208.639.7724

Ron Wieczorek from Eagle Home Mortgage joins Thom and Dave to talk about different loan types out that do not require 20% down payment. Plus Ed Fritz from Crime Stoppers stops by to go over some home and personal safety tips.

 

Segment 1

 

Dave Burnett:                    This is the Idaho Real Estate Buzz, he is Thom Dallman, the co-owner designate broker of Core Group Realty. Coregrouprealty.com is the website to go to. 208-933-7777, that's the phone number you can call at any time. And Tom it really is a great time to either buy or sell your home.

Thom Dallman:                  Yeah, we talk about the marketplace in its current condition and we're at all-time highs with home prices for those looking to sell. I know that kind of sounds like a contradiction for the buyers, but for the buyers out there, we're still at a really low interest rate right not for loans, so it just really offsets itself in that mark as far as the affordability and the ability to be able to get loans with lower credit scores and with low payments and stuff like that, it's just a great time to buy. It's a great time to sell because there's a lack of inventory.

                                                Our reports came out for February, we at least went up a little bit from the one point seven that we've seen in December and January, to one point eight and one point nine in counties. Pushing the home inventory, which means, like we've said before, if we didn't get another listing, we'd run out in less than two months of homes to sell. The majority of those being new construction so ...

Dave Burnett:                    I would judge though, by ... You brought in a stack of paperwork with you so here at Core Group you got some new listings.

Thom Dallman:                  We've got some new listings ourselves, so we've kind of seen starting to ... You know it's that springtime, peeking into springtime, people are trying to jump onboard before spring hits and there's a lot more inventory out there, hopefully. Knock on wood. But yeah, our first one is here in Boise. It is a $25,000 manufactured home, here off of Emerald and five miles. So great location as far as being able to get access to anything. This is and example of, I like to say, our core philosophy of client oriented real estate, where we help everybody with their transaction, whether it is a person looking or to buyer solo.

                                                You know manufactured home all the way up to that $1,000,000 buyer, so. This is a great property at 416 Driftwood Road, Boise. This is a 1,064 square foot, three bedroom, two bath manufactured home. That has been kind of updated throughout with especially including laminated flooring and carpet. It's a great deal for that price.

Dave Burnett:                    At $25,000 yeah.

Thom Dallman:                  Yeah, and it's got 20 by 10 front porch, as well as an eight by 10 storage shed on it. It is a rented space on it, so the rent is $550 a month for

Dave Burnett:                    Yeah, that's what I was gonna ask, that there's no property included but it is a rented space.

Thom Dallman:                  Correct.

Dave Burnett:                    But let me ask you this question, 'cause I know in the past when we talked to different folks in the mortgage industry. Is that something we can get a loan on or how does this work?

Thom Dallman:                  Yeah, there are ... It's a little bit more difficult to get loans on ... Especially when it's on a rented lot, but there are agencies out there that do give loans, so we can get you connected with an agency that does.

Dave Burnett:                    Okay.

Thom Dallman:                  If you do have questions about that, just give us a call and we'll connect you with ... Of the top of my head I think it's North West Housing Services. Don't quote me on that, but I believe that's who it is that has a loan available for manufactured homes.

Dave Burnett:                    I guess when you're looking at that price point at $25,000. For somebody who's looking to try to get out on their own, somebody that you know, whether they're in a divorce situation and they have got to find someplace to live. You got somebody who's trying to move out from Mom and Dads' house.

Thom Dallman:                  Exactly.

Dave Burnett:                    And get, you know ...

Thom Dallman:                  Get themselves

Dave Burnett:                    It's a way to get your legs under you, get you going.

Thom Dallman:                  It's a great first time home buyer, yeah. Why not? If you have the ability to be able to pay for it, especially if you have the ability to be able to pay cash for it.

Dave Burnett:                    Yep.

Thom Dallman:                  It's an instant investment into yourself. Something that will still build equity and get you going on your first purchase and

Dave Burnett:                    So give Core Group a call, 208-933-7777. Tell them, "You know what, I wanna find this." Or even if you have a manufactured home, you wanna list it, you wanna get it sold, talk to a Core agent.

Thom Dallman:                  Yeah, please do, please do. It's a crazy market out there right now, things are selling quickly. And the next two properties that I'm gonna talk about are perfect examples, they just got listed this week, and already have multiple offers on them. Check with us to make sure that they're still available, but you might have an opportunity to still get an offer in to compete. First one's at 2131 North Middlefield Road. This one is a 1,408 square feet home. Three bedroom, two bath, listed at $215,000. This is in the Fairmont subdivision, over off of Maple Grove in Northview. So there is a huge covered deck on it, to get that entertaining in the summertime. With the backyard that features the GCIF, so that you can put a water feature in or whatever you want for that. It's in the Central West Boise location.

Dave Burnett:                    Kind of over by Capital High School.

Thom Dallman:                  Yeah. So, really convenient to get to almost anywhere. Large backyard, so. Anyway, give us a call, check it out. That's 2131 North Middlefield Road here in Boise, and then the other one is 17685 Mesa Springs Avenue out in Nampa. 1,697 square foot home, three bed, two bath listed at $200,000. This is in Whitney Springs, so out there near the Ustick in Middleton area. It's a newer Wilmington home near all the convenient stores there, off of I-84, so.

Dave Burnett:                    Yeah not far from Midland Boulevard out there, are all the shops right now.

Thom Dallman:                  Right. Hence that split room plan floor too, so you have your master on one side and the other bedrooms on the other, so. And then yeah, it's got a flex room for game room or whatever you want.

Dave Burnett:                    Nice.

