[00:00:00] Interest rates have been a topic for a number of years. You know, veterans are concerned, right? You know, obviously rising rates make homes a lot more unaffordable. Go get the pre-approval. If you don't qualify a pre-approval, go see what you need to go get a pre. Who's going to tell you that your lender consider that new home, if it is in your budget, in your area, and also what you want to do.
And as Kenneth Urge, as well talk to talk to your local DA lender.
Hello, welcome to Prepare to Compete where we talk all things VA benefits, real estate, entrepreneurship and more. Ken of Davis, how you feeling today? My brother. Oh, really, really excited about where real estate is going, so, uh, just [00:01:00] really, uh, really just here to see what's going on and, uh, get the information.
Absolutely. And if you just finished watching. Episode one of season six. Thank you. And yeah, we did film it all in the same day. Look, we still here. We're still here giving you all the value because we want to, you know, be able to kind of optimize things here and sort of, kind of getting behind the veil of really providing you guys with the content.
At the stages that, that you want, right? So, you know, this real estate topics are very important. So we decided to not put it up against the VA benefits, uh, content that you just may have listened to there to make it its own separate video here, uh, in the podcast format, uh, in addition to which you on.[00:02:00]
Really care about. So now if you have a certain topic that you wanna hear us talk about or have a certain question or concern, absolutely reach down in the comments. Let us know so that we could. Make that a topic on our next show here. Yeah, yeah. Excited about that because, uh, you know, frankly, you know, we, we, we base a lot of this information on the needs of you, right?
So, uh, please don't be afraid to share or ask because, uh, we actually spend time, uh, making sure that we reach out to you guys. So, uh, please provide your emails as well. We'll go ahead and, uh, directly contact you and send it out to you. Absolutely, definitely reach out there. And so now as we get into our real estate topics, right, and you know, I've been seeing, I obviously, uh, work as a, a realtor as well, uh, licensed and you know, there's been a uptick of.[00:03:00]
Veterans who are interested in maximizing and utilizing their VA home loans. So what we wanted to do today is really give you the details, right? What's going on. And at a high level, what should you be concerned about? You know, interest rates have been a topic for a number of years. You know, you can go to many channels and they've been talking about that.
You know, veterans are concerned, right? You know, obviously rising rates make. Homes a lot more unaffordable, right? And you're having trouble. So obviously securing a lower rate can be important, but I do urge you to not try to wait until it bottoms out and you're trying to get below 5%, right? And you know, everyone has their own theories about is the market gonna crash?
Is it gonna go back to below 5%? There's millionaires [00:04:00] and billionaires that cannot give you that answer, so don't expect that answer from me, right? Don't expect that from me, but I can educate you on what you need to know and the nuances of how to prepare for your family and what your current needs are, because real estate is hyperlocal and is really based on your individual situation.
Yeah, true indeed. True indeed. Because, uh, what you may, uh, be looking for in Florida may not be your needs in Las Vegas, Nevada, right? Um, and, uh, particularly when we talk about the needs, right? Uh, I wanna make sure that you are understanding the needs and financials, right? And also the needs in your home of real estate.
They're two different needs, right? Uh, they don't necessarily always align. However, what does Align is, is the purpose. So make sure that we're navigating this, uh, with the purpose in mind. [00:05:00] Absolutely, because the main thing that I always urge everyone that's looking to purchase a home and sell a home, and you're kind of doing it based upon what's going on in the market.
That's not going to be the best landscape to do, right? It's gonna really, again, go on your situation and your needs. So if you are looking to, uh, lock in a rate right now and purchase a home, congratulations. Right? Congratulations that you can. Be in a financial position here with so many uncertainties in the economy to be able to lock down.
One of the most important aspects of your lifestyle is securing a roof over your head. So if you have that opportunity and financially you're able to do it. I would urge you to definitely really strongly consider that. Do not look at, well, the rates may go down next quarter. I'm hearing they're doing another, uh, fed rate, [00:06:00] cut this, that, and that.
But understand that, hey, they may do that cut. They may not, but also that home that you're looking at may increase in its cost. So although they did a cut. You are still paying the same or more. And understand you could always refinance if the rate has a significant decrease, and really kind of understanding those different nuances is very important.
