Speaker 1 0:00

The following program. The ENT , mortgage and Realty Show is paid for in full by ENT mortgage, LLC and equal housing lender consumer access.org number 2 5 5 3 6 8. The advice and opinions expressed during the Academic Mortgage and Realty Show are solely that at the hosts and guests of ENT mortgage, LLC, and not WTMJ or Good Karma Brands.

Speaker 2 0:20

Welcome to the Anette Mortgage and Realty Show, getting you inside information on buying, selling, and financing your home with expert advice from Anette Mortgage and Realty. And now here's David Wicker and Tim Holdman . Good

Speaker 3 0:35

Morning and welcome to the ANet Mortgage and Realty Show. I am David Wicker, senior loan consultant and managing owner joined by Brother-in-Law. Tim Holdman, also senior loan consultant. Good morning, Tim.

Speaker 4 0:47

Good morning. Happy Super Bowl Sunday to you . Oh

Speaker 3 0:50

Yeah, that's right. Okay. Uh, if you've got a question or a comment, you can reach us on the WTMJ talking text line, which is 8 5 5 6 1 6 1 6 20. And as always, you can grab a podcast of today's show wherever you normally get your podcasts. Alright , Tim, I , I know I've said this a couple weeks, but it's every year after the first of the year, the skies open up and buyers are just like, I won't buy a

Speaker 4 1:19

House. And it could not be more true this year. I feel like it's even more pronounced than in , than in years past. So

Speaker 3 1:26

Well, and that, and I, that pent up demand, I'm totally with you on that pent up demand because I , I had a note as I was getting ready for today's show. Supply and demand is gonna be the story in 2024, particularly a around, you know, listings and available homes for sale For sure . Because I wrote buyers want it more than sellers need it. <laugh> . That's what I wrote down. <laugh> . Uh, and, and so this, so the, the first, you know, story that I wanted to get to was, we talk a lot about first time home buyers . They represent only maybe about anywhere from a third to maybe 40% of home buyers. Mm-Hmm . <affirmative> . The other big chunk is move up buyers. Right. Exactly. I have, I , I own a home, but my God, we just had our second baby and we need more space, you know ? Mm-Hmm. <affirmative> , please help me get to the next house. So I have two clients , um, who I , I wanna address, you know, how we go about solving this puzzle because dad likes to describe it as puzzle solving . Sometimes I also describe it as, it's like being a mortgage carpenter and man, I , it we're always like, what tool can I reach for? Mm-Hmm. <affirmative> in my mortgage Toolbox.

Speaker 4 2:41

Toolbox Yeah.

Speaker 3 2:43

To help our client . You know, we've talked a lot about bridge loans, you know, using the equity in the old home as down payment on the next house. We've talked about, you know, setting up , uh, for retired folks, you know, new ,

Speaker 4 2:56

Setting up an IRA draw .

Speaker 3 2:58

Exactly. New income

Speaker 4 3:00

Creates new income for qualifying purposes. Yeah,

Speaker 3 3:02

Absolutely. Exactly . Because the, the, what we're trying to not avoid, the strength we are trying to help our clients have is that when they write the offer on the next house, we're gonna tr we're gonna move heaven and earth so that you don't have to say in the next breath. Right After I sell my , right. After I

Speaker 4 3:25

Sell my , I have to my house . Have to , yeah. And, and you know, Brian calls it the kiss of death. And honestly, in a competitive market it is. 'cause if you think about it from the seller's perspective, right? If you got seven offers on your kitchen table, even

Speaker 3 3:38

If you have two or three

Speaker 4 3:39

Yeah. Your realtor's gonna be like, ah , the ones with a home sale contingency, throw those away first. 'cause in the seller's mind, that means this person can't really even buy my house until they sell their current house. And it's, it's this whole other transaction that you need to rely on going off without a hitch Exactly . So that your transaction can go off without a hitch.

Speaker 3 3:59

The buyer is one stranger. Now I'm, now I'm praying for my buyer's buyer, two strangers to, you know, actually, you know, get the me Nissan

Speaker 4 4:07

In my house and your , and your buyer's buyer's lender. And I mean, there's just, there's so much more that , yeah . Which by

Speaker 3 4:12

The way, just to argue against myself, for anyone who is writing an offer contingent on the sale of their home, there is a number at which a seller is willing to wait. It's like you list your house for $300,000 and someone writes you an offer for a million contingent on the sale of their home.

Speaker 4 4:30

Right . They'll wait , you'll

Speaker 3 4:31

Probably wait .

