Speaker 1: 0:22

We'll be right back, ready to get the inside scoop. On equity funding, tune in to TDJ Equity Funding Insiders Podcast for an in-depth look at what it takes to access financial capital and maximize your investments.

Speaker 2: 0:43

Hear from experienced professionals, including bankers, underwriters, loan officers and industry experts as they share their unfiltered stories and valuable lessons on securing funds, giving power to the business on WebDAR series, and so we want to thank you all for showing up. So today we're going to talk about the mortgage broker industry, for, as I'm a loan broker and who we have a guest that we have on our show today is Rhonda Hutchison. She owns Envision Home Lending, she's a mortgage broker, she's a business owner, and she can actually help you with the understanding of how it's going to work. So that's what we're doing today, and we're going to start off with that, so you can know how the mortgage business works as well as how the loan business works. So let's start off. First of all, ms Rhonda, if you don't mind, my friend, my girl, if you would introduce yourself and let everybody know about what you do, a little background about you as well.

Speaker 3: 1:47

Okay, hi, thank you, number one. Just thank you for allowing me to come and just share with you on a day and thank you for letting me be on this platform to be able to share. So I'm very important. So I appreciate that. But again, my name is Rhonda Hutchison and I am the owner and the president and CEO of Envision Home Lending and I started oh my goodness, I've been in the mortgage industry oh gosh, about eight years now, but I've always been in finance. I retired from FedEx with 30 years of experience, went into the mortgage industry while I was still working at FedEx, and then what I decided to do when purchasing my third home. I became intrigued with the process because I realized how much people didn't know about the loan process and I became intrigued and say I wanna educate, especially my people, of the rules and guidelines so we can make good choices. So that's why I started in the industry about eight years ago.

Speaker 2: 2:47

Okay, about eight years. So from there it brings you to where you at now with Envision Home Loans. So let's go into it. First of all, we're going to explain the difference, because you are a mortgage broker correct? A mortgage broker, that is correct. And I am a loan broker. So what we're going to do is go in and explain what's the difference, what we do both do so you guys can understand the difference between. So if you would start in letting people know what is a mortgage broker and what all you do, yes, a mortgage broker is different from a mortgage lender or what we call a loan officer.

Speaker 3: 3:20

A mortgage broker is one that own their own brokerage and what they do. They have availability to lend different lenders. They're not stuck in a box like a lender. For instance, if you have a bank, that you can only offer their products, you can only go by their guidelines, that we shop around with different lenders to be able to give the bar the best interest rates, the best experience and the loan product can best suit them depending on the situation. So brokers say we just shop around. We just shop around. We have access to different lenders, not just one lender as a lender or a bank, but we have multiple lenders that we can go to to be able to fit whatever the borrower needs.

Speaker 2: 4:07

Or the client needs. Okay, and so let's. I want to explain on that shop around, because a lot of people have their own definition what they think that is. When you guys actually shop around, you're not running people credit through a whole lot of different. Oh no, how does that work?

Speaker 3: 4:21

so we can let me shop around and say, okay, there may be specific need for a buy. It may be a higher DTI debt to income ratio, and that's how much money you have coming in versus how much money you're going going out. Or there may be a specific reason where you may have um, um, not two years some of the basic criteria two years of job experience, or you may have some texts right. Also, you may have filed your taxes and there may be a lack of experience. Or you may have some tax write-offs, or you may have filed your taxes and there may be a lack of income. Or there may be just some specific reasons where you can't go through just what we call the general lending process and we need to find a lender that actually fit your needs.

Speaker 3: 4:59

So that's what we mean by shop around, and also it may be one lender may tell you no, when we can go and say, okay, they told you no, let's find someone else that may tell you yes because they may have just a little bit less overlays. And what we mean by overlays is those things on top of the general guidelines that they may add. For instance, instead of a 620 credit score for conventional, which is the minimum credit score for most conventional financing. They may add an overlay where it's 660 or 680. But we may find a lender that say, yes, we'll take a 620. Or the FHA may go below a 580, which is FHA. Standard is a 580. They're minimum credit scores and there are some lenders that will go below a 580.

