The Accunet Mortgage and Realty Show
The Accunet Mortgage & Realty Show 6-9-24
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: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 Brian Wicker and Tim Holman. Welcome
Speaker 1:To the Anette Mortgage and Realty Show. I'm Brian Wicker, licensed real Estate broker with Academic Realty Advisors and also the majority owner of Academic Mortgage, where my individual MLS ID number is 2 5 9 6 1 0. I'm here today along with my son-in-Law, one of ENTs top, well , actually the top senior loan consultant at Academic Mortgage. Tim Holden. And Tim, what's your individual NMLS ID number
Speaker 3:1 5 9 3 1 4 6. Alright ,
Speaker 1:We are legal <laugh> . If you've got a question or a comment, you can call or text us on the WTMJ talk and text line, which is 8 5 5 6 1 6 1 6 20. You can also grab a podcast at today's show and any of our past shows wherever you normally get your podcast. So , uh, kind of some big economic news on Friday, Tim. And , uh, there are are two major economic reports and maybe a third event every month that can swing mortgage rates one way or another. Yep . And , uh, so the one that we got on Friday was the monthly Jobs Report
Speaker 3:Report . First Friday of the month. Yep . First
Speaker 1:Friday of the month. Uh , then this coming week, by the way, we have the Consumer Price Index Right . Comes out I believe on Wednesday. Yeah . And that's a measurement of inflation. And there you have the Federal Reserve's mandate in two economic reports. Their job is to maximize employment. Right. And, and also keep inflation in check. Huh . And guess what? The , the Federal Open Market Committee meets next week as well.
Speaker 3:Oh, okay. Gotcha .
Speaker 1:And is widely expected, especially in light of the jobs report to do absolutely nothing. Yeah, yeah . Except to have a nice , uh, press release where they're gonna say we're still data dependent. So on Friday, the market was expecting 190,000 new jobs to be created in just one month. Think about that. I mean, how many, that's like five , uh, am fam fields full of
Speaker 3:People Right.
Speaker 1:Getting a new
Speaker 3:Job, all getting a new job. Right.
Speaker 1:And , and so the general rule of thumb is that , um, if we have disappointing number that's actually good for mortgage rates, right ? Because it means, hey, there aren't as many people making money buy things Right . And drive up the prices of things. Right . Which is inflation. And so guess what? The number came in at a whopping, just looking for the actual number here. I
Speaker 3:I got it here. You got it . 272,000. Yeah. So a way above consensus,
Speaker 1:And by the way, that number comes from a survey of , uh, big companies and also payroll companies like a DP and Paychex, right? Yeah. So I'm thinking that's the more reliable number. 'cause the , here's the big weird conflict. The unemployment rate went up
Speaker 3:Yeah, exactly.
Speaker 1:From 3.9 to 4%.
Speaker 3:So how can someone say how, how were more jobs created than forecasted, but yet the unemployment rate also went up simultaneously. Doesn't seem
Speaker 1:To make sense. And that's because that number comes from a telephone survey of households. Ah, so completely different data set . Yeah . But we've got a problem here, you know, in terms of divergent data, you know, like big time they both can't be right? No. And if I'm a betting man, I'm gonna bet on the payroll data. Yeah.
Speaker 3:It's literally who is getting a paycheck <laugh> ,
Speaker 1:Right? Right. So , uh, that, that made , uh, interest rates. We were having a good week up until then. Yeah, for sure. Right . The rates kind of got steadily better and , uh, a
Speaker 3:Little bit every day . Yep .
Speaker 1:And then on Friday, eh , it got not, not so bad. It's not like rates spiked, you know, a jillion percent. No. Uh , but on a $250,000 mortgage, what happened was your closing costs went up by about 875 bucks Yeah. To maintain that same rate. Sure.
Speaker 3:So it's not even that someone, you know, shopping on Thursday compared to Friday, the same rate available. Yeah. It's just that due to the slight worsening in pricing, you're gonna pay about 800 bucks more for
Speaker 1:That same rate to get whatever rate .
Speaker 3:Yeah. And that's a one time upfront closing cost . That's not the end of the world for most folks.
Speaker 1:That's right. So , uh, what's the impact in your practice? Is our senior loan consultant, one of our top producers, are people wigged on about rates that you're working with?
Speaker 3:Uh , no <laugh> no <laugh> . I got still more people out there looking than there are good homes to buy. Correct . And in , and in fact, I think as we get into summer here, the overall mood of most home shoppers is improving, if not at least staying steady. You know, they , no one is shocked about the current state of rates anymore. They're not , uh, blown away by something with a seven or a six in front of it. And , um, you know, we've got other creative ways to help drive that rate down on a more temporary basis. Sure. For
Speaker 1:Folks, I've got, I had somebody close on Friday using a 1% temporary buydown. Yep . And so they're gonna be enjoying an effective payment rate of just 6.625.
