The Jon Sanchez Show
07/02-How to understand your real estate contract
(upbeat music) - Okay, round two. Name something that's not boring. - Laundry, ooh, a book club. Computer Solitaire, huh? (buzzer) - Ah, sorry, we were looking for Chumba Casino. (upbeat music) That's right, ChumbaCasino.com has over 100 casino style games, join today and play for free for your chance to redeem some serious prizes. (upbeat music) ChumbaCasino.com. - No, we're just gonna say it. (upbeat music) - Good Tuesday, Vintigio. Welcome to the John Sanchez Show, a new stock 780KOH. It's a pleasure to be with you and a pleasure to be with my co-hosts around the horn. We shall travel. Dwight Mallard of Guild Mortgage. How are you, my friend? - I'm doing great. John, how are you today? - Good, good. Did you go buy your sparklers? - No. - I'm not letting you get fired. - I got so many, I got so many firecracker war stories. - No, I gotta stay away from, I'll show it to you real quick. My last sparkler story, I had to be about 10 of my sister was eight, we lit it off in our bedroom. Try to put out a sparkler in our bedroom. - Nice, nice, I burned everything. - Oh, they did, they did, yep. So, I stay away from firecracker, stay away. - I think that's a good idea. I think that's a very good idea, I like that. - Yeah. - Go, good story there, go ahead and start the show. Corey Edge of Edge, really, hey, do a mixie. - Kinda doing well, how are you? - Very well, and you and the fireworks, how are we doing on that side of things? - I don't mess with fire, just like in general, but I do watch 'em, but. - Yeah, have a nice cocktail, watch 'em, and there's no problems that way. We keep all of our fears, yeah, I'm with you, 100%. - I'll let them know for an hour. - That's right, that's right, I like that. The reason I don't like 'em is, you're literally just throwing money up and smoke, and you just watch it go up and smoke, that's it. That's not smart financial move there. (laughs) All right, well, speaking of financial moves, let me tell you what we have on the agenda tonight. We're gonna talk about today's session and what a session it was, leading into tomorrow, which what I mean by that is, tomorrow is an abbreviated session. The market will be closing at 10 a.m. We're actually gonna take the evening off, you'll have our best of playing tomorrow night, and then of course, Fourth of July, and then we'll be back with you on Friday Live. But as far as our agenda this evening, you know, one of the largest commitments, of course, that you make when you're buying or selling a home is the real estate contract you are going to sign. And as Corey's gonna explain, nowadays, of course, most of it is done digitally, right? I've shared the story when Corey represented my son buying his first house. We literally were at Tamaraq Junction, sitting down having breakfast at about 10 a.m., and Corey sends the contract over, and my son signs it on his iPhone. I mean, Corey, I'll just never forget that day. I'll just never forget that. That's how simple you make the home buying process. But again, it's a major commitment. Once you sign on the dotted line as the saying goes, you're into it, you're locked in. But this document, of course, what a lot of people don't realize has absolutely stood the test of time. It has some very, very extreme, powerful legal language to protect the seller and to protect the buyer. So no matter what side you're on, that's the reason for the contract. But do you really, really, really understand the components of the contract and what they mean to you? Most likely the answer is no, most of us don't. That's why we need professionals like Corey and Dwight to explain mortgage contracts and real estate contracts, et cetera. So tonight what we're gonna do is we're gonna explain the real estate contract and highlight the areas that you need to thoroughly understand. Because again, it all boils down to what's in the language, understanding it, and most importantly, understanding what you are signing. Corey, real quick, before we get to the stock market side of things, how many people, let's take a poll, a little poll here. Dwight, I'll ask the same thing for you. Let's say you have 10 people signing the real estate contract and then Dwight will do the same on the mortgage side. How many people actually read the contract, Corey? Actually read it. Or do they just go through it quickly, especially now with digital signature? - Ah, you know, it's hard to tell, 'cause I'm not face to face with them in the old days, right? You would sit down at the desk, across from each other, I'd explain to her single paragraph, watch her at initial, do all that stuff. But I can tell you, so when we send out a contract, I get a notice when the person opens the email, so I know they started looking at it, and if I get the signed version back within 60 seconds, clearly they haven't read it. (laughing) If I get it back the next day, then I know they have read it. And I would say probably eight out of 10, get them back to me within 60 seconds. - Okay, there you go, there you go. All right, have you found Corey over the year, since again, you're kind of a dinosaur in this industry, like I am in mine, and Dwight and his, that going back to the old days of the paper contract, that people would take more time to sign it then, because, you know, at least the transactions I did, we always, you know, you would sign it, of