- Awesome. Thank you so much for confirming that you can hear me. I'm gonna go ahead and hide my video but I did wanna introduce myself first. My name is Tim McAdam, I am the Assistant Vice President of Mortgage Originations. I handle the team that handles all the applications for home loans for Credit Union of Southern California. And as Melissa mentioned, we're gonna talk about what's needed to buy a home. So let's go through that right now. We'll get started with our next slide here. Okay, so number one thing that you need to consider when you're looking for a home is good credit, and why good credit is important when you are looking for a home. It's not impossible to buy a home if you don't have good credit, but it's certainly helpful. Good credit's important because it affects your ability to get future loans, such as mortgages, car loans and credit cards. It affects the rate that you pay. The better your credit score, the lower your interest rate is. Your car insurance premiums are typically lower if your credit scores is higher, and you also typically pay lower APR on your credit cards. A good credit could also affect your ability to get other types of credit like a lease or a cell phone. And additionally, it affects your ability to obtain employment in some cases, such as financial jobs, military jobs and security clearance jobs. There's two main measures of credit. The first one is a credit report, which is just that it's a report part of your payment history at a particular point in time. So just like when you're in school, maybe your first report card came out and it wasn't as good but you started studying harder and doing a little bit of extra credit and your grades got up and your final report card had a better score. The same thing is true with a credit report. Just 'cause your credit report right now, takes that snapshot of where you are does not mean your credit can't improve. In terms of how we measure credit or rate the credit, credit scores of 720 and higher are considered excellent. If you have 720 or higher, you're typically gonna get the best rates for mortgage loans. If you score a 740 or higher, you're gonna have the best rate. 680 to 719 is considered good, you'll be eligible for pretty good rates on most loans, it won't be the best rate but it's not gonna be a bad rate. 620 to 679 is your credit score is okay, but not great. Scores in this range represent a higher loan risk to the lenders. And it does limit your borrowing options in some cases. The lower the score, the harder it is to get a cash out refinance loan for example. And certain types of purchase loans are also more difficult to obtain. If you are given a loan again the interest rates will be higher which also correlates to higher mortgage payments. If your score is 619, and below that's considered challenge. Purchasing on credit is not an option. There are a few programs out there, where you could get a purchase on with a credit score as low as 580. But those have become fewer and far between, it's harder to find them. The FHA used to have a program with that, but the qualifying criteria for that have gotten much tighter in the last several months. So, credit score, again, is a reflection of how you handle your debts. It's based on several factors. The two most important factors are the payment history, and the amount you owe between those two things that takes up 65% of your total credit score. So that's why they are the most important things. They have the biggest impact on your score, and depending on how that history is and how much you owe, 'cause it can easily either rapidly improve or rapidly decrease your credit score. So payment history covers things like it's just as simple as making your payments on time. So if you're always make your payment on time, whether that's the monthly minimum, or you're paying your bills in full every month, payment history is the biggest impact if you have one late payment, and by late on a credit score, late means you have more than 30 days delinquent. Doesn't mean you've necessarily... You could have paid a late charge but if you have paid before 30 days have gone by, you won't be reported as late on your credit report. You'll still have to pay that pesky late charge, but it's not considered late from a credit report standpoint. But again, payment history is the number one thing that can affect your credit score. The second one is the amount that you owe. And the way this has determined is primarily with credit card accounts. It's just a matter of how much of your credit limit that you use. So for example, if you had a $10,000 credit limit, and you owed $2,000, you'd be using about 20% of your credit limit. And that would be a utilization ratio of 20%. But if you owed $9,000 on that same $10,000 credit limit, you're at 90% utilization ratio. The higher your utilization ratio, the more you use of your available lines, the more it impacts your score negatively in that amount-owed section. The rule of thumb or sort of the best guideline is to try and keep your utilization ratio at 30% or below. Excuse me. Now what this means though, doesn't mean you have to do on an every single card, you could have a particular card that you use a lot because you get points or airline miles or something like that. And then you have other credit cards that you don't use partly at all, they look at the total of all of your credit limits against the total of all of your balances. So that's one of the things where, because they look at it and aggregate together, it's gonna be, again, if you use one card heavily, but the others you don't use at all, your utilization ratio may not be as high. But one thing to consider though also is if you use your cards very heavily, even if you pay them off in full every month, credit agencies the creditors, such as the credit card companies, report to the credit bureaus, your balance at a particular point in time. They do also report that you've been make what level of payments you make, so they do report that you're paying it in full, but your utilization ratio could still be high, even if you pay your bills off in full every month. If you're maxing out the card and then paying it down to zero and maxing it out again, hanging down zero, that still could be a high utilization ratio. So when you're getting ready to purchase you may wanna dial that back if that's something that you're doing to acquire points or things like that. The length of credit history takes up about 15%. And that's just calculating how long you've actually had any kind of debt. So when did you open your first credit card? And is that credit card still open? Have you had a previous mortgage loan or an auto loan or student loans? And how long have they been open? Because again, the longer you've been able to demonstrate that you can manage credit properly, the better off it is for your score. But again, it only impacts your score by 15%. New credit affected by 10%. And that's just if you've opened up a new credit card account or new auto loan or anything like that, recently, that could affect your score. And if it's just one or two accounts, it's typically not a big deal. But if you went out and just opened up six credit cards over the last six months, that's gonna drag that portion of the credit score down. Again, not a huge deal because it's only 10%. But it could be an impact. If it's a difference between you're getting a 720 score and 740 score, or a 680 score and a 720 score, for example, it could really impact your rate. So that's why it's important to try and pay attention to those types of things. And then the last piece of our final 10% is the types of credit that you have. So here just looking forward to have you been able to manage different styles of credit. In other words, can you do an installment loan, which would be like an auto loan or a student loan? Or have you had credit card debt? Or have you only had one or the other, if you can show that you've had a variety of debt, that portion of the score typically will be a little bit higher, again, because it shows that you can manage different types of credit. Any questions on the credit score piece? And if you have that you could type it into the chat at the bottom of the screen. Okay, If you do have a question again, I do wanna remind people you can ask the question on the chat screen at any time. I will stop occasionally throughout the slides. But if you have a question you can feel free to type it in and Melissa can also interrupt me with questions as I go through if you have anything. Okay, so again, what type of information is on your credit report? And how does the account and