Hey everyone, I am K.B. The broker. I'm here with Glen Marino today from Centennial Mortgage. Go ahead Glen, tell them a little bit about yourself. How long have you been in the business and what is it you do?
Click this link to see the video of this interview https://www.youtube.com/watch?v=dzua2XIn60A&t=174s
Visit our website to view homes for sale in Chicago & Surrounding Suburbs here http//:www.shbainfo.com
Well, it's great to be here today. I'm Glen Marino, branch manager for centennial in Naperville, Illinois. I've been in the business for about 24 years now. I'm a CPA by background. Therefore I'm able to look at both those people that have basic needs for housing financing as well as more complicated self employed individuals. So it's kind of been my pleasure over the past 24 years to show people how they can get into housing and, be a part of the American dream.
Absolutely. This is the guy that I've been telling you guys about. He probably doesn't know about. I've been telling all of my viewers about this mortgage program that he offers. He basically offers a program where you only have to come up with one percent down. So if you were a first time home buyer or if you're just a home buyer, this is the guy that you need to go through. This is the guy that can get you preapproved for that long. I'm going to let him explain to you guys a little bit more about how that long works and what, what do you, what do you need, what your credit score needs to be, how much money you need to go. I didn't need that. You need to have to put down and he's going to go into that right now.
Well, it's quite an exciting program. Um, the, the new parameters requirements came out in February of 2018. So this is relatively new for people. But what makes it so exciting is the fact that if you look at somebody who might be in a rental situation, they get it. They understand the landlord wants me to put down the first month's rent and a security deposit. So over here we have an example of somebody giving $1,500 for a first month's rent, $1,500 security deposit, or say $3,000. They're prepared to, if the landlord were the currently rent, says, I'm no longer going to rent to you again. I'm going to have you move on. They go, great. I've got two, $3,000. I can move on to another rental unit. However, what they don't know and what they need to know is that if they were to look in this example, say a $200,000 home to purchase, the minimum down payment is three and a half percent, three and a half percent of $200,000, $7,000.
So initially I go, I can't buy. I've got $3,000, I don't know, 7,000. But what's great about the, what's called the IDA program, the Illinois Housing Development Authority program, is that they only have to come up with one percent of their own funds and the rest of it can come from what's called down payment assistance up to $10,000. So somebody had to come up with $7,000 in down payment. They only need to come up with one percent of 200,000 or $2,000 in the other $5,000 that they would need for down payment would come from say that $10,000 down payment assistance from Ida, so two and five to seven, they have got all the money for down payment. What's also great about it is the second bucket of cash that they need is good. It's called closing costs and that's about $5,000. They're still as $5,000 remaining in their IDA program, in their down payment assistance and that can all be used for the down payment. So in essence they're coming up with down payment of 2000. They're coming up with nothing for closing costs and they're able to buy a $200,000 home for as little as $2,000 or they can stay renters and pay $3,000, which would they prefer? I think they prefer home ownership and to spend a thousand dollars less and again be a part of the American dream.
The reason why I wanted to basically interview Glenn today is because a lot of people that would rather much rent them basically purchasing the home and the whole purpose of this video today is showing you guys how easy it is for you to get into a home. So I'm a, I'm a home buyer and I'm a little bit nervous about getting into a home. What is, what is my credit score needs to be Glen for me to for me to get this program.
Great question. Most renters, most landlords are going to require at least a 6:40 credit score. Will this program requires a six slash 40 or better credit score and it requires their income, their household income to be under 101,005 slash 20. So I mean that's a big number and I would say most renters that you and I come across as kind, they they're under 101,000 5:20. So the they need to be aware of the fact that home ownership got easier. Homeownership is there, it's in all counties. You can be a first time home buyer. You can be an existing homeowner and you're trying to now upgrade because you got married, you got children. It's too small. Where this program is also designed for them also,
so I'm a person that's looking to go into a home and are you saying that I that I can only make up to $100,000? Is that what you're saying? So if I make over $100,000, I don't qualify for this program.
Correct. If you make over 101,000 5:20, you would not qualify for this program. But again, I'd say a majority of the people that you and I meet with and talk to their making under $100, 1005 20 as a household and then this program would come into play in, could be very helpful to them.
Okay. Now here's another scenario. I just had a foreclosure maybe maybe about five years ago or I just got a bankruptcy maybe two or three years ago. How would that work for me? Am I going to still be able to qualify for this program blend?
You wouldn't be. You still wouldn't have to comply with whether it's an Fha loan, a conventional loan with the bankruptcy and the foreclosure rules, and those are, if you had a bankruptcy, a, you're going to have to wait two years to come back into what's called the Fha market. If you're going to have you had a bankruptcy, a, it's going to take you longer if you go convention, so logistic Fha, two years. If you've had a short sale, if you've had a foreclosure, the waiting period is three years, so that's what I'm gonna call the prime market. Then there's what's called alternative a market. The market. The market will allow people who have had a bankruptcy, a foreclosure or short sale to actually come back in and become home borrowers within one day after the bankruptcy, but just as the just said by the word all day, you're not going to get the best rate and you're going to have to put at least 10 to 20 percent down.
So if someone is going through the bankruptcy and they have been able to hang onto some of the cash and they can put money down, we can do them one day after the BK, one day after the foreclosure, but be prepared typically to put 20 percent down and hold onto a higher interest rate. Then after you wait the two year or three year waiting period, come back into the prime market refinance, get rid of that high interest rate and come back in and get a much lower interest rate. So you're basically saying that if, uh, if I have had a foreclosure or bankruptcy, I need to wait about a year or two before I can get along. I'd say wait two to three years, two years for the, for the bankruptcy, three years for the foreclosure, and then you're going to be back in the prime market.