course you signed the offer, but you actually signed all the final documents, of course, sitting in front of an escrow officer. Is that still done these days? Were you in front of an escrow officer? - You can do it that way, I would probably not, I don't know what the majority of it is, I would percate a majority of it, it's done digitally, but you can still go do that. - Okay, I'll move on to that then. - You know, you gotta remember too, John, for people that haven't been through this, or been around a long time, when we used to sit in front of each other, and the agent would explain what each paragraph meant, and what the intention was, that not only told the client, but it educated the agent, because we had to read it ahead of time, make sure we understood it. So now, I would be willing to bet that, 80% of the people that are writing and sending the contracts don't even know what the contract means, though. - Right, I was thinking you were gonna say that, yep, okay. My hunch is correct on that one. Oh boy, that's scary, yeah, scary, scary. How powerful are these contracts, Corey? - I mean, it's a legal document, it's a legal contract, so nobody really pays attention to it until there's a squabble over anything, and then it goes back to the terms of the contract, and so, you know, Aaron and I, Aaron's very good at looking at the contracts, because I've worked with him for so many years, and so now we have attendance, we attach to our contracts towards the end, and sometimes they'll call me with a specific problem, and say, here's what's going on, go, great, here's the chapter in attendance, send it out to him, and he'll call me, find it, and say, okay, the other, not our clients, the other person signed it, and I always chuckle like, I can't believe that these people sign these things, it is amazing to me, 'cause nobody reads anything. - No, not at all, not at all, amazing. Dwight, let's throw it over to you. You got 10 people, how many people read it, all the mortgage? - I think it's like Corey, too, you know, and I share all the same thing, there's a lot of mortgage people that don't know what is being sent out, and sometimes it catches me off guard when there's a new form or something inserted in there, it's like, what do you look, and then I have to look at it. But what's interesting versus my conch upfront, you know, we sent it, we call it disclosures now, right, the upfront disclosures, where you actually, you know, basically signing the loan application, and the intent to proceed. We have to have the intent to proceed in order to get the, you know, order the appraisal. The difference is, it really doesn't bind you, right? I mean, there's nothing you're signing that binds you to me. Now, if you do the intent to proceed, and I'm gonna order an appraisal, then we're asking for the appraisal to be, you know, paid upfront, but, you know, unlike a contract, a real estate contract, you just can't walk away. I mean, in a mortgage, and once you understand the rules of engagement, you know, you can, there are people last minute go shop you and leave you, you know, so you've always gotta be on the competitive cutting edge and knowledgeable and watch the market, like, you know, fortunately, you know, us three here do, but, I mean, it's, so it's just not really, and it makes it unfortunate today, because there's, you know, you're really trying to look for the people that have some sort of, you know, commitment, you know, allegiance to you, and things like that, so, yeah, so it's, but that's where the realtor and the lender, you know, that relationship really starts to blossom, 'cause then you understand each other, but, you know, it's, that's why, I mean, it's very important at least for lenders, you know, why you would hold for an ace in your pocket, I don't know, you know, you play all your cards up for them. Here it is, this is my best rate, this is my best, this is what I have, you know, if the market moves, I'll move with you, you know, either way, but, it's amazing, you know, sometimes John, I'll come back, so they go, hey, that doesn't sound right, they'll call me and I'll tell 'em. Well, in and on my rates this today, and they'll go back, oh yeah, and then they'll lower it, and they'll go, okay, why did you do it in the first place? You know, why didn't you give 'em what you could up front, you know, so, it's just an interesting game, but that's, yeah, so it's all, it's all disclosures, and, you know, I think we're now, what, 37, 40 pages, so yeah, do you get it back in less than five minutes, they didn't read anything. - Exactly, exactly, all right, very good. Well, the specifics of what Cori and Dwight are gonna go through are as follow. We're gonna talk about the financing contingency, so now, again, we're gonna get into the components of the contract, the financing contingencies and the different types of financing, the appraisal contingency, the contingency on the sale of another property, something we've spent a lot of time talking about, fixtures versus personal property. Ooh, I've fallen into this one before. Inspection contingency is what happens if, and it always is, what happens if something is found? Additional terms and conditions, the buyer and seller, what happens if they default, and then like Cori said, there's a lot of addendums that can be added as is language, indemnification language, merger, anti-merger, survival language. So it's very