Thom Dallman:                  So yeah, 17685 Mesa Springs Avenue, Nampa. 1,697 at $200,000 purchase price, or list price. Once again, these do have some offers in on it, you might have some time to get another offer in to compete for them if you want, so.

Dave Burnett:                    Call and find out.

Thom Dallman:                  Yeah, for sure.

Dave Burnett:                    So they're there for you.

Thom Dallman:                  For sure.

Dave Burnett:                    And you have an open house up there today?

Thom Dallman:                  The next one ... Yeah, yeah, the next one I wanted to talk about was our featured listing on Teano Drive. We talked about this last week, 2511 West Teano Drive. This is the one that has the secret room. Enormous secret room, hidden behind a bookcase.

Dave Burnett:                    I am so intrigued by that.

Thom Dallman:                  Exactly. Get by and see it, it's a lovely house with lots of space. It's 2,725 square feet, four bed, three bath. Listed at $379,000. This is in the Bridgetower subdivision, so great subdivision right there in Meridian. Off of 10 Mile and Ustick. But yeah, we're doing an open house today from 1:00 to 4:00, so we have an agent standing by to show the house and get you through there. And check it out, so. This is just a really big house with lots of great features like granite countertops, hardwood floors. They've updated the lighting recently, has a double sided fireplace and of course the bonus room.

Dave Burnett:                    The secret room.

Thom Dallman:                  A secret in bonus room.

Dave Burnett:                    If you did not catch the address of that, you can call 208-933-7777, they'll let you know where that open house is. Which will start just about the time this show is over.

Thom Dallman:                  Yeah, yeah.

Dave Burnett:                    And give you a chance to check that out, the secret room.

Thom Dallman:                  Exactly, and just once again, 2511 West Teano Drive. Plug it into your GPS and head out.

Dave Burnett:                    Excellent. All right. We will continue on the other side. Gonna talk a little bit about mortgages, what's happening out there in the financial world for you. We'll continue with the Idaho Real Estate Buzz, being brought to you by Core Group Realty. Coregrouprealty.com, that is the website if you wanna go check that out. Check those addresses out there, or you can call 208-933-7777. Find out why they say, "You get more, with Core."

 

 

 

Segment 2

 

 

Dave Burnett:    This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, designated broker of Core Group Realty. Coregrouprealty.com is the website for you to go to. Give a call, 208-933-7777. That is the phone number to call.

Thom Dallman:  Give us a call anytime. We're here to help out. Ask us whatever question you want. We will answer whatever question.

Dave Burnett:    As long as it is relevant.

Thom Dallman:  We've answered questions that aren't relevant.

Dave Burnett:    Very good. Well Thom, one of the things, and we always talk about the thing that makes a transaction happen and that is money.

Thom Dallman:  Money, money makes the world go round.

Dave Burnett:    Ron Wieczorek with Eagle Home Mortgage is with us by the way, equal opportunity lender. We want to drop that in there and let them know that. Ron, let's get a home loan.

Ron Wieczorek: Let's do it. You're speaking my language.

Dave Burnett:    It's a pretty generic term though. I'm going to buy a house, so we need a home loan. But it's really a little more complicated than that in some ways.

Ron Wieczorek: It is, and it isn't. And that's kind of where I come in to make that not as complicated as you may think. I was talking about what mortgage product works for whichever client, and unfortunately it's not a one size ... I shouldn't say unfortunately, fortunately it's not a one size fits all.

Dave Burnett:    Yeah.

Ron Wieczorek: I still have a lot of clients that say, "I'm not ready to buy a house because I don't have 20% to put down." And although if you're in that position, and you're fortunate enough to have that kind of money saved, that's a great place to start. But not every loan product requires 20% down. And I'll dive into a little more products today that require a considerably amount less to almost depending on your background as little as 0% down.

Dave Burnett:    Yeah, but at one time that kind of was the story. I remember when we bought our first home, we saved and I think it cost $106,000 by the way or less than that. But we saved and saved and saved because we had to have that 20% down.

Ron Wieczorek: And you're dating yourself a little more than I am.

Dave Burnett:    Yeah.

Ron Wieczorek: I've been in the mortgage industry since 2001 and that's never been in my scenario. But I will tell you that my dad still believes that to this day. That if you don't have 20% down, that you can't buy a house. And luckily he's at that stage of life where that's not an issue anymore.

Dave Burnett:    Well what are some of these loans that fit?

Ron Wieczorek: Great question. So I'm going to start off with, I like to lead off with our veterans. And our veterans are fortunate and they've earned it with their service. But if you've served and if you have eligibility as a VA, you have a 0% down option. And as long as your credit and income line up ... And that's going to be the assumption for all the loans we talked about, that your income and credit line up. But you can get into a house really with zero money down. I've had a lot of clients put earnest money down to buy the house. And ended up getting that check back at closing because the seller paid the closing cost.

Dave Burnett:    Wow.

Ron Wieczorek: And they've had a 0% down. So when they come to the closing table, they get a check back for their earnest money, which is not a bad deal. So we'll start there. And a lot of times there's ... I always encourage everyone to ask and I always ask whether you're a veteran or not because that's a question that a lot of folks and a lot of lenders will ... They know the products out there and they know they offer it. But sometimes if you don't ask the question you don't know, and the client doesn't know. You don't know to ask questions that you don't know to ask.

                                So that's one of my lead off questions is whether they're a veteran or not.

Dave Burnett:    Let me ask you this question real quick Ron. Does it just have to be one of the spouses? If there's a wife that served does that work?