Speaker 3:There
Speaker 1:You go. And I believe , uh, we were able to pick up a thousand dollars of their closing costs . So interestingly, I was taken over a loan for another one of our loan consultants who just retired. And , uh, that couple , uh, has been in process for a while . Sure. 'cause they made their offer contingent on the sale of their home, and luckily they were about to get bumped. Oh , like a week ago Friday. Yeah. And they got an accepted offer. Beautiful. Like , on the last possible day. Nice. So now we're closing here at the end of , uh, June, and they were thinking, you know what, maybe we should pay to get a lower rate. Mm . You know, and so, which is natural, right? 'cause they've been locked for like almost two months already. Sure. Or maybe a month and a half. And so they're just like thinking, yeah , you know what , maybe we wanna put less money down and maybe we should pay up to get a lower rate. Let's cover that conversation. 'cause I'm sure this is the same conversation you're having with borrowers.
Speaker 3:I , I already know what you're gonna say , but let's , let's talk about it. Yeah .
Speaker 1:We'll come back to that. You are listening to the Academic Mortgage and Realty Show on Wisconsin's radio station AM six 20 WTMJ
Speaker 2:Home buying advice from the guys who know it best. This is the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Thanks again for tuning in today. I'm Brian Wicker , uh, owner of ACU Mortgage and licensed real Estate broker. That guy over there is Tim Holdman . Good morning. My son-in-Law and , uh, senior loan consultant at AC Mortgage. So , uh, before the break we were just talking about how I was talking with this couple who , uh, said, you know what, now we got this accepted offer. A we think we wanna raise our , um, loan amount. In other words, decrease our down payment. Okay. Because we got things we wanna do to this house. Sure. Yeah . Like, good idea
Speaker 3:Cash on hand is king. Yeah . Hey ,
Speaker 1:We're gonna put like , uh, 30% down and now they're just gonna put the 20% down. Okay. Okay . And then at the same time, they're like, man, you know what, maybe we should pay up and get a lower mortgage. So tell me if this is similar to your talk track or you know, how you might vary this. I said, well, you know, we can do that. Yeah. And, and here's the math. I sent them the math. You know, I can get you a 6.875. I can get you, you know , uh, 6.99, which all sound better then I think we got 'em locked at 7 3 7 5. Okay . With no costs .
Speaker 3:Oh. So no points. And a lender credit to pay for all of their,
Speaker 1:To pay for all , all their , all their incidentals, which are 16, $1,700 . Mm-Hmm. <affirmative> . And I said, I know the six looks so much better than the seven. Yeah. But you know , here's the payment difference and here's the difference in cash out of pocket , it's gonna take you 3.5 years of lower monthly payments. Mm-Hmm . <affirmative> to make up for the extra upfront that you're gonna cough up
Speaker 3:Just to break even. Yeah .
Speaker 1:Yeah . And then I said, you know, Fannie Mae's latest , uh, forecast is for the 30 year fixed rate to get down to 6.6 by the end of 2025. Right. And we just saw an article that some other people are still thinking it's 30 year fixed rate's gonna come down faster than that, which we all hope they're correct. <laugh> . Yeah. <laugh> . Um, and so they stayed the course after that, you know, realization or just kinda reminder Yeah . Uh , that, you know, you , this loan that we're giving you here at the end of June is kind of a
Speaker 3:Temporary, it's a stop gap . Yeah .
Speaker 1:Yeah. We're just gonna wait. And luckily in Wisconsin, refinance costs are so low. Right. And we'll probably get an appraisal waiver on that one. Oh, yeah. Um, you know , so , so why don't
Speaker 3:Good for them?
Speaker 1:Yeah . So they're , they're doing what I think is the better move for sure. And we'll do whatever you want. But what , what do you, how do people react to their choices?
Speaker 3:So I , you said something that I always say to my customers too, which is like, listen, it , it is my job to lay out the pros and cons, show you the information and try to explain it as clearly and, and , and as normal terms as possible. But at the end of the day, whatever choice makes you feel the most warm and fuzzy inside is the right choice for you. So, you know, it's our job to more educate and and guide. But, you know, our personal, I I usually give my personal opinion if they ask for it, but at the end of the day, it's whatever they want. Right? That's right . So, I personally agree with you, and I think they made the right choice that unless they keep the mortgage until, you know , say what , what's three and a half years from now in , in real life , uh, end of 2027, early 20, 28. Yeah. That if you put, if you look at it like that, like that seems a long way away. That's a long time . Right .