debt information so it shows all of your revolving accounts, which are typically credit cards, they'll show installment accounts such as mortgages, car loans, and student loans, any medical debts. It also shows if you have payday loans or any type of collection accounts. It'll also reflect credit inquiries, like how many times you've actually gone out and applied for credit. Usually, that information only shows for the last two years. So if you had applied for credit three years ago, and either did or didn't get the credit card or whatever type of loan you're trying to get, if it's more than three years ago that they did that inquiry, it's not gonna show. It's just gonna show anything you've done in the last couple of years. It also will have your personal information on, typically your name. If it's a joint credit report, it will also have your spouse or your co-borrowers name on it. Your social security number, your date of birth, your current address and any previous addresses that you may have had that have been reported by credit companies, creditors, such as banks and credit unions. It'll also show public records such as judgments, tax liens, bankruptcies and foreclosures if you've had them in the past. One thing about public records though that it has become harder for the credit bureaus to put judgments and things like that on your credit report. If you had a common name like John Smith, for example, there was a lot of unscrupulous creditors out there that would if a John Smith had gone delinquent, or had reneged on a loan, they were trying to attach it every John Smith they could sign versus actually attaching it to the credit reporting the John Smith that actually went delinquent on their loan. Because it created so many problems for the other John Smith. There was a rule passed a few years ago that makes it more difficult for the credit bureaus to put that information on a credit report if it doesn't truly belong to the borrower. So that is one thing that's been good out of some of the changes they've had in the credit scores recently. These three main credit bureaus are Experian, TransUnion, and Equifax. And when we actually recommend that everybody do, is that they get one free credit report per year from each bureau and you're legally allowed to do that, there's no charge for this. You go to AnnualCreditReport.com to do so. What I actually recommend people do is instead of pulling all three at once, that you pull one from each of the bureaus every four months, so that it helps you get a trending of what your credit looks like. And again with AnnualCreditReport.com is the only website where you can get it for free. There is a website out there called freecreditreport.com, but it's not created to allow you in. But then they wanna charge you for additional services and things like that. So again, ideally you wanna look at your report is to make sure there's no erroneous information on it, make sure that your debts are actually reflected on there. And if you've been making your payments on time to make sure that it's been recorded and being paid on time. So again, we talked about inquiries earlier then that they show for the last two years. The only type of inquiries that show though are what's called a hard inquiry, which when you are the one seeking credit. So you've gone out and you've applied for credit, whether that's for credit card at one of the department stores, or you're out looking for a new car, or even applying for a mortgage loan, as soon as you say, I signed on the dotted line and authorized you to pull my credit report or you're doing that online. When when you do that authorization that credit report gets pulled, that's considered a hard inquiry. It does slightly lower your credit score usually not more than five points. The good news if you're shopping for a mortgage or even shopping for a car, and there's multiple inquiries specific to that car shopping or mortgage shopping, that there's multiple inquiries within 30 days, it typically counts for on your score as only one inquiry because the software can figure out that, hey, I went to Toyota of Orange and Board Ford and Fletcher Jones down in Newport Beach, I was looking for a car last weekend and I had my credit pull that all three of them . That typically just show as one inquiry and it really does not affect your score too much. Now soft inquiry is a little bit different. These are unsolicited credit checks and soft inquiries. Are usually what leads to, you're getting a pre-approval or pre-qualification offer, whether it's for an auto loan or a credit card. This is when the companies will go to the credit bureaus and say, hey, I wanna get everybody that has a credit score of 680 that lives in Whittier, La Mirada and La Habra and owns a home and the credit bureaus will give them that information and then they will have to make you an offer for that credit card, or auto loan or whatever it is, they're trying to solicit from you. So again, this is for promotional reason. For those companies, it does not affect your credit score at all. And when they do that, they are required to present you with some sort of offer for credit. So again, the types of credit, good credit is when all accounts are paid on time. You have credit cards, not too few, not too many. Again, you can have more than the three to five cards listed here as long as you're paying them on time and you're not utilizing them too much. As you pay your balance off and for every month that's typically gonna give you the higher scores. And to keep your balances again at 30% or less of your total available credit, that's gonna get you the best score. So your loans are being paid down. So any installment loans such as student loan, or auto loan, you can see that the balances is going down over time. These accounts have been in good standing and open at least one to two years. There's a good mix of accounts. So you have a credit card you have an installment loan, and there's no negative account accounts listed, when negative would be that mean you're in collections, or you've had a 30 day or 60 day or 90 day late on one of your debts. I'm gonna stop here 'cause I see there's a question here. Are there any credit reports run for leasing a business space affecting the credit score? It typically it depends on what type of credit report that they run if they're running it, if you're leasing the space as an individual and they pull your account personal credit, it could show as an inquiry on your personal but if you're applying for credit, say if your business was an LLC or a partnership or something like that, it typically would not affect your personal credit. And again, I've been running the credit report, it's typically only gonna affect your score by five points. When you apply for the loan, and the inquiry shows up on the credit report, usually your loan officer or the underwriter that's working on your loan will just ask What is this for? And as long as you say, Hey, I'm leasing it for my business, that's typically not gonna have a negative impact on your application itself. It may again drop your score by five points. But typically, it's not not too much of a big deal. So hopefully that answered that question. So again, challenged or damaged credit. This is when you have one or more negative items on your report, such as late payments which either 30 day or 60 day or 90 day late. It could also increase collections, judgments, tax liens, foreclosures et cetera. Now late payments could say reported on your credit report for up to seven years. But that said, once those payments are in the past, the longer in the past they are, the less and less impact it has on your credit score. And typically, after about two years, it really doesn't affect your credit score much at all, it will still show in the report, but once two years have gone by and you've been able to shoW-2 years of on time payments. Again, it's a minimal impact on your report at that point. One of the things I did wanna share about credit reports specifically is a lot of you may have access to a credit score through your credit card company or maybe you've signed up for Credit Karma, or there's a few others out there that will provide you your credit score for free. One of the things to understand though, is there's different types of credit scores. For every type of debt that's out there. So typically what you'll see on Credit Karma, or one of these is a FICO eight, or FIFO 10 score, which is the most recent score that's available. Then this specific FICO scores for auto lending there's specific FICO scores for credit card loans. There's a different set of FICO