Ron Wieczorek: Great question. Yes, if you're married, then that translates. If you're not married then the co-borrower has to be a veteran as well. So say if you're getting a co-signer, they would have to be a veteran. So they are picky about that. But marriage, you're automatically in.

Dave Burnett:    Okay.

Ron Wieczorek: So you qualify under either your wife, if she's a veteran, or the husband, if he's the veteran, then you'd be grandfathered into that. And the one thing you always want, just because you have any kind of military background or service, doesn't automatically mean you have the eligibility for the loan. So I've had folks come in and say, "I know I'm going to do a VA loan." And we get into talking and maybe they were in the National Guard for two years or three years. And you have to be in the National Guard for six years.

Dave Burnett:    Okay.

Ron Wieczorek: Anytime you've been overseas, you're probably good.

Dave Burnett:    You're good.

Thom Dallman:  Yeah, eligible.

Ron Wieczorek: But we want to pull a certificate of eligibility and there's ways for us to find that out almost immediately with you in the office to see if you're eligible or not.

Thom Dallman:  Yeah, Ron do you mind me asking real quick because this question did actually come up recently from one of our clients. Which they said, "What is the convenience of doing a ... What's the benefit of doing a VA loan over an FHA loan?" Veterans loan is a VA loan. FHA is a standard, what most first time home buyers use.

Ron Wieczorek: Yeah, and the FHA was the next one I was going to get into.

Thom Dallman:  Yeah.

Ron Wieczorek: The biggest advantage is on an FHA loan, you're required to pay PMI or private mortgage insurance. We touched on the 20% down. If you don't put 20% down, all these products that you're going to get into that don't have 20% down, you're going to end up paying a monthly premium, and it's called private mortgage insurance. FHA, you automatically pay it. It can be upwards to 100, 200, $250 a month that you're just throwing out the window. The VA has no PMI. You can put 0% down and you have no PMI. So automatically, you're well ahead of the curve. So anytime we're looking at an FHA verse VA and they have that VA eligibility ...

Thom Dallman:  It's just a better form.

Ron Wieczorek: Yeah. It usually is a better deal. The VA does have a VA funding fee that they add to every transaction. It kind of helps them because when you're putting 0$ down, there's odds are that some veterans won't make it throughout the loan and they may default on the loan. So they have to have a reserve account, and that's where the VA funding fee comes in. And I will say that a lot of veterans are exempt from the VA funding fee if they have any kind of disability. Depending on the percentage. So that's a slam dunk, you're going with VA.

                                I always look at them next to each other, but more often than not, the VA's going to win out on that just because of the PMI. And that PMI is for life on an FHA loan. So you're paying a premium that you wouldn't have to. So I can't think of too many circumstances where FHA would work out versus VA.

Thom Dallman:  Versus VA, yeah.

Dave Burnett:    Ron Wieczorek with Eagle Home Mortgage. And with us talking about different kinds of loans, VA's, FHA loans. What else do you have on the list there?

Ron Wieczorek: And we'll get into that. I wanted to touch more on FHA loans.

Dave Burnett:    Oh okay.

Thom Dallman:FHA.

Ron Wieczorek: Because a great segway by Thom ... Most of our clients, first time home buyers do take advantage of the FHA loan. Because it allows you to get into the mortgage or get into the home with three and a half percent down. And we talked about again going back to that 20% down if once you hear three and a half percent down, your ears kind of perk up like, I can do that. So that's the next step. And they're pretty lenient. They're a little more lenient than other programs on where your debt ratios can be. So they take a little more ... Their exposure to risk or their tolerance for risk I should say is a little bit higher.

                                So that FHA loan, if you're not a veteran and you're coming in my office and we're talking about first time home buyer products, FHA is probably the direction that you're going to pick when you look at your scenarios next to each other.

Dave Burnett:    Is an FHA loan ... And I may be opening a can of worms here. It may be more complicated. Is that the Fannie Mae or Freddie Mac loan? Is that, that?

Ron Wieczorek: Federal housing, it's backed by the government, FHA, or federal insured. But it is not, it's different than Fannie Mae or Freddie Mac.

Dave Burnett:    It is, okay.

Ron Wieczorek: Fannie Mae and Freddie Mac, it's almost like you're segwaying me into my next, because that's a conventional loan.

Dave Burnett:    Oh okay.

Ron Wieczorek: So a conventional loan typically is ... And again there's first time home buyer products, as little as 3% down. These are highly credit driven products, to 5% down. And when you put 20% down, you're most likely talking conventional.

Dave Burnett:    Okay.

Ron Wieczorek: And conventional is a lot more sensitive to credit scores. So the terms, why would I do an FHA versus a conventional loan? You look at when we go side by side and I always like to give all your options to you. So you're involved in decision making. I never want to say, "Yeah FHA, we're going FHA." And then turn the page because it's a big investment and you want to be the one making that decision. You want to be in the driver's seat. I'm there to put everything next to each other and say for my mortgage, I would do this. But at the end of the day, I want the consumer to make their own mind up.

                                So the conventional is three to five percent down. In most cases, if you're not a first time home buyer it's 5% down. But it's highly credit score driven. And a lot of times if your scores may be a little lower, FHA has a fixed PMI amount on it. Whereas, conventional is driven based off your credit score. So if you're upper end credit score, perfect credit, then you'll probably look at the FHA versus conventional. And it's a lower amount and you can drop it after a few years or after you get a 20% equity. You might go conventional, and that might make the most sense for you. Or if you have a couple spots on the credit, FHA gives you that fixed option of the PMI. So it could be $100 less than the conventional. So it's something that we always look at and compare side to side.

Dave Burnett:    Mm-hmm (affirmative). So veterans, FHA, conventional loans. Those are the three we're looking at here so far.