in-depth, this is not gonna be a law class by any means, but these are things that we feel that you need to understand before you sign on the dotted line, because again, buying real estate is an emotional decision. I've told you about my stupidity a few times in my life where I've bought things, you just fall in love and you walk into that beautiful model home or that beautiful custom home, and it's like, oh my God, what did I just sign, you know, and yeah, you're locked in, the ball's rolling as the saying goes, so we wanna make sure, we don't wanna take away that fun for you, but we wanna make sure that you understand some of the key components of the real estate contract, again, both on the buying side and on the selling side, so it's gonna be a fascinating topic. In the meantime, let me get to the stock market side of things today. We started off a little bit slow, matter of fact, we were down about 116 points right before the market opened on the Dow Jones Industrial Average Futures. Worst level, we were down 150 this morning. Look like it was gonna be one of these whole hum days, again, market closing early tomorrow, volume very light, so on and so forth. We had no major reports on the calendar, we had interest rates down. It was just kinda all set up to be, like I said, kind of a lackluster summer day, holiday week, but all of a sudden the momentum began to pick up. We started to see Tesla begin to pick up momentum. Tesla, this was a highly anticipated report this morning. Tesla released the number of vehicles that they sold, expectation was about 436,000, they came in slightly above that, 443,990, and the stock took off. $21.40 rise, 10.2% gain on Tesla to 231.26. Apple picked up the momentum, $3.52 gain. Amazon up $2.80, hitting the $200 mark for the first time. Microsoft rise in $2.55. These were the influential winners, and each of those that I just mentioned hit a 52-week high other than Tesla. So, the big cap tech names, that was the catalyst today. It just turned the entire market around, and we finished a white, and what type of territory for the NASDAQ in the S&P? - Another record setting day. - There you go, my friend, nicely done. 163, or excuse me, 162 point gain on the Dow, 0.401%, 39,331, a 149 gain to a record close, a 0.84% on the NASDAQ, closing level 18,028, and the S&P 500 higher by 34 points are 0.62% to close at 55.09 again, as Dwight correctly mentioned, a record close there. When we come back, we'll hit the commodity, the interest rate, mortgage rates, and then get into our topic tonight. The components of a real estate contract. Let's turn it over to Kristin Snow. She's in the right now, traffic center. Hey, Kristin. - Welcome back to the John Sanchez Show, a new stock, 780-kyo. It's with a core edge of its reality, Dwight Mallard of Guild Mortgage. Once again, a 162 gain on the Dow, a record finish of 149 on the NASDAQ, same with the S&P, higher by 34 points to a record finish there. All right, to the commodity side, we finished modestly lower oil prices, down 8/10 of a percent, 82.77 a barrel. Not surprised that we didn't see a run up there. Of course, a lot of driving going on this weekend. Gold was a quiet trade today, a $5.56 loss, finished the day at 2,333.40 an ounce, and Mr. Mallard, a four basis point decline on the 10 year, 444, how do you like that for numbers? 4.44% yield, how did we do on the 30 year mortgage? - Yeah, well, you didn't get a ton of relief, but you got a little, John. You got, we dropped one basis points to 7.13% on the 30 year fixed conventional. I mean, I guess when you look at the mortgage news daily, which is where we get this information, the FHA and VA are sitting in the mid-sixes, so 6.6 on the FHA and VA, the 6.62. So, Jenny May's are trading a little bit better, but I guess we got, John, I wanted to ask your opinion, or question, you know, about Jerome Powell speaking. I think it was today about how he affects inflation, should be two to two and a half. Did you see that by the end of the year? - Yeah, but the kicker was not only does he expect it to remain there, but how long he expects it to remain there. I mean, he mentioned he was speaking with Christine Lagarde of the European Central Bank and a few others during a news conference. And yeah, he just basically said, look it, you know, we're a long ways away from our 2%. Matter of fact, we don't think we're gonna hit our 2%. 2025, maybe 2026. And I went, oh my God, the market's gonna sell off on the news, didn't even budge on it. Matter of fact, it started moving up after that comment. So yeah, that was very, very surprising to white. And again, you know, when the Fed plans on cutting rates, it's the same old thing, you know, just basically looking at the data coming in. And, you know, this is more of the same. But again, I don't know if this market's just getting immune to his negativity as far as when the next rate cuts gonna come, streets still pricing in September. But right now, the Fed futures contract is pricing in two cuts, mostly by the end of the year. Now, 22% chance of further reductions after that. But, you know, it's just, you get comments like that. And that was the first time that, I don't know about you guys, but that's the first time that I have heard him say, yeah, we're not gonna hit the 2% mandate for, you know, two, three years from now. It doesn't surprise me. We said this all along, you know, it's the last mile, sorry