Episode 4 - Preparing to shop with your Pre-Approval

In this episode Jeff and Gina discuss using your pre-approval letter.   We review the information contained in a pre-approval letter, how to shop with your pre-approval and the importance of the information 

Jeff Cunningham is a Realtor (license # 301547) with United Realty Group (Broker license C34827) serving the Triad NC area.
Jeff can be reached at
Email -  jeff.cunninghamrealtor@gmail.com,
website, jeffcunningham.mysalecore.com,
Facebook,- https://www.facebook.com/jeffcunninghambroker/

Gina Milloway is the Mortgage Loan originator NMLS #1676070 & CEO of Triad Mortgage LLC, NMLS # 2385260,   
Gina can be reached at,
Email:  gmilloway@traidmortgagellc.com
Web: https://www.ginamillowayloans.com/
Facebook - https://www.facebook.com/mortgageswithgina/
Office -336-290-1891

NMLS Consumer Access:  https://nmlsconsumeraccess.org/
Privacy Policy:  https://www.ginamillowayloans.com/privacy-policy
Triad Mortgage is an equal housing lender 

Transcript

0:00

Hello, and welcome to let's. Get moving with Jeff and Gina. I am Gina. Millway your local mortgage advisor. And Hey, I'm Jeff Cunningham. I am your local real estate agent here in Greensboro. Uh, try outta North Carolina. Welcome. All right. Welcome to the show. So today we're gonna kind of do a follow up on a show that we did two episodes back, and that was your getting preapproved, getting your preapproval letter, which is a really important part. In the process, but it's not the final step in the process before we go shopping. So we wanna kind of break that down, what it looks like, you know, what information's on that preapproval letter and why it's important, um, you know, to your realtor, uh, to know what's going on with your preapproval letter, right? Oh, absolutely. Absolutely. Um, you know, we we'd like to keep, uh, keep the preapproval letters, um, and pre-qualification letters as, uh, really our parameters and, and what it is that we are, we are shopping for. Um, you know, again, what, for what we can afford, um, as well as. You know, uh, just being comfortable and staying focused on, you know, just that number mm-hmm mm-hmm yeah. And there's there's so, absolutely. So, excuse me. So there's a lot of things that, that go on, you know, before you go out and start looking at a house, I think people really need to. Be ready to do that emotionally, physically, monetarily, wherever that's at. So, and there's different things that can play into that. So for instance, let's say that maybe someone needs to save up. you know, another two or$3,000 for down payment and closing costs, then they should wait until they know that they're gonna have that money to before they even start looking. Um, there are other things that need to happen too. Sometimes somebody may be selling a home that they currently live in, and that is part of their preapproval process. The preapproval was based on them selling that home in order to buy the new one. In fact, you actually maybe had an instance where you. Went out ahead of where you should have been and started looking at home. mm-hmm absolutely absolutely well put. Um, but yes. Um, so we did exactly that, um, have an individual or have a family that, uh, is looking for a new, uh, new home, um, in the same area. Um, but we are looking for, uh, a specified school district mm-hmm um, uh, that they had chosen, um, and they were unsure whether or not. Um, homes would be available. Um, even though, you know, you've got Google, you've got Zillow, you've got realtor.com a hundred different ways to look at proper. You know, this family had just moved a couple of times in the last couple of years. And, um, again was looking to go ahead and get into a different school system, a different priority if you wanna call it that. So, you know, we, we, we I'll say, um, had suffered a little tunnel vision where I, as a realtor would love to make sure that again, we have all of the parameters. What it is that you can buy, how much you can afford. Are you mentally ready for this? It is an emotional process. Is the home ready to be listed that needs to be sold and is the home ready to be listed, which is in this situation, um, you know, a criteria for them being able to buy the next. Um, so. Again, because this is an emotional process. You know, we looked at the first home, um, on this beautiful Saturday morning, trying to beat the heat here in North Carolina. Mm-hmm and it was gorgeous. Mm-hmm Now this was, this home was at the top of the pre, the preapproval, right? This was at the top of the pushing it a little bit. Maybe even at the top. Yeah. Absolutely. Um, we here in, in the triad in Greensboro, North Carolina, um, we are still trucking right along, uh, in the seller's market. Mm-hmm um, so our sellers are certainly putting the home on the market and expecting list price, if not more mm-hmm Um, which again seems to be the trend, right? We're we're not dipping down below that at this moment. Um, we'll talk more about interest rates and so forth going forward. Um, but you know, again, What we have, what we do when we bring in the scenario there of not being prepared or sticking to the script of your preapproval and prequalification letters, um, it could lead to some serious frustration. Mm-hmm Yep. So we went into this big, beautiful home being at the top of the, the