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 Accu Net Mortgage and Realty Show, getting you inside information on buying, selling, and financing your home with expert advice from Accu Net Mortgage and Realty. And now, here's Brian and David Wickers. Welcome
Speaker 1:To the Accu Mortgage and Realty Show. I'm Brian Wicker, licensed real estate broker with Anette Realty Advisors, and also the majority owner of Anette Mortgage, along with my one and only son, David, who is our Chief Client Experience Officer at Academic Mortgage. Also a licensed real estate agent and , uh, very active senior loan consultant as well. If you've got a question or a comment, you can call or text us on the Old National Bank Talk and text line, which is 8 5 5 6 1 6 1 6 20 Old National Bank. Get old and you can also grab a podcast of today's show or any of our past shows wherever you normally get your podcasts. So David, another good week for mortgage interest rates. How come?
Speaker 3:Well , um, let's begin with the end. Uh, Friday was the jobs report, and in the days leading up to the jobs report was, was it hope? It was a combination of hope and expectation and some minor data, I'm gonna call it. That continued the theme of, boy, we, I think we really are , uh, defeating inflation. And that , uh, momentum carried then into Friday. It's, it's been, the momentum is carried for couple weeks now, I'm gonna say. Mm-Hmm, <affirmative> .
Speaker 1:Yep . We've been , so rates have been sliding down in our favor.
Speaker 3:Been been sliding down.
Speaker 1:Yep .
Speaker 3:And, and then , uh, come Friday morning at seven 30, the jobs report came out. Uh , the forecast was that in the month of November, we added 180,000 jobs. That was the forecast, and the number came in at 1 99.
Speaker 1:Okay. A little hot.
Speaker 3:Just, just a little bit. And for reference, in October, we , uh, created 150,000 jobs as , uh, I listened to last week's show. And it's amazing how we're like unimpressed almost by like, you know, 199,000 jobs. Like
Speaker 1:We're , we're , that's a huge number.
Speaker 3:It is a huge number. It's, it's all in context. I mean, we're talking about previous months where we were adding like 200 and 300 and wasn't there one month where it , the number came in at like half a million Almost. Yeah . It was
Speaker 1:Crazy world it , right? And , and so obviously it was people, it is more and more people get jobs. And the number that you've just been talking about, David, at $199,000 comes from a payroll survey. So the labor department asks payroll companies like a DP and Patriot and other ones say like, well, what are you guys seeing? So that's the one survey. The other one where we get the unemployment rate is done by a telephone survey. And so interestingly, that ones showed the unemployment rate going down from 3.9% down to 3.7. So bottom line is the interest rate markets, eh , were not upset with the jobs report, but it didn't continue the streak of like, oh gosh. Yeah, it was really going down .
Speaker 3:Well , it didn't , it also didn't end the streak. Like that's right . There was no reversal.
Speaker 1:What I always like to point out though is how many people are working , uh, because those are the people that pay the taxes , uh, and, you know, help our economy go. And so according to that household survey, there are now 168 million , uh, 260,000 Americans working, which represents 62.8% of the working age population. Uh, that's called the labor participation rate. And then the other thing we can say is that there are currently 6.29 million Americans that wish they were working in can't find a job. That's the unemployment rate. Uh , you know , and I always think that we should, we should say this in reverse. You know what the employment rate is 96.3%. 96.3%. That of people who want a job are getting it. Now the other important factor in this whole , uh, monthly survey is how much did people's , uh, wages go up? And what was that number? Do you have that offhand, David? Oh , I don't have that in front of me. It's 4%. Okay. I knew that. It's 4% year over year . And remember that, you know, the reason why the jobs report is so important to the federal reserve and interest rate markets is the stronger the job market, the more money people have to spend, the more money people have to spend, the chances are it could be driving inflation up. 'cause remember, 70%, 7 0 7 tenths of this country's great economy comes from consumer spending, right? Um , so that's why the jobs report is probably the biggest , uh, monthly number, economic number that influences interest rates. Along with, are we gonna get the CPI next week? The consumer price index?
Speaker 3:The consumer price index comes out Tuesday, December 12th. That's seven 30. Uh, that is a year over year . We're hoping we're forecasting at 3.1%.
