Mortgage Options During the Housing Boom

Are you thinking of investing in or buying real estate during the housing boom? What lending options and products are available for investors and other homebuyers?

In this episode, Toby Mathis of Anderson Advisors talks to Benson Pang from NestMade Mortgage in Monrovia, Calif.

Benson started his career as a civil engineer. Then, he pivoted to mortgage lending and obtained his broker’s license. Benson decided to start his own company, which has helped more than 1,000 individuals and families with their home purchase journey.

Highlights/Topics:

• Housing Boom: People want to own a piece of the real estate market.
• Why? Rent and home prices are on the rise, and interest rates remain low.
• Money Options: Trillions of dollars are being pumped into the economy.
• Who’s looking to buy? Healthcare workers, families, and homebuyers wanting another home or to upgrade with new money.
• Home Prices: Depending on the location, buyers are offering thousands to millions above the asking price.
• Appraisals: Buyers need to work with their lenders to close escrow quickly and require financing contingencies to compete with cash offers.
• Delay Financing, Refinance, or Lien.Ways to get a home and then get your money back.
• Deed of Trust. After escrow closes, get a rate-and-term refinance loan from the lender.
• Worst Case Scenario: Understand risk of removing any of the financing contingencies.
• Cash Flow Crunch: Your tax scenario may not be your cash scenario.
• Inflation: With more money being printed, comes inflation and raising interest rates.
• Reality Check: What are you paying in rent? What can you afford to not be house poor? Make an educated choice and lifestyle change before buying a home.
• Forgotten Upgrade Costs: Once you own a house, you want to do things to it.
• Should you pay off your home mortgage loan? It depends.

Resources:

Monrovia Mortgage Broker - NestMade Mortgage

https://nestmade.com/

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

http://www.freddiemac.com/

Form W-2: Wage and Tax Statement

https://www.irs.gov/forms-pubs/about-form-w-2

Debt Service Coverage Ratio (DSCR)

https://www.multifamily.loans/apartment-finance-blog/what-is-dscr

Principal, Interest, Taxes, and Insurance (PITI) 

https://www.investopedia.com/terms/p/piti.asp

Toby Mathis

http://tobymathis.com/

Anderson Advisors

https://andersonadvisors.com/

Tax and Asset Protection Event

http://andersonap.com/