Speaker 4 4:31

Yeah. Offer price or purchase price. That's always the ace in the hole . Right. That's the thing that always will and probably forever will speak the loudest to the seller. Yeah. It's , Hey , it's when you're cash your skin right ? You're , when you're crafting a strong offer, it's, it's a , it's the culmination of several things. Usually. Not just one thing. Unless your point, it's like, yeah, if I'm offering $90,000 over a list, right . You know , with a home sale contingency, the seller will be like , well , I guess I could wait. You know , or ,

Speaker 3 4:57

Or you know what , uh, I'll write $25,000 over the, the other guy, any guy, show me an offer and I'll write you 25 grand over anybody else. You know, maybe a seller would be willing to , okay. Yeah . So most , but back to,

Speaker 4 5:13

Yeah, back to reality. 'cause most people aren't gonna do that. Right? So it's how do we figure out other ways to make your offer competitive without having to offer $25,000 more than anyone else for the same property? And

Speaker 3 5:23

I , and let me, and I gotta set the table, because what we're problem solving is if you purchase the new home and at that nanosecond that the pen is striking paper and the ink is sinking in, if you still own your previous home Mm-Hmm. <affirmative> Mortgage World for any number of years and for the foreseeable future, wants to make sure that the income we have documented can swing. Yeah . Both the new mortgage and the old mortgage and everything

Speaker 4 5:56

Else, and all your other debts on your credit report

Speaker 3 5:58

For the foreseeable future. Right. So, I wanna describe to our listeners the tool that I reached for twice this past week that is a little unique to try to offset, to try to, you know, get us to fit in the, my God, I have two mortgage payments at this nanosecond. Mm-Hmm. <affirmative> , uh, I'll reveal all that after this break. You are listening to the AC Mortgage and Realty Show on AM six 20 WTMJ

Speaker 2 6:25

Home buying advice from the guys who know it best. This is the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 3 6:34

Thanks for hanging out with us. I'm David, that's Tim over there. Good one . We are sharing tools and stories on the, Hey, I own a house, please help me get to this new, probably bigger house. And Tim, the, what I was describing was, you know, hey, at the nanosecond you're buying the new house. If you still own the other home, your soon to be old house, the income that we have on paper and a documented needs to show that your budget can swing both mortgage payments not in perpetuate, I mean, kind of basically in perpetuity. Well ,

Speaker 4 7:13

Yeah. I mean, the way I describe it to my customers is like, listen, the , the mortgage underwriting world tends to think of things in the absolute worst case scenario. Exactly. Right . So they, they wanna make sure that even if you have someone lined up, ready to buy your home, if they haven't signed on the dotted line and closed on the day that you close on the new home purchase. Yeah . The mortgage rule wants to make sure you have enough income to pay for the new house payment, the old house payment, plus all the other payments on your credit report. E essentially forever. Because, you know, in the worst case scenario on the way to closing, you know, the, the buyers of your old home changed their mind and walk away or Exactly. Uh , you know,

Speaker 3 7:51

Or they lose their job the day before

Speaker 4 7:53

In insert worst case scenario. Right. It's like the bottom line is we have to abide by the rule. And , and every mortgage lender does. It's not an anette rule. So,

Speaker 3 8:01

So the tool that I reached for twice this past week, 'cause again, we're talking about the old house, it's like, ugh , I don't want the old house anymore. I want my new house. Mm-Hmm.

Speaker 4 8:10

<affirmative> don't even wanna think about it. Yeah. If

Speaker 3 8:12

So, let's pretend, does your old house have a $2,000 a month, you know, monthly payment that, hey, when you sell that house, this is gonna go away. But at the time you kinda have , you know, think of it almost like a car payment or a , you know, some kind of this thing, this $2,000 example payment. The , the tool that I reached for this week was if you get a signed lease on the soon to be old home, ah , and that lease, you're basically saying, I'm gonna go rent my soon to be old house. Mm-Hmm. <affirmative> if the rent begins before the first payment. So let's use this

Speaker 4 8:56

As an again , not the closing date. Yeah.

Speaker 3 8:57

Not the closing date. Okay . So it's the middle of February here. Let's say you close the middle of March, your first mortgage payment is gonna be May one. If you can get a signed lease and the person who's gonna rent your soon to be old house is going to start renting before May 1st, the income on that lease can be used

Speaker 4 9:19

The anticipated income Yeah ,

Speaker 3 9:21

Exactly. To offset the payments. So let's use an , so if your old payment's $2,000, but you can get, if you can rent it out your house for $1,500 for the old house, that $1,500 offsets the carrying cost of the payment of the old house. So the net effect, just to make the numbers simple, is that the carrying cost of the old house, it ain't $2,000 anymore, it's $500. Right.

