EP8 How To Win At The Mortgage Game In 2025 Artwork

EnRich Your Life

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EnRich Your Life

EP8 How To Win At The Mortgage Game In 2025

April 29, 2025 • Richard Leimgruber, CRPC® • Season 1 • Episode 8

In this episode, Rich talks with Michael Sieja (“Mortgage Mike”) about how to navigate the home lending process smarter. Whether you’re a first-time buyer, refinancing, or tapping your home equity, they break down different mortgage options, what documents to prepare, why your credit score matters, and the best strategies to strengthen your offer.

Takeaways:

Understand mortgage options: conventional, FHA, VA, HELOCs
How much you should really put down
The surprising impact of credit scores on loan approval
PMI: what it costs and when it ends
Using home equity lines smartly
Why pre-approvals (& commitment letters) matter
How to shop smarter beyond your local bank

Want to Know More About Our Guest?
Michael Sieja, Mortgage Loan Originator
CrossCountry Mortgage
michael.sieja@ccm.com
+19145758304
Website
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Michael Sieja is a dedicated loan officer based in Purchase, NY, helping clients navigate the mortgage process with clarity and confidence. With over two decades of experience, Michael and his team at CrossCountry Mortgage offer a wide range of home financing options, including conventional, FHA, VA, and unique specialty programs. His commitment is simple: to guide each client through every step, from pre-approval to closing, with straightforward advice and personalized support.

Disclaimer: Examples and information provided in this interview are for illustration purposes only and are not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard. All loans subject to underwriting approval. Certain restrictions apply. Call for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC NMLS3029 NMLS64666 (www.nmlsconsumeraccess.org). Equal Housing Opportunity.

Filmed and recorded at Studio on the Avenue/LMC Media
Mamaroneck, NY
https://lmcmedia.org/
Produced and Edited by Vekterly
https://www.vekterly.com/

Disclaimer: This podcast is for informational and educational purposes only and should not be considered as financial advice, a recommendation for any specific investment, strategy, or financial decision, or legal advice. By engaging with this material, you acknowledge and agree with its intended purpose. Any examples provided are hypothetical and for illustration purposes only. Neither Rich Leimgruber, the EnRich Your Life Podcast, nor its representatives are advising or suggesting any specific action or decision. Before making any financial, legal, or tax decisions, individuals should consult their own financial advisor, accountant, legal professional, or other qualified professional before making financial decisions. All opinions expressed are those of the host and guests and do not reflect the views of any affiliated financial institutions. The views shared may not be suitable for every individual or situation. Past performance is not indicative of future results, and all investments carry risk. Please note that any strategies discussed may not be suitable for all investors, and the appropriateness of any specific investment or strategy will depend on individual circumstances.

EnRich Your Life Podcast – Episode 8 – Home Lending Survival Guide 2025

[00:00:05] Welcome to Enrich Your Life, where Financial Wisdom meets everyday life. Hosted by Richard Lyme Gruber, a financial advisor with over 25 years of experience. This podcast brings you powerful insights to make smart choices and build your financial future. Get ready to dive into practical strategies to grow, protect, and shape your financial story.

[00:00:28] One podcast at a time.

[00:00:31] Rich L: Hello and welcome to Enrich Your Life podcast. My name is Rich Leimgruber, be your host. And today we're having a conversation with Mortgage Mike. We are talking about a topic that I think is very relevant for a lot of young people. oftentimes when I help clients prepare a financial plan, one of the.

[00:00:51] Big goals that they're looking to accomplish is how to purchase a house. And I think it's something that, there are a lot of questions about [00:01:00] how much of a down payment should I have? What kind of mortgage should I get? And a lot of questions come up. Through the home buying process. So I thought it was very relevant to invite Mike on today to talk about all the different, types of, mortgages that are available to the common public, as well as talk about some tips that might help somebody get through the home lending process.

[00:01:24] I'd like to introduce you guys today to Mike Sieja. Mike is a dedicated, loan officer with the carbon team at Cross Country Mortgage. Michael started his career in September of 2002 and is a New York State Department of Financial Services certified loan originator with over 22 years of experience.