Ron Wieczorek: And I'm going to throw one more curve ball at you because we do bond loans. The state of Idaho has a lot of first time home buyer programs where they'll give down payment assistance depending on your credit score. And that's for both FHA and conventional. And you can get into a house for as little as a half percent down or 1% down.

Dave Burnett:    Wow.

Ron Wieczorek: And that's something that we'll look at right away. So if you're in that group that I'm not a veteran, I can't put 0% down. I didn't quite get the three and a half percent down. I can't buy a home. That's not true. We'll look at if your credit is in a place where it needs to be, we can look at as little as a half percent down to get in a home.

Dave Burnett:    Now when you're talking first time home buyers, does it have to be first, first time ever? Or is there a year, several years or how does that work?

Ron Wieczorek: Most of those bond programs aren't strictly first time home buyers. They are income driven meaning because they're state subsidized they're going to have a cap on your income. So if you make a half million dollars, you're going to have to put some money down.

Dave Burnett:    Okay.

Ron Wieczorek: But if you're under those caps ... And they vary. I can't even get into the caps now because it's depending on size of household. There's a lot of dynamics. But it doesn't have to be first time home buyers. And I've had a lot of clients say, "I'm not a first time home buyer even though I've been renting the past five years." They're still a first time home buyer. If you've not owned a home for three years, you're a first time home buyer.

Dave Burnett:    Oh okay.

Ron Wieczorek: So it sounds weird to say that you're a first ... I've owned a home, but by credit guidelines, you're considered a first time home buyer.

Dave Burnett:    So for a lot of those that we've talked about Thom, those boomerang home buyers, those that lost their home eight years ago and got their credit back in store, they might be able to go for one of those loans.

Ron Wieczorek: Not only might, if from the time that they've had that credit incident and they've kept their payments on time and recovered from that. And that's the biggest thing that a lender's going to look at. Is if you had a credit event, and you made your payment since then, then you're probably in really good shape after that point. If a pattern has existed after that where you haven't been, we may have some issues and we may have a road ahead. But if those boomerangs are coming back and they're in the purchase market a lot.

Thom Dallman:  Exactly.

Dave Burnett:    Ron Wieczorek who is with Eagle Home Mortgage.

Thom Dallman:  Do we have time for one more question?

Dave Burnett:    Sure.

Thom Dallman:  Last weekend at the Roadster show we had a booth and one of the most common questions that we had all weekend long is, "What does my credit score have to be?" Can we just touch on that just really quickly?

Ron Wieczorek: Absolutely. There's no one size fits all.

Thom Dallman:  Right.

Ron Wieczorek: I'm going to say for the most part, if you back me in a corner and made me answer, 620 is a good barometer. But it doesn't have to be. FHA will go down to even below 580. With three and a half percent down, if you're at 580, that's the cutoff. FHA by its nature will go down to 500. But it takes a healthier down payment to get there. So there's no silver bullet there.

Thom Dallman:  Good, so I gave a right answer then. Good.

Ron Wieczorek: Good, good.

Thom Dallman:I did say contact one of our preferred lenders over here.

Dave Burnett:    Okay, so basically what we're saying there Ron, is somebody come in, get a credit score run with you. A little counseling, guidance, get it pre-approved and done ahead of time.

Ron Wieczorek: Absolutely. I always encourage that. No matter what you think your time frame is. You never know what's going to pop up on there. And I've had a lot of clients that said, "I'm a year out." And we got them a home within 45 days. So you just never know.

Dave Burnett:    Ron Wieczorek with Eagle Home Mortgage. We appreciate you stopping by and sharing a bit with us. If you have more questions or want to get a hold of Ron, he is on that list. You can go to coregrouprealty.com and he's one of those preferred vendors out there. So you can check that out and get ahold of Ron that way. We'll continue on the other side. This is the Idaho Real Estate Buzz being brought to you by Core Group Realty. Find out why they say you get more with Core.

 

 

 

Segment 3

 

 

Dave Burnett:                    This is the Idaho Real Estate Buzz. He is Thom Dallman, the co-owner, designated broker of Core Group Realty. Coregrouprealty.com. That is the website for you to go to, or you can give a call, 208-933-7777, and, Thom, as we always like to say this isn't just a show about selling real estate. You can do that.

Thom Dallman:                  Correct.

Dave Burnett:                    You've got agents.

Thom Dallman:                  We've got lots of people here to help you out with that.

Dave Burnett:                    It's about home ownership and the things that really do matter for you, whether you're buying a new home, whether you're selling a home, or whether you're just living in your home. And, Ed Fritz, who is with the Southwest Idaho Crime Stoppers in studio with us again today.

                                                Ed, we want to talk a little bit about keeping ... As we move into this time of year, about keeping your home safe and keeping your family safe, because really, when it comes right down to it, your family and your personal well-being, that is the big deal.

Ed Fritz:                                Oh, exactly. You want to feel safe in your home. It comes down to that. So, keeping the crime away from there is a big piece of that and just giving you that comfortable feeling, and so you're able to relax. Like that.

Dave Burnett:                    Well, there are some basics. You like to refer to them with Crime Stoppers as your 101, your basics on your home and what you need to do. What do you want to do to a home, whether you're moving into it new or whether you're living in it already?

Ed Fritz:                                You know, there's a lot of things that you can do, the very simple stuff, is looking at the lighting piece like that, looking at the landscaping, looking at just general stuff like that. If it's a more mature home, if it's something that's been around for a bit, obviously you're living a little bit with what someone had before you, but making changes to that.