Speaker 1:And I think most people, you know, even that aren't studying our industry. Yeah . You know , do understand that Yeah. Rates are higher now. Yeah . They're not as high
Speaker 3:As they were. No, but it's , it's a roller coaster. Right. Right . It's like you wanna do, you really want to pay money to buy down your rate when rates are high and you could , you could get that rate for free a year or two from now.
Speaker 1:That's exactly the phrase. I Why would you wanna pay thousands of dollars upfront ? Yeah . To get a rate we should be able to get you for free. That's not
Speaker 3:Guaranteed. No, it's not. The
Speaker 1:World could go to heck in a hand basket
Speaker 3:Or No , but that's why you got the assurance of the 30 year fix . 'cause you know, going in what your quote unquote worst case scenario is gonna be, even if rates do go the wrong direction. Right.
Speaker 1:The other , um, article that I forwarded you that came out from uh , realtor.com Mm-Hmm . <affirmative> was talking about how, you know, home inventory is up 35% from, is that from a year ago?
Speaker 3:Year over year? Yeah .
Speaker 1:Yeah. Year over year. And, and, you know, you look at that and you go, well, wait a minute. That's kind of a national number. Yeah. What is it in, you know, where you're shopping now ? We do most of our business in southeastern Wisconsin. Right. But we're also licensed in Florida. Yeah. And , um, I've got the stats for May. Okay. Um, but I think may maybe we will start off the next segment with the story Yeah. Some
Speaker 3:Anecdotal data. Yeah.
Speaker 1:Because you were , you were working with a lot of borrowers in, in , uh, Wisconsin, but then you're also working with somebody in Florida. Yeah. Uh, and, and that is, those are the markets where you're seeing a big uptick in inventory right now. Florida, Arizona,
Speaker 3:Big time.
Speaker 1:Um, I'm not sure where else, but you , you know, you've gotta remember that all real estate is local. Mm-Hmm. <affirmative> . And let me , uh, pose this question , uh, to the audience. And if you want a hazard, a guess on this, we'll make you answer when you come back, <laugh> in May in southeastern Wisconsin in the five counties, what percentage of offers do you think paid $10,000 or more over asking ? Do you want me to make that a multiple choice question
Speaker 3:For you ? Yeah. Make make a multiple choice. That'd be good.
Speaker 1:Okay. The multiple choices are , uh, 38%, 43%, or 48%. Don't give your answer right now. Nope . Let's put a pin in that. What percentage of offers closed at 10,000 or more over asking? We'll give you the answer when we come back. You've been listening to the Anette Mortgage and Realty Show on AM six 20 WTMJ getting
Speaker 2:You into the home of your dreams. Here's more of the ACU Net Mortgage and Realty Show with Brian Weer on WGMJ.
Speaker 1:Welcome back and thanks again for tuning in today. So , uh, we asked the question, what percentage of closings , uh, facilitated by a member of the National Association of Realtors? So this is multiple listing service data in the month of May in the five county metro area. And we're only looking at single family detached in condos. So what percentage of those closed transactions closed at $10,000 or more over asking ? And the choices are 38%, 43%, or 48. And your answer ,
Speaker 3:Uh, I promise we didn't talk about it over the break, just in case I get it right. I'm gonna go right in middle ground, say 43%. 43%
Speaker 1:Is the correct answer. Ding, ding, ding, ding, ding. And if you wanna look at a percentage of sales, any amount over asking that was 59%.
Speaker 3:So over half. Yeah. Yeah.
Speaker 1:Well, six out 10. Yeah. No , the the flip side of that is four out 10 didn't Right
Speaker 3:At or maybe under west . Yeah. So,
Speaker 1:So, you know, it's just, it , it's an indication and it tends to go, you know, from lower, like 40% in January and then it creeps up
Speaker 3:Yeah. In the summer and
Speaker 1:Last year it peaked around 60%. Yeah . You know, in the summer we're kind of following the same pattern. And
Speaker 3:What's funny is that, I mean, this is e even this data is probably too broad, right? It's the five county metro Milwaukee area. It's like there are pockets and neighborhoods where you could even get more granular and find Okay. 'cause it's like not every, most home shoppers aren't shopping in a five county radius. They're shopping in a one county, maybe two county radius, or even more narrow than that. So even this data is not gonna be representative of most people's experiences, depending where they're
Speaker 1:Shopping . Well, and I'm glad you brought that up. 'cause I happen to have parsed the data, Hey , this month and in Milwaukee County, that happens to be the hottest Milwaukee County single family detached, isolated 64%.
Speaker 3:There
Speaker 1:You
Speaker 3:Go.
