Hello and welcome to the trusted podcast. I am your host Blake Johnson. And today we’ve got an exciting program. Uh, we’ve got Chris with Nova home loans, uh, here to talk about, uh, residential lending and how that experience goes. We’re going to look at, you know, uh, mistakes people make, how you can make this process as easy as possible with great Trust Attorney Las Vegas. So, Chris, thanks for being with us today. Thanks, Blake. I appreciate it. Happy to be here. Thank you. All right, so why don’t you start, give us a little bit of your background, um, you know, how you got into lending and then also a little bit about your company and what makes you guys, um, you know, the experts in your field.

Sure. I got into the financial space about 10 years ago. Uh, started selling life insurance and annuities. Uh, I was younger. My sphere of influence was not, uh, let’s say they didn’t have the means to, uh, help me help support me. So that lasted for about a year and then I got into retail banking for Trust Attorney Las Vegas. And that is pretty much the start of how I got into lending. Started just traditional retail banking, credit cards, things like that. Uh, got into, you know, equity lines of credit equity loans, and then evolved into commercial lending, business banking. And now here I am, uh, three years into residential, more vigilant.

Awesome. So tell us about a Nova. Nova has been around. They opened their doors the late 1980s, so they’d been around for quite some time. Regional mortgage bank. Uh, so we’ve been through the ups and the downs and we’ve been able to maintain. So we’re, it’s a testament to us for solid Trust Attorney Las Vegas. Uh, we have, uh, brick and mortar locations in the Southwest region of the country. California, Texas, Nevada, Arizona. Uh, we do, we do loans and other States, uh, about 17 other States. So we’re not a national company, but we’re, we’re a regional mortgage bank.

Awesome. All right, so let’s, let’s dive into this. So, um, I think, uh, one of the things that people get confused about the most is preapproval versus being prequalified and you know, how does that, and what’s the difference? And then also, how does that help people when they’re going and trying to buy a house? What, what does that look like for them to have, you know, whatever the better of those two are? Sure.

So right out the gate, you want to get preapproved preapproval it has is more solid. The difference is a prequel or a prequalification is more of a verbal conversation with someone. So face to face over the phone, they complete the application online. It’s, it’s the honor system. We’re, we’re capturing their, their asset information

based on them verbalizing everything to us based on what they say. After we pull credit, we have an idea of whether they qualify or not. We’ll issue a qualification letter. What the documentation is really what makes it a preapproval, where we see the pay stubs, the W2’s, the personal business tax returns that use Trust Attorney Las Vegas. Uh, we see the bank statements with the assets. Once we can verify and validate all of that, we feel more comfortable and we’ll go ahead and issue a preapproval letter. And that’s essentially what you want as the consumer is when you’re picking a real estate agent is you want that preapproval letter. It has a little more weight to it then the prequel letter,

right? So if I’m, I’m selling a house and I’ve got two offers side by side, one with the pre-qualifier, one with the preapproval. Basically what you’re saying is you’ve done a little bit more due diligence on the preapproval. You’ve checked that they earn what they say they’re earned. They have assets there to back it up. Um, and that their credit is not just based on their credit, it’s based on actually what they can afford versus, Hey, you know, this is what they told me. So yeah, that’s okay. So if I’m choosing between the two, they may have the same offer for Trust Attorney Las Vegas. I’m going to go with the preapproval every time just because I know that there’s a lot more solid backing in, but the likelihood of the deal closing is, you know, way, way better for me. Absolutely. Okay. So, I think that’s a very important distinction for people listening. So pre pre-approvals, the way to go if you’re going for a loan. And then if you’re the seller, your house, and you have offers pre-approvals the one that you want to pick if you have options there. So that’s great. Uh, so I’ve heard that in 2020 we’ve got some changes with loan limits. Um, so give us kind of a, an inside look as far as what that, that’s gonna mean for the consumer. Okay. I’ll, I’ll talk about

conventional lending. So conventional, when I say that, what we’re talking about is Fannie Mae, Freddie Mac. Some of you out there may have heard those names before. Uh, what we’re talking about there is basically, it’s essentially what it is. It’s a loan limit. So a 2019 loan limits with Trust Attorney Las Vegas. Right now we are at $484,350. So anything at that or below you would be in that conforming space. The 2020 conforming loan limits have increased to $510,400. So, and the reason, the way they calculate that is they take averages of the average appreciation in national averages on home sales. So 2019 what we’re seeing is right around 5.36% increases in home values across the country. So that’s the factor that we use in 2020. So everything has gone up about 5.36%. So that’s how we derive the five 10, 400 with loan limits. So you might be thinking, okay, well what does that mean?

Conforming versus nonconforming? As I said, it’s the loan limit. So anything at that, let’s just pretend we’re in 2020 now. So we’re at five 10, 400 the terms, the rates are better when you’re dealing with that particular product. And what I mean by that is there’s some flexibility.