Navigating the Mortgage Maze: How Do I Get a Good Loan?

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You've saved, you've prepared, and you know you can afford it.

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But now comes the step.

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Most people find intimidating, and that's actually applying

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for a mortgage, different loan types, interest rates, paperwork.

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It can feel like an absolutely confusing maze.

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How do you find the right mortgage without losing your peace?

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Well, stick with me today 'cause I'm gonna share how to navigate this

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process with confidence on today's show.

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Hey there.

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Welcome back to your Daily, financially Confident Christian.

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I'm Ralph and it is great to be with you again today.

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As always, this is the show that helps you answer that very pressing

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question, how can I become a financially confident Christian?

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And we're deep into the topic of home ownership as we continue our series

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dealing with the stress of money worries.

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So you've done the vital work of assessing your affordability.

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You know what you're comfortable in buying.

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You've prepared your finances, you're saving now for the down payment.

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You're building those reserves and you're polishing your credit.

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And let me just tell you right now, preparation is the key in all of this, but

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today we're gonna step into the process of actually doing the financing of that home.

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. And for many, the mortgage application is the most complex, and trust me, the

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most stressful part of buying a home.

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There's a lot of options and a ton of paperwork.

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So let's ask this question today.

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How do I navigate the mortgage maze and get a good loan without

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adding unnecessary stress?

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That's a real good thing to talk about today because I bet you've heard the

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stories, piles of documents requested, confusing terms, trying to compare offers

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with different lenders, worrying if you'll even ever get approved at the end of this.

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The struggle of the mortgage process, is very complex and a feeling of

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being outta control is very common.

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And a lot of people have said, Ralph, I just feel like I'm

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at the mercy of the lender.

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I make you feel stressed about making the wrong choice on a loan type.

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Am I getting a fixed rate or an adjustable rate?

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am I getting the best interest rate or am I, am I going to hit

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these unexpected roadblocks?

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And those roadblocks, lemme just tell you right now, they can even delay or

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derail your home purchase altogether.

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And then let's not even talk about the sheer amount of

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financial information required.

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There's a bundle of stuff you get and the high stakes involved with

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such a large loan and that can just truly add significant anxiety.

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But here's the thing you need to understand.

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I want you to accept this at the very beginning.

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The mortgage process is complex.

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It's not simple, but you don't have to navigate it blindly.

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If you understand the basics and you're prepared, that will help you tremendously.

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Think of it like seeking wisdom and counsel for a major decision, which

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is exactly what the Bible encourages.

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Look at the book of Proverbs, chapter 11, verse 14 says this.

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Now, we're not talking about nations, but I thought this was really

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appropriate for the lack of guidance.

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A nation falls, but with wise counsel comes victory.

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We definitely want victory over this mortgage process.

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And look at Proverbs chapter 24, verse six.

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It says this, surely you need guidance to wage war.

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And victory is won through many advisors.

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And like I said, a mortgage isn't a nation, but we all need to seek wise

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counsel from trusted advisors, trusted lenders, and get a better understanding

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of the process because that's crucial for victory in securing a good loan.

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And this is going to be a battle.

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Approach this process with diligence and approach it with a prayer

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for heart, trusting that God can provide clarity and guide you.

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Right.

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To the final part of this financing, and again, I'm gonna reiterate this again,

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this is truly an act of responsible stewardship to ensure the terms of

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your largest debt for most people.

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Buying a home is going to be your largest debt.

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So you wanna make sure the terms are favorable and more importantly,

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that they're manageable.

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So now you're thinking, Ralph, that sounds very complicated.

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You already told us this was complex.

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What can we do?

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How do we cut through the confusion and the stress of that mortgage maze to really

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get to the end and secure a good loan?

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Well, as always, I've got an answer.

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My answer today is pretty straightforward.

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Starts with educating yourself on the basic types of the mortgages.

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Shop around with multiple lenders.

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Get that pre-approval before you even think about making an offer on a home.

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And I'm gonna say something that's gonna be a little bit

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outside the realm of Normalness.

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I'm gonna say get that pre-approval letter before you even go shopping for a home.

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'cause you gotta understand what you actually can afford and what you're

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going to be able to qualify for.

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Because this proactive approach empowers you, I wanna empower

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you today with knowledge that can strengthen your position as a buyer.

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So, okay, here's your one vital action step for today, specifically focused

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on navigating the mortgage process.

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It all starts with a basic understanding of the mortgage type.

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So I'm gonna encourage you to take 20 or 30 minutes and research

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the different types of loans.

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You know, that could be something like a fixed rate loan where the interest

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rate stays the same over the life of the loan, gives you stability in the rate.

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Or maybe for you it's an adjustable rate where the interest

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rate can change periodically.

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Sometimes that gives you a lower initial payment, but then

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introduces some uncertainty.

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There's pros and cons for both and consider which of those loans

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might fit your financial plan and your risk tolerance best.

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So once you do that, you figure out, yes.