Speaker 4 9:54

Which the reason that matters. Yeah. Yeah. The reason that matters is it frees you up to qualify for more mortgage payment on the new home. Because again, this is all just , uh, to really get us past this little temporary hurdle of you owning both properties simultaneously. Whether you decide to then sell that old home later or continue renting it out. Either way, we've solved the issue of that $2,000 a month expense. Yes. You know, that you, that you maybe don't have enough income to just make up for on your own.

Speaker 3 10:26

By the way , the, the, I was laughing 'cause as I was getting into the details on this Mm-Hmm. <affirmative> , I was thinking to myself, I was like, whoa, what if I just get someone to rent my house for $10,000 a month? Tim <laugh> . Yeah . Boy, that would really free me up to borrow a lot of money.

Speaker 4 10:44

Yeah . That , that , can I already stop you? I know why that won't work. The, the expected rental income, the best it can do is cancel out the monthly cost of owning that home. You don't get a , uh, income above and beyond that.

Speaker 3 10:56

And the way, the other way that that happens is the appraiser would complete a rent schedule. Mm-Hmm .

Speaker 4 11:03

Right.

Speaker 3 11:04

Validating the rent that you are gonna

Speaker 4 11:06

Get on the time . An expected amount of rental income that you could expect to get for that property. Right. Exactly . I'm , I'm curious too, are , you know, are there any other restrictions with that rule? Like, I, I think, and because I've, I've done this before, but it's been a while for myself personally, the signed lease can't be from a family member. Right. Or someone with the same last name. I've heard that that might raise some eyebrows with underwriting. Uh , potentially. I I could be wrong on that.

Speaker 3 11:32

Yeah. Offhand. And we can, let's circle back. 'cause that's a great question. I would say maybe the , um, follow up questions might be like not , you know, let's say it's a family member probably first month's rent, last month's rent Oh sure.

Speaker 4 11:48

Security deposit. Something like that. Yeah . It's

Speaker 3 11:49

Gotta maybe the, we need to show the rent is being received, you know, if it's not Mm-Hmm . <affirmative> from a stranger. But yeah, let's dig into, we can get , dig into those details for our listeners

Speaker 4 12:00

And that is, but I mean , uh, that is a great tool and I guarantee you most loan consultants probably haven't thought about that. But that is a legitimate rule in the Fannie Mae guideline to use anticipated rental income from a previous home to offset that expense.

Speaker 3 12:14

So I've got another client that I use this for , uh, but kind of to solve a different, it was, oh, a , a different problem or a different puzzle. Let me get into that after this break. You are listening to the Accident Mortgage and Realty Show on AM six 20 WTMJ getting

Speaker 2 12:31

You into the home of your dreams. Here's more of the Accu Net Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 3 12:39

Welcome back to the Accu Mortgage and Realty Show , uh, big game Sunday edition. And Tim, we're describing, you know, I love , I love the puzzle solving of this whole mortgage business. And so we that's

Speaker 4 12:55

The best, it's the best part of the job.

Speaker 3 12:57

So the first example I had was, you know, using a new lease to rent your old house to offset the payment on the old house. 'cause that hasn't gone away if you still own it. Right. I had another client this past week we were using, or we were considering that tool to actually help them maybe get to that next level of house, you know, for the new house. You know, 'cause as you pointed out in the previous segment, this is about freeing up income that can be used toward the new mortgage. Right. Right . So if you can, and we do this sometimes, you know , um, I had a a client this past week, Hey, we're gonna pay off one of your car loans 'cause then your income's not going toward the car payment. Now we can use that income to go toward the mortgage payment. And so that was my other example this past week week exactly right . Was , Hey, you don't need the equity in your old house. Hey, you kind of wanna hang onto the house anyway. Maybe you rent it out, you know, sooner now and then, and then you can buy $60,000 more house,