[00:01:44] Michael's mission is to quote, "be with you every step of the way". I think that's very important, whether you're buying or refinancing your home. His dedicated team has the experience and knowledge to help anyone through the application process from [00:02:00] getting pre-approved to relaxing in your new home.

[00:02:03] In the shortest amount of time. With no further ado, welcome mortgage Mike.

[00:02:07] Mike S: Thank you, Rich. Glad to be here.

[00:02:08] Rich L: Very good, thanks. So thanks for coming in today. So, Mike, tell me a little bit about how you got into the mortgage business. Oh,

[00:02:14] Mike S: Rich, what a story. How much time do we have? It's, we're going back quite a ways now, but, it all started with a girl.

[00:02:21] Wow. All right. And. So what had happened was I was in the military at the time, I was in the Air Force, and thank you for your service. Thank you. Thank you for that.

[00:02:31] And, I had met a girl and as our relationship blossomed over time, so did my relationship with her family and her family was already in the business.

[00:02:40] So I had, started paying attention, around the house and around their office, and I said to myself, you know what? I like this.

[00:02:50] And 22 years later, here I am and I still have all my hair.

[00:02:55] Rich L: Yeah, you look at you and from the looks of it, you have no greys.

[00:02:58] So life must be nice. No, no [00:03:00] stress, huh? So Mike, let's talk a little bit about, mortgages, home lending is what, I guess what we're calling it. There's a lot of different options that are out there. You have conventional loans. You have FHA loans, you have VA loans, you have home equity lines of credit.

[00:03:17] Can we just touch upon some of those and what's the common ones that people typically apply for? What's available for veterans like yourself? and vice versa. Sure. Yeah.

[00:03:28] Mike S: Yeah. I mean, the list goes on and on, right? But it's really trying to define as early in the process as possible, what my professional recommendation would be to a client, right?

[00:03:39] And to do that, we have to really see what their needs are, right? Because each loan type, I feel, is tailored to a specific client type.

[00:03:52] For example, a conventional loan is great for first time buyers that have good credit, some down payment money [00:04:00] of their own, and can document their income and their assets, things of that sort, right?

[00:04:04] FHA loans are usually reserved for people that may need some more flexible underwriting guidelines. VAs, obviously for veterans. and the list goes on, right? So it's really picking the appropriate loan type. For the borrower.

[00:04:21] Rich L: So basically somebody comes to you and you're asking them questions and you're saying, are you a veteran?

[00:04:27] Or, because there are some advantages to being a veteran and getting some loans. I believe there's no down payment for veterans is, if that's correct. and you are going to help somebody walk through the process of what kind of loan, based upon your experience that they're gonna be able to get approved for, I think ultimately, right?

[00:04:43] Mike S: Absolutely right. And. I, I joke with my clients and the, my initial intake, when I have with 'em, I'm like, think of me as your mortgage doctor.

[00:04:51] The more I know, the better I can help you. The better I can put my 22 years of experience to use for you. And yes, [00:05:00] somebody may qualify for a VA loan.

[00:05:01] They may be a veteran and qualify for a VA loan. But it may not be the best loan option for them. For example, in our market, we have a very affluent market, right? Home prices are high. And with that, sometimes the market demands a client that has a other means of obtaining financing.

[00:05:22] So a client that could get a conventional loan over a VA loan, and really it.

[00:05:27] Rich L: That helps actually with the

[00:05:29] Who the home seller is picking, right?

[00:05:32] Mike S: So yes, that's what I was getting at Rich, was that it's a matter of perspective sometimes. And not necessarily what's good for the buyer, which is, always my main concern.

[00:05:42] But what is good also to get their offer accepted, right? And part of my conversation with buyers is you also have to think like a seller. How is your. Offer going to compare to others. Because it's a very, demanding market. There's a lot of buyers in the market, [00:06:00] more buyers than sellers, right?

[00:06:01] So when you have that imbalance, you need that guidance to really understand the process and make the best. Educated decision.

[00:06:12] Rich L: Great. So when you get a phone call and somebody's call coming over to you for an appointment to say, Hey, we're looking for home financing, what should they prepare to bring with them so that you have a better understanding once you're there?