Speaker 2: 5:41

So, the thing is.

Speaker 2: 5:42

What we have to see, then, is what you're saying is that, like, we walk into a bank and all they can give you is the products they have, and if you don't fit in that box of that product, then you are denied. And that's what people realize. Because you deny that one bank on a mortgage doesn't mean you can't get a mortgage. You just can't get a mortgage with them, right? So the benefit is coming to you. You have different products, so when you one, like you said, when one person say no, they can't do it, it doesn't mean the next person can't do it Right.

Speaker 3: 6:12

Yes, right, okay, that's right. I mean, the door is not closed. Exactly, the door is not closed.

Speaker 2: 6:18

And what we want them to know too. So let's go over a little bit on the mortgage broker, because I run into this a lot with what I do Now. The mortgage broker you help people with because I do owner-occupied, no, you do owner-occupied, owner-occupied yes.

Speaker 2: 6:31

Owner-occupied I do non-owner-occupied they say, well, what does that look like? If you're looking for a rent house for rental property, for your investment property, that's what we do. She, as a person that's dealing with rental, doing dealing with property where you are living in it, it's not the same. The residences are the same, the regulations are the same, the loan is the same, insurance is not the same. I'm sorry, none of that stuff is the same and that's why we want to have that that you're actually looking at. A mortgage broker can take care of you getting your home, your personal home, and you could do like, if I want a vacation home, you can do that too, right?

Speaker 3: 7:04

Yeah, we can do second homes, vacation homes. Yes, All right, so she can handle for your personal.

Speaker 2: 7:14

that's what she can do Now. She also can handle all different aspects of dealing with you being in a home for us if they do like, if they want to do HELOC, or you have somebody who will do a reverse mortgage.

Speaker 3: 7:19

let's talk a little bit about what all your services provide in your company, okay, yes, we provide all the regular loans, like your conventional Fannie Freddie, your VA loans, your USDAs and all of those what we call just what we call normal primary loans. But we also do those other loans like non-QMs. And what is non-QM, that's a non-qualifier and that's something that's beyond what we consider as just a normal loan. And that may be a bank statement loan where someone may have written off their and that's using good gear toward your self-employed, because what they do, they can make the money, but they can't show it, they may not have filed their taxes or they may have wrote off everything, and that's what that is. Or your ITNs I attend when you're, maybe when you're not, when you're for residence, you're from another country and you don't have a Social Security card or number, and we can do the ITNs.

Speaker 3: 8:16

Or asset depletions. Let's talk about that. Asset depletion is that, hey, I have the assets. I can't show it on my bank statement, I can't show it on my W-2 or my tax, but I have our own property. I have own property. Or even maybe that I have a huge, let's say, I want to say bank account, but 401k user there, not 401ks user there, larger than that but I have some kind of liquid asset that I can get my hands on. If something goes wrong, if something goes awry, life happens. I have the asset that I can get my hands on. If something goes wrong and something goes awry, life happens. I have the funds that I can pull from and be able to secure that loan and maybe consider less risk. So those are in reverse mortgage.

Speaker 3: 8:55

Let's talk about reverse mortgage. Reverse mortgage is a product and it's one of and that's why I get excited, because that's my niche is that's a product for those 62 years of age that own their own home and have equity in their home at least 50% but they need to take some of that equity out and live off of, or they may have some repairs for their home or or something what we call an age in place where they don't want to go to a nursing home but they want to stay in their home and they take that equity out and there's no monthly payment and it doesn't, it's not due until death, and then that's another story. We can go in that another time. But yes, I, when I say I offer a plethora, a plethora of things that loan products, and that's the great thing about it being a broker that you have a lot of lot of things in your arsenal that you can do, and that is true.

Speaker 2: 9:47

But we want you all to understand that her loan brokers, what she has in her arsenal, is for you that has owner-occupied. It's a house you're trying to buy, that you're going to live in, or it's a house you're living in and you want to look at getting equity out. So a broker like Ms Rhonda is where you want to go. She gives you options compared to if you just walk in one bank, they only going to give you their options, but with Ms Rhonda, you get to see your options and that's why it's important to go to a mortgage broker to at least look into them when you're looking at purchasing your own home right.