to go ahead. - I don't know, I was gonna say to your point, I think the traders investor, they just become numb now to the news, right? It's like, oh, another, you know, and so yeah, I was expecting a different reaction, but yeah. - Were you surprised with the comment, Corey? - No, I kind of watched the whole thing. I mean, of course I was surprised by his timing, but I agree with why that. I think the market's kind of immune to it because what they say and what they ultimately do, I guess he has been pretty decent about sticking to his word, but I do believe they are data dependent. So you could get a challenge report on Friday that can completely change his, you know, trajectory, who knows. - Mm-hmm, that's right, that's right. Absolutely. So in Dwight correctly mentioned, we do have the non-farm payroll members coming our way on Friday. Not that, you know, there's gonna be a lot of people, you know, working of course on Friday, but that report will be there. And as far as the expectation, guys, on this number again, we haven't seen a lot of market movement to the non-farm payroll members recently, but last report we, again, these estimates have been really wrong, so take this with a grain of salt, but I'm just telling you what Wall Street's thinking of at this point. Last report when we got the maize non-farm payroll members, 272,000 jobs. That was well above the expectation of 185,000. This report, they expected that number to drop to 170,000 jobs. But again, they've been way off on this. Private jobs about 150,000 compared to the previous number of 229,000, and they're looking for unemployment to remain the same at 4%. So like I said, we will see it, and you know, unless it's a real major report that's off either on the upside or the downside, probably not gonna see a lot of market reaction, 'cause again, volume is gonna be extremely light on Friday because of the holiday on Thursday. All right, let's get to our subject tonight, guys. The components of a real estate contract. Now, Corey, I wanna start going through this with you, but first, I think it's really important for those, especially that have never bought real estate, or like you said earlier, maybe it's been a long time, to understand really, you know, the components of it. I mean, just the basics, the parties to the contract, the property description, the earnest money deposit. I wanna kinda start with the earnest money, and then I wanna start going through your list of the different contingencies, because that tells me there's a lot of new things in these contracts that I haven't seen in years, since I haven't bought real estate in years, in regards to contingencies that we talk about. Let's talk about the earnest money deposit, 'cause this is where also people start to get themselves in trouble and think they can always get their money back, not always the case. So describe that and explain how it works in real life. - Yeah, and I think it's important, especially if you haven't done it in a while, to remember that really, anything can be a contract, you and I can go have one, or you could agree to show me your house, we could jot it down on an napkin, sign it, and I could take you to court and claim that's a contract if you don't show me your house. So really what these contracts do now, is they put in a lot more provisions and specifics that match whatever they're trying to do. We were working on a deal a couple of weeks ago that was put into one of our normal RSAR contracts, but this particular property meaning a lot more, a lot more, it was very intricate property, so we had to add a pretty large addendum on the attorneys, we had a pretty large addendum to cover all the aspects. But at the end of the day, you get two parties that agree to something, they both jerk down their nans on a piece of paper that has a little bit of information, that's a contract. So that's important to remember. On the earnest money, it varies. So we've had earnest money in the earnest since I've been in business, it's fluctuated, it used to be 500 bucks, maybe 1,000 bucks, now it's 75,000, 10,000, we just had one that was 500,000. It depends, but the language is always kind of the same, that the earnest money is just a buyer's way of showing intent, showing good faith that they're going to move forward. There's also some protections in there for the seller, that if the buyer were to default for specific reasons that maybe that earnest money can turn over to the seller, but it's very, you know, I tell my clients all the time, especially my sellers, it is very difficult to get your hands on earnest money deposits, so don't go into this deal, thinking that you're going to get that if the buyer doesn't perform within one day at some attendance. The title company generally holds it, so it's held by a third party, that third party is not going to release it to anyone without everybody's agreement. So if you are still working with a real estate agent that has you cut an earnest money check to their brokerage to hold an their trust account, I would highly recommend you talk to somebody else. - And real quickly, before we go to break, the dollar amount, percentage amount, that's completely up for discussion, or is there a set required by the State, Nevada Department of Real Estate? - No, says everything's negligible, completely your discretion, and if somebody writes you an offer, if you're a seller and you get an offer