Being able to, to purchase his if you never had the bankruptcy or foreclosure. Okay. So I need, I need the 6:40 credit score to qualify for this and all, uh, for the, for the idle owned 6:40. But let's say you didn't need down payment assistance, you could go as low as five 85 80 on a on a regular standard Fha loan, there'll be no idea down payment assistance, but you can get a good fha loan at five 80 or as low as five slash 80. You can also get a conventional loan as low as 620 on the credit score. It only reaches up to the six slash 40 level once you have to. You're in need of a down payment. Assistance of say $10,000 from the state of Illinois. Okay, so say for instance, my credit score is a five 85 90. I really don't either down the dental assistant program, I have a few dollars saved up.
About how much money would it take for me to bring to the closing table for me to get into my home? Two hundred thousand dollar house. That same $200,000 house we were talking about on the board about this. Just a roundabout figure. Well, let's break it down. Every real estate transaction is three buckets of cash in. The first bucket is down payment, so let's use three and a half percent times 200,000. That's $70,000, so you don't need down payment assistance. You need to come up with $7,000, either your own money or a gift from a blood relative mom, dad, brother, sister, grandma, grandpa. You know someone that a blood relative to you. The second bucket is called closing costs and that's going to be about $4,500. Now that typically the realtor can negotiate such that the seller pays that, which then that would not impose on our buyer to come up with another $4,500.
The lender can pay that in the sense that they would raise up the interest rate, give them a premium interest rate, and then give them a credit for their closing costs. So I see too, when they go standard Fha, no down payment assistance, the closing cost bucket of say 4,500 to $5,000. That can be paid by the realtor doing a great job of negotiating with the seller, pay it, or have the lender pay it with a higher interest rate. And so to answer your question, I see more people that say under $200,000 home they're coming up with seven grand of their own money and gifts and then the rest of it, there are some other entity, lender seller's paying, closing costs and other costs. So then to come up with about $7,000 on a typical $200,000 purchase, no down payment assistance.
Okay. About how long do I need to be on my job to qualify for some for this kind of program. The other program with the, with the bumper sit down, basically me putting down $2,000. How long do I need to be on my job or something like that.
You need to be need to be employed. You know, you might be on a job for less. I'm going to say you need to be employed for. You have a two year employment history, but you don't have to be on this particular job. You know, if you just got a job last month for 30 days, that's fine as long as it's in the same line of work or profession, as long as you've been employed for two years, we don't want to see gaps with more than six months in that two year history and if you're, say a new graduate and that's fine. You don't need to have a to your, your, your to your employment history includes school. So you could have been a graduate that just got an employment letter, get their first paycheck and you can actually be buying a house 30 days after you graduate because you got an employment letter, you got a job, you've got to, you got your, you got your first paycheck, pay stub from your employer. That's evidence that you showed up for work and you can be buying a house within 30 days after graduation.
Okay? A lot of times I'll see people want to get loans, they have to have a certain amount of money in the bank. Does this, is this the same way?
Um, if you need money in the bank, when you start to get into what I call investment properties, and there's, there's primary residences there, second homes, and there's investment property for a primary residence going, fha going back to our example as low as five 80, only three and a half percent down. They don't really have to come up with any cash reserves. Um, they could literally spend their last penny that's in the bank getting into the home and they will be fine as they move over from a primary residency to an investment property, that rental property, that's when all of a sudden you're going to see that they might have to have to four months worth of cash reserves in order to get their loan approved.
And that's very good because of how to deal a little while ago and someone that they needed like maybe five or $6,000 just to show in the bank account. So what, you not having to have any money in the account, that's a really, really good thing. The next question that I have for you, Glen, is, um, what kind of paperwork am I going to need you so safe and I'll give you guys a call and I say, Hey, I'm ready to get preapproved. I'm ready to just go ahead and try to get along. What kind of paperwork then on an sme to submit? What do they want? How can I submit it? You know, how can you guys get the paperwork for me? What am I going to need?
Well, what's great about technology, Kenton said, we've made the much easier, much faster. Many of our realtors, including yourself, have what's called the fcm express app. It's an APP on the phone and we ended up, we, you and I share it with clients. So if a client said, hey, I want to get preapproved, I would share the APP with them on their phone. They can open it up, they can do the application literally on their phone. Then with the dues, there's a scan button. It opens up the camera on their phone and all I need for paperwork to get them preapproved is I need them to shoot a picture of their w two, I need them to. You shoot a picture of their pay stubs and ended up picture of their tax returns. So literally right from their phone. They're doing that and yet uploads with their application.
It comes to us and we get them preapproved them within 24 hours. So you need my check stubs. You need W2's tax returns. Is it anything else that don't live out now? You got that. You've got the complete picture right there for preapproval. We don't want the rest of the documentation that, you know, Bank bank statements and drivers licenses and all that stuff. They can come after they've gone out shopping with you and found their dream home. But to get preapproved, do the mobile app, do the online app, then shoot pictures of of your income documents. Send them in. We'll get you preapproved within 24 hours. Okay. Now with the va loans, well if it's a senior or somebody like that, just a little bit older, is it anything different from from those individuals or is it still the same way? Well, what's great about the va loans is that it's a zero percent down program.
So go going back to our example of that $200,000 home. Well three and a half percent is inapplicable. There is no three and a half percent down payment. That first bucket of cash, it's zero percent down, so they literally have to come up with zero down. So if you have via you can get along for zero down. And then the second bucket is closing costs and if the realtor negotiates that the seller pays the closing costs or the lender pays the closing costs because we raised up the interest rate, I'm their second bucket of cash at zero. So there's. There's some veterans out there that are bought homes with no money. That's really, that's really exciting for them and there's also less closing costs on va loans by about a thousand dollars a month, a thousand dollars at the closing because certain closing costs cannot be put on to the veteran.
The seller has to pick up those costs. Is that just for veterans? Also senior citizens also. It's. It's strictly for the veterans, strictly for the veterans. Again, there's no special programs really out there for the seniors other than what we call reverse mortgages, so if somebody is 62 or older, they can, if they have equity in their home, come to us and we can annuitize that equity and help pay them a monthly amount just like the receiving social security of let's say a thousand dollars a month in social security and they can get a monthly check deposited into their bank account through a reverse mortgage. So that's. That's kind of the specialty program that will be out there for the seniors, so that sounds really good.