Speaker 4 14:05

More house . Right? Yeah . So that's which to put it in real life terms like that I think is important, David. 'cause if you just say, oh, well yeah, you can afford more. It's like, well go to your, you know, smart home search tool, whatever you're using Zillow, you know , whatever, and increase the price range by 60 grand and see what different category D features that gets you. The more square footage, the more beds, the more baths. Like now it's real, right? That talking about , uh, okay, what do we need to do to like pre-approve you for certain dollar amount. That's like the boring dry part. Unless you're like a mathematician or a scientist or like, we enjoy that part. But for some, for some people, you gotta flip it to like, okay, in real life this is what that unlocks for you. And all of a sudden, you know, the light bulb goes on. Yeah . It's like, oh wow, you're telling me I can maybe get into this neighborhood, or now I can get into this level of house Yes . With these many bedrooms and oh, maybe I can get that attached garage or that finished basement or you know, real life stuff . That extra half bath off the kitchen. Yeah. Like those real life things. I,

Speaker 3 15:12

And I , when I , when I'm talking to clients, I tell 'em, I'm like, it doesn't hurt my feelings. Nobody wakes up and wants a mortgage. Well, you actually wants a house. That's true. But it's, it's about, it's , you know, mortgage is a tool, just like we described that lease rent on the old house is a tool. It's like mortgage is a tool. Mm-Hmm. <affirmative> . Uh , yeah. So, and and again, as we said at the start of the show, this is all part of the greater category of the large group of people who might be considering getting from their old house to their new house. How can we put a plan together to do that? Tim, you were telling me the tool you reached for in the last week or two Yeah . Was co-signer, which is like, come on. Yeah . Tail tale as old as time. Co-signer. Grandma ,

Speaker 4 15:53

Grandma Tale as old as time. But like, it's not, I don't feel like at least we've talked about it that often on the radio show compared to some of the other tools like Bridge Loan, IRA income paying off a car loan , uh, you know, the, even the lease example. Right. So I had two different customers in this past week, both with very different reasons why this was the best tool in the toolbox. Yeah . But , uh, that's also part of the fun is that we know the rules, but everyone comes to the table with a slightly different situation. Right? Yeah . And we kinda get to navigate that and customize the game plan, which truly is slightly different for pretty much everyone. No. You know, no borrower is identical from a financial standpoint or from a real life standpoint for that matter. Right. So the first example was a husband and wife looking to , uh, to purchase a different better home. And she had just switched, she had not changed jobs, but she had switched from being hourly to commission <laugh> . And that was a problem she switched like a month ago. Right? Oh no. Okay . And the , the employer was really nice. They, the employer was even willing to write a letter saying they have a guaranteed base that we can count right away. And I think in real life their income was fine 'cause she was making good money. But yeah . Most of it we just couldn't use yet because her income from commission just started like two weeks ago. Right. So this is the key In real life, their income was perfectly comfortable. Yeah . But on paper, what we can use to qualify did not look so good per the Fannie Mae and Freddie Mac guidelines. So , well, it's , it's different. The tool that after, you know, kind of brainstorming it is different, right? There's so many examples that we've talked about before where real life income is different than what's known as qualifiable income. Right. What income can we use to qualify you for this new mortgage?

Speaker 3 17:33

Well, what , and and even you're right, my version of different was gonna be while everyone has the hope that your client is gonna succeed as a commission person, person, there's no track record of that actually happening. And so , and so that's

Speaker 4 17:48

Why , and that's why we can't use it right away. Yeah , yeah, yeah , yeah, yeah. This is, this goes back to Fannie Mae thinking of worst case scenarios, right. Similar to the home contingency thing. And after the break I'll get into the tool that we use both for these folks and then , uh, actually another customer with a slightly different situation. Now

Speaker 3 18:03

It's time to turn it over to the 24 hour newsroom. Don't

Speaker 2 18:07

Break the bank to get into a house. Back to the Accu Net Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 3 18:15

Thanks for hanging out with us here on the Accu Net Mortgage and Realty Show. I'm David. That's Tim. Tim, you were describing, I I had this like, visceral reaction when you described your client going from being, you know, base income, you know, predictable to, you know, five minutes ago she became commission and I I , yeah . I I think my reaction was ugh .

Speaker 4 18:39

Yeah. 'cause we've all, we've all been there. We've all had a similar situation like that. Yeah . And it's like, it's not her fault, but, you know, it's just No,

Speaker 3 18:46

She's doing it. 'cause she's, she's thinking like, I'm gonna go make more money, but Right . But it's different.

Speaker 4 18:51

Yeah. And you know, to the lay person , they would be like, well, why does that matter? Why should that have any effect on whether or not I can qualify for a mortgage to buy a house? So anyways, the ,

Speaker 3 19:02

Well, so , and you still wanted to be like, well, I mean, like, is there a way we can still figure out how to help you buy a house? Like let's, yeah . 'cause let's keep, let's not just leave it at like, good luck to you call me in two years after you have, you know, two years of commission history.