with earnest money, you can buy all means, counter that to a higher numbers, Mike. - Mm, okay. And do you coach your clients on again? Let's say you're representing the buyer, obviously, of various reasons that that money can be returned to them. - Yeah, like I said, it's much easier for the buyer to get their earnest money back than the seller, to get their hands on it. But I've been in cases before where both sides dug their hills in and we've had to go to court to have judges resolve those things. So I tell the buyers at the same time, when she put this up, these are all the rules that we have to play by. So you're saying contract, if you don't play by these rules, this is the amount of money that's at risk, if not more, depending on what provisions you initial on the contract. - Yeah, I remember the last piece of reels that I sold the buyer backed out like a couple of days before we were set to close. And I was able to keep their earnest money deposited the way the broker out of the area, this was the way he wrote the contract, I was able to keep that deposit. So is that common? - Under those circumstances, I feel you have all the content that they're going, are you waiting for? - Wasn't that gross? - Yes, I mean, that would be, in our contracts now, it's called liquidated damages, that provision, if it's check marked, then yes, it should be common. But again, the title companies that hold this money will not release it without the buyer's signature and the seller's signature. So if the buyer doesn't sign off, it's not like everybody's going to do, you're not just gonna walk in and grab the money, everybody has to agree to release it. - All right, they don't, like you said, then it goes to court. All right, we're talking about the components of a rule of state contract. We'll come back and touch on something Corey keeps educating us on all the different contingencies that are out there, plus much more. When we return, let's turn it over to Greg Nef. He's got news traffic and weather. How you doing, Greg? Welcome back to the John Sanchez Show on Newstalk 780KOH, with the Dwight M. Lard of Guild Mortgage, Corey Hidge of Edge Realty. Once again, we finished with a gain of 162 on the Dow. Record closes for the NASDAQ and the S&P. NASDAQ rose 149 S&P, higher by 34. And as another quick reminder, the market will close at 10 a.m. tomorrow. All right, we're talking about the components of a real estate contract. So on the dotted line, you're locked in. There's a lot of different things going on. Now Corey, sit tight for a second. I want to turn it over to Dwight, and let's talk about his level of contracts. Dwight, we've got, obviously, we're going to talk about contingencies with Corey, but I want to hit the first contingency, which is the financing contingency. Tell me about when you give that pre-approval, pre-qualification letter, what that does as far as the legal binding of the contract and so on and so forth. That's a very, very powerful document that really, again, hates you as a term, gets the ball rolling in the transaction. Yeah, and I don't think the realtors like it to change. So, you know, that's where the communication comes in with the buyer and the buyer's agent. A lot of times Corey and I will have just many conversations whether we're going FHA, conventional VA. Because once you actually, you know, get the approval, now again, it's not that it can't change, but then you've got to let the seller know and the seller's agent know that, hey, we're switching. But it revolves around appraisal, rock, you know, there's all sorts of different inspections. So you've got to know the financing product out of the gate. And also, John, they do want you to get kind of a range of what the rates are going to be because it, in the contract, it says rates not to exceed X, which is a little difficult. Yeah, so you just want to make sure that they're very aware. I don't know, Corey, if that's enough to let somebody get out of contact, because, yeah, if you've said not to exceed seven and a quarter or something, and it's actually 7.375, can they get out? But, you know, we just have to be really, really careful because, you know, if we're going to say, hey, they're putting 20% down on the conventional, Corey's going to convey that to the, you know, to the listing agent and the sellers. So, you know, that puts them in a stronger position. So we try to do our very, very best to make sure we're communicating the right product and strategy it right out of the gate. Because I do believe that can create problems in the end. Oh, yeah, no doubt. Corey, let's turn it over to you. So if, again, Dwight put a lid of, you know, seven and a quarter percent, but all of a sudden, Powell decides they want to start raising rates instead of cutting rates. And rates are now at 7.5%. Is that a legitimate contingency where the buyer can back out? Yes, it's a contingency that's in there. Now, there's a lot of contingencies in these contracts. So this whole conversation's kind of fluid. Would you rely on just that one? Or would you go to the next contingency that may be a little bit easier to get out on? Which is what I would typically do. But to answer your question, yes, that's one. I mean, the only reason that that one's a little shaky is because it's subject to that lender. We had to deal a couple of years ago that had a very large earnest money deposit. The buyer couldn't get the rate