Speaker 1:Were over asking and 49% were 10 grand or more over asking .
Speaker 3:Yeah . Like in my neighborhood in Wauwatosa, probably even more than 64% if we're being , uh, completely realistic here, that is a , a still a very hot competitive market.
Speaker 1:Contrast that to Racine County where there were only 25 counties, or 25 condos rather. Okay . That closed in May. Uh, only 16% sold 10 k or more over asking . There you go. So , you know, our overall point is , uh, the national number is not the local number. No. <laugh> . And even within the local market, it gets granular. Yeah. But give us the compare and contrast with your Florida client.
Speaker 3:Yeah. So I've got some, they're actually currently living in Wisconsin, but they have family in Florida. So they've decided to buy and, and move to Florida. Oh , great. And it is just night and day. The difference between the market around here, compared to where they're shopping in Florida, they made an offer on a property that was listed for over 30 days, had at least one price cut from the original listing price. Okay . 'cause the sellers realized like, oh, this is sitting for a while . And then they got their offer accepted at i , I believe maybe 20 k under that current list price. What
Speaker 1:What price range?
Speaker 3:Uh, just in the , um, low fours. So I think it was , the list price was like four 10 something .
Speaker 1:So a 5% discount off the discounted price.
Speaker 3:Right. Yeah. And obviously no competing offers nothing like that. And they , wouldn't that be nice? And they had their pick of the litter. They , you know, they're out there looking and it's just, it's incredible that there's, you know, that's how it is down there, <laugh> and up here it's what ,
Speaker 1:Uh , metropolitan area? What you talking about?
Speaker 3:Uh, it is , um, Cape Coral area. Okay , sure .
Speaker 1:Of Florida. Yeah . So Cape Coral, Fort Myers , that kind of southwest Florida
Speaker 3:Area. Right . In single family home, you know. Yeah.
Speaker 1:There's, I , last week on the show I mentioned a realtor from the Naples area that just said, yeah , it's like 68 days on market down there. And now, you know , in some pockets in the real luxury markets down there, there's like a two to three year supply Unbelievable. Of listing and how that was so hot just a
Speaker 3:Not too long ago. A year
Speaker 1:Or, you know, a year ago. Yeah. So definitely all real estate is local and
Speaker 3:Yeah . So , so basically I , if you wanna read these articles for entertainment, feel free, but don't take a lot of stock in the data that you read from a realtor.com article talking about national year over year inventory. 'cause
Speaker 1:Well, yeah. So you gotta , you gotta connect yourself with a , um, knowledgeable local buyer's agent. And remember that landscape is gonna be changing here shortly throughout the country. Mm-Hmm . <affirmative> where, you know, right now , uh, the listing broker can, does routinely offer compensation to whatever buyer's agent brings
Speaker 3:And can advertise that on the MLS on
Speaker 1:The mls. Yeah . And , uh, probably by the end of July or early August, the listing broker won't be able to put that on the MLS anymore. And so it has yet to be seen how the industry is going to deal with that. I'm surprised at how uncertain , uh, that remains. Yeah. Although I, I did talk with a listing agent , uh, this week who had a seller that said, you know what, I wanna offer zero, because right now it's, you can still tell on the mls Yeah. What do you wanna offer a buyer's agent? And they said, you know what, I've been reading these articles, I'm going with zero, you know, how many , uh, showings they had in the first week? Zero the same amount, <laugh> zero. And so then they went back out there and put on a cooperating buyer's agent broker, I think of two, I , I don't remember exactly. It was either two or 2.4% Uhhuh . Yeah . Boom. Offer , uh, I think they got an offer, but they had insurance right
Speaker 3:Away. Yeah. But in a way the , you know, the lawsuit is achieving the desired , uh, effect, which is, it's, it's allowing the market to dictate more what the compensation will be. Yep .
Speaker 1:Alright. When we come back , um, I've got the rest of the May , uh, sales data for Southeastern Wisconsin, which I think is quite interesting and more stories from the front lines of home buying. But right now it's time to turn it over to the WTMJ Breaking News Center.