The last time I was with Glen, we was talking about basically if you're already in your home and you'd have a really, really high interest rate
or high or have more because you want to get that mortgage down a little bit, get that interest rate down a little bit. He was telling me about a little bit about that. I want him to talk about that right now. I'm talking about about. So say things. I'm in a home. Um, I've had my mortgage for maybe 15 years. I have a really, really high interest rate and the interest rate is like maybe 12 percent. I'm paying them. I have a $200,000 mortgage and my mortgage is, you know, astronomical was maybe 14 or 1500 is anything that you could do to help me with that?
Well, with those people we try to find out there's, there's. Why haven't they refinanced? I mean obviously rates were down in the, in the high threes at one point in time. Now they're there in the fives, low fives. So interest rates have gone up. Um, and yet we still see you see people that have higher interest rates and so we really have to ask them, why are you holding onto this higher interest rate? A IC three factors that could be one, they don't have good credit at this point in time, so they can't refinance. Secondly, they don't want to refinance because they need to really talk to you because they're candidates for. They're saying, I'm selling, I'm getting out of Illinois. Um, I've had this house for 15 years. I'm ready to go to warmer climates or wherever they want to go, or just downsize, stay in Illinois, just downsides.
So they go, I don't want to incur the $2,000 a year, it's going to cost to refinance. And the third one is, you know, they're just creatures of habit, you know, they've got an auto pay, they don't want to go through the paperwork. But just like I said, it's become so much easier with today's technology, with applications on their, on their phones, and was, you know, being able to scan and send documents to us with their camera in their phone that we encourage people with high interest rates, get onto the high interest rates. If you're above, say six percent today, it's worth a phone call to us to find out, you know, what, how much of a reduction can I have in my monthly payment in order to save monthly cash flow?
Absolutely. That's basically a question that I wanted to ask for you guys that already have homes and you know, you're paying this high interest rate and you're thinking about maybe refinancing. This is the guy that you definitely need to talk to. One more question before we wrap up Glen. So we're in Chicago. I'm in Chicago. He's a Naperville amount of Naperville right now. His office, if we started on the deal today, if we started, let's just say for instance, today is October the first and we saw it on the deal today. How long do you think it would take me to close and get the keys to my home and move in if I gave you all the paperwork that you needed, you know, how long does this process work? How long does it take? Does it take them in?
It's a great question and I think you said it best. If I'm motivated, I want to become a homeowner. I'm excited about that whole process. Um, it typically will take 30 days for us to go from the time that you signed the application, sending your documentation because there's going to be an appraisal. There's going to be, the seller is going to be ordering title. There's, there's a few steps in the manufacturing process to get you to the closing, but it's typically 30 days. Um, have we done it in less 30 days? Yes. If somebody says, Glenn, I found the dream house, you know, that I've been looking for, but the sellers are insisting it's October first. We got to get in there by October 21st. Can you get this done? In three weeks we'll, we'll move heaven and earth that we have to in order to get you in there by the 21st, but typically if we've got a very cooperative borrower, buyer on her hands were done in 30 days and you know, we're, we're sending them to the closing and everybody's celebrating with when's the next barbecue.
Absolutely. That's one of the questions I want the x because me being a realtor, I've seen deals where they've taken 45 days to months, sometimes three months in some cases sometimes they'll be able to fall apart. And the thing about Glenn as he's getting deals done really, really quickly and you know, his office, they call me at least twice a week and they're very, very good on the phone. They answer the phone. A lot of these guys, they don't even ask on the phone. They don't, they're, they're in the office like maybe two days, three days a week and you can't even get them on the phone. And I'm one of those people. If I'm doing something like buying a home, which is a really, really big deal, which is the really, really big purchase and if I have a question and I want to ask a question, if I want to get a real person on the phone, not a voice message, not a prompt, I basically want to talk to somebody to ask the person, hey, well what's going on with my deal where we add one, what will be going to the closing table?
I just want to be able to get somebody on the phone and I think that first centennial is a really, really good company to go with. Um, before we wrap up, Glenn, is there anything else extra that you want to add? Just anything about the business. I don't know, maybe it was some things that I didn't go over. Is there anything else that you would like to add?
No, but I like to add to what you just said because I thought there was very important comment that you made. Um, when someone's buying a home, I mean it is the biggest asset that will probably have in their lifetime buying a home and there's a lot of anxiety. There's a lot of, you know, I don't want to make a mistake, I don't want to look foolish. I don't want to look stupid. So one of the things that we do here is as they're long, you know, they're going to sign a loan application. It comes into us, they will get video updates and the loan officer here, my team, you know, they get assigned to two people, me and one of my team members. So they have more than one person to talk to Tim and we send out what's called video updates. We're automated their, when their loan application goes from the loan officer's desk to processing, they're going to get a video up. You're, you, you're going to see your files moving. When it goes from processing to the underwriting department, they're going to get a video update. When it comes out of underwriting with conditions, you're going to say your loan has been approved with conditions. When you get clear to close, they're gonna get another, so they're going to get video updates and phone calls once a week on status. That's gonna. Make them feel a little more comfortable, a little less anxious. And I think the communication is extremely important whenever somebody buying a home.
Absolutely. Absolutely. How can people get in contact with you, Glenn?
they can contact with me here at first. Antonio at six. Three. Oh, nine, eight, three, three, six, zero, zero m. my private line is six. Three. Oh, nine, eight, three, three, six, zero four. And my email is m, g dot Marino at go f, c m.com.