price list and it's gorgeous, right? Like this is the best home ever fall in love with. Yeah. And then of course, in this market, there's also a little bit of a, a frenzy around people buying. Sure. Because appointments are back to back. So there's people in there when you get there, people waiting. Absolutely. So it's, it's exciting. It's like, okay, we, this is the home. We love this home, but, but the problem. Their home is not on the market yet. Um, and, and, and, and quite simply, it just turns out to be that. So the conversation, you know, led on later on in the day after we got through looking at the other homes, you know, what is it that we can do to get an offer in on the first home that we saw today? Now based on the preapproval letters and as a good realtor, you know, again, we wanna make sure that we, as a team are focused on what it is, again, the parameters, yes. What we can afford, what we see, what it is that you want. What's on your list, school system, you know, two stories, whatever it might be. And then we need to have that discussion as to what the next steps are. Right, exactly. And, uh, where we, where we had, or at least where, uh, the buyers were looking to get. Cart in front of the horse. It was, you know, well, let's go ahead and get the offer in, and then we'll worry about selling the house. Mm-hmm well, we can't do that, that, uh, you know, again, our responsibilities, uh, for, uh, for realtors is to the buyer, uh, and or our seller, um, which is a fiduciary responsibility and a situation like that, where the contingency is not being met right. Based on our preapproval letters. Um, could seriously put. Due diligence money or their initial down payment at yes. Cuz all this has to be spelled out in the contract when you're putting in an offer because the sellers have the right to know certain things about the buyer's readiness to buy what what's involved in that contract. Absolutely. So it's not just that it's not a courtesy thing. It's a contract thing. Like you, you need to be ready. It sure is it sure is. And that's where we need to be able to specify, um, in the contracts, you know, what it is. And here in North Carolina, that's exactly what they're looking for. Um, you have a contingency offer that you're putting in. Fantastic. They ask, are you under agency? Do you have a real estate, uh, a real estate agent working with you? Um, are you under contract and, you know, do you have a closing date even, even scheduled again that's for the sellers to see, um, you know, as they're, as they're being, uh, uh, presented the offer um, Which as a buyer's agent, we wanna make sure that we have the best offer that we can present to the seller, right. Uh, again, which puts the buyers in the best position that they can be. Right. Because if, I mean, like in this situation, if the home is not listed or is not ready to be listed, maybe there, there are some repairs that need to be done, you know, before it's ready to go on the market. Um, Contractors are behind there's, you know, a shortage of getting people out it's taking forever. So it could delay, you know, even, even two or three week delay could put a massive delay, you know, in the buying of the new home and potentially put you outside of your contract and not have any, um, real grip on being able to keep the house. If you go outside that contract, cuz the sellers don't have to extend it. So absolutely. Absolutely. And, and, and, and, and that can, you know, again, as mentioned before, Not only lead to frustration, um, again, lead to miscommunication, misunderstandings. Um, but at the same time it could lead to, again, uh, you know, uh, a surrendering of your due diligence. Right? Absolutely. Um, and you know, and today's market here in North Carolina, you know, we're putting up anywhere from 2% to, I've seen 50%, you know, on homes that are exceeding$400,000. And to put that money down without having, again, a clear expectation of what it is the process is moving forward. Um, you know, again, can, can, can have some catastrophic, uh, results. Absolutely. Um, and, and, and that's something that, again, previous episode, we're talking about having a, a, a, a relationship established with your team, uh, your realtor mm-hmm, on your lender. Um, you know, again, making sure that the buyers, um, whoever's in the family, whoever's in the buying process, you know, again are streamlined everybody on what it is that they're looking for and what it is that they can afford. Everybody knows where they are, what they can do and what they can't do. Absolutely. I think it's really important for them to know that for several reasons, one, this market is really fast paced, so you don't have a whole lot of time to ponder on a home as you would, you know, maybe pre COVID. And then, you know, the other side of that is. Purchasing a home for, for most people is an emotional process. This is where you're gonna raise your family. Mm-hmm This is where you're gonna spend, you know, the next five to however many years or so. There's an emotional involvement in this and you go out and you look at. The house and the top of the price point, you're probably gonna like it more than you have other ones. And you're, you know, you may even fall in love with it and they're like, this is the house, but if you're not ready to put that down and you