Speaker 2:Don't break the bank to get into a house, back to the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Welcome back and thanks for tuning in again to today's show. I'm Brian Wicker, owner of Accu Mortgage and also licensed real estate broker with Accu Net Realty Advisors. And that's my son-in-Law over there. My favorite son-in-Law <laugh> Tim
Speaker 3:Holman one and only <laugh> . Oh ,
Speaker 1:You didn't have to tell him that. Tim Holman, one of our senior low consultants at Academic Mortgage. And , uh, let's just wrap up, you know, on the theme of, hey, southeastern Wisconsin isn't the national number, it's not Florida real estate is all over the map. And so , um, I I ground the numbers for , uh, Southeastern Wisconsin and we were talking in one of the earlier segments, 59% of closed sales in the five county metro area for detached single family homes and condos. Uh, 59% of 'em closed over asking Mm-Hmm. <affirmative> . And , uh, 43% of 'em closed at 10 grand over asking , uh, total number of closed sales about 1,680. That's actually up 1.7% from 2023. Nice . Even better, while we don't have this bumper crop of listings , uh, that you're gonna read about in national numbers, we did have 400 more listings than sales. Good. So we're in that time. So that's 2088 new listings that is up 4% from May of 2023.
Speaker 3:Good. Yeah. Right . The the , the stickers or the , the , what are they calling the , the rate lock effect ? Yeah. Yeah . There
Speaker 1:Is wearing off. I believe that's true too. Yeah . And then the median sales price. Check this out for all those people that, you know, kept saying a year or two ago, you know, prices have gotta come down. They
Speaker 3:Got to <laugh>
Speaker 1:Median sales price shocker for 345,000 that may be a record. Record. Yeah . That didn't really go back and look. And that's up nine and a half percent from May of 2023. That's your oldest economic principle that worked there. Supply and demand. Yep . Pushing up prices. And then, you know, let's, let's look at these. I broke it down by county , uh, Milwaukee County, single family detached , uh, 64% over asking , uh, Waukesha, same number. Oh, okay. Waukesha County, fewer transactions. Not quite half. Uh, while there were 620 closed single family sales in Milwaukee, there were only 360 2 in Waukesha County. Then you go to , um, Racine County, only 53% of those offers closed over asking Washington County is the pick of the litter for buyers. Okay . Only air quotes, 46% of those sales <laugh> closed over asking Ozaki had jumped back up to 58%. So quite a little bit of variety. Yeah. You know, and, and then guess what folks, even within that Right, you're gonna have
Speaker 3:Yeah . 'cause that's just county, that's, you know, there's different
Speaker 1:Municipalities. Correct . Municipalities . What's your price range?
Speaker 3:Neighborhoods <laugh>.
Speaker 1:Correct. Correct.
Speaker 3:Cul-de-sacs. Yeah.
Speaker 1:So, you know, you , you , your strategies have to mirror what you know, if you're, if you're going to look at that house that's listed for $350,000 and it's in great condition Mm-Hmm . <affirmative> and it's the first weekend, you know, you gotta know there's gonna be multiple offers. Right. And they're probably gonna be over asking, although David likes to point out the asking price is just a made up number. Right.
Speaker 3:Yeah. You know, well, it's, it's, I've talked to a lot of buyers, you know, obviously <laugh> , you know , every day I'm talking to buyers and it's funny how if there's offers on the first weekend in their minds is Abin big indicator of, is the house priced appropriately? You know , appropriately. Yeah . A and b, you know, how much competition am I up against? Right. If they see a house that's been in the market for eight or nine days and there's no offers, they're already more encouraged. Yes . That won't have to offer as much above listing. Or maybe they get the offer accepted at listing ing price,
Speaker 1:40% of homes well in the five county area. But you gotta know that that varies by county. And we just kinda said the hotter counties right now are Milwaukee and Waukesha. Right. Little cooler are , we're seen in Washington County .
Speaker 3:And that concept isn't rocket science. And you know, ideally you're gonna be hooked up with a good buyer's agent that's going to give you the advice on, all right , what is it gonna take to win? Yeah . But then this is where we like to partner in with our different tools that we have in our tool belt to help you win if there is still a lot of competition. What's
Speaker 1:Your favorite tool if you can, if it's available?
Speaker 3:Oh boy. If it's available. I really like the appraisal, wiggle room and , uh,
Speaker 1:Oh , wiggle room is always available.
Speaker 3:Well, right. But that's true . I guess showing at that, you know, on the pre-approval that our borrowers are strong enough from a down payment perspective that they can absorb a low appraisal with no adverse effect, you know, to
Speaker 1:The Yeah. To their financing. Exactly. We call that the verified appraisal gap right now. Yep . My favorite is the appraisal waiver.
Speaker 3:Sure. Yeah. Running it quick to see if we can, if we can do that. Yeah . That ,
Speaker 1:Because that gives assurance to the , uh, home seller <affirmative> . Hey, you don't have to worry. I know I'm, maybe I'm even paying over asking . Mm-Hmm . <affirmative> . But this year , pre-approval letter from a cadet Mm-Hmm . <affirmative> , um, says they don't even need an appraisal. Right.