Absolutely. And my information is if you want to go visit out website and a few homes for sale in Chicago with surrounding suburbs. Again, our website is www dot. That's a should be a info.com. My cell number is seven, seven three eight, zero eight four, three, two, one. We also have a facebook group for first time home buyers. I'm going to put that in the description below. Um, I want you to like this video. I want you to share this video because we're trying to go viral and I want you to subscribe to our page and that's basically gonna be our video for today. This is Glenn Marina for first attending a mortgage broker. I'm going to be able to say, broker, I'm looking forward to working with you, looking forward to showing you your homes and moving you into your dream homes. And, um, give me a call. I'm ready to work and he's ready to get you preapproved. All right. Um, that's pretty much it. That's our video for day and I will see you on the next video.
Good afternoon my I'm K.B The Broker from Serious Home Buyers Program. I'm a licensed realtor here in Chicago and I have Alicia with me today and she, she did, she did the NACA program and she actually got her home through the NACA, She's in a home right now and I just wanted to let her talk about her experience with dealing with NACA because she's somebody that actually went through the program. Go ahead and just explain to them how you found out about what your experience was.
Here is the video of this interview click here https://www.youtube.com/watch?v=zeXxmuM90CA&t=981s
Visit our website at http://www.shbainfo.com
I found out about Naca through my friend. So that is mostly a road of map program. They don't have like a lot of help, they have a website but it's not like a, you know, there's not like a really advanced website, so it's mostly word of mouth and they'll tell you that when you go through the program. So like I said I found out about it through my friend. I went to one of the information sessions. So the information session was about three to four hours. They was telling you all about the program and from that point I made an appointment and I went to the office and when you go into the office they tell you to bring all types of documents like your bank statement and credit card statements, lease information, they'll give you a list of all the items they want you to bring.
So then from there they start doing your assessment, like a financial assessment to determine your spending habits and to see like, you know, what can you afford? So from there I did that um, question for about six months. So when I first went in there was telling me they wanted me to, um, I guess saving an additional $300 per month because I think my rent at the time it was like $800 and they was telling me like a hospital mortgage payment will be like a thousand dollars, $1,100. So I had to say that additional amount, you know, to prove to them exactly for a mortgage payment or mortgage payment in that range. And once I did that for about five, six months and also they, um, based off what they saying on my, I guess like credit card statement, my bank statement, they was telling me like, oh we see you spend a lot in this area, you should probably stop spending as much and start saving more money.
So, and also they was telling me that you shouldn't, you shouldn't take out money. So basically you need to charge everything or do everything to your debit card because that's trackable, but you do like I'm taking out money or just putting money in your bank account is kind of not traceable and that's laws against that. So they didn't want you to do that. They told him not to do that. So I remember having an issue because I took some money out in London so my sister and I took some money on something else and there was like a young, like an issue. So, um, but besides that, like once I know what to my many like assessments and I finally got to the purchasing phase. So that was probably, like I said, five or six months later. Once I hit that stage, um, I got a broker so I was able to get my own broker or broker or they, they, um, they have health brokers that they, um, I guess that worked with the program so they don't work for Naca, but they worked with um, previous NACA, um, clients.
So I use one there in health brokers who law or estate, not a broker, I'm sorry, a releaser and to um, start the person that they. So once I found a house that I live and everything I, you know, put a beating and everything. So that was like the easy part. But the hard part came when, once I did the inspection inspection was fine. Other inspection, you know, it's for the buyer. I mean, yeah. So the buyer, so to let you know what you're getting into. And when I did the inspection, you know, the guy, he was, um, he pointed out a few things that like, okay, well this might need to be fixed, but I'm just like, no, this is what I see. When I sent that information to Naca, like once I got through the final phase, like about the finalize the contract, that's the thing that held me up the most and that's the one my, um, like my contract or like the deal was almost about to fall through because with Nafta, like they have all these different offices around like in Houston and Atlanta, different places and I had to send this information to I guess Texas or he, you know, Houston, Texas, but they was just putting in code on the um, you know, inspection and not really, I don't believe they really looked at the description, but basically they told me that I couldn't purchase the house unless somebody fix that stuff.
So I couldn't fix it. The bank wasn't going to fix it. And then that's when like everything almost fell through, like are. I felt like my hands were tied besides, I feel like the people in Chicago really wasn't trying to fight for the deal. That's when I got mad and upset. So besides that, I mean, you know, leading up to that, it wasn't bad. It's just when I got to the final phases and the deal almost fell through over some, like it was something that wasn't even major. It was a, um, an electrical fireplace that, you know, the wires needed to be replaced or something like that or because I previous owner cut the wire so it was like little small stuff like that, but they were willing to let deal fall through over some stuff like that and that's what made me so upset with MCA.
So when you were dealing with you deal with them and you were trying to call them and let them know what was going on with the deal, how hard was it to get somebody on the phone? Was it, where were they interacting with you or were they talking to you?
Yeah, it was very hard. So like the people in Chicago, they were interact to um, to an extent. But like the people that I needed to talk to to get the approval, I believe that they were in Texas somewhere. I believe so. But they're also not here in Chicago. So those people. Yeah, they never asked the phone. I wrote letters, I sent a voicemail, I eyesight isn't everything. It was so hard to get the and they never answered the phone and like um, the stuff they eventually get fixed and inspector he came back out, but it was just like a little petty stuff that I felt that a deal was going to go through, you know, fall through the cracks because they never, they weren't even willing to work with me. I felt like, and I feel like the people in Chicago, I mean, I don't know, like maybe their hands was tired also, but I go, didn't seem like they were trying to, you know, like they were really trying to make the deal go through.
Like it was just like, oh, well they said this and that's how we can do. I, I, like I said, I wrote letters. I wish I request, like can we do like an exception? Like I would definitely get this fixed, you know, like I also like some or some properties, some people they're able to, um, like, like I said, they can get stuff fixed after they moved in, moved in, but they haven't helped. They have to have a contract with a contract and saying like, okay, we're going to do this, um, this place I wasn't even trying to call contractors, lot contractors didn't even want to work with them because, you know, I guess that that reputation that they probably, it takes them long to get paid, you know, they have to go through all this red tape and it's not worth the hassle to them. So I don't think map is a bad program. It's just a belief. I just think that they have not enough people and they try to take on too many cases they can't handle remember that
to be telling me something contract is really didn't want to work with them and when they will hear that name and I remember you also telling me something about your real sincere that he will never work with them again. It's talking about the.