                                                Some of the shrubbery piece that we talk about. We want to promote as much visibility as possible. So, if you're sitting on your front porch or in the front of your house or even the upper stairs, you have a good visibility of your backyard. You have a good visibility of the street and your driveway and all that's going around on it. The visibility promotes ... Just so that you can see what's happening, to see your surroundings. The more you're able to see your surroundings, see what's going on, you feel more comfortable. You feel safer with that. If shrubbery's grown up around the windows and you can't see out very well, you have to worry a little bit more about your truck that's parked on the sidewalk. You have to worry a little bit more about those people coming up and knocking on your door, things of that nature.

                                                Promoting the visibility piece like that. What we do, I went to the shrubbery side of it, anything below a window is where we want it. So, below that window sill, so that I can see clear vision out and about, plus anyone else that's driving out about, those good people that you want to pay attention to your home for good reasons. Keeping track of who's coming to your doors, going to your windows, stuff like that.

Thom Dallman:                  We often tell people or say on the show, like, "Talk to your neighbors. Get to know your neighbors." We're in such a society right now where everybody's watching TV or on their computers and stuff like that, and spending so much time indoors. Get outdoors and talk to your neighbors so that they can watch each other when you're out of town and stuff like that.

Ed Fritz:                                Exactly. People will pay hundreds of dollars, thousands of dollars sometimes, for security systems, but having those neighbors watching out for you is much better in most cases. We've had cases where people have that connection with a neighbor, and they've prevented burglaries at their house when they're out of town, because that neighbor's paying attention for you. So, giving them that every single ability they can to see your house, see about your house, so if someone's approaching a window, they can see it. If someone's approaching the front door, they can see it from there.

                                                The other piece with the landscaping is the trees are great, but they can also block upper windows and stuff like that. We kind of understand that, but not adding climbing tools to your house. So, where you're planting them to your house so that they aid you in climbing up to a second story where I can access a window.

Dave Burnett:                    People really do that, though? They'll climb trees and go in a window?

Ed Fritz:                                People will do ... it's a lot of opportunities is what it comes down to it. If you provide opportunities, it's only waiting for that one person to take advantage, unfortunately.

Dave Burnett:                    See, somehow, I just can't see that. Let me ask you this. In truth, if somebody wants in your house, they can get in, whether it's to kick down the door or to bust a window. They can get in. So, if somebody is, let's just say and let's talk just for a second about home invasion. It's something I don't think anyone wants to think about, but what is the proper thing to do if you suddenly find somebody is beating down your door? What do you do?

Ed Fritz:                                A. Get to as safe a place as possible, whether that's in a secure room inside your house. We'll talk to people about that, making sure there's someplace that you can go that's secure, that's ... If someone's going to break down the front door, I know I can lock myself in this room and stuff like that and have that much more time, plus not limit my abilities where I'm just stuck in a closet here. Where I can still, "Hey, there's a window. I can climb out. I have options when it comes down to it."

                                                And, call 911 as quickly as possible. Obviously, safety is first and foremost, so getting the heck out of there if you have to, because if someone's breaking into my house, I'd rather them have access to my stuff than me, my family. So, having that plan piece in place ... A lot of it is talking the emergency planning piece, and we do that a lot of times when we're talking about fires, but taking that next step and having those other little pieces in place and talking about them.

                                                So, Plan A if something happens. I can't do Plan A, I have a Plan B. Stuff like that. But, safety's first and foremost in all those situations like that.

Dave Burnett:                    And, I guess, it's one of those things, Tom, where you always say, "We should talk about that later this week." Later this week is not a good time.

Thom Dallman:                  Exactly.

Dave Burnett:                    You need to make plans and do it now. You hate to think along those lines, because really, Treasure Valley's a fairly safe place when you compare it to other locations, but it still could happen.

Thom Dallman:                  It's not just break-ins. It's also you have home fires and stuff like that. You should be talking about escape plans for those type of things, just to keep yourself and your family safe. So, I've always said that and people should talk about it. I've heard people who've had fires before say, "Oh, my gosh. We've always talked about escape planning. I'm glad that we got out alive, but we should have had an escape plan." You know, it's that. So, it's really good thing to always talk about those things.

Dave Burnett:                    Ed Fritz, who is with us, he is with Crime Stoppers of Southwest Idaho. I guess one of the other things and we here about it around the holidays, around Christmas, but we should be cognizant of it all year round, and that is trash day, and what you put on the curb.

Ed Fritz:                                We probably see it more frequently just across the board, because on those holiday times like that everyone's getting these presents. Everyone's getting new, cool stuff. And, just being cognizant of what you're advertising, I guess, to the neighbors, to someone driving by with that. I'm sure you're very proud of that new, big screen TV you got or those new gadgets and things like that, but the truth is around the holiday time, we're out and about. We're not always at home. Or, even during the week. How many hours are we not at home? And, what are we advertising? Are we telling someone that, yeah, there's a new Apple TV, there's new this, this, this. And, by the way, I'm not home from this time to this time so it's an opportunity to break in. With that type of thing, we encourage people just to break down your boxes. It's really that simple when it comes down to it.

Dave Burnett:                    I mentioned that last Friday on my way into work early in the morning, somebody in my neighborhood has a brand new 65" screen TV, because the box was on the curb for trash day. And, I'm thinking, "That's not good. That is not good advertising."

Ed Fritz:                                So, break it down. Don't put it out there. The second you want to get rid of that box don't put that out at the curb so it's not, once again, advertising for that much longer there. So, break it down, put it in-

Thom Dallman:                  Shout out for recycling. There's a recycling center right over on Emerald and in between Orchard and Curtis that you can just drop off all your cardboard boxes right there in a big bin, so you just throw them in the back of your car and run by.