Speaker 3:One, one more, one that is maybe a little bit more boring, but I think really speaks to sellers the ability to close fast. That is by far, maybe one of the top questions I get from both buyers and listing agents is like, Hey, how fast can you close really fast? Yeah. I mean, if we got a buyer who's on the spot with signing documents, we're getting initial approvals from underwritings in , you know, like three to four business days right now . Yeah .
Speaker 1:So very quick. I had somebody ask me , uh, this week, could we close in a week? And the answer is
Speaker 3:No. No. Not legally. No, not
Speaker 1:Legally. You have to have at least eight, eight
Speaker 3:Days, eight calendar days. Yeah . Eight ,
Speaker 1:Eight calendar days to close legally. Yeah . Uh , but speaking of pre-approval letters and tools in the toolkit where you get your pre-approval matters, and Tim, you're gonna tell us a story after this break about a client who on the counter offer got some interesting news from the seller. We'll tell you that when we come back. You're listening to the Acura Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 2:Important home buying questions and answers you can count on. This is the Accu Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Alright . Welcome back to the ACU Net Mortgage and Realty Show. I am senior loan consultant, Tim Holdman , uh, joined by my favorite father-in-Law. Brian Wicker. <laugh>.
Speaker 1:May you only ever have
Speaker 3:One. Yes, exactly. Ideally <laugh>. Uh , so we're , uh, we're in our, our story sharing mode and we were talking about , uh, the strength of s preapprovals and some of the tricks of the trade that we can utilize in the previous segment. And I spoke to a customer this past week that had a very interesting story that maybe some customers would not believe, but this is, this is real from the front line . So it , uh, it's , uh, bears tuning into, I spoke to a customer , uh, where they're from the southeastern Wisconsin area originally, but they live in Colorado right now. And they're moving back and , uh, we're putting an offer in a home in Oconomowoc Nice single family home because they're moving cross country . They just had a pre-approval with their bank. Uh ,
Speaker 1:A large national bank that rhymes with sches
Speaker 3:Sches , uh, has a blue logo. Yes. So, you know, they saw no problem with it. And , and they were very well qualified borrowers, by the way. Nothing wrong with them financially. Do you
Speaker 1:Have a copy of the pre-approval letter, by the way?
Speaker 3:I I do not. I could ask. You should get one .
Speaker 1:Yeah . Because I wonder Yeah. Before you tell the punch , I see a lot of competing , uh, bank pre-approval letters. They only verify the credit. Yeah. They don't verify
Speaker 3:And the level of detail, it's, it's, it , it's borderline just a letter that says you can get a mortgage <laugh> . Right.
Speaker 1:Some of 'em I've seen don't even have an interest rate on it. No. Which is incredible because that's part of the Wisconsin contract. You have to say, Hey , uh, my financing contingency is based on a third of year fixed rate at
Speaker 3:This interest rate not exceeding this rate. Yeah. Right . Right. So, okay . So what I , what I told the customer is like, by the way, this, well, I I won't give it away right now. So she came to me and said, Tim, this is really interesting. We're, we're in negotiations. They've countered, we've countered and we think we're gonna get an accepted offer. But on their latest counter, they said, we will not accept your offer with your current pre-approval from that big bank. We wanna see a pre-approval from a local reputable lender. 'cause then we will have much more comfort as the sellers accepting your offer. We will view you as a safer buyer choice.
Speaker 1:Right. Yeah. Who and how did you get hooked up with this particular buyer?
Speaker 3:Uh, the realtor said, Hey, I've heard really good things about Akin at mortgage. You should reach out to them. Huh . Perfect . And I know texted him right away, said, Hey, thanks, we've already connected with the buyer. We got him a credit verified pre-approval, and literally 10 minutes over the phone. They uploaded documents the next day, and then we got them our rock solid, rock
Speaker 1:Solid
Speaker 3:Verified pre-approval. But what I told her, I said, Hey, this is actually a not a bad thing. This means that the listing agent for this property really knows their stuff. Yeah. The fact that they I'm sure advised to their sellers, Hey, you, you should have this buyer get a better preapproval. Correct. So
Speaker 1:Who, you know, just what if they had had multiple offers Oh. And theirs wasn't, you know , uh, at the top, all
Speaker 3:Other things being equal. I'm sure they would've gone with the, you know, offer that had an initial preapproval from a, from ANet . Yeah. Or exactly. Ideally from ANet . Yeah. But the lesson here is the pre the source of the preapproval really does matter, especially if the agents know what they're doing. Yeah. Because I'm sure this agent, the on the listing side, had been burned before with a shoddy preapproval from some big bank.