Speaker 1:Wow.
Speaker 3:Okay. Which is just , and again, for reference, that number was north of nine, right ? Uh , summer of 2222.
Speaker 1:Right. Alright. And so then the impact that this has had on interest rates is good. Um, I just recorded an ad quoting a 6.89% 30 year fixed rate. And , uh, that's a way better than 7.90 yeah. That's, that's a , a , a big difference in payment. Maybe we'll talk about that. And our first time home buyer program for Wisconsin Buyers is down to 6.125% with an A PR of 6.29. David, let's come back and talk about your first time home buyer who's gonna get to take advantage of that super low rate money when we come back. You are listening to the Academic Mortgage and Realty Show on AM six 20 WTMJ
Speaker 2:Home buying advice from the guys who know it best. This is the ACU Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Welcome back and thanks for tuning in today. Uh, we're just talking about how interest rates are favorable and how our special Wisconsin first time home buyer 30 year fixed rate money has come down another quarter percent this last week down to 6.125%, which is smoking hot good. The a PR with 3% down is as low as 6.29. But David, you've got a first time home buyer who's gonna get to dip into that awesome first time money pool. Uh, tell us a little bit about their accepted offer that you just got this last week.
Speaker 3:Yeah, so, so this like all , um, accepted offers, there's a story and the particulars of this story shape how they then got their accepted offer. Okay, so let's, let's start with , uh, when they reached out to us, I think you, you connected with them first and you were like, Hey, you fit your income fits in the box to get this best lowest rate. The good stuff for first time home buyers. And that's county specific. And so that can be an important, you know, follow up question that you're acting at . A loan consultant is gonna , uh, you know, check in on it when you're in and around the same counties. Like what's the difference between that number in Milwaukee County versus Waukesha versus, you know, Ozaki Nothing. Right? It's all the same, but when you get to different, you know, Hey, what about Brown County? What about Dane County? Those numbers are different. So that's one thing. So they're gonna get to use this awesome low first time home buyer rate 6.125%. They're putting greater than , um, 20% down dad. So the a PR is gonna be real tight. 6.2 probably.
Speaker 1:I bet even nod that , but go on. So , so what's the story on the listing? 'cause it's a beautiful , I looked it up beautiful.
Speaker 3:Then the story on the listing, this house, when they first sent me the listing had been on the market for 23 days. So do you want to , you wanna try to read my mind on my, my first thought, what are these sellers thinking on day 23?
Speaker 1:I think I might have to lower my price 'cause I don't have any offers yet.
Speaker 3:Exactly. And let us alway let us say, and always, never forget the list price is a made up number, and yet the market will speak to you about the number that you've begun with. So these folks came out with their number , uh, $500,000 and they were still sitting out there 23 days later and were not , uh, contingent, which any of the websites that you, you know, pull up a listing on Yeah. Or pulling that data. So it's in relatively real time . So my buyers went in a hundred thousand dollars <laugh> below the list price for their initial offer.
Speaker 1:But , but wait, I did see that they lowered their asking priced down to 4 49.
Speaker 3:I think it happened like around the same time, like when I first pulled up the listing, it was as high as 500.
Speaker 1:It , it was Yep . 4 99 9
Speaker 3:And then they brought it down to 4 49 9. And so my clients submitted their offer last week. We talked about how winter, you know, provides an opportunity to get not so competitive situations. Yeah , yeah . I wouldn't want everyone to think that they can succeed by going in this low to begin with. Correct . But it is situational. Right. And, and with the advice of their real estate agent, they were pulling other comparable homes that I was like, even at the four 50, you know, reduced list price that was still above what the market was saying about a similar home as well,
Speaker 1:Which is what, which is what a good buyer's agent will do. Right? Right . When they present the offer, they just don't present the offer. A a really good buyer's agent will say, this is why, you know, look at here, here's, here's what justifies our, you know, offer. That's almost , you know, 50 grand below what you're asking. So it
Speaker 3:Makes for a good headline. Like Yeah, we got it. 50,000 below the list price. But, but really as , as I've heard you say many times, the value of the home is what the buyer and the seller agree on ultimately. Right.