We have full on educational videos where we. Talk about the Streamline refinance program, uh, so you can educate yourself about that and also what you want to do. And as Kenneth Urge as well, talk to your local VA lender. They know everything about you, right? Because they ask you for every single document.
Regarding your employment status, regarding your revolving debt with your auto loan, any student loans, all of these different facets and factors, [00:07:00] they know what you need to do. So someone with that great detail is going to be able to provide you with the best guidance, not just listening to vague blanket advice.
Yeah, I mean, listen. Sitting on a couch talking about purchasing a home versus taking action. Go get the pre-approval. If you don't qualify a pre-approval, go see what you need to go get a pre-approval. Who's going to tell you that? Your lender. If you don't have a lender in place, please reach out. We can provide you a great vetted lender, a list of lenders who is going to be able to support.
You and your family. Again, the veteran focus, right? But not only for veterans, we can be able to service all. Okay? So make sure that, again, if you are again in the market or considering you [00:08:00] need to be able to apply first, the application is the biggest component where you're gonna be able to really figure out.
If you even qualify because we have these big dreams, but we don't actually apply for the pre-approval necessary to be able to be taken serious. Right. Uh, if, if you, if again, a, if you tell a realtor that you may know, um, I wanna buy a house, what do you think they're gonna say? Absolutely, time is now, let's do it.
And also, have you received your pre-approval just yet? Most likely not, and they cannot do anything without that pre-approval. Right? Because ultimately that's what's going to get you into the home. Unless you have the cash in which, you know, even if you have the cash for certain properties, you know, over a hundred thousand and and more.
I wouldn't. Advise you to spin that unless [00:09:00] you're just, you know, rich and you just have it kind of laying around that way, that's usually not the best way to go there. But again, veterans are concerned about, and even active duty members, uh, the rates. And, you know, when we talk about that, we're like, well, yeah, you, you don't know what's gonna happen all the way.
Well, tell us something, right? Well, what I will tell you is that there are multiple strategies that you can look at, right? So, uh, if you are in a price range in your area that you can afford to get a new built property, whether it's gonna be a condo, town, home, or traditional family, you may wanna look into that option.
Now why you may wanna look into that option is because that builder has been holding onto that land 10, 20, 30 years, right? So, and they've also been buying all the equipment for those homes that they're building at all. Look alike and has the same [00:10:00] pain and flooring. So they've already locked in how much it costs relatively other than the labor costs to build that home.
So they're traditionally gonna have a lot of flexibility with the interest rates. And now what I have been noticing as of late. In, uh, my local area here is that builders are offering lower rates even at almost 3.99 rates for, um, FHA loans, for example. Or if you're doing conventional, maybe four and a quarter, four point a half, uh, below that 5% threshold that everyone wants, right?
Uh, for a new. Property generally they'll offer that on their spec home, right? Which means unfortunately you can't go and pick out everything that you want, right? That's a house that may have fell outta escrow or it may be a home That was a model, uh, in one of the phases. And then looking to sell that model.
You can get a [00:11:00] great deal on those a lot of times. So. Consider that new home if it is in your budget, in your area. Yeah, no, true indeed. Uh, and I think you, you really mentioned a great, great point when having the flexibility. Of a, uh, interest, right on a new bill. Uh, it really makes a, a location desirable.
And when we talk about desirable locations, uh, one big, huge point that, um, I, I want people to consider and active duties, uh, mainly active duty members, mainly to consider if you are in the market or potentially going to be in the market in the next year or two. Um, and also PCSing, just taking consideration of the billet that is selected.
Right. Uh, because location matters, right? Uh, desirable locations, uh, actually aren't as desirable anymore because of costs. So if you are in a market or in expanding your [00:12:00] family, uh, you are looking to purchase within the next, uh, again, year to six months or what have you. You want to take consideration of locality, uh, because you may be in a place that is just extremely unaffordable on your military paycheck, uh, to include your spouse or nons spouse or what have you, but.
Choosing your billet could actually set you up for success, uh, in what location that you actually get. Absolutely. So again, there's a lot to consider with this, right? And you always want to talk to your local professionals, your local real estate professionals, whether it be your lender or your real estate agent, to get the nuances of the details.