[00:06:25] Because the worst thing for me is when somebody might come in and they bring nothing you ask questions and they're like, well, I think it's this, or I think it's that. Ultimately, it's always different, right? So what would you recommend somebody bring with you as far as documentation when they're coming to see you?

[00:06:41] How should they prepare to see you?

[00:06:43] Mike S: Great question. And yes, everybody is different. Everybody's as unique as your thumbprint, right? No two people, their credit score is the same, their income is the same, their savings, et cetera. So beyond our initial conversation, then I segue into [00:07:00] documentation. So if.

[00:07:01] When it comes to the basics, right? If you're salary or you're an hourly employee, you know it's gonna be pay stubs covering the last 30 days of income. It's gonna be W2s covering your last two years of employment and asset statements. We've gotta see where the money is, right? Show me the money,

[00:07:20] Rich L: show me the money.

[00:07:21] Mike S: Yeah. So those are the basics, right? And then from there we can do a deeper dive into other things. Sometimes when you're not one of those income categories, maybe you're self-employed, right? Mm-hmm. Then we will add the request for tax returns, business, personal tax returns, because those are really what drives your income.

[00:07:40] Rich L: Profit loss statements, right?

[00:07:41] Mike S: Possibly. Yeah. Okay. And then there's situations where none of those exist. And then what do you do? Good news is that I have a solution for that also.

[00:07:50] Rich L: Okay. And is that like an "undoc", they used to call 'em "undocs", right? Undocumented loans.

[00:07:55] Mike S: So there is always a requirement to verify [00:08:00] somebody's ability to repay.

[00:08:01] When you go outside of the traditional model of doing that, then you fall into what is a non QM or non-qualified mortgage. There are ways that you can document income through a profit and loss statement. Mm-hmm. The key is to have that conversation and get all those questions asked and answered properly.

[00:08:20] Rich L: Another common question that comes up all the time is, Rich, how much should I put down? What? What should the down payment be? And I know that's a complicated. What is the common percentage that banks would typically like to see put down? Or is there a, is there a preference and how can that help or hurt the person of looking to apply for that loan?

[00:08:41] Mike S: Great question. I get it a lot.

[00:08:42] And really, sometimes it's just all they have, whether it's 3% down, 5% down, 20% down or more, the sweet spot is 20 . Because that offers, the most, loan options for, that particular buyer typically. [00:09:00] But it doesn't mean that it's where you have to be.

[00:09:02] Remember, it's a lot of perspective too. You have somebody that's a veteran that can do 0% down. How are they competing with other offers? So I still may recommend, if possible, for that veteran not to do 0% down to have 5% if possible.

[00:09:17] Rich L: Especially in a competitive situation.

[00:09:19] Mike S: Absolutely.

[00:09:19] Absolutely.

[00:09:20] But yes, but you 3% down to 20% down or more, anywhere in that range, there's still a lot of loan options for the supply.

[00:09:29] Rich L: Okay. And then that leads me to my PMI question private mortgage insurance, right?

[00:09:34] And I'm sure my listeners know when you're putting less than 20% down, is that the number you have to also pay for PMI insurance, which is private mortgage insurance.

[00:09:45] That's, that can be expensive. Depending on the loan, there could be different variances where as long as you have 20% of equity in your home after so many years, you might be able to get rid of that PMI. But more recently I've been seeing loans that have PMI for the life [00:10:00] of the loan, where you would actually have to refinance out.

[00:10:02] Is that true?

[00:10:04] Mike S: That's a lot to talk about, but I'll try to do my best and Yes. And break it down. Yes, PMI is required on a conventional loans when you're putting less than 20% down. There are some loan programs out there, that I have access to where you can put, let's say, 15% down and not have PMI

[00:10:18] Rich L: really.

[00:10:18] Okay.

[00:10:19] Mike S: So, it does matter who you talk to, but as a rule of thumb, yes. Right. And PMI. Can be expensive for those borrowers that have a less than ideal profile credit profile. Okay.

[00:10:31] For those that have, let's say, stellar credit, and let's say they're putting five to 10% down, it may not be as expensive as you think.