Dave Burnett:                    Ed, you mentioned lighting at the start of this. Let's talk a little bit about lighting for homes. What is advisable? What is too much or is there too much?

Ed Fritz:                                Too much would probably be bugging your neighbors is what it comes down to. Do you actually want to look like a Jackson's Convenience Store? Maybe some people want that, but ... and truthfully, you want to have a good amount of light and it's going to make you safe, so that visibility piece I talked about as well. And, so, you have those access points into your home covered. Every building is going to have that front door, that side door that usually into your garage, that back door. The problem is they usually don't get the switches turned on.

                                                I'll walk through neighborhoods, drive through neighborhoods and a very small percentage of the people will be using their lights all the time. The lighting is the best piece you can probably do. Once again, talking about those alarm systems, I'd rather make sure everyone has that lighting on their house than have an alarm system in there, because it's going to deter crime, just that visibility piece. If I'm going to want to target a house, am I going to take the house that has a light on here, a light on here, a light on here, where people can see me if I walk up to that car, walk up to that front door. Or, the house three streets down that is totally pitch black; I know no one's home with that.

                                                Have it on those entry points and using it. If you forget to turn on lights, you're not going to be home to turn on lights when it starts getting dark, that's when we start to encourage timers. Where you can have a timer pop on for you, where it's going to come on every single time during the same day. Different sensors have dusk to dawn sensors, as well, that will pop it on. And, so it starts getting dim out, it's going to turn your light on for you. You come home to a lit up house that way.

                                                Motion lighting's always good. I've seen a lot of great videos where people have them in home situations. That side light comes on and that person goes to check out the side of their house. That person goes running the opposite direction, because they can be seen now. They're startled

Dave Burnett:                    And, that they don't know if somebody turned that light on or if it came on by itself.

Ed Fritz:                                Exactly. And, even that, going inside the house, put on those lights on inside, whether it's a timer on there with whatever it is. And, so, when you're coming home to a lit house and plus people see lights on inside the house, they feel someone's at home, so they go to the less likely target that way.

Dave Burnett:                    And, finally, as we wrap up this segment just on home security, this isn't so much about your home, but when you're away from home, social media. How dangerous is that?

Ed Fritz:                                I could share quite a few good stories of just the worst case scenario when it comes down to. I'm sure everyone wants to see your vacation pictures and all the fun you're having, wherever you're at, but a better time to put it on is when you get home, as opposed to when you're out there with that. There's way to get into social media. A lot of people already have their social media wide open so everyone can see it, and that's all your good family and friends who you want to see it, but everyone else that you don't want to see it has the potential to look at that as well. And, once again, you don't want to advertise that you're going to be out of town.

Dave Burnett:                    Hey, look at me. I'm in Hawaii for a week.

Ed Fritz:                                Exactly.

Thom Dallman:                  Exactly.

Ed Fritz:                                So, when you get home, yeah, that's when you put in all your pictures and stuff like that so your friends and family can see them. And, once again, you're not advertising you're away.

Dave Burnett:                    There was a TV show and I can't even remember ... It Takes a Thief, not the old drama but there was a show on about robberies. And, they would hire these criminals to rob ... And, one of the things that everybody thinks is a deterrent and it is not is a dog, because dogs can be won over easily. And, in some ways, can become your worst enemy.

Ed Fritz:                                It's still people ... I don't mind having a dog at home, because it's an extra alarm system for me. I know how my dog's going to act. I know if someone comes to the front door my dog's going to bark. That's going to be a warning for me someone's at the front door with that.

                                                We still see people will go out and put out the Beware of Dog signs when they don't have a dog, just to make that person worry. The piece I like about it is if someone's trying to think, once again, between this house that may have a big dog at it and this house that has nothing, hopefully they're going to the quieter house with that.

Dave Burnett:                    Hopefully, the quieter.

Ed Fritz:                                It's that risk of detection, that risk of bodily harm.

Dave Burnett:                    But, they sure can be won over by a little bit of meat.

Ed Fritz:                                Yeah, and even on top of that, pet doors inside the house, we kind of worry about sometimes if it's going to be ... if someone could access that pet door by crawling in, sending in a sibling, or just reaching in, that's a concern as well with that. So, securing those pet doors as well.

Dave Burnett:                    Ed, what is the website for Crime Stoppers if somebody wants more information?

Ed Fritz:                                If you want to know anything about Crime Stoppers, a lot of great information on there, go to 343cops.com

Dave Burnett:                    Very good. Ed Fritz, Boise Police Department and with the Crime Stoppers of Southwest Idaho.

                                                We'll continue on the other side as we have the Idaho Real Estate Buzz under way, being brought to you by Core Group Realty. Coregrouprealty.com, the website. Find out why they say, "You get more with Core."

 

 

 

Segment 4

 

 

Dave Burnett:                    This is the Idaho Real Estate Buzz, he's Thom Dallman, the co-owner, designated broker of Core Group Realty, CoreGroupRealty.com, that is the website to go to. Call him, 208-933-7777. You know, when we talk about mortgages, we talk about down payments, which could be anywhere from zero up to 20% of the value of the home.

Thom Dallman:                  Yep, depending on what you can qualify for and your situation in life.

Dave Burnett:                    And for most of us, we don't have deep pockets to go, "Yeah, I can just scratch out a check from $10,000 to do this."

Thom Dallman:                  Right? You gotta start saving.

Dave Burnett:                    I guess, and my dad always said this, my wise old father, make a plan, work a plan.