Because even with those builder programs. You know, something that I noticed is that some may, but not all of them have those special rates targeted for users of the VA loan. Uh, some will, some won't, but the rates are gonna be [00:13:00] different. So you may see a advertisement of a 3 9 9 rate, but in a small print it says you have to use the FHA program, which is a federal housing program for.
Non, uh, military service members and veterans. Uh, it's really similar to the VA loan in some aspects, but it is not because it requires a down payment of 3.5%. And another part of that where unless a client really needs to utilize that program, I don't recommend it. Because you have to have mortgage insurance on that property for the life of the loan.
Well, a veteran or active duty service member using a VA loan didn't have to pay mortgage insurance at all anyway. Right. So when you're seeing a lot of these advertised. Things, and if it doesn't apply directly to your loan type, now you have to really have that professional compare and contrast whether it still serves you because what [00:14:00] interest rate can they give you with your VA loan opposed to using that special program that would.
Cause you not to use your VA loan. Yeah, true indeed. Because, uh, when you see that asterisk, I would dive into fine and print because, uh, essentially, and that's not always negative, right? That's not always a negative thing with certain builders. Uh, because certain builders that will actually offer on top of low or below market interest rate.
Uh, is additional, uh, additional incentives, right? Uh, closing costs. Uh, again, I, I've seen, you know, builders even offer, uh, appliances. So it's so many different things that's out there for you. Just make sure that you are actually, uh, walking through the process, uh, with the professional. 'cause you don't want to take the time out of your day to really go through these, go through these nuanced things by yourself if you're not well versed and educated, but also have someone who's experienced.
So I definitely urge that. Yeah, absolutely. [00:15:00] Yeah. Everybody's situation is gonna be different, right? Because you could have an active duty service member or veteran who is. Buying a additional home to live in, right? Because obviously these need to be owner occupied 'cause you are PCSing and your VA loan is already tied up.
Well this other program could be great for you because you are looking to use your VA loan anyway. So that is why it is very important to know all the different nuances and that. And as Kenneth mentioned, you have options to get your closing costs paid, right? And you could have that option also with the resale property as well.
So that's why it's always important to work with qualified well. Educated professionals in your area because even if you see an advertised rate of interest rates are in the 6.5%, well if you're getting closing costs paid for [00:16:00] and you're able to use some of those funds to buy down that interest rate now, it may not be as bad for you for purchasing that property.
But however, what I still urge everyone to do is educate yourself and inform everyone that you're working with your total real estate goals. And the reason why that's important is that let's say your seller, whether it's a new builder or whether it's a resale home, is giving you thousands of dollars, $20,000, and you're utilizing some of those funds to buy down the interest rate.
But you know. Hey, I'm just stationed at this location for the next two years, and I actually plan on selling when I leave. Well, why did you just buy down that rate when you are not going to actually live in that home enough to actually take advantage of that, right? So all of these different details are very [00:17:00] important.
Transparency is key. Transparency is key. So again, if you don't let the professionals know, they're just gonna assume that a lot of times that, hey, this is gonna be your forever home. You're looking to raise your family in that particular property, and they're gonna advise you as such. But if that's not your goal.
There may be some different options for you. You may not need the 30 year version of the lower interest rate. Maybe you could take a five year ORM program, right? Maybe they could have a 10 year, uh, adjustable rate mortgage, uh, that you could utilize as well, and have a lot of different programs that you could look at.
Obviously, adjustable rates. Gets a little bit, you know, in, in the weeds there and, and people are, are scared because of what happened in 2008. But what I can tell you is that. We have all educated ourselves since then and the VA loan [00:18:00] is here to assist and guide you, and there's been so many new regulations and safeguards to protect against that, uh, truth and Lending Act.
Things to really protect you against getting taken advantage of with those programs and just needing to actually qualify, uh, now for the future rate if it is gonna balloon in the future. So. Don't be too nervous about it, that you're so apprehensive that you don't take action. Just get educated. Mr. Jones, that was excellent, excellent information, and again, I definitely really, really hope everyone has been tuned in and taking notes, right?
Because, uh, you don't want to get stuck in a home or mortgage that you don't want, but please, we urge you to go ahead and take the information and act. So with that, thank you so much. I really appreciate that information and I know our audience loves it. Thank you guys so much. Uh, [00:19:00] prepare to compete.
We're out. Peace.
