The Brian and Kindra Show

On Season 2, Episode 13 of The Brian and Kindra Show, they discussed some lingo and terms in real estate. Often buyers will hear terms like short sale and foreclosure.  A foreclosure is when the mortgagee (Lender) has taken ownership of the property through a foreclosure process when a mortgagor (borrower) has defaulted on the payments.  The term short sale is not as identifiable as foreclosure.  A short sale is when a mortgagee is willing to accept less than what the mortgagor owes to release the mortgage. Each mortgage company has their own criteria, but usually, the mortgagor must be in default on their loan. This can happen BEFORE the foreclosure process has been completed and can be a little less damaging to the mortgagors credit score.  Buyer’s Market and seller’s market are very common terms, but even those get confused occasionally.  A Buyer’s Market is a term used to describe a scenario where there are a surplus of homes for sale and few buyers, thus a benefit to buyers.  This means the homes tend to sell at lower prices than one might expect AND offers the buyers more options.  The Seller’s Market is the opposite.  Many buyers and few homes for sale can increase home prices and become a benefit to the seller.  Many Realtors are a part of a Multiple Listing Service (MLS).  This service is a cooperative the many real estate associates subscribe to agreeing to cooperate with other agencies. This gives realtors freedom to show properties that other agencies have listed and vice versa.  This also means that a listing is being promoted to more real estate agents than in the office holding the listing, thus a greater marketing reach for the seller and more options for buyers!Debt-to-income ratio - When you go in for a loan they will ask you for this. It is the ratio between your expenses per month and your income per month. If you make 10K a month and 8K of that goes out on expenses, you have an 80% debt-to-income ratio. There are many terms and fees associated with a loan when purchasing a home.  Two common terms that are often used interchangeably are pre-qualification and pre-approval.  These two items are actually different in that a pre-qualification is a basic assessment of a buyer that says the buyer should likely be able to qualify for a loan.  A pre-approval is more in depth,  with the lender assessing the buyer’s income, assets and other information in order to determine the loan and price point in which they will qualify.  One of the pieces of information the lender researches is the “debt to income ratio” which is a ratio comparing the home buyer’s expenses to their gross income.  Closing costs is a general term used to alert buyers and sellers both that there are costs associated with the sale or purchase of a home. These expenses can be quite costly and take a buyer by surprise.  Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2, Episode 12 of The Brian and Kindra Show, they discussed spring cleaning. First and foremost, Brian and Kindra want to remind their readers of the importance of smoke detectors in homes.  Recently, our community suffered a great loss due to a house fire.  Be sure to check your smoke detectors twice a year.  Oklahoma observes Daylight Savings time, so let those time changes be a reminder to change the batteries.  Brian comments that some fire departments will even install smoke detectors.  Please test yours immediately to verify it works and then schedule to remind yourself again in 6 months.Let’s start spring cleaning in the kitchen.  Condition or polish the front of your kitchen cabinets and wipe the tops of them down using an over the counter product designed for your cabinet type. Vinegar and water is another safe option for conditioning and cleaning cabinets. However, be sure not to use vinegar on any counter/cabinet surface that isn’t plastic. The acidic vinegar will dull the finish. Don’t forget to do cabinet knobs and drawer handles. In the refrigerator, wipe down the inside (drawers & shelves) and outside (handles, front, sides, top). Make sure to clean the inside and outside of the oven and underneath. In the bathroom, take a few minutes to clean the vents from both your central heating and air unit as well as the exhaust fan. The shower liner and curtain can be washed and/or replaced. Everything else is probably a part of your normal bathroom cleaning, but this is a great time to pay a little extra attention to areas around the toilet and behind it.  In the bedroom and living area, vacuum under your furniture and dust behind it. Don’t forget to dust your ceiling fans taking care not to create an imbalance in the blades. In the living room, vacuum under couch cushions and wash throw blankets and pillow covers. The best way to clean carpet is hot water and no soap. If you do use soap, you have to clean with hot water 3-4 times per 1 time of using soap to get all the soap out. Soap residue in carpet will collect dust quicker. With rugs, you can take them to the car wash and power wash them. Fake plants you can spray outside with water and let them dry. In the whole house, make sure you clean light switch plates. Wash the curtains and your blinds. Also, wash your garbage cans! You can use vinegar, bleach, or hot water to help get rid of the scum. Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2, Episode 11 of The Brian and Kindra Show they discussed loan types with Melinda Russo of Bank7.  Melinda has over 12 years of experience in the loan industry and offers valuable insight to low down payment loans.  Brian and Kindra have found that many buyers believe they need to have a large sum of money in their bank to buy a home, but there are quite a few options to purchase a home with a low down payment or even using a 100% loan. The USDA loan is a great choice for a first time home buyer if your location supports the loan type.  Also called a Rural Development loan, it is a 100% loan so 0% down payment!  Additionally, the buyer is able to have the seller pay up to 6% of the purchase price toward their closing costs.  The USDA loan is one that is restricted for specific income criteria and may not work for all buyers.  Another low down payment loan is an FHA loan.  FHA loans are 3.5% down and the buyer is again allowed up to 6% of the purchase price in seller concessions. Some buyers have the misconception that the FHA loan is for first time home buyers only, but that is incorrect.  FHA loans are not based off of income thus being a more available loan product for the majority of people.  Other low down payment loans are available.  The VA (Veterans Affairs) loans are 100% financing with the buyer able to use up to 6% of seller concessions just as with the USDA and FHA loans. There are also conventional loans that allow you to have as little as 3% down and the seller can provide 3% concessions. Because closing costs associated with a home loan can be quite costly, these loan types that allow the seller to pay some closing costs for the buyer are very beneficial to those who have limited funds to close.  Brian and Kindra commented that occasionally buyer will have the seller pay the maximum amount of their closing costs and be able to come to closing without any further funds!  However, even in that circumstance, there are still some upfront costs when purchasing a home and they want buyers to be aware of these (ie. earnest money and home inspection costs). A lot of buying a home is being educated about what you can and cannot do before you dive right in to the big stuff. A lot of people don't understand that cash is not a good sourceable fund for buying a home. A paper trail of funds is required for any funding. Tax returns and stimulus money are good sourceable funds when saving to buy a house. If you were to have a garage sale and earn $1,000 cash, those funds are not sourceable funds (they will have to sit for 60 days in an account to be sourceable). Money has to have a track record of where it came from. Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2, Episode 10 of The Brian and Kindra Show they spoke with the man, the myth, the legend Gary Whitcomb!  Gary Whitcomb has been in Real Estate since obtaining his broker license in 1968.  He took some time away while he was in the air force, but then moved back to Woodward around 1974 and began to work in the real estate business in multiple ways.  Because of his diverse real estate background, he is able to offer some great insight from home building to the cycles in real estate to commercial.  Below are a few highlights from a recent interview that Brian and Kindra had with Gary.  Because of Gary’s longevity in the real estate industry, he is able to share valuable insight and information for this column.  One of the things he shares is the fact that the real estate industry is cyclic.  The Woodward real estate market closely follows the oil and gas industry. Gary says, “The thing about Boom-Bust cycles is that the more drastic the boom the harsher the bust and it always busts a lot faster than it booms.  It’s like jumping off a cliff.”  Brian and Kindra have seen this to some extent since 2002, but Gary reminds us that he has seen even greater lows compared to highs.  The value of this information for consumers is the reminder that real estate is a long term investment.  Be prepared to have your property value inflate and deflate over time.  Brian describes the cycle as a roller coaster but says the tendency is for value to increase over time even with the dips.  Commercial real estate comes with some creative challenges.  Gary mentions when you are purchasing a home, you want a nice place to live with bedrooms, bathrooms, kitchen, etc. However, when someone buys a commercial property they are buying it to suit their specific needs. These needs range from the power type to the size of overhead doors.  There can be a sizable list of requirements to meet a buyer’s needs commercially. The National Association of Realtors says it is important for a Realtor to be competent in the market in which they work.  Kindra shares how she is not as savvy or educated in commercial real estate and must depend on the expertise of others whereas Gary has this experience from years in the business.  It is important for buyers and sellers to interview their agent to make sure they find someone who has the ability to assist them as they invest or sell commercial properties.  Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2, Episode 9 of The Brian and Kindra Show they discussed some tips on moving. If you have read many of these columns or listened to even a few episodes of “The Brian and Kindra Show”, you’ll know that pre packing is strongly recommended!  