scores that are typically used for mortgages. And mortgages for example, Experian, we use what's called a FICO classic two, TransUnion is a FICO four or five, and Equifax is also a four or five, I would get those two mixed up, which ones are four and which ones are five. They are a little bit older credit scoring models, they are more conservative, because the mortgage debt is typically the biggest hedge you're gonna get. And it's usually the largest, again, largest dollar amount, and it's also gonna be a 30-year loan for many people. So they really tend to be a little more conservative with the score. So if you have a small collection account, for example, maybe you had a cell phone bill that you disputed your final monthly payment. And you said, Hey, Verizon, I'm not gonna pay you guys. Even though it's only 100 bucks, I'm just gonna let it go to collections. I'm just not gonna pay it on a FICO eight, that may not even show up on your credit report. But on the mortgage credit report, it typically does. Again, not a huge deal. And again, depending on the dollar amount, how long ago it is, it may not have an impact, but it could impact your score negatively on those. So it's just another good reason to go and actually pull the credit report, 'cause when you pull that free credit report, it's typically not giving you any scoring model, it's just showing everything that's out there on your credit report. So I see here too, there is a question does this stuff come up on the... Okay, I did answer the question. This stuff does come up on the credit reports that you request for free. Again, just to reiterate the credit reports you get for free, they don't have a score associated with them. But it does show everything that's reported by that credit bureau. So again, depending on the model, some models may take everything that's on that report, some models may discount collections that are less than $500. Some may discount collections all together. But again, that's why I recommend that you get that credit report, that three credit report every year, just so you can see what's on there. And sometimes again, too, sometimes erroneous information can be placed on your credit report, and it's not yours. You wanna try as much as possible to get those items cleaned up with those bureaus, ahead of applying for any type of loan, whether it's a mortgage or a car loan or credit card. Okay, so let's get into more of the information on the mortgage basis. Excuse me. The American dream. Why is it so great? Number one is you build equity. Equity is the current value of your own minus what you owe on that home. So if you're renting right now the person that you are building equity for, is your landlord, not yourself. So that's a real kind of a big reason why a lot of people want to buy a home because they wanna be able to build equity for themselves. It's one of the best ways historically to build wealth in the United States is through real estate. Additionally, you can also get a tax deduction on the portion of the interest you pay, and on the real estate taxes that you pay. We always advise that you talk to your tax preparer or tax advisor to get the specifics on that. But that's another thing that's really nice in terms of that deduction. Or you can maybe withhold a little less on your payroll. So you have more take home money to pay for other things. What is a mortgage exactly? A mortgage is a large secured loan that's used to purchase a home. So it's just mortgage is a fancy word for home loan. A mortgage or promissory notes is the document that has the promise to repay the loan. It shows the terms and conditions of that loan, which would be the interest rate and how long the loan is. It also gives you details about the monthly payment. And then finally, a deed of trust is what pledges your home and security for the loan. So when you purchase a home, the lender will record a deed of trust with the county against your property. Similar if you've purchased a car before, and you've borrowed money to have the car and the lender holds your pink slip or your title, the deed of trust is essentially just the title to your home. Works the same way. As soon as that's paid off, the title gets released, and you own that property free and clear. So things you wanna do before you apply for a loan. Number one, you wanna check your own credit. We've talked about that already. In the queue there's a question here too about credit reports. And if there's any negative information on the report? How long do you have to get it cleared up? It really just depends on how long it takes the credit bureau to respond. There are laws in place that say when you file a dispute, both the bureau and the original creditor have to respond, I believe within 30 days, certainly within 45 days, but probably within 30 days to either report back that the data is valid, or they made a mistake, or something in between those two extremes. So sometimes it gets cleared up very quickly, sometimes it can take a little bit longer and maybe it could take up to two months, it's the initial response doesn't match up with what you have. You can follow up on the dispute or things like that. But again, if there's something negative on the record that doesn't belong to you, I'd started working on it right away. 'Cause a lot of times if you're in the process of getting cleared up, you can still start the loan application processes on it gets cleared up, and or it may again may not impact your actual loan that much. Again, if it's something that doesn't belong to you, it could impact your score. If you haven't cleared up beforehand, it's easier if you cleared up during the process that sometimes delays the loan slightly. So again, before you're applying for loan, you're checking your own credit, you're correcting any inaccuracy. You wanna research mortgages. And that's part of why you're here at this webinar today, you wanna compare the interest rates and then get your pay stubs and your W-2 forms together, because these are things you're gonna need to provide to your lender, as well as collect bank statements and tax returns. The reason why you wanna get your pay stubs and W-2 together is obviously we need to be able to show that you can pay the lender back. So you'll be able to show this through your pay stubs and your W-2. but bank statements and tax returns. Bank statements are important because you wanna find out where's the source of your down payment gonna be and do you have it already? Tax returns are more important. If you're gonna be reporting income, that isn't reported on a pay stub or a W-2, so if you run a business, for example, or if you get paid through... You're an independent contractor, and you get paid through 1099. This is when we're gonna ask for tax returns. Or if you own a rental property already, and you wanna buy another property for yourself, whether it's for another investment or for first time for yourself, the tax returns will need to show that rental income. So take some mortgages that are available in the marketplace. Obviously, there's two main types, fixed rate and adjustable rate mortgages. And those two terms pretty much explain what it is. A fixed rate mortgage will give you the same interest rate throughout the life of the loan. The monthly payments typically don't change. And I say typically don't change the payment for the principal and interest will not change on a fixed rate mortgage. If you have your taxes and insurance impounded as part of your payment, and I'll go over that a little more detail on a future slide, your payments could change once a year, but that's just because your property taxes insurance typically goes up every year. And then your term your loan on a fixed rate mortgage is also gonna be fixed. The 15-year loan and the 30-year loan is the most common but when you usually see rates advertised on TV or hear it on the radio, you're typically gonna hear the rate for a 15-year loan or a 30-year loan. 30-year loan the rates are a little bit higher than a 16-year loan because it's a longer term. But your monthly payments are typically gonna be lowered because they're spread out over time. Adjustable rate mortgages are just that the rate can adjust. The interest rate is usually fixed for an initial period of time, which is called the initial interest rate period. And after that period of time the interest rate can go up or down depending on where the national interest rates are and what floor you may have on that interest rate floor you may have on that loan. But those adjustable rate mortgages typically are lower to start, and can help borrowers qualify for a little bit more. And