[00:10:40] It's important to talk about. Absolutely. Mm-hmm.

[00:10:42] The ones that have. PMI, I'm gonna rephrase it as MIP are, you're probably referring to FHA loans.

[00:10:49] Rich L: Okay.

[00:10:50] Mike S: So in certain, um, LTV ranges

[00:10:53] Rich L: loan to value ranges.

[00:10:54] Mike S: Right. Good for the listeners. Yeah, yeah, yeah, that's correct. Yes. Loan to value ranges, [00:11:00] you may have MIP, which is the private mortgage insurance for FHA loans.

[00:11:05] Right.

[00:11:06] Rich L: Okay.

[00:11:06] Mike S: Um, for the life of the loan. Are there what are called cancelable events? Yes. So each one is different based on your loan type, property type, et cetera, et cetera. But moral of the story is. It is possible, but you gotta have that conversation with a professional like myself too. Yeah, absolutely.

[00:11:25] You know exactly what it's,

[00:11:26] Rich L: yeah, so you just mentioned credit and I think that's a huge part of the home lending process, right? I can't tell you how many times somebody says, oh, I have great credit. Only to find out, well yeah, I only missed the last two payments of my credit card. That was it. And so credit is a big deal when you're financing whatever you're financing, whether you're.

[00:11:45] Going to a local retailer and getting more credit out for that. Mm-hmm. Beautiful TV that you always wanted, right? So tell me a little bit about how, how it's important to make sure you understand what your credit score is. Obviously there's advantages to higher credit scores. How does credit scores [00:12:00] affect the mortgage process?

[00:12:02] Mike S: Another great question, Rich oh boy.

[00:12:03] Rich L: I'm, I'm full of ' em today.

[00:12:05] Mike S: You are, you are. It can impact your qualifying ability significantly. The most important thing to know is that it's not the end all be all in qualifying, okay? You can have what is called damaged credit, and still obtain financing.

[00:12:22] You can have perfect credit and still obtain financing. It doesn't mean that you shouldn't try, and that's why I encourage all my, referrals is, or referral partners is to at least have that conversation and see where you are. Because a lot of times somebody's interpretation of their credit is different than mine.

[00:12:42] And they may be pleasantly surprised in the options that are available to them. Okay.

[00:12:48] Rich L: And do you recommend if somebody comes to you with a lower credit score to try to repair that before going through the process? And how would you have them try to repair it? Do they go see a credit specialist?

[00:12:59] How, what would you [00:13:00] typically recommend?

[00:13:00] Mike S: There are a few conversations that I'll have with them on a very high level view. If it really needs some significant repair, I'll send 'em to a specialist. Absolutely. But as I was just mentioning, they may be pleasantly surprised. And the loan programs that are available to them.

[00:13:18] I'll give you a quick example. You can be a first time home buyer and not even have a credit score.

[00:13:22] And then be able to obtain financing.

[00:13:24] There are what are called alternative trade lines.

[00:13:27] Maybe you have a gym membership, you have car insurance, you have a cable bill, cell phone bill. Those can be alternative lines of credit that can be analyzed.

[00:13:38] By a lender to establish your ability to maintain credit.

[00:13:42] Rich L: as long as you're paying your monthly bills on time and paying the minimums, your credit should be good. But the other part of it is how much credit you have available versus how much you've actually used of it.

[00:13:52] The banks wanna see that you're being responsible with your credit. That is correct. If they're gonna loan you the money. Yeah.

[00:13:57] Mike S: There's some great, pie charts available on the internet, but [00:14:00] most of 'em are. Will refer to credit usage as the biggest impact on your scores.

[00:14:05] Having a lot of outstanding debt. Compared to your available credit limits mm-hmm. Will have the most significant impact. Uh, and then on time payments, and, there are other factors that go on from there.

[00:14:17] Rich L: We've been talking a lot about first time home buyers or maybe you're, you're downgrading or maybe you're upgrading to a bigger house.

[00:14:24] A lot of times I have clients who might have some additional debt that have high interest rates with credit cards, and I'm always looking to see is there equity in the house available? And I typically recommend clients going to see a mortgage person like yourself to talk about maybe getting a home equity line of credit.