Speaker 4 19:14

Yeah. No, we are not, we don't give up that easy. No . Trust me, we , you know, we're gonna leave no stone unturned to see if there's a path forward. And luckily in , uh, in my customer's case, her dad , uh, was absolutely willing to raise his hand and be like, Hey, if that's the issue, you know, I'm a salaried W2 employee, been working at my same company for 25 years, you know, slam dunk on income. Yeah . Not a lot of debt. You know, I'm happy to co-sign as what we call a non occupying coal borrower just means that it's a fancy way of saying he's gonna help them qualify for the loan, but he's not gonna live in the house. Mm-Hmm. <affirmative> . Uh, and, you know, I've gathered his information over the phone and boom, in this case it was , uh, a slam dunk . Uh , and in fact made them a stronger , uh, offer, which I, you know, I think the agent was appreciative of because in addition to him lending his income, or not lending, that's the wrong word. Uh , contributing his income on the Yeah, there you go. Utilizing , uh, he also said, well, hey, you know, I actually just , uh, I think he had recently received a , a small inheritance from a relative of , of his that had passed away. And he's like, you know, why don't I help with the down payment a little bit? And , uh, they're 5% down in for

Speaker 3 20:28

A dollar in for a dozen or

Speaker 4 20:29

Whatever it is . Exactly. Well, I think he wanted, you know, to help his daughter buy more of a longterm house that they would be happy with for 10 to 15 years, as opposed to a smaller house that they'd be happy with for, you know, one to two years. So their 5% down pre-approval became a 20% down pre-approval. Whoa, whoa , whoa, whoa. Which was, you know, one of our other secret sauce recommendations to, you know, help the offer become more appealing to the sellers as well.

Speaker 3 20:55

You're, you were implying, are they now reaching for maybe a little bit more house because they're at 20% down? Yeah . So they are both stronger and more

Speaker 4 21:05

Correct. Yeah. They, they decided to increase their price range a little bit because again, even though on paper it looks like my borrower doesn't make that much, she's actually doing just fine in , in terms of her real life money that she's coming in with this commission income. So, and

Speaker 3 21:20

You and I both, I mean, we've had clients, you know, you bring in the co-signer if that's what it , it might take in order to get everything approved. I think most co-signers expectation though is that they would like to

Speaker 4 21:35

Not gonna be , not be

Speaker 3 21:36

Bothered about the actual monthly payments.

Speaker 4 21:39

Exactly. And that , that's a perfect segue to my other co-signer story. Oh, okay. Because I , this week I had two customers that we ended up getting a co-signer on to get him pre-approved. The second one , um, this gentleman, a past customer of mine, he had sold his previous home that I had helped him buy a couple years ago. He was renting , uh, he's engaged to his new sweetheart and they want to buy a new home together. So I I I , you know, I'm going to get them pre-approved. I access his credit and his old mortgage , uh, on his home that he had sold a couple months ago showed a 60 day late payment on there right before the home closed. Okay . And it was within the last year, which I know you , you're already thinking about the issue. Fannie Mae and Freddie Mac were like, yo, we don't want a late mortgage payment reported

Speaker 3 22:28

You want new money? Yeah . What were you doing with that old money?

Speaker 4 22:31

Yeah. And, and the kiss of death death was within 12, the last 12 months. Ugh . Which is kind of like the automatic, you know , uh, killer of the preapproval. Yeah. So in his case, it was a forbearance issue where actually , uh, we're still working through this, but we believe maybe , uh, it was a fa uh , an inaccurately reported late payment. Oh.

Speaker 3 22:52

Like he was, he should have been like, you know, in this non non-reporting forbearance as you said, like, I'm not making payments, but, but, but we have an agreement between me and who I'm making monthly payments to that like, it's okay.

Speaker 4 23:05

Yeah. And we're , we still , uh, we're still working to get to the bottom of that, but in the main time , uh, what we have realized we can do is use just his fiance on the new mortgage and believe it or not, his dad. So it's an interesting combination and we'll get more into it in the next break. Uh ,

Speaker 3 23:25

Would you like to, because again, this is like family now. Well, who leaves the wedding? Let's , here we are today. Can I, right . Okay. Uh , this is very interesting if only, and it's, again, as we said previously, it's reaching for the tool when appropriate, right? Yeah . It's , we're not

Speaker 4 23:42

Reaching no stone unturned. Yeah .