Speaker 3: 10:18

Okay.

Speaker 2: 10:19

Now let's do the difference here. So now let's talk about I'm a loan broker, she's a mortgage broker. We're considered loan brokers. So what we deal with, we deal with real estate to a certain point and our real estate is investment property only or commercial property, meaning that if you want to purchase a strip mall, a strip area, an apartment complex or anything that's commercialized, that's where we come in at and, like Ms Rhonda, it's not like you go into one bank and all they're going to give you is what they have. We have assets.

Speaker 2: 10:52

In our case, we have over 200 different lenders that we can see and, like you said, it's basically you all have to understand you have custom situations so we need to do custom things for you. That's where a brokerage is really, really good coming in, so I handle non-owner occupied. I also handle business owners and real estate investors. So if you want to start getting a real estate investment and you want to get some homes, you want to do new construction, fix and flip any of that. That's what my business entity does. Okay, so we have the loan broker that does that. We also provide the working capital. We also provide everything you need in your business to grow for us money. The thing is, we ran into, and that's why I want you to talk a little bit more. People do not understand how, did not know how both of those work together and but at least at the same time we are separated at the same time on what we do.

Speaker 2: 11:45

So what I would like for you to do if someone is looking at getting a home and things of that nature, let's talk about what all you guys offer to help them with that process.

Speaker 3: 11:54

Okay, Okay, okay. What we all help them is, first of all, we want to make sure you're prepared, and that's the key is just making sure you're prepared. And what do you say, making sure you're prepared? Make sure that you have your credit, of course, and then make sure that you have some form of down payment. And we're making sure that we do that, and we're looking at your whole picture just to make sure you're prepared. And that's the only thing I always say is making sure that you're prepared. And then we have a team, a marvelous team, that makes sure that you go through the process smoothly.

Speaker 3: 12:32

Now, let me just tell you it's not what you could, a non-hiccup. You know, there's always something going, but we're making sure that preparation is key, okay. And then what you do is that you go through the process. We get you prepared, you fill out your application. Once you fill out your application, then what we do is we make sure we have documents, required documents to support your application, and that's when you get what we call your pre-approval. And your pre-approval hey, we're ready to go.

Speaker 3: 13:01

I have a real estate agent. If you have one, they're going to need that piece of paper before they take you around shopping and then, once you do that, you find your home, you're under contract. You come back to me from the real estate agent or my team, and then what we do is we go through processing, then underwriting and then closing, and what we do is we hold your hands through that process. It's not where you say, here you go, we'll see you at the end at the closing table. No, we hold your hand through every step to make sure that you have your questions answered, that you know what to expect next.

Speaker 3: 13:38

And the communication is key. We make sure that we communicate because that's important, because that's one of the reasons I became a loan officer as well. I want to make sure I go back and tell you that, because when I was buying my third home, I did not have a loan officer. That was great with communication, and I really realized how key communication is. And so that's I have a team. I have a team that makes sure that we're on top of everything.

Speaker 2: 14:04

Right so we can take care. So, basically, if somebody is starting out, look or even looking at getting a house that I think we run into a business owners, we kind of focus more with them. But this is individual too, that if they're in business which I love, the fact that you're saying, hey, just because you don't have a traditional W-2 like everybody else, you're saying you still get a home. Come to you and see, and that's what I think people need to realize If you have your own business, you still can get a home based on your business is what it's doing and that's what Ms Rhonda can actually help you put that together so you can be ugly. You just start now.

Speaker 2: 14:43

We're not for sure because I have people that have homes and they have equity in it. And don't get me wrong, we'd love for you all to come to us and we'll pull money out and get you in a loan. But if you have equity in your home and that's where you need to see, ms Rhonda first See what your potential of money that you do have if you want to use that, compared to if you go out dealing with a loan that we have and usually our loans interest rate is going to be a lot higher, I'll be honest. And he locks, I'm just going to tell you. Okay, he locks up, yeah, yeah. So you know. That's where you know you, you have options, and we're trying to show people that with these series, giving you power, giving you knowledge of what's out there.