Thom Dallman:                  Yeah, for sure.

Dave Burnett:                    So plan ahead for it. It's maybe something you can't do today, but within a year you might be able to save up that money.

Thom Dallman:                  Yeah, we've had consultations with some of these buyers who are like ... Just recently actually we had a young lady that came in and was like, "I really wanna buy a house, I don't know the process, I don't know how much money I have to save." So we sat her down and explained the different process and got her in front of a lender to try and figure out what kind of loan she would be qualified for. And through the process, anyways, we got into that conversation of, "Oh well I don't quite have the 3.5% down for an FHA loan, I'm not quite sure what to do, I'm gonna have to save for that." So that brought me to my subject here today is talking about what things you can do to start saving for that 3.5% down if you're going for an FHA loan or stuff like that.

Dave Burnett:                    Which not only works for saving, but if you have some debt you wanna get rid of, it's a way to get rid of some of that debt as well.

Thom Dallman:                  Oh yeah, exactly. We always tell people to make sure you look at paying off some credit cards, if you have a little bit of excess money to put towards those credit cards to get them paid down quicker. That will not only help you in the long run, 'cause once you get them paid down or paid off and what not, you will reap the benefits of the positive credit for that. So it's kind of a two-fold on your debt to income ratios for a loan, as well as getting that credit down.

Dave Burnett:                    So what are some of your recommendations? And no, it's probably not buying a lottery ticket.

Thom Dallman:                  That is a gamble, not a true savings.

Dave Burnett:                    Yeah.

Thom Dallman:                  One of the biggest things, especially right now 'cause it's tax season, we like to talk to people about stashing your refund. Refunds can get pretty substantial for some people, so recent survey said that the average refund in America from the federal government was around $2,800.

Dave Burnett:                    Wow, almost three grand.

Thom Dallman:                  Almost three grand towards a down payment. So that's pretty substantial, and if you can just stash it, put it away, and don't spend it. Keep that as part of your savings. If you got a refund, that may mean that you're paying too much on your taxes throughout the year. So we advise people, contact your tax accountant, find out what you should be claiming on your taxes from your employer so you can limit that amount that's going in for the next year, so you're saving it for yourself instead of giving it to the government to save for you.

Dave Burnett:                    Too many times we rely on the government to be our savings program, but the problem with that is you're not gathering any interest on it, the government is.

Thom Dallman:                  Exactly.

Dave Burnett:                    Okay, here's a word I'm gonna use, whether you're get a refund or doing this, I hate using it, it's a nasty D word, but it's discipline.

Thom Dallman:                  Discipline, it takes discipline to make sure that you're doing that.

Dave Burnett:                    It does.

Thom Dallman:                  So yeah, that discipline of doing the math and figuring out if I pay less on my taxes the next couple pay checks, how much is that gonna benefit me? How much more am I gonna get back on my pay checks? Figuring out that difference amount, and then putting that into that savings, along with your tax refund.

Dave Burnett:                    There's the discipline.

Thom Dallman:                  Yeah, so if you think about it that $2,800 that you got last year, you may be eligible for $2,800 again this year. If you're getting that back on your paychecks and you're putting that in, that's $5,600 by the end of the year that you'll have saved up for your down payment. And just going along the lines of your pay checks, everybody usually gets some kind of quarterly or annual raise at their jobs. So if you're living comfortably with what you have currently, when you get that raise just figure out the math on that, and whatever that portion is from that raise, throw that in the bank account with your tax refund, and your savings from your taxes and stuff. That's a great way to start building up that as well.

Dave Burnett:                    Let me give another bad word, this is an S word, sacrifice.

Thom Dallman:                  Sacrifice.

Dave Burnett:                    For the future benefit of owning a home, there may be some sacrifice, things you wanna let go of that will save you money.

Thom Dallman:                  Exactly, yeah.

Dave Burnett:                    Ideas?

Thom Dallman:                  Sacrifice your time, maybe. And by this I mean maybe sacrificing by getting a second job.

Dave Burnett:                    A part-time job.

Thom Dallman:                  A side gig.

Dave Burnett:                    There's a lot of them out there right now.

Thom Dallman:                  Uber.

Dave Burnett:                    Yeah.

Thom Dallman:                  Uber, I can't even tell you how many times I've taken Ubers where I found out it's these people who are like, "I wanted to make a little extra money so that I could buy this." Or, "I wanted to make some extra money to do this." One Uber driver I met was a financial advisor who does Uber so that he can save up money to buy a helicopter one day, 'cause he also knows how to fly helicopters and wants to become a helicopter pilot and fly people around.

Dave Burnett:                    You may have to give up some of your free time, though.

Thom Dallman:                  Yeah, exactly.

Dave Burnett:                    Because it may be, you may not work on Saturday or Sunday, so you may wanna take Saturday and get a part-time job.

Thom Dallman:                  Yeah.

Dave Burnett:                    But there is a lot of part-time work out there to be had.

Thom Dallman:                  Exactly, exactly. Maybe sacrificing your television time. That might be something.

Dave Burnett:                    In other words ...

Thom Dallman:                  In other words, referring to cable. Cable TV, Direct TV, all those things cost a lot of money, and right now so many of the shows just get replayed on Netflix, Hulu, things like that, which are so much cheaper, and so much more affordable. So you can save money by giving up some of those conveniences. We talk about cell phones too, a lot of the big cell phone carriers charge lots of money for their services, and their conveniences. But there's a lot of little local service providers that you might be able to get service for $20, $30 less a month to be able to save money. Sacrificing some of that as well.