Speaker 1:Right. And this is a property that has like eight acres, so it's not everybody's gonna want this. It , I don't think it has any outbuildings, thank goodness. So it's not gonna, it's just a , a nice country , uh, property. Yeah . Alright . So, so these folks, were they rock solid , guaranteed pre-approved?
Speaker 3:Absolutely. Okay . Uh , great income, strong down payment. The, the one piece of heartburn. And I, and I did my best there, there was some back and forth with the seller. Yeah. And, you know, $5,000 here, $3,000 there in terms of price. And my, my advice saying yes is sometimes the best negotiation tool you can bring when you're trying to get an accepted offer, rather than 2, 3, 4 rounds of going back and forth on price ultimately, particularly for this family, they're gonna be there for a long time. Yeah . I wouldn't want, I wouldn't want there to be , um,
Speaker 1:Like you blew it over five grand. Yeah.
Speaker 3:And I don't wanna be casual about 5,000 bucks, but in the big scheme of it , uh, it's enough . So they're under contract now and , uh, we will have more on this throughout the weeks to come. We will keep rolling here on the Anette Mortgage and Realty Show. Stick with us. You are listening on six 20 WTMJ, getting
Speaker 2:You into the home of your dreams. Here's more of the Acuate Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Thanks for hanging out with us here on Sunday morning. This is the Academic Mortgage and Realty Show. I'm David Wicker, the younger that is Brian Wicker, the wiser over there. Ooh , I like that . Dad . Uh , just, we have people getting accepted offers on houses here in December. Amazing. What
Speaker 1:I thought nobody bought a house during the holidays. Too much hassle. And the weather's bad and there's not enough to pick from, but wow. Yeah . Well this is statistically a better time to buy less competition, right? Yes .
Speaker 3:Oh, well , and you've got the data , uh, month over month. We will share that after the bottom of the, I I , I have another client who got an accepted offer , uh, this past week. And this client's been looking for two years. I wanna say. Oh
Speaker 1:My
Speaker 3:Gosh. And, and I'm, I'm gonna pay them a compliment. They are , uh, cautious and savvy about wanting to find a home that they can afford. They're single and you know, it's just on them. And so picking a home and a monthly payment that allows them to succeed and , you know, still buy groceries, as I, as I said to them and, and we've shared stories , um, I could have qualified them to buy a lot more house. Okay. But they wanna be able to, you know, order a second glass of wine when they're out to dinner and not feel like they're stretching their budget.
Speaker 1:So those two add up the glasses of wine <laugh> .
Speaker 3:So the, but the twist , uh, they had been looking for two years for a single family home, but then I get the, I get the call Tuesday evening, Hey David, I'm looking at this condo. Ooh , can you tell me can I afford it? Yes. And what would the monthly payment be? X, Y, z The difference between single family and condos condominiums, 99 times out of a hundred are gonna have monthly, if not quarterly homeowners association dues. Correct. Which is money you're , you're putting into the kitty to pay for things along with the other people in your condo association. So for this buyer, it was a $300 extra. It's not part of your monthly payment. Uh , when you, you know, move into your house, you're gonna make your monthly payment, regular mortgage payment, then the condo association is probably gonna send you a welcome packet. Hey, here's how you make your monthly payment to the condo association. The conversation .
Speaker 1:You pay it outside of your mortgage payment, but you're still typically paying it every month. So, yeah. So this is kind of a recognition that you don't
Speaker 3:See
Speaker 1:That when you're buying a single family home. Exactly . Is that what you're gonna say?
Speaker 3:Yeah, this was exactly , 'cause I said I was like, buying a condo makes explicit the things that you're going to need to pay for in the future. Yeah . Right. Because if you buy a single family home and the AC goes out, you know, one year later you're stroking a check for a thousand bucks to
Speaker 1:Replace it . It's ,
Speaker 3:It's just all on you. So the association is saying, cool, we're gonna save for that every month. We don't know when you necessarily, things will break or be replaced, but it makes explicit what you should be saving for anyway when you buy a house.
Speaker 1:Well, and that, that's where some condo associations are way better than others at realistically forecasting, what are my future expenses gonna be? You know, if you're in a high rise , when am I gonna have to replace that elevator for $150,000? Or when am I gonna have to replace the roof or the windows? And good associations will even go out there and get what's called a reserve study done. That plots out literally over 20 years. Here are all the expenses that we think we're gonna have, and so therefore we have to save this much at this time.