Speaker 2: 15:17

So now, now let me say this we're finding out that, when not finding, we know when you apply for a loan and they ask for a personal financial statement, ms Rhonda, I don't know if I talked to you about this, but what they are looking for is collateral, and the first thing they want to do is look at your house, not necessarily to put a claim on your house or anything like that, but if you have a house, that gives them where you have value and it helps with you getting a loan process.

Speaker 2: 15:45

So, compared to when I have people who don't have a home, you might not as get as much as you would have if they knew you owned your home. You see what I'm saying, and so I think we just are not aware of that. So now we come back to what you have and how people need to start off. So, if we're talking about people that are starting out, they're in business. What is your recommendation or tailor solution, I guess, is what you have that you would recommend for them to kind of start helping them get in the housing process together.

Speaker 3: 16:15

And that was the first thing that I said is preparation. Make sure that you talk with a mortgage broker to see exactly what you need. Talk, sit down and talk about what your plans are. What I need to do before I start this process. So the last thing you want to do is start something, going to something and then in the middle, then something is found out that in the middle that it could be in the beginning and we could have been worked out. And just, for instance, self-employed, self-employed let's talk about self-employed. Yeah, let's talk about self-employed.

Speaker 3: 16:45

It's that writing everything off on your taxes.

Speaker 3: 16:49

We know that we want to pay less taxes as possible, but writing everything off and you're preparing to purchase your home or any property even could be a commercial property when your taxes are viewed is making sure that you're not writing off everything. And if, for some reason, the year before you wrote off everything and now this year, let's look at things and say, okay, next year let's make sure that you write off at least as possible. These are the things that I know they're mandatory, that you need to write off, but let's not write off. You know every meal ticket that you, that you spend, or or vacation that you went or somewhere you've gone for a conference and you what you need. Talk to a mortgage professional, talk to a lending professional as yourself, and see what are the criterias, what are the bases, what do I need to do before I start the process, if I don't say anything else? That's key because preparation can make a difference, because it makes the process smoother and it also gives you less headaches when it comes to when you're going through the process.

Speaker 2: 18:01

so I would say that's that's key so basically, we're saying something what everybody take away from is to actually know, um, the difference between mortgage broker and a loan broker. So in your mind, uh and this is kind of a little bit off of what we had talked about earlier you tell me what you have an experience and, kind of a little bit off of what we had talked about earlier, you tell me what you have an experience in kind of dealing with it. What do you think people, how do people look at the mortgage business based on the loan business? What do you, how do they look at that? Do you have an understanding of what people look at with that?

Speaker 3: 18:38

When you say the mortgage business are you talking about? When it comes to residential and then loan, it comes to like uh, you know what you do as far as business loans.

Speaker 2: 18:43

Exactly that's what I mean.

Speaker 3: 18:44

Thank you, yes ma'am that exactly it, thank you okay, okay, I'm glad I did, but in the mortgage business, I guess what people look at is that, uh, the collateral. Not. And, if you may think about that, because I'm just thinking about what you do and what we do is that when you're doing the lending part as a lending broker, then the collateral is what you're looking for most.

Speaker 2: 19:08

But on my side I have to have that yep.

Speaker 3: 19:10

Yeah, my side, we're looking at what assets you have. As far as what's in the bank, your income is key. It's making sure and that's why I was saying preparation if you're 1099 or you're self-employed, not writing off everything because it's and even if you're a W-2 employee and you have a side business and you're writing off that side business and you're actually reporting that side business because you want to pay less on your taxes and because I've had someone that had an eyelash shop and never put an eyelash on in her life because somebody told her that's what she needed to do is to have a side business, but when she came to buy a home then she did not have the income. So, income, assets and liabilities making sure that you have less liabilities.

Speaker 3: 20:00

What do you say Liabilities credit card debt, loan debt, car debt, student loan, debt making sure that you have those things under control, and that's what I will say. That's pretty much different. I'm looking at all of those variables when you may be looking at most important, like you say, collateral. I know credit score is important for both of us, so we know that. But those are the keys is just making sure you have the income. You have a little bit of liabilities, debt, and then to making sure that you're, that you are prepared beforehand, before you move forward on it.