[00:14:41] I think it's a great idea for somebody looking to reduce their debt with high interest rates,

[00:14:45] but also to provide them an additional cash reserve. In the event of an emergency or an opportunity that they need to have access to liquid cash.

[00:14:52] So what is a home equity line of credit and why should somebody consider getting one?

[00:14:58] Mike S: So it's [00:15:00] like having a checkbook on the equity of your house. You'll have a defined limit as to how much you can borrow, but if you need access to your equity. That's how, that's the tool and that's an important, name to call it, is a tool because it's a way for you to use something to achieve something else, right?

[00:15:20] Rich L: You're taking a, an illiquid asset and making it more liquid for you, precise to utilize, right? Yeah. Yeah.

[00:15:26] Mike S: So if the tool is successful in the overall plan or of of achieving a particular goal, then by all means. Let's go for it. Right. But an equity line is just your blank check on equity on your home.

[00:15:43] Rich L: Okay. And so there is a difference between a home equity line of credit and a home loan?

[00:15:47] Mike S: Yes. Another great question. Yes. So your equity lines are typically variable, right? Okay. They're tied to prime. Prime goes up, down. So all your interest rate, right? Okay. , home equity loans are [00:16:00] usually your fixed rate.

[00:16:02] Equity products. Okay. So again, depending on what the person's comfort level is, what their goals are, one may be recommended over the other. , and then it's just a matter of, uh, their immediate needs. Because your equity loans will also typically require immediate repayment where your line of credit could just sit there until you need it.

[00:16:24] Rich L: So my understanding is that a home equity line of credit is like a checking account with your liquid, capital available that you can access. If you don't use it, you're not paying any interest and it goes for 10 years. Correct. Where a home loan is, you're getting that money. It's coming out of the, you're getting a check, it's going to your.

[00:16:43] Local checking account, but you're immediately repaying the principal and the interest for the rate of the loan.

[00:16:49] Mike S: You're explaining this better than I'm,

[00:16:51] Rich L: well, you know, I like, I like using loans as leverage. Right. I. I see people who, who have a low interest rate [00:17:00] 2.875.

[00:17:00] That was probably about five or six years ago. Sure. Yeah. Or 10 years ago now. And they're trying to pay it down and I'm like, ah, why? Like mortgage interest is tax deductible. So if you're a 2.875 minus your tax deduction, you're paying very little, I would be paying the most, the littlest that you could pay back and use that as leverage and take the cash.

[00:17:21] Sure. And use it for something else.

[00:17:23] Mike S: Why having referrals from financial advisors are great referrals. . Because they come with that education already. And it's just a much easier way of doing business. Because it, we, the biggest challenge that first time home buyers experience is not knowing the questions to ask.

[00:17:47] They don't know what they don't know. Yes. And I will also tell them that there are gonna be many learning opportunities throughout the process if you wanna talk about 'em all now, how much [00:18:00] time do we have?

[00:18:00] When those learning opportunities come up. I'm sure to explain 'em all to them.

[00:18:05] Rich L: And that, that leads me to my next question is what are some common mistakes that you see that you just wish weren't happening, in the home lending process Maybe that you can give some tips about, here's what you shouldn't do when you're going for a home loan or a home equity line of credit.

[00:18:20] Mike S: So, ironically enough, around the holidays. One of the biggest challenges I have, because you have Black Friday and you have Christmas, and everybody wants to go out and you know, oh, there's a great deal on a couch or a tv, or whatever the case may be. Maybe you're looking in the market for a new car.

[00:18:38] These things could impact your borrowing ability. A car payment is the most significant influence typically in your borrowing ability. A car payment, let's say in a range of $650 that could translate into the neighborhood of a hundred thousand dollars in buying power. Wow. Yeah. It could be that significant.[00:19:00]

[00:19:00] So,

[00:19:01] Rich L: so in other words, if you're going through the home loan process, don't go out and, and get additional credit. Don't go to a local store and say, yeah, I'll take a credit card out, and get a $5,000 credit limit that could hurt you.

[00:19:12] Mike S: It's preferred if you don't. Right. Alright. However, if it's a necessity.