they also typically have a cap on how high the interest rates can go, both at every time that it can be adjusted as well as the lifetime cap. And we'll get into a little more details on that in the future slides as well. But if you're interested in an ARM, you have to make sure to ask your lender, how long does that initial interest rate apply for? How high can the interest rate go? Does the loan have a minimum interest rate or a floor rate? And what is the maximum amount you could pay because we wanna get that information because that'll help you compare, if you're looking at ARMs, compare one ARM to another. So again, different terms about a mortgage is the principal is the original loan amount. Interest is the fee that you paid to the lender to borrow that original loan amount, to borrow that money. The term is the length of the loan as a period in time, so a 30-year loan with the 30-year term. An impound account is something that we can open as a lender, where we hold the money for your taxes and insurance. Some borrowers wanna just pay their monthly principal and interest only, and then pay their property taxes and insurance when those bills come due. Insurance bill typically is for 12 months. And then property taxes are due two times a year. They're due November 10th, and they become late on December 10th. And then the second installment is due on February 1st, so it doesn't become late until April 10th. So most people will pay their property taxes on or before December 10th and on and before April 10th of the following year, 'cause property tax years typically run from July 1st to June 30th. So people that are really good at budgeting, and are really good at saving and setting that money aside, a lot of times they don't wanna open the impound account. Other borrowers or whether they're good at budgeting or not, just want the convenience of, hey, I'm gonna make one payment a month, that is gonna include my principal and interest that's due every month and a portion of the taxes insurance that's during the month. And I'm gonna let the lender worry about paying those taxes and insurance when they're due. And so that's what an impound account is for. And that's where I said on a fixed rate loan, your monthly principal and interest portion of your payment will never change over the life of that loan on a fixed rate loan. But the impound amount portion could go up, because property taxes, at least in California typically, will go up at least 2% of the year. And homeowners insurance typically goes up every year as well, just as those of us with cars know, things like auto insurance continues to get more and more expensive every year. And then again, the last term of the mortgage is equity. It's the amount of principal that you've paid, it's portion of the home that you own. So it's not only the principal you're paid, but it's also The amount that you put as a down payment. Any questions so far on mortgage terms or any of the other stuff I've covered so far? Again, if you do, you can send those questions or add them to the comment feature or the chat feature. Okay, we'll keep going. As far as mortgage terms go, the number one thing you typically hear is what's your LTV? Which is the short way of saying loan to value or your loan to value ratio and the loan to value is the ratio that determines or shows how much your down payment is or what's your initial equity portion of the purchases. So in a sense, if you have an 80% loan to value that means you put 20% of the purchase price down as your down payment. Some of the first time homebuyer loans that we have and other lenders have, allow a 95% or even 97% loan to value. So this means you can get into home for as little as 3% or 5% down payment. And so that's usually one of the biggest questions that comes up in the seminar. And just in general from first time homebuyers is how much do you have to have as a down payment. So typically, you can get into a home with as little as 3% down. But the less you put down, there is more what's called Private Mortgage Insurance that's gonna be required and we'll cover that on a future slide as well. That's an additional payment, but that Private Mortgage Insurance could go away, once your loan to value gets 80%. Another term that's shown here is points. Points include what's called an origination fee, a loan origination fee. And then discount points are what you can pay, if you wanna get a lower interest rate. So if you hear on the radio for example, someone quoting a loan 30-year fixed rate, for 3.25%, no points. When they're saying no points are talking about the discount points for the interest rate. But if you were to pay maybe a half a point, which is a half of 1% of the loan amount, you may be able to lower that same 3.25% to 3.125%, or maybe even 3%. So that's what a discount point is. So if you pay a discount point, that will lower your interest rate and lowers your monthly payments. And then finally, the annual percentage rate or APR. This is probably the most important rate that you need to know when you're comparing loan programs. Because this really reflects the total cost of the loan. It includes the interest, plus the loan fee, plus any Private Mortgage Insurance you may have to pay for if you have less than 20% down and the points, and really the APR is a good way to compare all the options because it includes all fees. A lot of times people get enamored by the rates. So someone may offer you a rate as low as two and a half percent, and I may be offering a rate of 3%, but if a loan with two and a half percent has an APR of three and a half percent, and my loan with 3% as an APR of 3.25%, my loan at 3.25% APR is the better deal because the total costs and fees and lifetime costs over the loan, is gonna be less than the loan that has the 2.5% rates and the 3.5% APR. So again, APR, you can get that when you get a loan estimate from the borrower from your lender, excuse me. And it is the best way to really compare loan programs between lenders or even looking at different loan programs offered at the same lender. So I did see a question here that someone was asking is, what is the recommended LTV or loan to value? So you're gonna get your best rates, and it'll be easier to qualify, the more you put down. So an 80% loan to value is sort of the... That's where you're gonna get your best pricing on the loan in terms of the rates. The less you put down, you can still qualify, but your rates will get a little bit higher 'cause that loan becomes a little bit riskier to the lender, the less down payment that's available. The Private Mortgage Insurance that I talked about, which we're gonna cover on the next slide, does help ensure that lender against any type of default, and that helps mitigate some of the increase in the interest rate. But again, if you can put 20% down or even more down, that's how you're gonna get your best rates possible. But again, it's really whatever you're comfortable paying, whatever you've saved up, if that's only 3% now or 5% now 10% now, it doesn't really matter as long as we can get you qualified for the loan. But again, obviously the more down payment you put down, the lower your loan payment is gonna be. So hopefully I answered that question adequately. So again, moving on to some other mortgage terms. Again, we have insurance, the two primary ones that you may be required to have, the one that you're always required to have is hazard insurance. And that's just your typical homeowner's insurance that'll cover things like fire, or a tree crashing through your roof or someone driving a car through your house, which hopefully won't happen to you ever. But I just saw on TV this morning, someone drove a car through a business. And so it does happen occasionally. And that's what your hazard insurance is there to protect you against. The Private Mortgage Insurance again, or the PMI, that's something your lender is gonna require if you put less than 20% down. And that's just an insurance policy in place that for some strange reason, the borrower defaulted on the loan and they didn't have that 20% down payment, initially, the Private Mortgage Insurance protects the lender against the potential loss if they have to foreclose on the property and resell it at a later date. And so, pretty much every lender requires it, you will see some loans that say up to 85 or 90% loan to value with no PMI. Trust me, there's actually PMI on that loan, they typically just build the cost of that mortgage insurance into the interest rate they charge you for that loan. So just again, that's where the APR comes into play. You do wanna see what the APR is on the