Speaker 2: 20:37

Right, which is good, and so, in that, what you're saying as well is we're going to give you some numbers. We like and I know you guys do if you have like 30%, 45% of utilization on your debt.

Speaker 1: 20:48

What is yours?

Speaker 2: 20:49

I mean because basically that's what we kind of look for. Some things don't need it, but when you do unsecured lending like we do, which is like you said, that one is no collateral but the interest rate is going to be a lot higher because they're based on the profile, on just the end. So that's where that utilization comes in on our side that you want to look at, but also with you guys. I think yours is debt to income is what you owe.

Speaker 3: 21:15

Yeah debt to income, which is still credit utilization, and if you really want to, just to break it down. But yeah, it's a debt to income ratio and typically for conventional financing and of course you know that's the loan with the have the less risk. We're looking at maybe between a 43 to a 48,. We will say back in, that means how much debt is, how much income is going in, how much debt is going out, based on your income. And then, of course, if you go to FHA, which is an affordable housing product, it does allow you for a little bit more debt, which could be between 55, 57% on the back end.

Speaker 3: 21:51

And when we say back end is how much income coming out and then how much debt is coming in versus what's going out 50 for 7 cents coming in versus what's going out 50 for 7 cents, 57% of your income, which includes your projected house payment at the end of the day. So that's very important is to making sure that you can keep your debt to income ratio low as possible, but going with FHA does allow that. Now we talk about non-QM. Non-qm it just depends on, depends on, but you're still looking at between the 40s and 50s on your debt to income. But non-QM is a different animal and it does allow for a little bit more variables when it comes to debt, to income.

Speaker 2: 22:32

Okay, Well, we have someone to ask a question, which is Ms Shakina, and thank you so much. Thank you, shakina. We, which is Ms Shakina, and thank you so much, ms Shakina, we appreciate you. So she's asking Ms Jackal, what are some acceptable forms of collateral that we take? And so what she's saying and asking, if I'm correct, you're asking about us as a loan broker. So loan brokers dealing with business, our collateral that we would accept it could be the revenue, only what you have coming in your business, because that can be collateral. You can also have your property. If it's property, if you own something, they'll take that as collateral and then also your future revenue you coming in Because, like what you said, the young lady that had the business, the thing is she didn't conduct business, didn't get money coming in, didn't have a cashflow. That's what we're saying. We look at that as actual collateral and, if I'm correct, on a non-QM, you would look at that as well for them to get in the house with you, am I correct?

Speaker 3: 23:28

Yes, liquid assets, making sure you can cash it in Right.

Speaker 2: 23:32

So those are the type of collaterals. When you come with business, you're looking at your revenue. That's why I tell everybody, before you start looking at a loan, let's look at what you have. Is it cash flowing? Is it lucrative? Are you making money? Because that needs to be seen for them to say, okay, we can give you money because you could pay it back. So that's the main thing of. And then, like I said, if you get into real estate, then it's actually a property.

Speaker 2: 23:55

But let's say, let me say say this, because I think sometimes people have a confusion If you buy a house now you correct me if I'm wrong, ms Rhonda Okay, if you have a house that we went through a mortgage broker with you to get, and I move out the house and I move a renter in, all right, we've just changed the dynamic of the household. People don't understand how that works, and so you can actually probably talk on as well that once you move a renter in, there's no own, there's no, it's no longer owner argument. No, nope, it's not owner. So, if it's not owner, I want to ask you this, and I hopefully I hadn't caught you off guard, because I've been wanting to know when someone actually has a home and I've moved out of the home and I'm moving somebody in. What should I do? Anything to the lender at all? Should I say something or leave it alone? Or what should we do? Is that something you can even answer?

Speaker 3: 24:50

Yeah, and you didn't catch me off guard, that's oftentimes, but just making sure that you just did. You just didn't purchase that because you're supposed to stay in that home at least 12 months when you buy it and before you can, yeah, you have to have it your own, your, you have to own that property to stay in that as your primary, uh, 12 months upon after you're closed on a house so just okay, so we've been there some time and then we like four or five years and move out.

Speaker 2: 25:17

It won't be such a oh no, it's not.