[00:19:16] Maybe you do need a car. Have the conversation with your mortgage professional, right? I've had the conversations with plenty of my clients and they're like, it's needed. I understand that. Here's how it's gonna impact things.

[00:19:27] Rich L: One of the other questions that we were looking to talk about is interest rates and obviously this time , of the market cycle, we'll say with interest rates have been higher than they have been in the last 10 years. , I don't think we'll ever go back to where interest rates were 10 years ago.

[00:19:44] And a lot of times what happens is people are afraid to, potentially refinance because they're gonna be given a higher interest rate. And maybe they're looking to get some equity outta their homes. What are some ways that somebody might be able to get into a loan [00:20:00] today and be able to.

[00:20:01] Lower their interest rates. So I know there's some tricks about that. I think it's paying down or paying points. Can you give us some tips on, on, on how somebody, you know right now, I think interest rates are hovering around 6%, six and a half, seven. How can somebody reduce that? How can somebody, what tips can we do?

[00:20:19] Mike S: There are a few options, yes. Okay.

[00:20:20] One is. You mentioned earlier, buying down the rate or paying points is the most common industry term. It's not necessarily for everybody. And when you go through that process,

[00:20:34] you have an upfront cost to achieve that lower interest rate. But what is your break even? If you obtain a loan today and you buy your interest rate down, your break even may not be until three, four or five years from now. What happens if you refinance two years from now? All that money may have gone to waste, right?

[00:20:56] So sometimes it's. Sit, [00:21:00] wait until the opportunity comes up to obtain a lower interest rate, possibly via refinancing when rates do trend back down, and then that would be a great opportunity to make that investment

[00:21:09] another opportunity to get a lower interest rate are is something that's called a temporary buydown.

[00:21:16] You can get a rate 3% lower than the market with a 3, 2, 1 buydown, for example.

[00:21:24] Rich L: Yeah, talk a little bit more. What is 3, 2, 1, buy down? Is that like similar to like an 80 10, 10?

[00:21:30] Mike S: Not necessarily. Okay. That's really more driven by down payments, right? This is really specifically towards the interest rate. So there's, one zero buy down, there's a 2, 1, 0, 3, 2, 1.

[00:21:44] It's a great tool for, again, those that need it the most and if their opportunity exists. Yeah, somebody can get a 3% below market in the first year, and then it goes, and then it steps up from there.

[00:21:59] Rich L: It was like a [00:22:00] variable rate in the beginning and then it kind of levels off?

[00:22:03] Mike S: Well, it's, it has this defined step up process.

[00:22:07] Okay? Your 3, 2, 1 is a three year step. Okay? Your two, one buy down is a two year step up, so you have to understand what it is. What you're going to achieve by selecting a product like that and be comfortable with it also. Some people aren't, and that's okay too. Right. But somebody that can take advantage of it, I highly recommend it.

[00:22:31] Rich L: And today's age, what, what are, what is the common person using? What strategies are they using to, get them the lowest rates? Is that the 3, 2, 1, or,

[00:22:41] Mike S: The most beneficial thing that a home buyer can do for themselves is to speak with somebody like myself that has a very diversified product line.

[00:22:52] That is really the key to achieving the lowest rate possible because there may be loan programs that [00:23:00] you, others may not have access to. And you won't see that interest rate unless. You have the opportunity to have it presented to you. So when you have the opportunity to be diversified in your product offerings, you also have the ability to obtain the lowest rate possible for your clients.

[00:23:17] Rich L: More options. More options.

[00:23:19] Mike S: More options. Typically lead for more competitive loan programs.

[00:23:22] Rich L: And so now you're affiliated with a national organization that can write mortgages in any state of the country, pretty much correct?

[00:23:29] Mike S: That is correct.

[00:23:30] Rich L: And, and a lot of times I've seen clients come in and say, Hey, I went to a local bank or maybe a credit union.

[00:23:37] What's the difference of walking into a bank and somebody calling you? What's that experience like? What's the difference and why should somebody maybe call you instead of calling their local bank?