Yeah, like, because like I, like I said the deal, the deal was no until the very end and it was like the um, you know, by the seller's realtor, they, they wouldn't give them information. My attorney, I wouldn't get my attorney intimate, it was just like everyone was just stuck and it was like we're just stuck here and the deal's going to fall through for what some stupid stuff that, you know, because nobody wants to address these few things, a few small issue and nobody seemed to like, I don't know, this person who was in that other state if they're already ahead of Naca or what, I don't know, but nobody in Chicago I felt like was trying to um, you know, raised their hand, but the military then he said that that was his first time rapping with Naca and he said he would, he would never work with them again because it's like you're doing all this work just to, you know, like, and could just fall apart.
I mean any deal can fall apart. But this was something like that was minor. Like it wasn't a major issue, like old apartment intellectual and the whole house, you know, don't work in something that was something very minor that on let this whole deal. And like, you know, there were other people was looking at this house. So, you know, I put my bed in person, they gave it to me. So in the process from when I started to the very end, it took about like maybe three months because not to kept extending like the closing date and that's what they were getting upset about it because they was like, you know, we took this off the market, this could have been on the market or we could have sold this to someone else. So that was one of the reasons. So, and I'm like, I said, the contractor, they said that um, you know, they don't get paid timely and it's just a lot of red tape to deal with them.
So I don't know how they work, how they are now. But that was like when, how long, when did I move my house? Four years ago, almost five years ago. So, but like I said before, I don't think Naca is a bad program, but if you're, if I, if I had a chance to do it over again, I probably wouldn't. Um, you know, he learned some stuff from learn some stuff from that guy. I probably wouldn't go through them so because it was just so, so much of a headache to deal with them and that's unfortunate because it is a good program, but like, yeah, it's just they have too many case load and they can't handle it and like also if you don't stay on them because they do have so many case loads, you'll fall by the wayside. Like your, you know, your case will fall by the wayside so if you're waiting on them to like make next step, you'll be waiting.
So you need to like stay assertive and you don't stay on top of them to make sure like you know, you're sending in paperwork and stuff like that and calling them, making sure they received it so I can exempt my friend. She did not. She was going through the program she lives in and she went to a seminar I guess you know, they were supposed to send her an appointment out but they never sent it out. I guess they have so many people. It's like months in advance. Your apartment is like what's in advanced, but they never even sent her home. Now she called them and they was like, oh, well you wouldn't even know assist them. So it's just little small stuff like that that I don't think they're staffed enough to handle, you know, this big arm as many people they try to take gun. So maybe they get funding for the amount of cases they take. I'm not sure. But because these are not for profit too, so you're going to get what you pay for.
But I wouldn't say only like five something that I did get from Naca. I, um, I have, I have um, the credit, but when Naca my credit, my interest rate is like one point three percent versus when I, because I didn't get to the point with them, I was just like forget this, I don't want to deal with them anymore. I tried to get a loan on my own and that interest rate was four percent. So that is one positive thing because I guess they have a relationship with banks so you can get a better interest rate because it's a, like it's a not for profit. And so maybe you get stuff that you paid for with a, you know, a regular, a regular loan. I mean I have a regular long but going on your own, you probably don't have to pay what is not for profit. They don't charge you.
Oh, because I know that you have a nice savings account and I know that your credit score was a pretty decent. That was going to ask you, why didn't you just go to a regular company? Just get a regular one. And why did you even decide to go through and it was because they had a little inches, right?
No, but I didn't even know my interest rate until the very end. So that wasn't the reason I got my friend. She told me about the program and you know, I was just like, oh, okay, let me see what they talking about. That was my initial, my initial interest in them and it was like a first time home buyers. So you know, they're going to teach you the steps that you need to take. Versus I'm a first time home buyers. I don't really know what to do despite like I can't look online, but it's still like, you know, what do you really do? So I would say they did, they did take you. I'm kind of like step by step with it, but it's just like a random process and if you don't stay on them you will fall through the cracks.
So from the beginning, from when you first went to the seminar all the way until you got your keys to your house. About how many months do you think that it's took?
I would say up close to probably close to a year. Full year, maybe like 10 months. But that's because, you know, like I said, they assess your finances and stuff, like your spending habits and your debt to equity ratio and stuff like that. So they accept that and then like they see like where you work and how much you might make and just um, help me try to get into something that you can afford versus something that you probably, you know, you probably bought this 500, $500,000 house. You can't afford that on your, on your salary, so you probably shouldn't, you know, like they, they'd be stressed, like you should look for a house in disarray and they do, you know what I'm talking to you and asked you based off, you know, what you're making and stuff like that. What, what do you think will be comfortable for you that you could still be able to live and pay other bill because you know, once you get in the house you have the mortgage and all the utility, you know, you'd have to.
Everything is on you. So they sit down, they explained that to you, like, you know, you need to make sure you're comfortable, make sure you look for a house in this range or, or when you were looking for how, you know, you need to factor in like the principal interest taxes and what's the other one? Oh, the insurance. They'd like, no, it whatever. Ranging shoes. You need to make sure that you factor in all those items to make sure you can afford. That is their biggest thing is like they want people to get into stuff that they can afford because, you know, in some neighborhoods people getting a house, they can't afford the house, go abandoned neighborhood go down so that there are um, you know, they start to promote healthy neighborhoods and neighborhoods and people afford to live.
So were you irritated like monitoring your spending habits?