Speaker 3: 25:19

No, okay, no, and that's now. It's an investment property because it's. It's a lot of people and I want to say a lot of, uh younger people that do that. Uh, the smart, you know, those millenniums, they're smart. They go purchase a home, they'll stay in the home one year and then they go out and go get an apartment and they'll have it in uh, a rental income coming in and then they'll turn around and do it. You know, get another, do it, just keep doing it, keep doing it, and so that's how they're building generational wealth and how they're building wealth.

Speaker 2: 25:47

So, as long as you're staying in that property 12 months after you close, after you fund it, right it's your primary property, then you can definitely change it into a rental or investment property investment and that's just something like I said when I said off guard, because I should have told you about that.

Speaker 2: 26:03

But we talked, okay what I say you I'm good, you know what I'm saying, I know you can handle it, so this is my other thing then. Okay, so we can do that now. I had someone that brought up something that made really good with real estate investment. They were saying that they wanted to buy a fourplex and stay in one and then rent out the rest. That is something would you do or you couldn't do.

Speaker 3: 26:29

Yes, that's definitely something. Anything that's less than fourplex or less is considered primary property. It's residential?

Speaker 1: 26:37

It's not commercial.

Speaker 3: 26:38

But as long as you're staying on one side, long as you're staying in one of those units, it's considered. But if you're not staying in one of those units, it's an investment property.

Speaker 2: 26:49

Right.

Speaker 2: 26:50

And let's say so everybody can know the big difference is this Investment property with me require anywhere from 20 to 30% down. Investment property with me require anywhere from 20 to 30% down period. No program okay, because your experience as a real estate investor determines how much you got to put down. I don't know what the credit score, but it's more your experience than anything on the investment side. Now, on your side correct me if I'm wrong, ms Rhonda you can go down to 3% now Program. It's just more, it's less with you getting in it. So I guess it's probably an advantage to get with you, stay in a house or duplex or fourplex for a year or so and then move out, and that'd be a great way to start without you coming out with 30%. I mean because- 20,.

Speaker 3: 27:35

yeah, absolutely, and it's a great way to build wealth.

Speaker 2: 27:53

You know, just make sure your neighbors, whoever you stay in and somebody you don't mind staying next to, but, yes, go ahead and stay in one of those units and then after that you move out and then you have a four and loan brokerage can work together. Because we also, I tell like, the other day we had a young lady come in, her and her husband, they have like a two-year-old and they want to get a real estate investment. So she said, well, we figure we'll go ahead and buy a couple of houses and that'll get our cash flow up and then we'll look at buying our houses. But, rhonda, I said the same thing. I told her. I said why don't you just get a duplex, you know a fourplex, and y'all stay in one side and just rent it out? And she said she never thought of it. Well, they went through the process of actually getting that done. This was some time ago now I'm thinking about it and she wound up doing it and later on she came to me. She said you know, that's the best thing we could have done. I mean, it're going to stay there a couple of years and then move out, and we're going to actually have four instant tenants when I move out. So that is a wonderful idea and I'm glad to hear you, as a mortgage broker, you feel good about it.

Speaker 2: 28:47

Now we can't talk about the other lenders, but I know when you walk in a bank they are strict on what they can and cannot do. Am I correct? Absolutely, yes, absolutely. That's where you come in and you're a more versatile and that's what I wanted everybody to understand today how working with a mortgage broker like yourself, even if you're looking at real estate, go there first and see what they can show you of what can do, because you already you're aware of how to do that and to make that happen. So is there anything you would recommend suggest with them doing that type of process? What are some of the things you've heard, or some of the things you want to kind of warn them on doing that? Anything like that you want to give us?

Speaker 3: 29:29

And I know I feel like I just keep coming back to this thing. It's just preparation, that's what I keep saying, but to me that's just key. And do your research. You know, if you want to start off, go to your bank if you want to start off and see what they have to offer, because I promise you, once you leave there you'll be saying you know what, I'm not coming to this bank. But you know, start with your bank because you really need to see what's out there and then come to a mortgage broker like myself. Come to me and let's compare numbers, let's see what I can do for you. Because, like you stated earlier, Ms Jacqueline, is that a bank, you're in a box. You know whatever their credit score criterias are, whatever their loan products they offer and some most of them don't offer FHA. Some credit unions do not offer FHA product, they only do conventional. So just make sure that you're prepared, do your research, do what you need to do upfront and then make the best decision.