[00:23:49] Mike S: Well, if you go to your bank, your bank is gonna be able to. Discuss with you the products that they have and what they only have.

[00:23:58] They're not gonna be able to discuss with [00:24:00] you all those other programs that I mentioned earlier

[00:24:02] Rich L: unless they have them on their shelves,

[00:24:04] Mike S: possibly. Right. All right. But in my experience, they don't. Mm-hmm. Right. And that's where we come in at and.

[00:24:12] Nine times outta 10, we're more successful in delivering the appropriate loan program to a client because of those options that we have.

[00:24:20] Rich L: So, Mike, one last question for you is, is there um, an advantage to having a pre-approval letter or maybe a commitment letter, uh, for buyers who are looking to buy a home?

[00:24:30] Mike S: Absolutely.

[00:24:31] Great question. Again, pre-approvals are the first step right in, in the process. We can go beyond that also. Having a fully underwritten pre-approval, you actually obtain a commitment letter and that'll define exactly what your borrowing ability is.

[00:24:49] As approved by an underwriter and that can actually set a first time home buyers offer apart in a market like this. So that's another great tool, having a underwritten [00:25:00] pre-approval.

[00:25:00] Rich L: So basically somebody would be coming to you and saying, I'd like to go through the whole underwriting process. We're not sure what house we wanna buy yet, but we want to make sure that we have that commitment and a bank is willing to do that, or your company's willing to do that.

[00:25:13] Mike S: Absolutely. We actually coined a phrase for it. It's called a fast track, pre-approval.

[00:25:17] Rich L: A fast track, pre-approval. Yeah. Great. Okay, good. And so that would be something that you, somebody could do. And how long are those usually typically good for? If it's taking somebody two months to find a house or even getting an accepted offer, maybe they found a house and they keep on getting, outbid.

[00:25:32] How long do those pre-approvals or commitment letters typically last for?

[00:25:36] Mike S: The average lifespan is about 90 days.

[00:25:39] Okay. There are documents in that file that have expiration dates. Okay.

[00:25:43] From a lending perspective. So whether it be income, assets, credit, explain things like that.

[00:25:48] Rich L: And most likely it, it, before you go to close, they'll probably wanna look at more updated information just to make sure that nothing's changed.

[00:25:55] Mike S: Yes. You don't want anything to change from then, from now until then. Right. Uh, [00:26:00] so that's when you definitely don't wanna buy that car. You don't want to go out and buy that brand new couch. Even though you've found a home. It's not the time to do it

[00:26:08] Rich L: wait until you're in the house before you start buying furniture, right?

[00:26:11] Mike S: That's correct.

[00:26:11] Rich L: So Mike, thank you so much for coming here and providing this great value. I, I think this is a, an incredible resource for listeners. How can somebody reach out to you and discuss their home financing needs?

[00:26:23] Mike S: Thanks, rich. Thanks for the opportunity. My email address is michael.sieja Sieja@ccm.com 9 1 4 5 7 5 8 3 0 4.

[00:26:33] Rich L: Well. Thank you very much everybody for, checking us out today. This is, just another, part of our series of home buying, home selling. Please if you haven't, checked this out, check out our other, podcasts.

[00:26:46] We have a lot of information and please. Make sure you like,

[00:26:50] subscribe and listen.

[00:26:52] We are on all of our major, podcast platforms as well as on YouTube, and you can always check us out at [00:27:00] www.enrichlifepodcast.com. , and the last thing I'll say is. If you have any requests or if you're interested in a financial topic or a strategy that you want more information on, please reach out to us at hello@enrichlifepodcast.com and let us know what you want to hear, , for a future topic and we'll be happy to, put something together and make sure that we're sharing with all our listeners.

[00:27:25] Just wanna also say thank you to LMC Media here in Mamaroneck , the studio on the avenue is great. We're having a lot of fun doing these podcasts. And I also wanna say thank you to Vekterly, who is, helping us produce these podcasts. If anybody's interested in learning more about the studio on the Avenue or Vekterly, feel free to reach out and we will hook you up with, the contact information as well.

[00:27:48] Thanks. EnRich Your Life Podcast – Episode 8 – Home Lending w/Michael Sieja