage you know I mean. That's -- you by the house before. -- -- married and she's on the mortgage to start with just -- bought it grade as a single person. You can't battered the -- The property -- You have to be careful American violet -- was told that these trucks and if you trust is really the mortgages is that it's a legal -- followed the countess says you have a mortars and this property. And tell you paid -- slender back there and I'm -- your house right so there's some rules in there about changing ownership of the house and so. It's done. I see this happen he Wear a spouse war -- hurt -- to out of the deed. Happens what -- see when folks -- trust. The set -- so forth -- and we trust this happens with older generation alive. And they'll transfer it into that human trust him -- have you all careful do it right -- front Carter wanted to make sure they're acceptable bailout that but. Receiving parted but that isn't out of the mortgage source market and our credit the I'm talking helper build credit. This is is not an -- opener credit at all. And the only way to do that would be to refinance to a whole new loan. -- -- the loans if you wanna buy it together and she folks did you know sometimes. Kind of one of those cause based through the first of the issue we start with us. People refinance not only because rates are lower they do it further reasons and one of my -- rates and the ritual the same. They just have kind of a mutual agreement that it -- if I'm living here and where. Married or unmarried but I'm living here make him part of this payment I want to be on this loan. And so -- refinance for that reason hopefully there's a little savings somewhere in there it's a little lower than what your -- or something but. But I am yet to -- -- question. They choose to follow that up -- there. For folks out there and also for you -- to think about. The benefit to doing it is that in. Texas that he probably state and so when she gets you married your wife. -- girl ago now his son. This is is one day in the house she has. 50% ownership in the house. So adding somebody -- the mortgage. Beat you where the storm so what once it has having to do it. Here's your primary residences at home -- homestead -- it would yes indeed home what then becomes her homestead there's some English honestly and and she has 2% ownership and so. Adding into the do you trust. I need to know want what I could. Well we don't talk about on the show but but what the benefits would be Downing Street who do you trust. When I started their homestand them because they're married. Well we got a little bit of time left -- I've I've told you we're gonna talk about -- not I wanna make sure recover Republican these are some things that you do not want to do in my home Karen. I would -- three things. And this is gonna save you and your Linder of it's -- medical -- number awareness. First of all to listen -- -- department -- -- 123 and a thirteen 72 was caught in the questions. The lifted into the three things so memorable number three is don't change job. And if you do change your job to Russia when -- first. An example where this can be a problem is if you give -- a salary job to a tonight and -- job for a self employment type situation. And I -- real problem for Iran and usually you to your history that she don't -- -- their freedom mortgaged his. You have a -- history and you might be to qualify and some really really dangerous thing to -- right there number two. Don't borrow any money you know don't go by car don't get a new credit card don't get a new store credits what happens people go to Home Depot. And ago that I need a new one mourner. And they -- hate you can save 20% fuel in this regard. And we all do it in your opening but if you do that right before closing we're gonna have to verify that -- that your. It's just flowed under and writing can be intramural troublesome to be -- you don't do that if you can avoid. And number the number one thing is that really frustrates folks out there and I -- you know Arthur you've got -- recently you know this. And and you're not alone does everybody gets longer -- -- interview of ten million dollars remains. You're gonna get asked and scrutinized about. Your bank accounts and deposits that are going in your bank accounts as a one thanks so if you can avoid moving money around. Immediately prior to buying a home. You really should do it if you can hold off on transfer money your mom's gonna give you fifty grand -- the wedding present or something printed. You might wanna do that after closing it might make you easier process. If you do. It did today and run all despite a winner before you making changes a lot of these things are purple acceptable use of the documents -- documentation. Guys are running a little short on time. For which we just sit around and I've got lots for a talk about make sure -- tune in next week. Where every Wednesday at 7 o'clock just more report he catches during the week army the office that. 920 atx 1920. Atx warning call -- time look to help your. Go to my website look me up so much easier Austin mortgage report dot com Joseph Douglas thanks for joining us thanks for having me thank absolutely thank you Mike. We'll be back at it next week Wednesday at 7 o'clock for the Austin -- report to follow us on Twitter.