Speaker 3: 30:27

But just know that when you come to a mortgage broker, the door's open because there's a lot of opportunities and you're just not in one sandbox playing in one sandbox that you get out and you be able to have other options.

Speaker 2: 30:43

Other options and I think that is great, great advice On my end for you all. Knowing that you have the mortgage broker, you've learned about what we do as a loan broker. If you're getting in real estate or you're dealing with your business, make an appointment with a mortgage broker, loan broker, like you said, do your homework, see what's out there, you know and what will work for you. And, like I think, something I do want to say that you mentioned that we need to they can ask for a list of services that a bank provide or a mortgage broker provide. Right, absolutely.

Speaker 3: 31:16

Absolutely, yes, absolutely, and and and also and this is key too most times when you go to a bank or a credit union, they're going to say, and if they give you an approval, it's really not approval, it's a pre-qualification. They're running credit and they're just saying, okay, you're credit worthy, but they're not collecting your documents, your bank statements, they're not collecting your W-2s, your paycheck stubs to see if you're completely qualified. So make sure that if you go to a bank and they said you run your credit and give you an approval letter, just know that you're really not pre-approved, you're just pre-qualified, you're just credit, because it is a difference. It's a big difference because you can go through the process and then they find out that you don't have enough years, you don't have enough income, and then there you are, you've found the home of your dreams and then you're not able to move forward with that purchase. So, like I said, do your research, make sure that you're pre-approved and not pre-qualified, and most banks and the credit unions will give you a pre-qualification, not a pre-approval.

Speaker 2: 32:22

Okay, so we need. That's a great takeaway. Pre-approval and pre-qualification is two different things. Is that what you're saying?

Speaker 3: 32:31

Yes, ma'am, absolutely. When you're pre-qualified, they're just running your credit and say, okay, you got a qualifying credit score, but they're not checking any of your assets, any of your liability. Well, they ran credit, they looked at your liability, but they're not checking your income and they're not checking anything else.

Speaker 2: 32:46

They're not doing a debt to ratio. None of that stuff.

Speaker 3: 32:48

No, they're not. No, no, no.

Speaker 2: 32:50

Which can change the terms of a loan application.

Speaker 3: 32:54

Oh yeah, absolutely Absolutely, and it can be a quick denial. If something comes up and it's not, you know it's not caught before beforehand. And then you're going through the process. You found the home that you fell in love with and then, in the midst of you going through the process, then you find out you're not qualified.

Speaker 2: 33:12

You know. See, that's why I say, with a broker, we can actually take you looking ugly, right. I mean, you know, like you're saying you want them to be prepared, she's telling you that. But, guys, if you all come in and you're not, we all want you to be prepared. Believe me, we do. But if you come in and you're not, that's the thing. That's such a great advantage. As a broker, we know what things look like. You know what underwriting is looking for, I know what underwriting is looking for, and because both of us are aware of what the process is behind the scene process, behind the loan officer, we're able to help you to look like you need to, like you said, be prepared so your loan can go through and process a lot better and a lot quicker and get approved by having that. So, in your years of experience, how do you see? Having that knowledge has really helped you to do what you're doing now, knowing what's going on in the background.

Speaker 3: 34:07

Oh, yes, okay, I can talk about that. Let me just tell you this when I first started out, I was a down payment assistant queen and I'm going to tell you what that means. Yeah, I was a down payment assistant queen of like every real estate agent that had a client that had down payment. But you want to know what it made me a great loan officer? Because I had to be strategic in my thinking. I had to find out those things that work. You know we can't break the rules, but you can find a way around them sometimes and and but what I'm kind of within guidelines we're not talking about doing anything illegal, but just making sure that, uh, doing those hard loans and being strategic and being able to think outside the box, that's key.