loan, because, yes, you may not have to pay for private mortgage insurance out of pocket or in a monthly payment, but it's somehow built into the cost of the loan through the rate that they offer you or maybe through some of the other the origination points you may pay. And again that private mortgage insurance, if you have a conventional loan which is what most lenders offer, Private Mortgage Insurance will drop off automatically once the loan to value gets below 80%. If you have an FHA loan, and again FHA loan is just a different type of loan, they typically offer Private Mortgage Insurance. An FHA loan, the only way you can get rid of the Private Mortgage Insurance is if you refinance that loan later on when the loan to value is lower than 80%. Or you refinance it with a conventional loan that doesn't require a PMI. But it is something that's out there, the FHA loans are good again, because they have some programs that will help some of the more credit challenged borrowers that a conventional loan may not be able to. But again, that is one of the things with an FHA loan is that PMI stays with that loan for life until that loan is refinanced or paid off. So then the other things that you'll hear is qualifying ratios or debt to income ratios, or you'll hear a lender often talk about a DTI. Again, DTI stands for Debt-to-Income ratio. And that's the ratio that is used by the lenders to determine how much you can afford. And we're gonna go in detail how those get calculated on future slides here. But yeah, if someone starts throwing around DTI at you that just again is the ratio of how much you owe, divided by how much you earn in terms of your monthly payments. So again, speaking of monthly payments, your monthly payment is also here lenders talking about your PITIA. So P is for the principal portion of your payment, that's the dollar amount that you're paying back that you've borrowed. I for the interest. T is for the property taxes. The second is for any other additional insurance that's required whether an homeowners insurance is always gonna be required by your lender, if your property that you're buying is in a flood zone. Flood insurance is also required. And then again, if your initial loan to value is greater than 80%, or you put less than 20% down, and Private Mortgage Insurance is required for the loan. And then the aid does not always apply, but if you're buying in a location that has a homeowner's association, which is typically a condominium complex or townhome complex for the property you're buying, even if it's a single family home, but it's in a gated community, there's typically gonna be homeowners association dues. And those dues cover things like those security dates, the roads and streets within those complexes. If you're in a condo, or townhome complex, it typically covers the clubhouse, if they have one or a pool, if they have one, as well as all of the exterior Maintenance and grounds are typically covered by the homeowners association dues. Again, so PITIA is important because that's how we're gonna determine qualifying ratios what those numbers are. And again, this is on your monthly basis. So it's the monthly principal portion, the monthly interest, the monthly taxes, monthly insurance and the monthly homeowners association dues. So moving on to the qualifying ratios, excuse me. The front-end ratio, also known as the housing ratio, is the percentage of income that a lender is gonna allow you to spend on your house payment. So this ratio is determined by taking the PITIA and dividing it by your gross monthly income. So again, I wanna clarify that again, it's your gross monthly income. So this is the amount that you get paid on your paycheck whether it's bi-weekly or semi-monthly or monthly, before they take out taxes 401k or any type of retirement money, your health insurance, any other deductions that may come out of your payroll, It's the gross numbers, that top number before that comes out. Now, if you're a business owner, or you're getting most of your income from a business or your independent contractor, it's a little bit different for you. It's not gonna go out but just the gross sales, they will adjust for expenses, but they do add back any non-cash expenses like depreciation or amortization. But again, most people that are what we call W-2 borrowers, they get a regular paycheck, they get a W-2 at the end of the year, it's gonna be that gross income calculated monthly, is the denominator or the numerator, I never can get that right either but it's the PITIA divided by the gross monthly income. Usually that ratio, you wanted to have that in between 26 and 33% of your monthly income. We can go higher if your credit score is better, and you have good re-additional resources, good assets, and or you're putting more money down, a lot of times you can see that ratio go even up towards 40, even 43%, in some cases. The back-end ratio is the percentage of the income the lender allows you to spend on your total debt. So this would be your PITIA plus any other monthly bills you have as far as debts goes. So that's gonna be your auto loan payments, your student loan payments, the minimum payment due on your credit cards that have balances. Those combined into one monthly payment divided by your gross monthly income. That's gonna be what's called the back-end ratio, or your total Debt-to-Income ratio, and that's usually in the range of 31 to 43%. Again, in several cases, we can go as high as 50% on that back-end ratio, and depending on how much down payment there is, what are the type of assets you may have, what your credit score looks like. All those other things come into play, what kinda credit history you have, how long you've had credit, all those things come into play as well. So again, that's why it's important to get a handle on what your other debts are. Because even if you have enough to afford the housing payment, if you have a lot of other debts as well, it could create a potential roadblock, but usually things we can work through. Alright, any questions about the qualifying ratios or the PITIA or how any of that's calculated? 'Cause this is an area too where we typically get some questions. Again, if you wanna wait till the end, we can do that as well. Okay, let's keep moving on. As far as qualifying for a loan again, you wanna know what your income is. Again, you wanna know what that gross income is? Your employment history. Typically lenders wanna see two years in employment in the same job or in the same field of work? And two years... So like the most recent 24 months. We also wanna know what your debts are. Again, that they're gonna get most of that information from the credit report. But again, knowing what your debts are, whether you have student loan payments, auto loan payments, minimum credit card payments, that's important, what other assets you have, and those are things that you own. So this is things like your checking or savings account balances. If you have a certificate of deposit, if you have any type of investment accounts, whether it's a retirement fund like 401k at work, or if you have an IRA, or if you happen to dabble in the stock market and you have an investment account with the Credit Union of Southern California Investment Services, or SCHWAB or one of those kind of places, those are also considered assets. Obviously, your credit history and your credit score and last the most important is the value in the type of property you wanna buy. So what's the purchase price we're looking for? What type of property you wanna buy? 'Cause again, the type of property and the value is gonna affect, again what your loan to value might be. And the type of property is also important because a single family home is gonna get you the best rates. But in some cases, if you buy a condo or a townhome, and it's less money down, your rate can be a little bit higher, because those sometimes are a little bit more risky to the borrower. To the lender, again, excuse me. So the next thing that would happen once you gather all those things together, you want a pre-qualification to just when you go over the numbers to see how much you qualify for. So you're just having a conversation with a lending officer, you tell them hey, I make $5,000 a month gross. And I have a $350 student loan payment. I don't have any auto loans, I have about $50 in monthly minimum payments due on my credit cards. And so that's how they would figure out how your ratios are just in a conversation. And so that we can say, hey, based on what you're telling me, I can pre-qualify you for X dollars in terms of a purchase, assuming you're putting 10% down or 3% down or whatever that is. And at that point, you're pre-qualified. Pre-qualification is good. It's not as important or it doesn't carry as much weight as a pre-approval letter does. If you were going in to purchase a home and you're working with a realtor, and you're gonna make an offer and you've only been pre-qualified and you're competing offer from another buyer, they've been pre-approved. The seller is gonna like that pre-approval a lot better than the pre-qualification. And here's the reasons why. 