Speaker 3:So for my client, my my summary was you don't have 300 more dollars per month in monthly payment. Just 'cause these dues. You have these condo dues. Yeah. You , those would exist anyway. But you are be you , you're on a plan now to make sure that your condo and everyone else's condo is well taken care of. So you're not really, it , there's not any less or more money leaving your checking account. It's just on purpose because you're gonna be purchasing this condo. Dad, after the news here, I want to hear your story about when the condo association needs to play a little catch up though. Uh , in addition to the monthly condo dues, that story and more after this break, now it's time to turn it over to the 24 hour newsroom. Don't break
Speaker 2:The bank to get into a house. Back to the ACU and Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Welcome back and thanks for tuning in. Uh , before the news break, David, you were talking about helping , uh, home buyers switch from , uh, single family to condo by the, the way. How much , what percentage down are they, are those folks putting
Speaker 3:10%?
Speaker 1:Oh , okay. So that's an important number folks at 10%. Uh, we do not have to get all super detailed on what we get from the homeowners association. It's called a limited review, which is a good thing. There's less chance that we're gonna kill the deal then by finding out something like, oh, they don't have enough of a budget reserve. You
Speaker 3:Don't go , you don't characterize it like that. It's, it's that, that when you have to have a full review Yeah. Underwriting really analyzes how the association is being managed. Like budget, bylaws, all that jazz when you put , which
Speaker 1:Should always , it's not , it's a double. I know it's a double inch sword though. That stuff you should know as a new Yeah . Condo buyer. But ignorance is bliss. So, you know, in terms of getting the deal done, 10% down is the threshold. If you put 9.99% down or less, then we gotta dive into the budget and the bylaws , uh, we still always have to make sure that the homeowner's association is adequately insured. One of speaking of insurance, I got a story about that. Um , but what about David? Uh , what's their income relative to area median?
Speaker 3:They , uh, fit within the box. So we're getting them the income specific special pricing too.
Speaker 1:Okay. Uh , I mean for our special first time home buyer , uh, money at 6.1225%,
Speaker 3:They have owned a home previously. Ah , so they , um, so they, they fit not within the best box, but the almost best box.
Speaker 1:Okay. And , and so therefore they are they gonna escape the uh , Fannie Mae risk penalty Yes. For having less than 25% down. That's another thing you gotta know, folks. Uh, if you are a first time home buyer, which these people are not, and you make 100% or less of the area median income , uh, then you can escape , uh, the risk penalties that are imposed by , uh, Fannie Mae and Freddie Mac. And one of those is, Hey, you're buying a condo and you're putting less than 25% down. We think condos default more than single family homes. Whether they do or not, I'm not sure. But the theory behind that is when it comes to a distressed market and everybody's trying to sell their condo, there's very little that distinguishes, you know, unit 1 0 1 from unit 1 0 2. And so then you in a , in a downward spiral, it's just a race to the bottom on price. So that's why condos are generally priced higher to the tune of, what would you say, David? A quarter percent in rate?
Speaker 3:Yeah. Yeah. If you're, if you're working with a mortgage lender who doesn't ask good follow-up questions, yes. You could end up paying a quarter more in rate.
Speaker 1:So these folks are gonna escape that, which is good. So they're gonna get, you know , second best pricing available. Yeah . Um , 'cause they're not defined as first time home buyers. Do they have a house to sell or do they sell it within the last three years?
Speaker 3:They had already sold. So they, they , um, you , you can regain your first time home buyer , uh, status. If you have not owned a property within the last three years, they have not re achieved that milestone yet.
Speaker 1:Okay. Alright . So then the other thing we're just talking about is insurance. And so we helped somebody buy a really nice condo a little over a year ago. Oh no. Just exactly a year ago. It was December, 2022. And found out from this owner that , um, in their particular building there had been a fire sprinkler leak , uh, major up on the fourth floor that ruined, completely ruined like five units. And so then it resulted in an insurance claim of like $2 million and all the repair work's been done. But now the association is going after, or the association's insurance company, I should say, who fronted the money for all the repairs is now going after the developer. 'cause it's a fairly new condo association or condo building and saying, Hey man, you had a design flaw that, 'cause guess what, it was cold weather caused the sprinkler system to freeze and burst
Speaker 3:In Wisconsin. Yeah, they didn't , they weren't planning for that. Okay .