in the contract. And so our position was we'll check with another lender. And so you're trying to, you want to stay out of those gray areas with these contingency. So if somebody's going to push back, they're going to find ways to push. Yep, makes sense. All right, let's go to the next very common contingency, the appraisal contingency. And this one's pretty good and dry, right? So if you're getting a loan, the lender's going to send the appraiser out. The appraiser's going to come back with a report. It's going to have a number on there. And it's either going to be at the sales price, higher than the sales price or lower than the sales price. If it's lower than the sales price, then you've got an issue. If it's at or above the sales price, but it has conditions for water heater stress, small detectors, whatever, then those are all things that can be negotiated. But typically the one that pops up would be if it came in lower than the sales price. Now, you brought up an interesting point, or word, negotiate it. So I've seen this happen, as well as, obviously you guys have. So let's say that scenario happens, Corey. Let's say Dwight, they're pre-approval for 500. I'm buying a house for whatever, 490. That's what I'm approved for. But I find this dream house for 5,000. So obviously I've got to come out of pocket, making number simple with $5,000. But all of a sudden the appraisal comes back and says, this is wrong, that's wrong. And the price tag's pretty large. I don't know, let's say it's $10,000 worth of repairs. That is an appraisal contingency. So now this is going to be one of the first addendoms you're going to add to the contract, right? People always think, oh, hey, the thing didn't appraise. I'm out of here. I don't have to buy this house. But again, this is all negotiable, and that's when you would add the addendom of these additional items and then negotiate. Who's going to pay for them? Is that from me or Dwight? It's for you. Oh, sorry, I thought you were talking to Dwight. So you've got two different things going on there, right? Typically, what's going to happen is the sales price. If you have an issue, the sales price is going to come in, well, but let's say that's not the case. But the appraiser comes back with some conditions. And generally, they're not going to come back with a huge list of conditions unless you're in some kind of specialized loan. But they could come back with water here, straps, small detectors, kind of all those little things. A lot of times, the sellers will take care of that. But if the seller's adamant that they won't, then the buyer has the opportunity to take care of that. If both parties kind of dig in their hails and say no, neither one of us are going to take care of it. And I guess, yes, that could be an appraisal contingency. Get out of jail free card that you could try to pull out. But they're usually small items when you're talking about. What about something major like a roof, though? Appraisers aren't going to call that out. They may call out to get an additional inspection, but they're not within spectra. So they're not going to call out specifically what to do with it. Mold? Appraisers aren't looking at it. OK. Who is? The inspectors, two different people. OK, so yeah, let's jump to the inspection because it's another contingency. Yeah, so remember, appraisers do look at those things. You know, I don't want to get this all everybody confused. They do look at those things, but they're not inspectors. So they're going to make a note of it and have an expert look at it. Inspectors are the experts that go out to look at it. So they're going to come out. And maybe they do find that the roof is leaking. There's mold into the house. There's a foundation crack. There's all anything you can think of. I told every single one of my clients, OK, how long you lived here? I don't care how many times you've watched in the toolman Taylor fix stuff, or how crazy good of a carpenter you think you are. The inspector is going to come up with stuff you don't know about. And that's just a light. That's how it works. If it's all little stuff, then we can usually work it out. If it's big stuff, like a roof, like a foundation, now we've probably got to go back and start negotiating again because the common theory with a buyer is if the seller has the problem, we want to sell our pay for it. Sellers already know it always is, why would I pay for the new roof when you're going to get the benefit for the next four years? And so if everybody's working together, you're usually going to meet somewhere in the middle. But to answer your question directly, if the buyer is like, I don't want you to fix anything. I'm out of here based on this report. They have every right to do. OK, OK. Do I let you go? Yeah, I want to add, if you're just really listening to Corey, this is why you hire somebody who knows what they're talking about. I have never been in a transaction with Corey, where an appraisals come in higher, lower, a little bit of repairs that we've ever lost. I mean, Corey has the ability to go back. And that's what it takes. It's a communication. And there are a few agents out there that get this. But I mean, it doesn't mean everything just blows up. I mean, it's back to the drawing board. Let's figure this out. They want the house. They want to sell the house. We figure it out. And so there's always unexpected that come up. And you just got to navigate through. And then Corey's one of the best at doing that. Great point. Guys, when we come back, Corey, I want to hit your final three points. But also, I'm going to throw a fourth one real quick that I want to start with. And that is what happens of a job loss, right? Dwight gives me the pre-qualification letter. But between when I received that, and I just made this offer on this, you know, million dollar house. But oops, I just lost my job. How do I get out of the contract at that point? Let's drop it up to Kristen Snow in the right now to traffic center. Are you, Kristen? Welcome back to the John Sanchez Show on News Talk 780KOHH. Mr. Edge, your phone number. Hello, Corey. Let's go to Dwight. Dwight, your phone number. Yeah, 240-2022. 