Speaker 3: 34:53

And now that was the best experience for me is having those hard loans, because I was wondering are you ever going to get an easy loan? But but it made me. It did. It really made me a strong, strong loan officer and I am definitely blessed for it. And so, yeah, you have to, and so that's why I can say you know what I'm out there. I'm not gonna say I'm one of the best, I'm the best out there, right because you've been.

Speaker 2: 35:20

You've been down there and that's why I know you do good and you take on the hard stuff. Like you said, reverse mortgage is one of your main thing and I love that about you. You actually take on the hard ones and that's why I was saying I wanted you on here so people can see that we understand what you're going through. You don't have to be pretty pretty, but we can help you get it right. Like I said, you definitely can, cause a lot of us don't know what to do. We don't know the process of how it works. Now, we all. Now this is what we really do.

Speaker 2: 35:47

We listen to everybody else and tell us how things, how I did it, that's what they say, this is what I did, but you know, and it just puts people in a really bad, a real bad situation and that's why it's important to know, ronda, that you do have that experience in the background. You can guide them even before you start the process. They can sit out and talk to you and you can say, okay, this is the roadmap of what you need to do and that's what you want, and you give them options and this is what everybody got to realize. You have options, even when you deny it yeah, yeah, you know what I'm saying yes, yes, it doesn't know.

Speaker 2: 36:27

And you know how they say it's not over until the fat lady's seen but yeah, so so exactly so that's what we're actually trying to enlighten you and hopefully we have. So is there anything else before we close out? I have definitely enjoyed you, miss ronda.

Speaker 3: 36:44

I always do, I really thank you, you too, I know it's going to be a good show.

Speaker 2: 36:49

I know it's going to be a good time so is there anything you would like to say to our audience together that they can do a takeaway with?

Speaker 3: 36:57

but no, and what I guess one of the things that I was going to say is just making sure is that home ownership if I want to say anything else, if you want to build legacy, home ownership is the key. Home ownership, real estate, property what myself and Miss Jackie does it's the key. It is the key to generational wealth. Don't let nobody tell you anything else. That's one of the most important. That is the most important thing you can do if you want to leave generational wealth. And renting and leasing, that is not prepare yourself to be able to have your own home, have your own investment properties. That's the key to generational wealth. If I don't tell you anything else, it's not going out here doing anything else and I can give you a whole list of those things, but real estate is key. If you want to leave a legacy, make sure you partake in real estate.

Speaker 2: 37:59

Exactly and thank you so much. And on my side of it is that, like you said, real estate, so she can help you with owner-occupied or, if you want to, on my side, do none owner-occupied Real estate will make you the money and she is so correct. So we want to thank Ms Rhonda for coming out today. Thank you for having me.

Speaker 2: 38:20

And we do, and I want to thank you all and again, we want to emphasize that we do our webinar, which is giving power to the business owner, so that you can be educated on what's out there besides just working on your business. All the aspects in life we touch, but yet we don't know a lot about it. So we try to bring things in directly for our business owners that can help them understand when money is needed and how to need it and where you can get it from and how does it work. So that's why we have this and we've been doing really good with it. If you guys want to see any of this, you're welcome to go to our YouTube channel. We'll actually have that all posted as well, as Mrs Rhonda is on our referral page on our website, wwwtdjequityllc, up here.

Speaker 2: 39:08

Yep, right there, I was gonna do that. Look at that Right there. If you go to our website, you will see Ms Rhonda there where you all can get our information as well as she has the information that's on the screen our information as well as she has the information that's on the screen. But we definitely want you to reach out to her, reach out to myself and we can guide you wherever you need to go, but definitely reach out to us because we are brokers and we know a lot of people in the field and we can deal with custom situations. Okay, so again, we want to thank you all so much. You all have a great day and you all take care, all right, thank you, all right, thank you, thank you, bye-bye, bye-bye.

Speaker 1: 39:46

Ready to get the inside scoop on equity funding? Tune in to TDJ Equity Funding Insiders Podcast for an in-depth look at what it takes to access financial capital and maximize your investments. It takes to access financial capital and maximize your investments. Hear from experienced professionals, including bankers, underwriters, loan officers and industry experts, as they share their unfiltered stories and valuable lessons on securing funds.