Yeah, I, yeah, but I mean, I, I, I get it now because other people, other people that I know who that have bought houses, Aidan said the same thing and they made me go through like a first time home buyers program. I'm very irritated because I'm like, you know, this is my money, like how you gonna tell them what to do with my money. That was very irritating, very irritating. But you know, you have to humble yourself and if you want this, uh, you know, at the end of the day you want this house. Yeah. You have to just be easy. Humbling yourself,
was it certain things you couldn't do, like go shopping or go get your nails done, go on trips. It wasn't things like that to do with telling you not to do or?
No, no, it wasn't. No, it was nothing that they taught me, like I couldn't do. Like for instance, they were saying like, oh, we see you, um, you spend a lot of money on fast food or something like that. That might be some you need to look, look into instead of, you know, they make recommendation, it can force you to do it, but if they tell you, you know, as we look in that your finances, we see you spending a lot of money in this area. So if you want, if they want you to save an additional two or $300 for $100 a month, you're gonna have to cut something. Right? But as something to supplement that money. So basically what they, they, that's how they do it. They'll recommend stuff to you. Like, okay, maybe you shouldn't do this. No, it's saving them money to do that.
Oh, if someone came to you in the actual about a first time home buyer program, would you Recommend NACA?
I would definitely tell them I'm like all the negative, I tell them the good and the negative aspect of it. So for me knowing that I know now, but I didn't have to again, probably not, but I mean, like I said the word, the one thing, the best thing out of the program was like I have, I have a really good interest rate on my mortgage. All the headaches and all that stuff that I'm really not over. And I felt like it was so much of it.
Yeah. Like, you know, like I said, it's a good program. Even if you do the program, you know, and if you don't even go through the whole program, I think that the stuff that they tell you at the beginning, like for our finances and I assess your finances, that's a good learning tool. So I guess you take the good with the bad, but I would definitely if someone is trying to get into home like asap or something like that. No, I wouldn't tell them to do next. Have you have some time if you're not really sure, you know, you still like I don't know what I want. Yeah, I was, yeah, do Naca if you have time to do it, you know, like if you're not pressed for time or he not like I want to buy a home within three months. If that's your thing, don't do Naca Drain. I'm going to close in three months to get your keys from start to finish everyone and everyone is different. But that was, that was my personal opinion.
I know people who were in the program for like maybe two years? Two and a half years.
Yeah. So I guess it just depends. Like they, when they feel like you got a certain, you know, like, okay, they been doing all this and we feel like they're not saving enough money. And um, you know, now we didn't send them to the next stage because even when they told me, um, that I, I was going to the president's Day, I was kinda shocked but not shocked because I'm like, okay, yeah, I'm just doing this. Like in my mind, like yeah, I'm eventually that by how. But then like when you go to the presence of the state, it gets real. Like, oh, I'm really about to buy a house. So that's like, yeah,
I'm happy you was able to get your house. I remember coming out there seeing the house and The whole fireplace situation.
Almost letting the deal fall apart because of that fireplace. And I'm a member. You get nothing getting the fixed. Then finally, go ahead. I remember there was a fireplace and it was something, it was some other things. What else was it?
It was a crack in outside, but the Hoa, they fixed that. Like it was better along the driveway. But you know, I guess like, you know what, the one in time stuff like that concrete cracks, it wasn't like a crack that was crumbling. It was like a little crack did you can see. So they got the Hoa fixed that and yeah, I think that was it.
I just remember you just telling me basically done a lot of the copies of the construction companies and the other realtors they was, when they heard that name or one, he must have dealt with them. They really didn't want to deal with them anymore.
I actually found out about the company throw you. I remember you telling me about them and you just telling me how the day was about ready to fall apart. I remember that time when you called me frantic you was and you said that you needed help. And I was like okay, well let's try and see if we can get it done. And I'm, you know, I'm happy that she was able to make it into the house. But um, yeah I heard a lot of bad things about them. So is there anything else you wanna to say before we wrap up?
No. Like, yeah, like I say, it's the good with the bad so you know, you just got to weigh your options. So.
Okay, well before, um, before I end this video, this is Alicia. I want to thank you for doing this video. It is 11:10 AM here in Chicago on a Thursday night. Very, very hard worker. And I'm going to do this video and um, I just want to let you guys know if you're planning on buying a home, you do have other solutions that you live in Chicago and surrounding suburbs. I'm a licensed realtor. You don't have to go through the whole process. Did you have to go through it and can get you a career? Long companies begin to get you to start looking at homes right away. The whole process about maybe a month, two months Max, as long as their credit is where it needs to be. Probably about a 5:30 5:40. We can get you preapproved. Make sure you got a little couple of dollars saved, maybe about three or $4,000 saved and we can definitely get you one.
So at home. So if you want to wait a year or maybe two years to get her home, definitely go with Mac. A better view. You were to start the process and get them to your home within the next month or two. Give me a call. My cell number is seven, seven, three eight, zero eight, four, three, two, one. My website is www dot s, h.b.a.info.com. You can follow us in our facebook group. It's a first time home buyers. You could meet a real tooth like myself, loan officers, inspectors, like all the people that she was talking about. You can read those kind of people in my role. I'm going to put all those links in the description below. So before we wrap up this video, I want to like this video. I want you to subscribe to my page and I want you to share the video and see a facebook page or other social media pages that to go viral. Thanks, Alicia, for coming on our channel today. Me and my services definitely give me a call. The end of this video right here.
Hello my name is K.B. the Broker and today we're going to talk about credit. What does your credit score need to be for you to get a loan on your first home? Most of the time I run into people and their credit scores are about 550 or 560 and I really wanted to just talk about how much your credit score needs to be in order for you get a loan because that's the number one thing that holds buyers back when it's time to purchase your home. That's the reason why a lot of people would rather rent or try to do rent to own, the main thing I hear most of the time when I talk to people about purchasing it's almost always a problem with their credit score.
So you make good money on your job, you're making about $1200 to $1,500 every two weeks. Why are you renting? That's always my main question. At the end of this blog I'm going to tell you a story about renting and a disaster that I ran into. The average credit score needed to get a home loan is 580, in some cases your credit score can be as low as 520 and you may be able to qualify for a loan and I have the guys that can make it happen. Two of my partners own loan companies and they are both very good at what they do. They have a really good loan program where you only have to come up with one percent of what the purchase price is, what does that mean? The home you're looking to purchase is $150,000, you have to come up with $1,500 at the closing.