Speaker 3 23:44

Right . Exactly. And , and you , and let's, let's keep going into this, but you don't have to use a cosigner, but, but I think what we really focus on is I'm gonna show you all the tools in the toolbox. Mm-Hmm. <affirmative> , whether or not we decide to reach for it. I at least wanna open the mortgage toolbox to

Speaker 4 24:01

All these . And there's , there's more to unpack with this story too. Okay . So we'll, we'll get into it in the next segment. Alright .

Speaker 3 24:06

Uh , more on this , uh, you are listening to the Acuate Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2 24:13

Important home buying questions and answers you can count on. This is the Acuate Mortgage and Realty Show with Brian Wicker on WGMJ. Thanks for

Speaker 3 24:23

Hanging out with us. This back half of the show has so far been co-signer part of the show. <laugh> , Tim, what I and I you got more meat on the bone on your story about your other client. Mm-Hmm . <affirmative> what I wanted to public service announcement for any parents', grandparents', aunts, uncles who might be called to be co-signers I, there we really should call it co-applicant. Yeah . Because you are not any less responsible. Mm-Hmm . For the borrowed money you are, it's gonna get reported on your credit report. You if things go poorly, you , you will be involved in that <laugh> poorness and

Speaker 4 25:05

Yeah . Yeah. It's, it's a serious Yeah . Uh , decision to make . There's no light touch. No,

Speaker 3 25:11

You're , you're in, you're in it. And, and as we alluded to, most co-signers would like the primary, the, those living in the home to be taking care of the monthly bill. Mm-Hmm . <affirmative> . I'm just saying if it were me and my kids, I , I wouldn't be , uh, oblivious to the No . That they're making monthly payments because

Speaker 4 25:30

My , I would not flippantly make that decision. Yeah , exactly.

Speaker 3 25:32

I would be, I would be aware. Yeah . So just so, so for anyone, you know, it's a , it's a good tool.

Speaker 4 25:38

It's a good PSA Yeah.

Speaker 3 25:39

It's a good PSA it's a tool that we, that we reach for. It's just, you're , you are into it the same as if you're helping them and actually moving in that you're gonna get a bedroom and a pillow at this new house.

Speaker 4 25:50

Yeah. And, and actually in my customer's case, we are already , uh, sort of formulating the game plan on like, how's the, what's the fastest we can get the dad off the mortgage? 'cause you know, he, yeah. So , um, because the , the , my customer's late mortgage payment, if , if we're not victorious in getting that removed, 'cause that , that can be a big undertaking to get a late payment removed from a credit report, even if it is a , made an error. That was September of 2023. Okay . So we already know that that 12 month anniversary of that will be September of 2024 and assuming nothing else Yeah. Assuming nothing else happens in the interim, my borrower should be able to qualify for Fannie and Freddie financing again with his name on the mortgage in September of 2024. So the interim is, you know , they wanna buy a house before then . Yeah , yeah , yeah . Because it's seven months away. Yep . So my borrower is gonna leave himself off this mortgage intentionally. His fiance has excellent credit, decent

Speaker 3 26:45

In income . Oh , so you're , you're the getting it fixed isn't part of the primary game plan.

Speaker 4 26:51

We're Yeah, we're not, we're not relying on that. 'cause we, we aren't confident we're gonna be successful in that. So we're already moving forward with plan B, which is they

Speaker 3 26:57

Want the house more than they want be. Right. Yeah. At least immediately.

Speaker 4 27:01

Right. He, he wants , uh, so he's gonna leave himself off this mortgage. His fiance has , uh, good credit and decent income, but her income alone is not enough to get them in the price range they want. So my customer's dad, the fiance's future father-in-Law,

Speaker 3 27:17

This is , this is like my sister Grace buying a house with your dad. Mark <laugh> .

Speaker 4 27:21

Yes, exactly.

Speaker 3 27:22

Before you got married.

Speaker 4 27:23

Shout , shout out to Mark Holdman . He would never co-sign for a mortgage, by the way, <laugh> .

Speaker 3 27:27

I know. But I'm just like It is. It is.

Speaker 4 27:30

It's interesting. It's bizarre. Yes . But , uh, the dad is also a past customer of mine, actually. Come on. Okay. Uh , you know , keeping it all in the family. I think he might have been the one who referred his son to me originally. Anyway. So I , I know this gentleman , uh, we're gonna connect on Monday, get him added onto the co-signer. I kind of already know it's gonna be fine 'cause I remember his financials from a couple years back. Yeah . You

Speaker 3 27:49

Weren't worried.