Speaker 1:You know, you're one 800 , I have a customer that closed on Friday. Mm-Hmm. <affirmative> , uh, the ones that are doing the one Oh temporary buydown. And they had , uh, written, and much to my amazement, gotten their offer accepted Hmm . Uh , with a big national bank, the one that caters to veterans and their families. Sure. And , and that preapproval letter was absolutely horrendous. Yeah. And yet in their case, they got it . They got it accepted, didn't have a name on it. Like you're , and this is why I think smart listing agents go like, I don't wanna be dealing with one 800 huge bank. Well,
Speaker 3:Not to mention there are so much harder to reach. You know, you try calling a loan officer at a big bank at 7:00 PM Yeah. You're
Speaker 1:Not
Speaker 3:Gonna get
Speaker 1:Ahold of 'em . You , they , you give out your cell phone . Right, Tim? Sure
Speaker 3:Do. On everything. Yeah ,
Speaker 1:That's absolutely. We want you to call, we want you to text. Yeah. You know , um, so where you get your preapproval matters. Uh , another question. Did you happen to get the appraisal waiver on, on this particular , uh, Colorado
Speaker 3:Relo? Uh, well, no. Not yet <laugh> . Okay. Okay . But there's still a chance they're actually undecided on their exact down payment amount at the moment, so Oh, okay. There is a chance, but yeah, we weren't able to add that , uh, zinger that , that, that bell and whistle to the pre-approval. Yeah . All right . Well , honestly, I don't think it'll be needed. I think that really this was the last barrier for the buyers to get their offer accepted. Uh, I should know by Monday. So maybe in a future episode I'll update , uh, all the listeners. But yeah, I think , uh, I think this is what's gonna get 'em into the end zone.
Speaker 1:That's exciting. Yeah. Where you get your mortgage matters because it's about certainty in the minds of the seller. Yeah .
Speaker 3:Not , not to mention, I told her we're gonna save her at least a couple grand on closing costs compared to that big bank too . Oh yeah . That's right . So that's the cherry on top.
Speaker 1:Let's see when we come back , uh, let's talk about , uh, a buyer that I have that is , um, buying in Chicago. Okay . Things are coming together, but it's got an interesting little 11th hour twist here that I hope also turns out , uh, for the good <laugh>. We'll cover that when we come back. You're listening to the Acade Mortgage and Realty Show on Wisconsin's radio station AM six 20 WTMJ.
Speaker 2:Find a place to call home without the headache. This is the Accu Mortgage and Realty Show with Brian Wicker on WTMJ. Welcome
Speaker 1:Back to the Academic Mortgage and Realty Show. And , uh, thanks for tuning in today. So , uh, Tim, I have the pleasure of working with , um, a referral from a person in their sixties Okay. Whose daughters we've helped buy homes. And so this is one of their friends' daughters. Got it. Okay . Looking to make the move from , uh, southeastern Wisconsin , uh, to the Chicago area Okay. For a job relocation. Sure. And , um, it turns out that , uh, so it's a married couple. They have closed on their home. They have their money in hand. Okay. But in order to get the accepted offer at the time they made it, let's say three weeks ago. Okay. Uh, they didn't have their house sold. Ah, and the , uh, we, the interesting thing is the husband's , uh, W2 employee now in Milwaukee and he's taking a job in the Chicago area and he's kind of in the construction and remodeling business as a 10 99 employee. Oh . Because that's how this really cool kind of artistic , uh,
Speaker 3:That's how they want to pay him restoration.
Speaker 1:It's like, you know what we , what we do is we have, you start out as a 10 99 independent contractor, which means we can't use his income. Right. Okay. Uh , 'cause you have to be self-employed for two years in order to initial at least a year's worth of self-employed income on your tax return before that becomes real.
Speaker 3:And that and positive net income mind you. Yeah.
Speaker 1:Positive. Yeah . Well, I wrote off everything so I have to pay any taxes, my
Speaker 3:Whole moving expenses and all my new tools and my truck and
Speaker 1:Not gonna be good. So , uh, so we, we left him off the application. The good part about that is we, we got to leave off a car loan and some student loans too .
Speaker 3:Beautiful. Awesome.
Speaker 1:And so now we're qualifying just on the, on the , uh, wife's income on our new job Sure . In Chicago area. But at the time they wrote the offer in Chicago, she wouldn't qualify , um, with both house payments. Oh sure . And we could not excuse the old house payment yet. So what they did to their credit is they added her dad to the offer and made it a cash offer.
Speaker 3:Nice. Yeah . Okay .
Speaker 1:So , uh, we've gone through the process now and, and by the way, they offered um, I wanna say 70 grand over asking <laugh>. So it was listed in the high , uh, four hundreds. Okay.
