Summary
Highlights
Guest speaker Mark Willam introduces himself, highlighting his 20 years of experience in the industry and explains why he left traditional banking to become an independent bond practitioner.
The speaker emphasizes that pre-approval is essential to avoid wasting time and effort on clients who do not qualify for a bond, ensuring realistic expectations for both the agent and the buyer.
Explanation of how credit bureaus monitor financial behavior. Details on clearing judgments, debt review status, and how banks evaluate a client's risk based on their payment history.
Analysis of fixed versus variable interest rates. The speaker recommends choosing a variable rate at a higher installment level to pay off capital faster as interest rates fluctuate.
Explanation of how lump sum payments reduce the bond capital amount. Highlights the 'excess facility' benefit where additional payments can be accessed if needed for future investments.
Guidelines on using rental income for affordability calculations and the complexities of buying properties under company names or legal entities like trusts.
Overview of typical processing times: 3-4 days for initial approval, additional time for valuations, and 8-12 weeks for attorneys to conclude the registration process.
Warnings regarding property auctions. The speaker advises that auctions are risky for first-time buyers due to hidden costs, potential occupants, and the legal complexities of taking possession.
Clarification on FLISP subsidies for lower income brackets and the benefits available to first-time home buyers, including potential 105% financing options for qualified candidates.