gotta watch somebody else win the offer on that house and it, it could be taxing on you on, on everybody involved. So being ready to do that, especially in this market, if you're going out and looking at houses, you need to. Ready to put that offer in whether that's, you know, all the money that you need. Um, job situation is under control house. If you need to sell your current house, all that stuff is really packed away. Ready to go. Mm Yes. Yes. And, and, and it really is, you know, and, and again, you know, in this one instance, you know, again, great family, um, again, very well qualified. Um, but you know, it's so, so important that we follow the steps in the process. Um, because again, it, it, it, it can lead to, again, an emotional upset, uh, or, you know, again, worst comes, you know, worst case scenario, you know, again, we, we put some money down that we're not gonna be able to. Right. Absolutely. And, and that's our job. It's to protect you guys and, and keep you from losing your money and help direct you. We're not trying to, you know, reign on your parade and keep you from buying that beautiful home. But it, this, we are dealing with contracts and we are dealing with potentially very large sums of money that you don't wanna lose. You know, some people save up for years and years and years to try to buy their first home. The last thing you wanna do is lose that because you weren't, you weren't prepared or you went into it the wrong way. So, you know, and understanding the preapproval letter. Let's go over a few things that are on the preapproval letter and, and what they mean and what people need to look out for. So the pre preapproval letter, when we're doing those, what's, what's on it. What's important. So there are a few things that everyone's going to be looking at and preapproval letters will, will vary. And we talked about the different types of preapproval letters a couple episodes ago, but there are a few main things. The agents, um, whether it's the seller or the buyer's agent is going to look at one, the amount that's on the preapproval letter, that's important because you need to know what you're qualified for those aren't random numbers. They're, they're on there for one of many reasons, and it really depends on the loan officer and the buyer on, on what those numbers mean. So when we're looking at the total amount, when I do a preapproval letter, I could base it on a few different. If someone tells me that they want their payment at$1,500 a month, max, then I will do a preapproval based on that number. So that's not necessarily their, their max. It's not what they technically can afford, but it's what they've told me they want. And so that's where I stop. Yes. Now I have some bars who like wanna know the max that I can. And so I will give them the max for those. So it's not always that final. Number's not always a max, but it's based on the discussion that we've had. We can always have a different discussion, but it's based on the original discussion that we've had. So either your payment amount or either a loan amount or the information that you've given me now, the other thing that is really, really important is the loan type. There are many different loan types and those loan types require different types of contracts. So your conventional loan is probably, well, your cash is probably the easiest, but your conventional offer letters, probably the most straightforward. And then you have your FHA, your VA, your U S D a, and all those have different addendums that go to the contract. And you have to actually, there's a space on the contract, right? Where you. What type of loan is this? So mm-hmm, it's really, really important. You can't put in a FHA offer and get it signed under FHA and then go, go conventional without going back and redoing your contract. Mm-hmm yeah, absolutely correct. So where that's important from my side is going to be one, the appraisal. again, there are different appraisal types and FHA appraisal is a little different than a conventional appraisal. A VA is a little different than a conventional, you know, VA has certain stipulations, uh, here in North Carolina, not all states, but here in North Carolina, where the sellers pay for the termite inspection. So that's important to know. We need to know that going into it. Um, the sellers need to know, Hey, you're going to be obligated for a termite inspection or, you know, wood destroying pest instruction. Mm-hmm um, inspection. So it is really, really important that we have all that worked out beforehand before you put the offer in, and the offer is accepted because once it's accepted those set the terms of the loan and the process, unless you go back and renegotiate mm-hmm and once you renegotiate, I mean, You know, you may or may not give the same terms that you want. So there's always that, you know, right. Uh, that out there that you know, that the sellers may change their mind. So you may have to stick with the original one. So it's important to have that up front. Absolutely. So, so since we're on that, uh, side of the, uh, process and, and, and setting up the expectations, uh, again, um, can you tell us why, um, the appraisal number is so important? Again, I, I, I know we have some folks out here, especially in our market today where we are mm-hmm, typically over list price, uh, overing