Glen Marino, that's one of the guys that I work with, if you will have a $200,000 loan, your closing cost would to around $2,000. That's a whole lot less than what you would pay for first months rent and security at $3,000 to $4,000 that you paid for that apartment that you live in isn't it? Well my credit score is low and I don't think I can qualify you say? Don't worry about that. The reason why I say that is because not only do I have 2 loan companies that I work with, I also have a person who is a professional credit repair specialist that has been in business for over 20 years on my team. He's guaranteeing you within three to four months you're credit score would be at least 100 to a 150 points higher than it was when you started with him. So if your credit score is a 450 my person could have you at a 650 in a short amount of time. His fee is $600 and he doesn't do payment plans when you contact me just express to me that you need his services and I will put you in direct contact with him.
So credit is not that good. Don't worry about it. I have that covered. We have a credit repair company on standby ready to work for you as well, we have someone that, this is all he does, he doesn't do credit. And then he worked at Walmart on the weekends. All he do is credit repair. He also does business credit. What does that mean? Well, business credit means. Say for instance, if you decide down the line that you want to go into a business and you want a loan, he can get you a loan for that business for like 100,000 to $150,000 and he can show you how to get business credit also. That's going to be another fee that he charges.
So let's talk about the horror story. I like to tell stories because I'm a storyteller and this is can be very educational for those who renters reading this. So I lived in a townhouse on 46th and King Drive and If you live here in Chicago, you know where that is. It was a townhouse that set right on the corner. I don't want to give an address, but it's a set of town houses right on the corner of 46th that are like four or five levels high. The home was a five bedroom four bathroom house. I stayed there for eight years after the sixth year that we were there, the landlord became a slum Lord and I'm pretty sure that plenty of you renters can relate because this has probably happened to you as well.
But after six years of living there the landlord became a slum Lord and I was paying about $2750 a month. I remember moving in and paying 2 months rent and 1 month security for a grand total of $8,250. I almost gave that person $10,000 when I first moved in and I remember telling my self well it's a great home with plenty of space so it's well worth it, I was sadly mistaken. The plan was to stay there until I was ready to purchase my main home, and me and my family would simply leave the townhome and move into our main home in the suburbs.
So here's how it all started, the heat in the house during the winter time seemed like it would always start breaking down during the winter months. It's five floors in the house, on the first floor there was an office and a little bathroom along with an attached garage. And on the second floor, that's where the living room and the dining room & the kitchen was located. On the 3rd and 4th floor is where the bedrooms and two more bathrooms were located. So basically the heat wouldn't be working on the first and the second floor and we would have to stay in our bedrooms to stay warm, the landlord would always call the cheapest heating guys that he could find and they would never get the job done correctly and we would go for weeks without heat.
Dealing with this was starting to become very, very stressful. I was trying not to be a nitpicker and trying to keep the peace but when you have children and on top of that you're paying $2750 a month your patience can wear thin very quickly. He would finally get that fixed, but it was still be other little things that he wouldn't fix like the foundation in the house was cracking and every time it would rain really bad, water would be leaking inside the guest bedroom and our bedroom, it was just a lot of problems with his house.
So the last straw was on Christmas night and the kids had already opened their gifts and my wife had made dinner and everyone was fast asleep. It was late at night and I was sitting in the living room talking on the phone with my sister and I smelled something burning. So I go into the kitchen and I'm thinking maybe my wife left the stove on or something but I quickly realized that was not the case. After looking around in the kitchen I noticed smoke coming from the back of the refrigerator and I heard a weird crackling noise. The smell was the smell of electrical wires burning and ready to ignite, so I quickly unplugged the fridge and ran up the stairs to awake my wife to let her know the problem that was in the kitchen.
My kids were upstairs asleep. It's probably about 12:00 at night, Everybody in the house is sleep and all I could think of is what if I was sleep with the rest of my family and not on the phone talking to my sister. I think it's safe to say that our home would have caught fire on Christmas Night with my children bedrooms directly above the kitchen. After I called the slumlord and told him about the refrigerator almost catching fire he shrugged it off and refused to buy another one, being cheap he felt he could just get the one that almost caught fire repaired. This guy is actually a preacher and hey, I don't want to talk about pastors but this guy was one and he really was a slumlord.
Here's the thing about slum lords, they don't want to fix anything, but guess what? Come first of the month they're there to pick up that rent money. I'm not going to fix anything, but I want my money, and if you don't happen we're going to have problems. That's a slum lord and that's how they operate. I was really upset that night because I normally go to sleep around 10:30 or 11:30 at night and it was like 12:00. I just so happened to be on the phone with my sister, the only thing that kept coming to my mind was what if I was in the bed? Sleep, what if I was asleep and the house caught on fire and I'm here, my wife & kids are here and this house is on fire.
This was 2017. My house definitely would've caught fire that night and I'm in a burning house with my kids trying to figure out how we're gonna get out this five level house and we would have probably been jumping from 3rd and 4th floor windows trying to survive.
I basically called the slumlord and told him that I was going to be moving and that I wasn't paying the rent for the next two months, I would keep those two months that I originally paid when I first moved in and I would use that money to move into my new home. And that's what I did, I'm not going to pay the rent, I'm not paying the rent. I'm going to take this money that I'm going to pay you and I'm going to move into another home. But the moral of the story is this, when I first moved into my new house and got settled in I was sitting on the couch one evening and added up all the payments I ha made over those 8 years. It went something like this, I lived there for 8 years, I paid $2750na month, $2750 X 12 = $33,000....$33,000 X 8 = $264,000. I wasted $264,000 on paying rent and I didn't have anything to show for it .