Speaker 4 27:49

Yeah. And we're gonna ,

Speaker 3 27:51

Oh , we're adding Bob, right ?

Speaker 4 27:52

Bob's going for it . Yeah, exactly . It's more than a handshake deal for sure. So we're gonna move forward. I'm sure they're gonna find a house in the next couple months and then I'm, we gonna mark the calendar for September to call up my customer and say, Hey, assuming rates are the same or better, let's refinance to get your dad off and you onto the mortgage. And at that time they'll be married as well. They won't be engaged. So , uh, you know, this is again kind of a nice stop gap game plan to get them into a house now. Uh , and then still ideally not have the dad co-signing in perpetuity. Yeah.

Speaker 3 28:25

Whoa . Can I just compliment to you, this is how we approach things at academic mortgage. We, if it needs to be a Texas two step where step one is as you just for your client, fiance and dad, that's not the end of the consultation. Right . If the consult our , our colleague ,

Speaker 4 28:42

We're in it for the long haul. Yeah,

Speaker 3 28:44

Well exactly. 'cause come September a, we're still gonna be here. Mm-Hmm . <affirmative> , you know , and we're gonna call you and be like, Hey, it's been 12 months since this incorrect, you know, late payment was reported. But we want to not just figure out how to help today, but figure out how to then do step two Oh and then when rates come down in X number of months than thereafter, let's figure out how to make your pile of money smarter, cheaper, better be , uh, just the one that I had in mind, our colleague Brad, senior loan consultant as well. He's got a client going through divorce and uh, the dad is hopping on his co-signer to, to make it happen because Right . The divorce.

Speaker 4 29:21

Because it's gotta happen. Yeah . Because it's

Speaker 3 29:23

Gotta happen. The divorce is kind of , you know, it's painful and the dad's stepping up to help out. Is that the plan for forever? No. No. But it's the plan for now. And then when the numbers come together to take step number two. Just like for your client Yeah.

Speaker 4 29:38

We'll be there. Exactly. Yeah. I say this to almost all my customers. Uh, and it's not lip service. I wanna be your mortgage guy for life. Exactly . So we're not, we're not consulting for just the immediate need. We're consulting yes for that, but also for future needs as well. And trying to hopefully fit all that into the big picture game plan.

Speaker 3 29:56

Alright , for our last segment I got , I got a couple hodgepodge lodge. Uh , let's do it. Things, things coming up on the calendar. A couple other stories. Uh, you're listening to the Accu Mortgage and Realty Show on AM six 20 WTMJ.

Speaker 2 30:08

Find a place to call home without the headache. This is the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 3 30:17

This is the Ate Mortgage and Realty Show. I'm David. That's Tim.

Speaker 4 30:22

Good

Speaker 3 30:22

Morning. It's Big Game Sunday, Tim. Uh , let us take 30 seconds to talk about our own personal experiences. I can literally taste <laugh> the family room watching Super Bowl 31 . I can picture Andre Ryzen catching the ball across the middle. Yep . I can picture Antonio Freeman catching it along the sidelines. Desmond Howard taking it back from Oh , the kickoff return from one yard line , the Reggie

Speaker 4 30:44

White Sacks.

Speaker 3 30:45

Oh man. Reggie White's three sacks. Brett fav running down the field with his helmet in his hand. I can, I can taste that day , uh, sitting at the house. So to whatever small child who watches today's game. I hope you do a radio show x numbers of years from now and can talk about just like the visceral memory you have of winning. Because I say this, I don't remember any of Super Bowl 32 'cause I have blocked it out of my memory.

Speaker 4 31:15

<laugh> . Yeah. That , that , that trauma is, it will come out in therapy at some point. Exactly .

Speaker 3 31:19

Okay. So a little hodgepodge lodge , uh, as we wrap up. So markets, there's a bunch of data that gets reported day by day , week by week that interest rate and mortgage markets react to. Most of it is noise. Mm-Hmm . <affirmative> because I'm gonna , the only two, two and a half that matter is one the jobs report, which is the first Friday of every month. Unless it's kind of like the first of the month and they kick it to the second Friday. And the other one is the CPI report. The consumer price index. The two and a half one is the PCE, which is the personal consumption expenditure, which is like inflation. It's, it's a different way that they measure it.

Speaker 4 32:03

Different metric. Yeah,

Speaker 3 32:04

Exactly. Okay. Well this Tuesday, the CPI consumer price index, you know, report gets published markets that hey, if that's one of the two big ones markets, I mean like

Speaker 4 32:16

They can move a lot in either direction.