price. Um, and, and again, our loans for those that are borrowing, uh, are looking at, um, again, mm-hmm, the appraisal that comes back. And what is the importance of, so the importance of the appraisal, the appraisal obviously gives us the value of the home and the current market based on comps, um, homes that are pre previously sold. So when the appraisal comes back, there are several reasons why it's important, but the, the, the biggest one is going to be the value. The loan is based off of the value on the appraisal or the purchase price. Whichever is lower. So if the appraisal comes in lower, the loan is based off of that. For instance, if, if you offered 400,000 on a home and it comes back at three 80, your loan and all of your numbers are based on the three 80, the bank will not lend on the higher contract price, even though that's what you offered, you have to make up that difference out of. On top of price. Yes. That's very, very on top of your other cost. That's not all figured in it's an additional amount. So if the appraisal's 20,000 low mm-hmm that you have 20,000 over and above what you were expected to bring, if you want to follow through with that. So correct. And then we can get into negotiating, stuff like that, but the other things that are important on the appraisal, and again, it goes with the loan type too, because legit different loan types. A slightly different, um, qu uh, not qualifications, but like standards. So there may be repairs that are needed based on the loan. So that's really, really important too, that we know that ahead of time. You, you know, you, you can't convert a, I mean you can, but it really costs the same to convert a conventional appraisal to an FHA appraisal. It they're just not the same thing. FHA requires different pictures. then a conventional, which is weird. You think they'd all, it's a house. You take a picture. No. Yeah, there are differences. So it it's important upfront that we know everything going forward, um, for that reason. So that's important. And your realtors. Yes. And your realtors should know somewhat, uh, what the differences are based on those parameters. Um, as, as, as we have run into, in the past, we've had an individual, or I've run into an individual who is, you know, qualified, you know, again, conventional mm-hmm which is typically the higher, uh, more difficult to qualify for, but in the situation, FHA was actually gonna be a little bit more, um, suitable for, for their. And the difference being, you know, again, with an FHA, as you were saying, the repairs may be necessary for the loan to actually be processed through which gives expense or lend expense back over to the seller. Um, so the strongest offer may not be, um, The, the, uh, FHA VA or any of the government back loans. Um, it certainly would be, uh, more attractive to the seller, uh, on the conventional side of things. but having the buyer understand that, you know, they could be looking at some expense or mm-hmm, requesting the seller, uh, to go through some of this expense again, to get them into that home and in today's market, that that might not be the right thing to do. Um, certainly comes down to negotiate. Absolutely. Yeah, absolutely. And so, You know, some of the things there, there are things that can change the preapproval letter. Um, you know, the number that's on there, like I mentioned earlier may or may not be the max. It may not be sat in stone, but it's an estimate. And the reason why it's an estimate is because I don't know what house you're gonna buy yet. I don't, I don't know exactly what tax area you're gonna be in, or if they're HOAs, HOAs is honestly one of the biggest little boogers on doing a pre-approval letter. Some HOAs are completely outrageous. and if, yeah, that has not been put into the equation, let's say maybe it's, um, you know, maybe it's the first time home buyer who's really pushing, you know, a young couple, maybe pushing their max and we haven't taken into account. An HOA and they go look at this cute little townhouse. It's a great price. They like the townhouse because it's, you know, it's in their price range and it's still nice. A lot of times you can get a townhouse for a little more money than you can a single family in some cases, but it has a pool and it has a park for the kids and it has a community and they love it. And they go in a contract and they didn't check ahead of time. And the HOA is$350 a month. Right. That's a lot of money. Yeah. That's a lot of money and it's a, it's not a percentage. It's a hard dollar figure that takes away from your budget right now. You may or may not be able to afford that, but there's no getting around that. It's it's if, if that puts you over. it's, it's just that the deal, the deal is dead. Unless you gotta come up with another solution. You've gotta either pay off debt. You've gotta get a co-borrower. I mean, there's some massive scrambling that happens at that point. So you really wanna be careful. Yeah. With HOAs, you wanna be careful with taxes. We have a lot of very different tax areas here in this area. You know, we have mm-hmm um, Davison county, which is great on taxes. I mean, they're completely different than Gilford county Gilford county, who just loves. I mean, we just, we went up this year on our taxes, so. You need to know yep. The area that you're buying