'Cause when you do a pre-approval, you've actually given us your documents. And you provided us with your income information, which is your W-2s, and your two most recent pay stubs. You provided us with your asset information, which is your banking statements, your credit union statements, showing your checking balances, your savings account balances, your CVs, if you have them. You're also giving us copies of your IRA statements or your 401k statements. You're also giving us your employment history through the application. Some of that is obviously determined by the W-2 and the pesos that you give it as your most current. But if you change jobs recently, your applications also gonna show the previous employer you're at and again, that's what we need to show, that two years of consistency, with the employment history. And then you wanna provide the actual value of the property that you wanna purchase and typically on pre-approvals. A lot of times we give them for dollar amount up to a specific level. If you can purchase alone, a property up to $500,000 with a loan of $450,000, just as an example. And then we will actually pull your credit at that point. So we can validate that what you're telling us in terms of what your monthly auto loan payment is and what your monthly minimums are. And we also get your credit scores at that point. So we can give you a rate that you're gonna qualify for that's in effect at the time you pre-approved. All these things go into... And I will allow us to write a letter that says, hey, seller, we have gone through your buyer that is presenting you with this offer. They've given us all the information we need, we have vetted that information. And we are saying that the information is good and they're ready to go, they can buy you a house. And that's why the pre-approval letter is so important. Any questions about difference between pre-qualification or pre-approval or any of the other items I've covered so far? Okay, again, you can certainly ask questions at the end. Please remember to use the chat box at the bottom of your screen. So now we're gonna show you a couple of mortgage costs in an example, using certain assumptions, we're using different interest rates. The first interest rate is a lot higher than where rates are now. But it will give you an idea how the lower rates, and again, this sort of goes through with the credit score, the better your credit score, the lower rate you qualify for. How much of a difference it makes in your purchasing power. So here's an example of mortgage cost. The first example is we're assuming here that the interest rate is 5%. And rates haven't been at 5% in some time, but back before the great recession started in 2008, back then, interest rates were closer to six, six and a half percent. So it's not unheard of. But there aren't a whole lot of loans, right now they have an interest rate of 5%. But for example, if you had a 5% mortgage interest rate with a 30-year term, and a 33% front-end ratio, again 33% front-end ratio, that's your principal and your PITIA, your principal interest, taxes, insurance and association dues, if any, divided by your gross monthly income that comes out to 33%. With an annual income of 60,000. Again, that's the gross income for the year, you'd be able to afford a loan of 192,650. But if your annual income was 100,000, again, this is combined income of all the borrowers that are purchasing this property. You're at $100,000, your maximum monthly mortgage payment could be 2768, you'd be able to have a loan of 385,300. And if your annual income was 200,000, you'd be able to have them monthly payment of 5,536. You can have a loan up to 770,500. But if you now look at example two, again, all we're doing here is changing that interest rate down to 4%. The amount that you have monthly payment, you can have stays the same. But the amount of loan you can have, the amount of your purchasing power goes up. So for $50,000 loan, that first payment, the first loan was 190, sorry, $50,000 income. And the first example, the loan amount was 192 and change that goes up to 210. At $100,000 in annual income it goes up to 420 and 200,000 in annual income, it goes all the way up to 840,000, when the interest rates at 4%. So you can see just a 1% change in the interest rate that you qualify for, can make a significant impact on how much you can borrow. And then the final example here, example three is where the interest rates are 3%. And this is a lot closer to where mortgage rates are today, we're quoting 3% more interest rates regularly, over the last couple of weeks. Sometimes they can be a little bit higher, but it just kinda gives you again an idea of at the $50,000 annual income. Now the loan amount you can afford jumps up to 230. At 100,000, that loan amount, jumps up to 458,800. And at 200,000 jumps all the way up to $917,600, which is significant. And again, this is at a 33% front-end ratio, which is the rule of thumb, but in some cases, it can go even higher than that and you could potentially qualify for more. But that's why you wanna have a conversation with a loan officer at least do a pre-qualification and get you an idea where you might be. So hopefully those examples drive home. What an impact the interest rate that you have on how much you can borrow. That's why these low rates that we're experiencing right now, are so great for people that are trying to buy a home. Because it really does give them a lot more purchasing power. So moving on, again, the big question that you need to ask yourself, again, how much house can I get? And that'll be determined by how much cash you have available for a down payment, and how much can a credit union lend you. And that's, again, you can go to the pre-qualification process, could do that, at least get the base idea and then go to the pre-approval once you're ready to buy. But the more importantly, and this one, I stress a lot with people, it's how much can you afford? Even if we can qualify you for that loan up to $917,000. If you don't feel comfortable having a loan at large, I wouldn't recommend getting that loan. Just because you can afford it, doesn't mean you should spend it all the time. So I know that's hard to do sometimes, especially in California real estate market because things are very expensive here. And a lot of times, how much can you afford? I personally when I bought my first home, I stretched, I was uncomfortable, I was worried. But it's one of the best things I did. And I agonized and didn't do it. And I waited and waited years and years to do it. When I finally did it now, I've been a homeowner for several years now. And it's one of the best things I could have done. So I see we did have another question here is there a fee for applying for the pre-qualification process? There is no pre-qualification. Again, we're not running credit or doing anything. There's no fee for that, the conversation is free. Even the pre-approval process, even when we run your credit, we don't charge anything for doing the pre-approval. The only time where we start to collect any type of fees is once you're actually under contract to purchase a home. And even then the only fee we typically collect upfront is for the appraisal of the property. Any other fees that are involved are handled at the closing of the loan. So again, pre-qualification is free, even the pre-approval is free. There's no charge for that. We see another question here, what are the real estate taxes? So real estate taxes typically a good rule of thumb in California. If you wanna sort of get an idea what the real estate taxes are gonna cost, is to take the purchase price of the home, and multiply it by 1.25%. That's typically the highest amount you'll see in most places. For example, in LA County, 1.25% is fairly accurate to the purchase price as to what the property taxes will ultimately be. In Orange County, a lot of times it's a little bit lower. It can be 1.1% or 1.15%, just depending on what part of Orange County you're in. Also, one thing you need to look out for when you're purchasing homes, especially in some of the newer areas. They have what's called