Speaker 3:Is it single family or kind ? Single family .
Speaker 1:Single family . High , high . And it's a fixer upper, which they love. 'cause that's the kind of line of work that the Huntsman
Speaker 3:Well sure he can Yeah . Absolutely. Sink his teeth into that. Yeah.
Speaker 1:And so , uh, they got the offer accepted 70 grand over asking . Amazing. My goodness. And uh, now it's a cash offer. Yeah. Right. So that's very attractive.
Speaker 3:It's a slam dunk for the sellers. Yeah, that's
Speaker 1:Right. Guess what? The appraisal came back earlier this week. Mm-Hmm. <affirmative> . And there was a, there was a delay of like 10 days or more 'cause they were dickering over the inspection. Oh
Speaker 3:Sure.
Speaker 1:Uh , ultimately ended up with only a $2,500 credit <laugh> , but it took them like 10 days 'cause they got quotes and all this sort of stuff. Yeah. Yeah. But luckily they're going through with it. And even better, the house appraised Oh , at the unbelievable asking
Speaker 3:Price of 70 k over. Yeah . 70 k shocker . Did it appraise Right on the dot. On the dot.
Speaker 1:Shocker. And, and wait though. It got a Fannie Mae collateral underwriter rating 1.8.
Speaker 3:Oh my goodness. So it's bulletproof. Yeah ,
Speaker 1:It's bulletproof and it's a one to five scale folks where anything 2.4 or under is Bulletproof. So, so it's
Speaker 3:Basically, is
Speaker 1:That a case of the listing agent really under pricing it?
Speaker 3:Maybe you've got a wonder. Yeah. 'cause clearly the comps were there to support the, what the final purchase price was.
Speaker 1:Let me say, if they would've gotten it for five 30 instead of five 50 , it
Speaker 3:Would've appraised at five 30 .
Speaker 1:I bet it would've appraised at five
Speaker 3:30 . Guarantee . I would, I would take that bet to Vegas every day . Because what
Speaker 1:Surprises people is the appraiser gets the copy of the contract, including the price. Alright . So now we're down to the point though where , uh, we issued loan commitment on Thursday last week. This transaction is closing this upcoming Friday. So we've got a week and a day because now they would like to remove the dash .
Speaker 3:Sure. Because they won't , they don't need 'em anymore. 'cause they've sold their previous home . Correct.
Speaker 1:And they've got the loan commitment in hand, but it's not, they can't demand it. No, they, they, so in, in Chicago, in all of Illinois, you have to have an attorney. So their attorney is gonna approach the seller's attorney and say, Hey, here's this loan commitment now. Mm-Hmm. <affirmative>, can we please excuse dad from the transaction? Yeah. And the worst case is that they say no. And then dad's gonna have to show up at the closing Yeah. In Chicago next Friday. But the game plan here again , uh, they took a little higher rate and was able to give him a $1,500 closing cost credit. Yeah. Uh, refinancing is cheap in Illinois, like in Wisconsin. Yeah .
Speaker 3:Way cheaper than a purchase in terms of title costs.
Speaker 1:Yeah, absolutely. And so in , in six months Yeah.
Speaker 3:Just refi him
Speaker 1:Off. Well and by that time we'll be able to use the husband's income as well Oh . And put him back on because
Speaker 3:'cause he'll be W2 at that point. He's
Speaker 1:Supposed to be a W2 Sure person after, well
Speaker 3:After , well we may not even need him even then. Correct. Yeah . Correct. But we can add him on.
Speaker 1:We can add, they might wanna take some cash out because we, there's only a certain dollar amount that we could approve them for on the loan. Right . With just her income. Yeah. So, oh , sure. They may wanna pull some cash out at that time. So Yeah.
Speaker 3:Why not fund , uh, some future projects on the, on the property. Yeah. So
Speaker 1:We're , we're not just transactional. We're like Yeah . Mortgage planners
Speaker 3:We're , we're not McDonald's mortgage. Yeah . We don't just, you know, give you your , uh, number three mortgage value meal and say thanks, come again. We, we try to get creative and offer good solutions to fit your needs
Speaker 1:And future planning too.
Speaker 3:Right. Yeah. We, we, we consult with the big picture in mind.
Speaker 1:Alright, well that's all we have to for today's show. Tim, thanks for filling in for your brother-in-Law. David, my pleasure. Oh , it's great to have you on the show. Yeah. We'll see you again next week. You've been listening to the Anette Mortgage and Realty Show on AM six 20 WTMJ. The proceeding was a paid program. Advice and opinions expressed during the Accu Net Mortgage and Realty Show are solely that of the host or guests of academic mortgage and ANet Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.