it and what those expenses are going to be, because that will change the amount of that preapproval letter, the amount that you can afford. And that's where it comes in having a great agent like Jeff, who knows those areas and knows what to look out for. And that's something I'll typically communicate to the bar and the agent like, look, we're, we're maxed out at this. We're pushing it. Like. Be careful on your taxes, be careful on HOAs. Be careful on that stuff because I can't control that stuff. And I don't know what it is until you find the house, correct? Correct. So that's, you know, again, we, we don't wanna always keep a, a hard line in the sand where the realtor is. the fine answer, but the realtor needs to understand what it is that again, we're qualified for and what these additional expenses could be. So, so when a realtor comes down and says, you know, Hey, what are you qualified for? And you give a number, which is great. And I will typically ask if we're looking for a home with a, with an HOA, you know, are you aware that your HOA will mm-hmm count towards. DTI your debt to income ratio, which will have an effect on how much you can borrow. Um, and I, I know Eugene as, as a great real, uh, sorry, as, as a great broker will ask those questions or at least point that out to somebody who is looking at, at that specific type of home. Um, but you know, even in a, a single family home, we have a number of neighborhoods. That do have larger HOAs, uh, and, and folks just don't understand, you know, why do I have to. Just stay at number$250 a month, right. For a home on a golf course. And you know, across town, you're looking at something else, right. That might have a$15 HOA or not at all, which you know, again is, is not gonna have a significant impact. No, not, not typically, but your higher ones will. I mean, and I've seen, seen them anywhere from, you know, one, a hundred bucks a month. Uh, Up to, I mean, there's some really expensive ones and some areas here, they can go pretty high mm-hmm so sure, sure. They're right. I just wanna be really careful with it. Now. I try not to max people out when I'm giving a preapproval letter, or if I know that they're close, I'm having a really hard conversation with them. Like, look. When you find a house that you like, send me the link, let me, let me look at the house. Let me look at the taxes. Let me make sure that we're gonna be okay here. And yes, that creates a little extra work on my side, but I would much rather do that and help them get into the house that they love. But also did not be a train wreck because their taxes were$400 more a month than they thought they would be. Or they were double. I mean, we there's literally, I think almost some doubling in some between some of our counties and the taxes. It's, it's insane. Um, and that makes a huge difference on your monthly pay. Yeah. It makes a huge difference on your monthly payment. Mm-hmm yeah. You really need to be, need to be aware of your taxes, um, your HOAs and the other thing that I really wanna throw in there, that's on, you know, I don't think that this is even on the preapproval letter and maybe it should be. Is what type of house that you've looked at. And again, this comes back to the HOA. Townhouses are gonna have those, some single families have those. They're typically not as high depending on the area that you buy in. But the other thing is manufactured homes, manufactured homes can change the preapproval. So for me being a broker, I have a lot more flexibility than some people do, but manufac. Homes for a lot of lenders, a lot of banks have a lot of overlays. What our overlay is, is kinda like an extra rule. So like FHA tells us what they'll do this, this and this for a manufactured home. Well, the bank down the road or the lender might say, well, we don't really. like manufactured homes. They're a little riskier of a, of an investment. So it's not something we really wanna do. So they might put something that's called an overlay or an additional rule on that manufactured home saying we won't accept anyone under a six 80 credit score with a manufactured home, or we won't do single wise mm-hmm which is, it is hard to find financing on a single wide. Um, or we will only do 20% down. I mean, there's a lot of. Rules. And usually it has to come in with, uh, the credit score. Typically there's overlays on credit scores and sometimes with the DTI as well. Sure. So you really wanna be careful with that? Um, myself. I being a broker, being able to work with many different lenders. I don't tend to have as many overlays of manufactured homes. I can do a lot of round with them, but you need to understand that it is a different property structure and there are different things involved on your pre-approval. So you wanna make sure if you're looking at a manufactured home that you take into account, what that might mean for your preapproval. mm-hmm Yeah, absolutely. Absolutely. And, and, and that's something that, again, you mm-hmm as a good broker would explain to. You know, a client mm-hmm who may or may not be looking for some land mm-hmm you know, out there in the rural areas here, uh, on the outskirts of Gilford county, um, even into Rockingham and Davidson, what you're talking about. Um, and, and for those folks to actually understand that, because that certainly could