                                                Maybe sacrificing some of your space in your house. AirBnB, vacation rental by owners, those are really super popular right now, so if you have a spare room or two that you're not using, maybe you wanna think about AirBnB-ing it out. We're one of the hottest destinations for people to come to right now and visit, so is it awkward to have a visitor in your house?

Dave Burnett:                    Yes.

Thom Dallman:                  A guest in your house that you really don't know? Yeah, but most of those people are vetted out on AirBnB and have reviews, so you can be selective about who you allow through your house and stuff like that. But that might be an option too if you have that extra space, extra bedroom in your house, to AirBnB it out. Or even go as far as to get a roommate.

Dave Burnett:                    Yeah.

Thom Dallman:                  There's a lot of people out there that need a three month rental, or a six month rental, just a room to rent while they're here on business and stuff like that.

Dave Burnett:                    And again, that is a sacrifice.

Thom Dallman:                  It's a sacrifice of your space and privacy.

Dave Burnett:                    It's a sacrifice of your privacy. Yeah.

Thom Dallman:                  For sure.

Dave Burnett:                    And I guess some of the other things when you're talking sacrifice, there's a lot of little things; that latte or mocha you get.

Thom Dallman:                  Oh yeah.

Dave Burnett:                    Or eating out, I don't know if you've looked at the price of the bill on eating out lately, holy cow.

Thom Dallman:                  Oh my gosh, yeah. Things like that, things like commuting, like start share riding with people and save gas, stop eating out as much, maybe take your lunches to work. Those little tricks like that can save you so much more money in the long run. We had some friends once that for two years they committed themselves to only buying generic foods, or foods from the outlet grocery store, half the price. So they were committed to it for two years, and they ended up saving enough money to buy ... I believe they bought a motorcycle with the money that they saved for doing that.

Dave Burnett:                    Wow.

Thom Dallman:                  So there's things like that, that the conveniences of name brands and things like that, that if you can give them up for a while, that will save you some money that you can set aside as well.

Dave Burnett:                    Yeah. I think if people really look at where they could cut corners, they could find that there's really quite a bit of money that could be there, but again, it takes the discipline to take that $29 you would've spent on eating out and putting that money in the bank.

Thom Dallman:                  Exactly. Yeah, it takes a lot of discipline to do that, and to make sure that you're committed to it as well. One of the things that I read in an article recently talked about maybe giving up your gym membership, giving up the conveniences of certain memberships, convenience and stuff like that. As an avid gym go-er, I don't know if I'm a big proponent for that, but-

Dave Burnett:                    But if you look at it.

Thom Dallman:                  But at the same time, if it's ... Those cost quite a bit of money to be a member of a gym.

Dave Burnett:                    They do, and this time of year the weather is getting better, and we have a great, you can go out and run there.

Thom Dallman:                  Yeah.

Dave Burnett:                    There's even places to exercise and work out along the...

Thom Dallman:                  Exactly.

Dave Burnett:                    There is that possibility of doing that as well.

Thom Dallman:                  Yeah, yep.

Dave Burnett:                    So it's sacrifice and discipline.

Thom Dallman:                  Sacrifice and discipline is what it comes to. But at the end of the day, there are some great loan programs out there for you to be able to purchase a house with the convenience of ... We even have the assistance programs through Idaho housing that you can get as low as a 1% down option for purchasing a house. So saving up 1% is a lot easier for people to do, typical FHA home buyer is 3.5%. So there are ways that you can save, ways that you can look at your accounts. Think about your checking accounts too. Do you have fees in your checking account? Is it better to consider going to a new bank that has less checking fees? Or talk to your bank to see if they have options for free checking accounts that have less fees and stuff like that.

Dave Burnett:                    Wow.

Thom Dallman:                  So just some options for you to think about when you're in that home buying process and stuff.

Dave Burnett:                    Back to what my dad said, make a plan, work your plan.

Thom Dallman:                  Yep.

Dave Burnett:                    If you're in a relationship, get with your partner and work it together.

Thom Dallman:                  Exactly.

Dave Burnett:                    Because one person can't hold the whole end up on the deal when the other one is going, "No, let's go out to eat."

Thom Dallman:                  Exactly.

Dave Burnett:                    So make a plan, work a plan, and make a time limit on it. This is not a sacrifice forever.

Thom Dallman:                  No.

Dave Burnett:                    But for the next year we're going to do this, and make it kind of a ... I hate to say make it a game, but kinda make it a challenge to say let's say what we can do.

Thom Dallman:                  Yeah.

Dave Burnett:                    And even if you're taking that money and putting it in a jar in the cupboard.

Thom Dallman:                  Exactly.

Dave Burnett:                    Put that money aside, and see what can happen.

Thom Dallman:                  Exactly. But don't forget that you do have to put it into a savings account for up to 90 days that our lenders tell us.

Dave Burnett:                    Exactly, 90 days.

Thom Dallman:                  You can't just bring cash to the table for the down payment.

Dave Burnett:                    I got this out of my mattress. Thom Dallman, if somebody wants to get ahold of you and talk to your folks here at Core Group, how do they do that?

Thom Dallman:                  208-933-7777, go online at CoreGroupRealty.com, check us out, got all kinds of great features in there for you to find out more information about us, and about our houses, and everything else.

Dave Burnett:                    And as always, this show being brought to you, the Idaho Real Estate Buzz being brought to you by Core Group Realty. Find out why they say you get more with Core.

 

Ed Fritz

Boise Police Department

Crime Stoppers of Southwest Idaho

343cops.com

 

Eagle Home Mortgage

208 917-4983

EagleHM.com

 

 

Core Group Realty

208 639-7700

CoreGroupRealty.com

 

 

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