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I wanna get a fixed rate loan, then I'm gonna encourage you

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to shop around for lenders.

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And a lot of people don't realize that you can do this.

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Yes, you can shop around for lenders.

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You don't have to just go to the first bank.

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You think of, you don't have to go to the person.

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Well, you know, the, the, the realtor said, I need to use this person,

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or, or I gotta use this person.

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I don't agree with that at all.

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I'm gonna tell you right now.

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Every time I've went and bought a home, I've actually had lenders competing.

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So go find two or three different reputable mortgage lenders.

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Now, I'm not saying to go through the whole process with them because you

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don't want them pulling credit and all that kind of stuff, but look at banks.

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Look at credit unions.

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Go to a mortgage broker.

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Mortgage brokers are great for this 'cause they can shop around and get you

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the best interest because the truth is.

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Interest rates and fees can vary significantly, but if you shop around,

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you're going to get the best terms.

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And like I said before, get pre-approved.

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This is a vital step.

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Go through that pre-approval process with at least one lender.

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So once you've narrowed it down to, I'm gonna pick these three lenders,

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I like their rate and terms, I like their service, all that kind of stuff.

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Then get through the pre-approval with one of those lenders.

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'cause they're gonna review your financial information.

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They're gonna look at your income, they're gonna look at your assets,

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they're gonna pull your credit, and they're really gonna tell you again

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how much you qualify to borrow.

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And as I talked about two shows ago, just because they tell you you qualify

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for something, we gotta do a gut check again and go back and think, am I

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comfortable borrowing that much money?

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Because like I said, just because you qualify for a certain amount doesn't

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mean you should borrow this much.

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So stick to what you can comfortably afford.

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Like we talked about in episode one 70.

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And here's the thing, that pre-approval letter shows sellers

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that you're a serious buyer.

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And to be honest with you, most sellers aren't even gonna entertain even showing

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you the home or even giving you an opportunity to make an offer until

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you've got that pre-approval letter.

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Now you're asking Ralph, okay, this all sounds great, but why does this help?

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Because it fights that struggle and that stress of feeling

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lost in the mortgage maze.

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And that can be a lost.

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I remember when I bought my first house, I was like 21 or 22 years old,

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I bought this townhouse and I remember I kept a book about this thick of all

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the documents that I had to go through.

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I mean, the thing must have been three inches wide.

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'cause it was like, okay, ask this question.

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Ask this question.

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It's important because it's real easy to get lost in that mortgage maze.

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I'm gonna encourage you to educate yourself because it's going to replace

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that confusion and you're gonna have a better understanding what's going on.

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As I encourage shop around, could save you thousands of dollars

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over the life of the loan.

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Get that pre-approval letter 'cause that's gonna streamline the process.

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And in the end, all of this puts you in a more informed and empowered position.

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Let's pray together now.

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Father God, we just thank you for guiding us in managing our finances.

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And Lord, we confess to you right now that the mortgage process feels complex and

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it can bring significant stress to us.

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So we, this ask that you would grant us clarity and grant us understanding as

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we learn about the different loan types and really shop around for lenders.

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Show us what's out there Lord, and lead us to reputable individuals

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who can offer that wise counsel that your Word talks about.

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Guide us in that pre-approval process and help us to remember what

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we truly can afford comfortably.

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Grant us peace and grant us wisdom, Lord, in securing a mortgage that aligns with

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your plan for our financial wellbeing.

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And we ask this in confidence.

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In Jesus' name, Amen.

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Listen.

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Don't let the mortgage maze intimidate you.

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Many people have gone through it.

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You can get through this as well.

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Just empower yourself with knowledge.

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Shop around wisely.

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Get that pre-approval based on your comfortable affordability.

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Because listen, you're taking intentional steps towards securing

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your home financing, and if this episode has impacted you in a

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positive way, I'm gonna encourage you to share it with somebody else.

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There's a lot of people that are going through this process.

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Maybe you share the last few episodes with them.

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You can find resources and connect with the show at our website

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that's at financially confident christian.com, and I've got a

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special gift for you on your journey.

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For the first 100 listeners who go to financially confident

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christian.com/master, I'm gonna give you a free copy of my book.

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It's called Mastering Your Finances.

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It's quick, it's a powerful redesign, is a starting point to really help you

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break that cycle of financial shame.

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Step into confidence.

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Again, you get that by going to financially confident

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christian.com/master, and I'm gonna encourage you to

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go get your free copy today.

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Now, tomorrow we're gonna be talking about part of the home buying that

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often surprises people and can cause some last minute stress, and that's

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understanding and more importantly, preparing for those closing costs.

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This has been a surprise to some people that I've worked with over the

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years, so you don't wanna miss it.

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So make sure you join me now.

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Let's all go out there and be financially.

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Confident Christians, you can do this.

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I have confidence in you.

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Have confidence in yourself.

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Stay financially savvy.

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God bless you, and you have a great day today.