be, uh, mm-hmm yeah, a detractors. Um, you know, they just might not be able to afford, or like you said, get, get the lending that they need. Yeah. And we're seeing a lot of people go to alternative housing with the inventory shortages or the, the tightening of the inventory. You know, a lot of people are looking at those manufactured homes, mm-hmm or modular homes now, modular homes, a little different because they're actually in the lending rule consider the same as a single family. So those are, those are any different, but when we're looking at a manufacture hall, mm-hmm. That is a different product and it has different guidelines to it. So we just need to make sure that we've, we've looked at that. I'm not saying there's anything wrong with it or that you can't do it. We just need to check that box, run it as a manufactured home and make sure that we're good to go on that and that you understand what's involved. Mm-hmm and you know, one other thing that can change the amount mm-hmm we're certainly dealing with this now is the rate. So. Typically rates don't change as fast as they've been changing the past two years, past two and a half years have been really interesting for rates. And right now we're recording this in the middle of, um, actually the end of July. And so we have some interesting things happening with rates. Um, rates have kind of skyrocketed this year. We went from being in, you know, the low threes to being in the mid sixties in some cases. So, um, If you are in an environment where you're shopping and the rates are kind of in a volatile situation, like we are now, your lenders should be checking in with you and, and making sure that if the rate takes a jump, that you're still preapproved because the, and the three month timeframe between March mm-hmm and June we had a horrible increase in raise. I mean, we went. Two and a half, three points. It was insane. So every time we had a big jump, I'd go through and make sure that all of my borrowers were okay with the amounts I had given them where the rates were for that time. So you really wanna make sure that you're staying current on the rates and that, um, preapproval amount reflects that cause that can greatly affect it. I mean, if you were preapproved at three and a half and now the rate's five and a half. You may need to change some things. You may, you may not be preapproved for that found anymore. That's a big difference. And, um, so yeah, absolutely. Yeah. Well, you know, initially when we kicked off the, the show, yes. We're talking about frustration. We're talking about trying to eliminate that or, you know, again, keep our goal and our focus mm-hmm, you know, really just right in front of us. And, and, and again, if we, you know, went ahead, Like you said, you know, three weeks ago or a month ago, mm-hmm you know, we were approved for a certain number at a 4% interest rate. Yeah. You, you just can't afford that. No, you won't. It won't payment. A 5% interest rate. And, and it's super important again, uh, for buyers mm-hmm to check in with, with, with the folks and say, Hey, you know, I'm gonna go take a look at a couple of houses this weekend. You know, mm-hmm, how's my rate looking how's my monthly payment gonna be looking if I'm looking at a, you know,$350,000 house in Summerfield. again, you know, your, your background, what you do, just like you said, you know, you, you, you do all the factors, you do the formula. And if it says, you know, they can't afford four 50, they're back down in the$400 range or$4,000 range. Um, and again, that's, that's having a clear, at least a set expectation. Um, and, and if that doesn't match what it is that they are looking for, if it's a specific neighborhood, if it's a specific school system, then this just might not be the right time. Buy in that area. Um, and, and your realtor, you know, should be able to turn and say, you know, Hey, this is, this is gonna be a different scenario altogether as far. Searching for a home, you know, again, because we've changed our parameters somewhat for our max level. And you know, that, that, that certainly could impact again, you know, the ability and the inventory, right? Absolutely. You that's out there. Absolutely. You know, it's funny talking about rates. We've had some, you know, interesting stuff going on this week. Um, we'll do a little interesting is good. Yeah. Interesting. I mean, nobody's going on right now? I'll tell you. It's a show. It's that S S word in a show right now? Um, it, it is just so out of whack, we had the, the fed, the fed minutes came out on Wednesday and this past Wednesday, and we were expecting them to, to hike the, the rates, uh, 0.7, five, and they did, they increased it. And he also, Jerome Powell said that, um, At the next meeting, they intend to fight inflation as hard as they can. So they're raising rates to try to, to fight inflation. And we, we kind of expected it to have a, a different impact on rates than it did. We expected the rates to take, uh, to worsen and they actually improved quite a bit pretty significantly after that meeting. So. There are so many things that are going into rates right now that it's really hard to predict what they're going to do. We have, um, inflation, we have supply change shortages. We have, um, global recessions happening, uh, just listening to news. Like every, you