Pre packing not only creates a more positive showing experience for your buyers, it is also the first step to moving. Pack up personal effects first, to help neutralize your space for buyers as they look at your property.  This also helps you to be one step ahead when you have a buyer and are counting down the days to closing!  The purchase contract used by most of our local agents states that possession is gained at closing and funding.  This means when the paperwork is signed and the money is freed for disbursement, the buyer is declared the owner of the property and all that is on it!  This can be chaotic and a huge challenge because most people are buying/selling on the same day!  That’s a lot of moving happening fast!In a recent office relocation, the agents with Keller Williams Realty Elite (Woodward Branch) used sturdy, plastic storage bins. Because they are uniform in size, they stack well, and one doesn't have to worry about the bottoms falling open. These bins don’t necessarily have to be purchased as some moving companies will rent them! Use while you need them and then, they can be returned post move. One must be cautious when using cardboard boxes in a move.  They aren’t always uniformly sized, not stacking well and can be in compromised condition creating additional stress on your personal belongings.  Friends & family are also great moving resources. However, professional movers can alleviate a lot of stress when moving. Brian and Kindra often comment on the importance of using a professional.  Just like hiring a professional to change the oil in your car, a professional mover/packer has the speed and resources to make the process smooth. Generally, they can pack an entire home in much less time than you as an owner. There is an advantage to using a professional mover/packer.  How do you find the right company? There are a lot of scams out there. The most important thing is to read reviews and assess feedback that the company has received. Also, never pay with a bank draft. Use a credit card so the charge can be disputed if the services aren’t completed. When you pay with cash/bank draft the money is gone regardless of services. Don’t forget to change over utilities. You need to have them setup to transfer on the day of closing. Oftentimes, you don’t know the day of closing until a couple days before, which is tricky, so be prepared to be flexible. Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2, Episode 8 of The Brian and Kindra Show they discussed the process of Abstracting and Title work with Todd McCue, owner of Woodward County Abstract. Oklahoma is one of two states that still relies heavily on an abstract when researching the chain of title on a property.  An abstract is the history of a property and the people who have owned it. In this case, when we refer to the history of a property, we are referring to what is filed at the courthouse: deeds, mortgages, and easements that affect the land. It is also the chain of title tracking the owners and any liens or judgements against them. The length of abstract goes back to the patent before statehood. Once the abstract is finished, it is sent to an attorney to be read for validity. The attorney researches the history, verifying that previous mortgages are released, that deeds reflects the correct sellers who truly had ownership of the property, looking for any judgements or liens against the owners or the property.  Once they have researched fully, the attorney will create a title opinion.  This opinion is used to educate the purchaser about the marketability of the property.  If the title attorney has found any concerns, he will note them and will advise the correction needed in order to convey the property with clear, marketable title.  The completed title opinion can then be used to obtain title insurance. Title insurance comes highly recommended.  Todd comments that it’s the only insurance you can purchase with a one-time fee. It ensures that the property has clear, marketable title from the beginning of that abstract to the day you take ownership of the home. This sounds strange, but the title insurance company expects that the purchaser will keep the title clear during their ownership as well. The question often asked is why one would choose title insurance if the title attorney declared the title clear of defects.  Perhaps the current title attorney missed something or perhaps another title attorney reads the title and has a different interpretation of the law.  Title insurance can be used to protest against a failure in the title. For example, if a house is purchased and the title company missed a mortgage in the title, then a year later the new owner receives a foreclosure notice from a past owner, they not only lose their home but they also still owe their own mortgage!  They are essentially homeless and still paying for a home loan!  The title insurance will cover paying the owner for the amount covered (often the cost of the mortgage) and attorney fees and court costs if needed.Soon, we will discuss the title insurance a little more in depth.  Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.