673-6740. There you go. Edge, really. All right. Let's hope we did not lose Corey because this is all about him tonight. Corey, do we have you back yet? All right. Just not. All right, Dwight, so this question can kind of go to both of you. Job loss, right? You give that pre-qualification letter, and I lose my job. What the heck happens to this whole process, you know, from a contract standpoint? Well, I think that, you know, I'll give you a contract. Yeah, this is my opinion. I believe there's some provisions in that, you know, that you have to get and maintain. You know, that's an unfortunate circumstance. Of course. We had that, remember, we had that in the '08, '09, '10 arena, and, you know, I don't think the, you know, I guess there's a provision right there if somebody really wanted to as a seller say, "Hey, you took me all this way, lost your job, I'm going to fight for your earnest money," but that's about all they can go after, and it's just really unfortunate. But you just try to plan ahead, and you hope that the borrower keeps you, because we will always find out, John, right? I mean, we have to do a verification employment 10 days before closing. So we're always going to find out, and so it's very important to maintain that honest relationship with your lender so they can communicate it back and forth, so those are the little things that come up all the way through it, John, that you've got to just be ready to navigate on. Absolutely. Cory, do we have you? I guess we don't. Talk on it. All right. The final point I was going to ask Cory about Dwight is maybe you can help us out here. The closing date, right? You sign a contract, it says we're going to close on July 15th, and I don't think I've ever been involved in a real estate transaction where it's closed when it says it's going to close. So how come that's not a violation of the contract? I know you have to do an addendum, et cetera. Is that our pass out of that? Yeah. Yeah, yeah. No, no. You have to. We require an addendum as a lender to extend it, so that's the conversation you have to have early on. You've got to have a week or two out saying, "Hey, we've got," and you've got to have a reason, you can't just because they're slowing it, but yeah, you get an addendum and say, "Hey, we only need 10 days after that," you know, whatever. And generally there's a combination of it because they don't want to go back through the whole process again, but you get it before you get to the 11th hour. Absolutely. Yes, please, definitely. And remember, all kinds of additional clauses Cory was going to mention can be added into there. Bottom line is Dwight hit it right on the head. Make sure you have a qualified real estate professional that's representing you. Learn things if it's beyond your capability or theirs. Get an attorney involved. It's a very important document you're signing, and of course, you're on the hook for many, many years to come. Dwight, have a great fourth. Same with all of you. We'll see you on Friday on the John Sanchez Show God Bless and have a great 4th of July. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting John at Sanchez Wealth Management.com or 775-801-801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer, and investment advisor. Member FINRA SIPC, securities only offered in states John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. Dwight Millard is not associated with Sanchez Wealth Management LLC or independent financial group LLC. Dwight Millard, co-host, NMLS number 241259, Guild Mortgage Company Equal Housing Opportunity NMLS number 3274, Dwight Millard NMLS number 241259, Enfee Mortgage Company number 11441, Pranch Address 5370, Kitsky Lane Suite 101 and 103 Reno, Nevada 89511, phone number 9723812410. The information provided today is for educational purposes only. The position strategies or opinions of the show do not necessarily represent the position strategies or opinions of Guild Mortgage Company or its affiliates. All information loan programs, interest rates, terms, and conditions are subject to change without notice. Guild Mortgage offers Home Loan Financing Only, Guild Mortgage Company is not affiliated with the John Sanchez Show, any speakers, companies, or institutions featured. This is a paid advertisement. Hey, there. It is Ryan Seacrest with you. You want to make this summer unforgettable? Join me at Chumba Casino. It's this summer's hottest online destination. They are rolling out the red carpet with an amazing welcome offer just for you. So don't wait. Dive in now and play hundreds of social casino games for free. Your chance to redeem real prizes is just a spin away. Care to join me?