That's the reason why you should not be renting. You should really be looking to getting a mortgage. Everything was fine for six years, but then the last two years he turned into a slum lord and I had to move. I could have had a home that was paid for with the money I wasted, I could be living mortgage free, but I was one of those people probably just like you reading this blog. You're probably saying I'm just going to stay here for a few years. In those few years you get comfortable, then before you know it you've been living there for 4 or 5 years and you've wasted $150,000. So I say that to say this, STOP RENTING!!!Stop throwing your money away. Stop flushing money down the toilet.
Take a moment and add up the money you've wasted on renting on your current place of residence.....That money could have been going towards your mortgage and your home could be almost paid off by now. Don't make the mistake that I made stop renting and purchase a home, give me a call at 773 808 4321. Don't worry about your credit we have that covered, don't worry about getting a loan we have that covered as well.
Visit our website at www.shbainfo.com
Call me at 773 808 4321
Ask for K.B. the Broker
Good morning, I am K.B the Broker and I want to talk to you today about our first time home buying class, where it is, how long it takes, what it covers, how often we do it and how you can sign up to be a part of it and learn more about first time home. I'm going to help you whether you've if bought homes before or if this is your first time and also how you can sign up for our home buyer's class. Someone told me that I need to smile more so I'm going to be smiling a little bit more. I'm a real estate broker in Chicago. I worked in Chicago and surrounding suburbs. So if you live anywhere in Illinois and you're interested in purchasing a home, I can definitely help you.
I work with Worth Clark Realty and I look forward to being your real estate broker that helps you get into your first home. I have a really, really good team of people. I have two guys that own loan companies. I have a person that does credit repair. I have inspectors, I have appraisers. I really have a whole team already set in place to help you in your home buying process. The great thing about working with me is you'll have everything in one. I have a one stop shop team already put together for you and your home buying needs. So again, we're going to be talking about the first time home buying classes. The classes normally last for about an hour and a half. Max Versus NACA that will have you sitting in the class for like maybe four hours!!!
It's a workshop, seminar, home buying class, whichever suits you!! It's basically a class that you come to for free and you sit down, have a bite to eat if you want, and I'll get up and I'll talk about home ownership and the steps to getting into your home. The things that you need to do, the paperwork that you're going to have to bring, the credit score that you're going to need, how to get preapproved, things like that. The steps, the people that you're going to have to deal with. That's basically what I'm going to talk about. It's gonna be a very, very easy and a short process, it will be long winded. We're not going to have you held hostage for four and five hours like NACA, we will just hold you for about an hour, hour and a half Max, and we'll let you go so you don't have to worry about spending a whole half of a day somewhere trying to find out how to buy a home. So that's that.
Where is the class K.B. you say?? Well, I'm happy that you asked. It's at Leona's at 9156 S. Stony Island. That's on the south side of Chicago in a decent area, the place has Free Parking. Again, this class is free!! You don't have to pay a dime to get in. You don't have to pay a dime to park. All you have to do is get in your car, drive to 9156 S. Stony Island at Leona's Italian restaurant. What time does it start? We normally get started around 7:00pm to like maybe 8:30 or at the latest 9:00pm. You'll be out of there probably around 8:00, 8:30 Max, but you have all the information that you need to get the process started.
You'll have my contact information. Once you come to the seminar, you'll have everything that you need. You will actually be able to set up a meeting with me one on one to consult so we can get preapproved. We'll figure out where you want to live in, We'll get all your paperwork together and from there we'll go ahead and get you preapproval!! We can start looking at houses right away. If you're not ready to start looking at houses, meaning that if your credit is not up to par, will actually put you in a credit program, if that's what you choose to do, we will put you in a credit program so they can start working on your credit with our Guy James, he's been doing credit for like 30 years. I will put you in a situation with him where you can start working on your credit and in probably about three months after you saw working with him, you will be able to qualify for your home.
Our program is set up for you to visit the first time home buyers class, we give valuable information, we exchanged information, we set up a one on one consultations to see where you're at and see if you're ready to buy right now and if you are, you get preapproved. We can start looking at houses like the following day, so that's how fast it is. That's how fast the process is. We normally have classes on every 2nd Thursdays of the month. RSVP at this link iwanttoownkb.getmoreinformation.org/
You need to go to that link and you need to RSVP because we like to have a idea of how many visitors we are going to have and there has been times when people couldn't be seated because they didn't RSVP so be sure to Just Do It.
Sometimes I have other people with me. I might have Glen Marino with me from First Centennial Mortgage. I might have Glen Crowner with me from Loan Depot. I might have my real estate attorney with me that day speaking about the process that he does. I might have a couple of inspectors with me, inspectors that you will need to do your home inspection when you get your house because it is very important to get an inspection before you purchase your home. You really don't have to. But sometimes it's a really good idea to just get it because something might really be wrong with the house like termites and you being cheap and not wanting to spend that $300 or $400 for that inspection. It could really, really save you tens and thousands of dollars. So the inspectors are really, really important. So I, I'm, most of the time I have someone there with me on the panel speaking, talking about how they help in the home buying process and talking about their field and what they actually bring to the table and what they actually do. All of these people are needed when you're buying you home, the Realtor, which is me!! the loan officer, the inspector, the appraiser, the real estate attorney, all of those people play apart.
So it's really, really important for me to have those other people there so they can tell you what they do, the, the fees that they charge, how much, how much it costs, how they work, how to get in contact with them. You can exchange information with those guys and just get everything set up and get the ball rolling. So every second Thursday at Leona's restaurant at 9156 S. Stony island. Don't just show up. Click the link iwanttoownkb.getmoreinformation.org/ That is everything that you need to know about how to sign up for our First Time Home Buyer Classes.
Visit our website at http://shbainfo.com
Follow or First Time Home Buyers Facebook Group at https://www.facebook.com/groups/shbasales/?source_id=1404403013020381
If you are ready to start your buying or selling process
give me a call at 773-808-4321 - I´m happy to answer all your questions.