Mello-Roos bonds, which are paid for through your property taxes and sometimes could make the property taxes a little bit higher. You don't see them as much anymore. But for a while there are pretty much every new development had them because it was a way for the counties to pay for infrastructure, things like sewers, and water and gas supply lines and fire stations and parks and things like that. So yeah, hopefully that answers the question about what are the real estate taxes. Again, take whatever the purchase prices of the home and multiply it by 1.25% that'll give you your annual, typically give you a good estimate of what your annual property taxes are gonna be. Okay. How long as the pre-approval letter valid? Is another question that just came in. We typically will make them valid for 60 days. In some cases, we'll make them even up to 90 days. But we will also refresh that pre-approval letter, if it's expired, and you haven't found a property to purchase yet, we typically will refresh letter for you at no cost. Let me see, one of the things that I wanna share with you as well. One thing that we do have here at Credit Union of Southern California is our home rewards program. This program allows you to save thousands on your home purchase. And what it is that if you sign up for the home rewards program, and there's no cost to do so, you automatically get instant access to the complete Multiple Listing Service also known as the MLS, of all the offerings, which basically typically every listing of a property for sale in California. And you can customize and you get access to this, and you can also set up search criteria that you can customize by property type, by the location, or the number of bedrooms and bathrooms and more. So you can say for example, I only wanna look at condominiums that have a minimum of two bedrooms. I don't necessarily care about the number of bathrooms, but I only want wanna look in Huntington Beach, Newport Beach, Seal Beach and Sunset Beach. And when you put those parameters in, anytime a property that comes up that meets that criteria, you would get a regular email and or text alert for when those properties come up as new listings or if there's been any price changes on those properties. It's a really cool thing. Even if you're not really ready to buy a house yet, but just kinda wanna get an idea of what's out there, I would recommend signing up for it. We don't bombard you with phone calls or anything like that. The emails obviously will come in daily, but if that comes into frequently, I believe you can adjust the frequency with which you get updates. But it is a pretty cool thing. I mean, I'm not in the market for a home right now, but I signed up for a regular email for any three bedroom, two bath houses in Whittier. And so all the Whittier ZIP codes are covered, you can narrow down by zip code, you can do it by city, you can do it by county, you can do it by region. It is really nice. So it sort of saves you the trouble of having to go to zillow.com, and realtor.com or Trulia or Redfin, and be looking at all those different sites 'cause those sites, some realtors may only post on Zillow or mainly post on realtor, but they all post on the multiple listing service. And so the multiple listing service platform that we have access to, really is gonna get you the most properties available in a particular area. A realtor will reach out to you and a loan officer typically reach out to you when you initially sign up, just to kinda get a feel for where you are and how quickly you wanna move forward with the process. And you let them know how often you wanna be contacted or if you just wanna be left alone and just look at stuff as it comes through. When you do sign up, we do assign you with an expert real estate agent that specializes in the area that you prefer in terms of your home search. And again, that's because we wanna provide experts that understand the market and know the nuances and they also have relationships in those markets that may be able to help get your offer accepted over an agent that's from outside the area and presenting the offer to a seller. And additionally, one of the greatest things, and again, this is where you can save thousands on your home purchase, is you can receive a rebate of up to 20% of your agent's commission, as long as you're using an agent in this program upon completion of the sale. So that could be thousands of dollars, depending on the purchase price of the home. And those thousands of dollars, if it's your first home could go towards paying for closing costs, it could go towards helping you buy your first set of furniture for the new property or the new cans of paint for the paint color you wanna change it to once you buy it. So it is a really cool program. You can sign up for free at cusocalhomerewards.com. And so again, that's available to anybody. You don't even have to be a member of the credit union to be able to sign up for it. But you wouldn't have to be a member of the credit union to get the rebate program, once you do purchase that property. So again, that's an excellent feature that we have available to us and again, a great way to save thousands on your home purchase. Alright, so that brings us to our final slide, which second last slide, which is, do you have any questions? Additional questions that I can answer? Again, if you do so that you can ask through the chatbox here. Okay, so, here's a good question. This is one we typically see with a lot of first time homebuyers as well. If there's significant loan debt, student loan debt, which could make the debt income ratio pretty high, but you're on an income-based repayment plan. So again, we use the income that we use the monthly payment on an income based plan to help determine what that loan devaluation, excuse me the debt income ratio is gonna be. So if you're on an income-based repayment plan, they typically those plans have lower payments, and they actually will help you qualify more easily than if you're doing just the traditional payback on the student loans. And then as far as how closing costs are calculated, there's another question that's coming up. Closing costs are usually determined by the purchase price for the property and the loan amount. So things that you're gonna see in your closing cost for purchase or your escrow fees. And the escrow company is usually chosen by the seller. And they're sort of a third party intermediary that they'll take the initial deposit. When you make your down payment, you typically have to do some money upfront, it's called an earnest money deposit. It's typically 3% or less of the purchase price, or 3% or less of the down payment amount that you're making. And then you make that deposit but you put it into escrow, so you're not just giving it directly to the seller, it goes into escrow and the escrow company holds that. And by holding that money, it does a couple of things. They wanna make sure that the seller does what they need to do, but it also makes sure that the buyer does what they need to do. Now your earnest money deposit, you can typically get that back as long as you're meeting what's your contingencies are on your purchase. And the contingencies are things like your contingencies to have an inspection, they'll have a contingency to have your appraisal completed, you'll have an contingency to have your loan approval. Because even when you have a pre-approval on a loan, you need to get a specific final approval on your property purchase, once the property has been identified, typically the pre-approval letter, you're gonna use that pre-approval letter for multiple properties but the final approval is specific to your property that you ultimately purchase. So the escrow company holds that money in escrow the earnest money in escrow and if you decide to back out like, hey, I got the inspection and we found there's a bunch of termites are there's a bunch of electrical work that needs to be done and we just don't wannna do that. You can back out at no cost to you at that point, and you get your earnest money back. So there's fees for that escrow. And so that'll show up in your closing costs of the appraisal is a closing cost item. The origination fee is closing costs, we have flat origination fee of $995. But again, nothing gets paid on that until the loan is done. Title Insurance is another thing that you'll see. There's two types of title insurance. There's a lenders policy which a lender is always gonna require. And the title insurance basically just says, we research you as the buyer, and we also research the seller that the seller has the authority to actually sell the