Speaker 3 32:17

Seven 30 . Yeah . Yeah , yeah. At 7 29 markets are gonna be like, and then at, you know, seven 30 and a half they'll exhale and you know, gyrate

Speaker 4 32:25

Do whatever they're gonna do. Yep . Exactly.

Speaker 3 32:26

But like, again, as I said earlier in the show, buyers want it more than sellers need it. And so not that rates are immaterial, but the gyrations themselves are immaterial to what rates are doing day by day, week by week. 'cause guess what, as you described , people are buying houses for personal reasons. Hey, I'm getting married and I wanted to take my bride home to a to our house or with babies, brides, babies and grandkids. That's what it is .

Speaker 4 32:54

And the other thing too is unless you're waiting by your computer to, to discover that CPI data, which you're not, unless you're in the mortgage industry, no. You're probably not gonna be instantaneously aware of what it does to affect mortgage rates. But guess what? If you were looking out, if you were looking for a house on Monday, you're gonna be looking for a house on Tuesday and Wednesday, Tuesday evening,

Speaker 3 33:14

You're not gonna be like honey. Like

Speaker 4 33:15

That's it. Yeah . You know what gotta

Speaker 3 33:17

Call off the household.

Speaker 4 33:18

Yeah , exactly. So to your point, it's not like rates don't matter, but they are not gonna be the thing that's going to for most people gonna make them to decide to buy or to not buy right now.

Speaker 3 33:28

So, so the other you were telling me off air, there's been a lot of ink spilled proverbial if only because what , what

Speaker 4 33:38

Is digital ink?

Speaker 3 33:39

My kids would be like, dad, what was the newspaper? Yeah. Uh, there's been a lot of ink spilled about down payment assistance. Yeah. Because some time ago I once said it's a lot easier to get a $40,000 salary than it is to save up $40,000 for a down payment. Mm . And so down payment assistance is a really, Hey, what do you know, another tool in the mortgage toolbox that we can reach for Mm-Hmm. <affirmative> when appropriate. And at academic mortgage we've got down payment, assistant tools, programs, grants, ev , all of it. So much of that is income specific. So much of that can be property specific zip code,

Speaker 4 34:19

Location, census track specific. Specific. Yeah .

Speaker 3 34:22

That it's a little difficult to speak broadly about down payment assistance, but the answer is yeah, we got that tool in our toolbox. But you were describing to me, Tim, it's not always just about who can throw money at you and can you use it. It's also, and can I get to the closing table with

Speaker 4 34:42

Yeah. I , I

Speaker 3 34:44

Assistance ,

Speaker 4 34:44

I spoke to a borrower last week who was referred by his realtor buying a home in Illinois. It's his first time buying a home. Okay . And he was , uh, I was talking to me and one other lender and that other lender, to be quite honest, had a more robust , uh, grant for down payment assistance. Okay . Than , than what I could offer him based on what I know his income to be. 'cause he uploaded his tax returns. He's a self-employed borrower. Okay . And what it came down to is, and we're still in discussions, but I believe he's actually going to choose to go with me because he's more confident in my ability to close on time. 'cause uh , closing is set before the end of this month. So just a couple weeks away. And he hasn't formally begun the approval process with either of us at this point. And I think he's really appreciated my timely communication and my expertise in explaining the details and the finer points of mortgage lending. Things that he did not get from this other lender. And he articulated that to me. So, and I, I told him flat out, I said, I wanna do everything I can to obviously give you the best deal. But this is not just a commodity business. We are not Burger King Mortgage. And there is some value to be placed on working with someone who is an expert cares and is gonna make sure you close on time with as little stress as possible. And that's what we offer.

Speaker 3 35:58

If you would like that level of service, low rates and low closing costs, all you gotta do is click on the blue button@accunet.com. ACC UNE t.com. Tim, thanks for hanging out with me this Sunday .

Speaker 4 36:11

Anytime morning ,

Speaker 3 36:11

You've been listening to the Acuate Mortgage and Realty Show on the biggest stick in the state AM six 20 WTMJ.

Speaker 1 36:17

The ENT Mortgage and Realty Show is paid for in full by ENT mortgage, LLC and equal housing lender consumer access.org number 2 5 5 3 6 8 . The advice and opinions expressed during the Academic Mortgage and Realty Show are solely that at the hosts and guests of ENT mortgage, LLC and not WTMJ or Good Karma Brands.