know, there are places that are worse off than we are, um, with gas prices, with food shortages, supply change shortages. So, you know the war on Ukraine, we still have that going on. Mm-hmm so there are a lot of things that are pressing the mortgage bonds in ways that. Wouldn't normally press them. So the reactions are really hard to judge right now, but we did get a, an improvement. So rates are, uh, rates are looking pretty good right now compared to where they were in the end of June, about a month ago. So we've had quite a bit of improvement since then. So, and you know, one thing I wanna touch base on is when the, when the feds come out and say, they're gonna raise rates 0.7, five. That doesn't mean they don't set the interest rates. That they're setting, sorry, my computer notifications, they're setting the rate at which we buy money from them that we borrow money from them. So yes, that will reflect into the rate, but there are a lot of other things that go into that. The, you know, the margin at which the lenders are making the profits. Um, there are a lot of things that go that go into that rate. So the feds don't. Mortgage rates. They set the rate at which banks can buy money from them. So, um, so sometimes it has some different, you know, different effects. so well, like, like you said, it's, it has been, uh, an interesting couple of weeks, again, with, with, with a couple of months, I should say with, with the interest rates, you know, bumping up and down and you know, the market is just reacting, right. It really is. Yeah. And a lot of things too, you keep in mind is. The mortgage. So when you lock a right in and you get a mortgage, there are a lot of things that happen on the backside. And one of those is, you know, the loan goes to an investor to be sold and they're, um, you know, they're usually sold in lump lump groups of mortgages and not just one sale at a time. So, um, mm-hmm so you have to, as a, as a lender, somebody who's, who's selling loans, you have to. project the future a little bit. You have to like, you almost have to have a crystal ball. Like, what are we gonna do? So a lot of right, because you're not selling, right. You're not selling that loan today. You're selling that loan 90 days from when it closes, maybe. So you've gotta kind of gauge what the market's gonna do. So a lot of these rate hikes are already built in to the rates where we are. They they've already been built in. Sure. You know, and that could have been part of the reason why we didn't see as much of, you know, the change that we did. So, yeah. But it is an ever changing market. Right, right. Well, you know, and again, it's yeah. I mean, you know, yes, we've been at this for a few years now. Um, and, and just the fact that, uh, again, we're seeing some mm-hmm aspects of the economy that just again are not traditional. Um, and, and, and, and I think the market is, is reacting to yeah, absolutely. Nontraditional aspects. Um, and, and again, you know, I think the best way that, uh, again, to keep frustration at a minimum, um, to keep the home buying experience at a maximum, um, as far as, you know, enjoyment, uh, less taxing on emotion, um, and, uh, absolutely, you know, just the best experience it can be, uh, again, is, is, is to keep, you know, constant contact and. Um, mm-hmm communication with again, your realtor. Um, you're a broker, uh, for your lending. And, um, and again, keeping an eye out there as far as the inventory and what's available, um, through whatever you know means you do see, uh, best fit you. Um, again, whether it be realtor.com Zillow, um, if your agent gets you set up on, uh, on your own property search, um, you know, it's very, very important. I think that if you are in the market, Uh, that these are parts of the formula that, uh, you know, we need to take a look at. Absolutely. So it's not on a daily basis, you know, it's all about on a weekly basis. Again, like you said, the communication staying in contact and knowing where you're at and that you're ready to go. When you go out and go shopping, don't go out and fall in love with that house. And you can't, you're not ready because you can't do it. right, right. You can't do it. Just so just say yourself. I mean, almost in this. Don't even, I was almost to say like, you don't even start your search until you you're ready. Like get, get ready because you always do it. You find a house that's coming. Absolutely. And you're like, man, I love the house. It's perfect. Mm-hmm oh, I still, you know, I've only got money down payment, same job, or I've gotta get, you know, repairs done on my house or my, my lease on my apartment is not up for six more months. I don't have the money to buy it out. So. Be ready. Be ready? Yeah. Be ready. That's the moral today story. Be ready to go. Be ready. Be ready. So moral. All right. Well we just past 30 minute mark. So I think that's, uh, that's a, that's a pretty good show and lots of good information in there. If you guys need us, we're gonna have contact information in the links below. Feel free to reach out to us. Ask us more questions. Uh, currently serving, um, you know, North Carolina for myself, Jeff is serving North Carolina. if you're outside of our state, we can certainly have a conversation and point you in the right direction to somebody who can help you in your state.