property to you and transfer title and that you are who you say you are on the buyer side. So if you say that you're Tim McAdam, that you really are Tim McAdam, and not somebody impersonating Tim McAdam. And so that's the title insurance. So the lender side, we'll cover that. And a lot of times on a purchase, you'll get an owner's policy that either you'll pay for, or sometimes the seller will pay for in your behalf. And that's again, and insurers you as the buyer that the seller is who they say they are, no one can come back later and say, hey, they didn't have the right to sell that property. And that property really belongs to me. If that were in fact true, but you had that in title insurance policy, the title insurance will pay you back the money for buying that house, saying the person actually was able to retain title. Those have that happens very, very, very, very rarely. But that's why you have title insurance in place to cover against that. So those are the primary things that you're gonna see in closing costs. Other things are smaller will be like your credit reports, the cost of flood insurance, monitoring, and also the property tax monitoring 'cause the lender does wanna make sure that if the flood maps change, if your property does become in a flood zone, you have to get flood insurance for it or if you were in a flood zone and because they built the dam or built the walls on the flood control channels higher, maybe you're not in a flood zone anymore, then your flood insurance can go away. Okay, a couple other questions here. I can apply for a loan in Los Angeles County to purchase a home that's in San Diego County? Yeah, you can pretty much apply in any county to purchase a home that's in another county. But if you just need to make sure at least with us, you have to be an existing member or be able to qualify for membership. But where you actually apply for the loan doesn't necessarily matter. In terms of how much time it usually takes from the time your offer's accepted and you're able to move in. That's part of the escrow process, as well. So when you make your offer on a home, and it gets accepted, you'll hear people say, okay, we need to get escrow open. We talked about the escrow fees earlier and what an escrow company does. Escrow will have a time period. So your escrow period may be 30 days and maybe 45 days, it could be 60 days. That all depends on your negotiations between you and the seller. Sometimes the seller wants to get the property sold that they need to find another property themselves, but they'll make a contingent on them, hitting that other property. Or they'll say, hey, I'm gonna need a 60-day escrow because once I know that my property is sold, I need to go find something else or my kids aren't gonna finish school for 45 days. And so I'm gonna do 60 days so they can finish school and then I then I can pack up and move out. And so it really depends on your negotiations with the buyer in terms of how long it's gonna be. There's no typical time. A common number though, is 30 days. More than likely now you're gonna see 45 days. But again, it depends to how quickly the seller needs to move. Sometimes they wanted even shorter timeframe. But you typically wanna try and get as much time as you can. Just to make sure you have enough time to get all of your inspections done, get your appraisal done, and get the loan approved. Okay. Now there's a question here about like when people have had a credit freeze, because they've had identity theft or something like that, and in the pre-approval stage, will they work with you on that? Yeah, absolutely. Because in order for us to give you a pre-approval, we have to run your credit. But we work with these type of situations all the time where there's neither been a fraud alert placed on the credit recorder or it's actually been frozen. It's okay, we can do that. When we do the initial pool, we get notified that there's a freeze and then we let the borrower know that they need to release that freeze so that we can get the credit information. And then as soon as we're done, we let the borrower know so they can place the freeze back on the credit report. So that's something that's very easy for us to do. It typically takes, 24 to 48 hours for it to happen, just depending on how quickly you're able to notify the credit bureaus to release the freeze. But it is something we can do and we can certainly work with you in that situation. And that happens quite a bit nowadays. Because, unfortunately, people have been subject to identity theft. And so one of the best ways to prevent that in the future is if you're not actively out looking for credit, is to put a freeze on your credit report. But you just have to be aware of that you are ready to apply for credit. You either need to unfreeze it before you go do it. Or when you do it will get notified as a freeze. And then we need to release it so that we can pull all the information on the credit score. In terms of how a bankruptcy may affect an ability to get a home loan. As long as your bankruptcy is at least four years in the past, it will not affect and it's been discharged or dismissed four years in the past. It does not affect your ability to get a home loan. In terms of waiting after you've had a bankruptcy in terms of buying a home. Again, best cases is you probably wanna wait and have the bankruptcy at least four years in the past. Unless of course, if there was an extenuating circumstance, it can be as little as two years. An extenuating circumstance will be you lost your job because you had made major medical emergency and you couldn't work because you're in the hospital or in recovery from the hospital and you didn't have income from your job to pay your debts and that's why you had to declare bankruptcy. That's one example of extenuating circumstances that we can look at. We have to have a lot of documentation to be able to show that it's an extenuating circumstance to have a bankruptcy be considered or loan be considered. If the bankruptcy is only two years old, it has to be an extenuating circumstance that we have to have a documented but if the bankruptcy has already been dismissed or discharged at least four years ago, you can go ahead and apply right now. Okay, we're again close to the end of our allotted time here. So are there any other questions or things that we can answer for you? If so, you can put them in the chat. And if not, I will go ahead and advance our final slide too. We do have several of our experienced loan officers available to answer questions and help you through the process. So you can reach them by using the toll free number that's listed there on your screen 800-698-7196. You can also email us at info@CUSoCal.org or go to our website CuSoCal.org and go to the borrow page and click on home loans. And there's a lot of additional information there as well as an application. You can apply to do a pre-approval online as well. So there is another question here. Any exceptions can be a first time homebuyer, for instance, I was on a mortgage when I was younger. A definition for us for a first time homebuyer just means you have not been not owning the property in the last three years. So even if you've owned property in the past, whether it's with a co-borrower or you had one before and then you sold it to travel the world and then now you're back and you wanna put roots down again. As long as you haven't owned a home or a property in the last three years you are considered a first time buyer. And then as far as seeing the listings, you can see the listings at any time. Even if you don't have the down payment ready or even the closing costs ready, you can look at listings anytime you want. But if you're ready to buy, you really should have your down payment ready and as much as the closing cost ready as possible. But as far as looking at listings, you can look at listings anytime you want, there's no charge for it. It's free. And again, like I said, I'm not even in the market for a home right now, but I'm looking at listings just 'cause you never know what might happen. Or I may see that house and say, hey, that's the one. And I'll sell the house I'm in to move into that one. Who knows. But again, you can look at those anytime. So with that, I think we're at the end of our time here today. So again, I appreciate everyone for joining us today. Again, if you have any questions, please call or email us. Again, info@CUSoCal.org is the best way. And I think I'll turn it over to Melissa to see if there's anything else for her to add, at the end here.
- Wonderful. Thank you so much, Tim. Wow, this was a lot of great information.