Speaker 1:Ah , well, you know, they didn't plan well enough and , and so, so there's this open legal battle and wouldn't, you know now coming around for renewal , uh, with the insurance company that just paid out the roughly $2 million, they said, we don't wanna insure you guys anymore. Yeah,
Speaker 3:No thank you.
Speaker 1:Surprise. And that's kind of a general trend, folks insurance in Wisconsin even is getting harder to come by. Regular homeowner's insurance , uh, condo insurance because in Wisconsin we had a lot of hail claims. Oh, that's right. This building and the association also had the hail claims where roofs were damaged, siding, stuff like that. And , and so they went back out to the market and said, who would like to insurance now ensure this association now? And the answer was only the specialty market. And so instead of paying 20,000 ish for insurance in 2024, this association is gonna have to add a zero to that and pay 200,000. Oh
Speaker 3:My
Speaker 1:God . And so each of the 18 unit holders is getting to pony up 10 grand. Now luckily it's the kind of building where people can afford that 'cause of the prices that they paid. But that is called a special assessment folks and doesn't happen usually to that amount very often. But it can
Speaker 3:Possibility though for condo
Speaker 1:Possibility. Hey, when we come back, let's talk about the November home sales . I've got the numbers from the multiple listing service. You are listening to the Academic 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 1:Welcome back to the Accu Mortgage and Realty Show. I'm Brian the elder, that's David the younger , uh, over there. And , uh, David the home sales in the , uh, five county Milwaukee metro area. This is counting up both , uh, single family detached and condominiums. Do you think it was up or down compared to Oh, October.
Speaker 3:Oh , down for sure. Down.
Speaker 1:That's right . Yeah . Okay . Uh, there were 1,533 , uh, sales in October. This is sales facilitated by a member of the National Association of Realtors. Uh, that's why it shows up in the multiple listing numbers. And uh, and then in November we dropped down about 203 units. Were down to 1330. And that's kind of a normal seasonal pattern. If we compare the number of sales in November to , uh, November of 2022, we're only down 5%. That's 71 fewer sales. But part of the reason is that what was the last November? Like David,
Speaker 3:Well last November was the start of the end of low rates. Yeah. And if I recall it was, wait ,
Speaker 1:Whoa . No , it was the spike. November was the spike, wasn't it?
Speaker 3:Well , yeah, that's what I'm saying. It was rates, rates began to drift away in October of 22. And if you went under contract and or you were searching for a house in October of 22, then you closed November of 22 and you know that it , it brought tightness to the market as everyone started reacting to interest rates going up
Speaker 1:Because , so in other words, we're comparing a crummy November to another crummy November. If you go back and compare this November to 2019, the last pre pandemic number that we have, we are off by 16% or 254 fewer sales than in November of 2019. But check this out, David, the dollar volume of the lower number of sales is still up 19%. And that's because from November of 2019 to this last month, the median sales price in the five county metro area went from 225,000 up to 305,000. So up 80 grand or 36%.
Speaker 3:Can I say it another way? The 16% compared to the 2019, you know , a normal year. Mm-Hmm . <affirmative> think down 16% is , I mean it could that bad be worse. Isn't like , it's not bad
Speaker 1:For, for rates, you know. Uh , so the people that closed in November probably have rates in the mid sixes , you know, range between seven, I'm sorry, mid sevens probably between, you know, seven and 8%. So yeah, when you put it in that context, being down 16% ain't bad at all. Other side of the ledger we have , uh, listings and so listings compare to last year in November are just about the same. Only 24 fewer down 2%. And then though if we compare it to 2019, listings are off. Similarly again , uh oh wait, only 7%. Oh, okay. Only 105 fewer listings. So as we were talking in earlier segments with the people you're helping to get accepted offers here. Yeah . In, in December, you know, which we're gonna close in January. Um,
Speaker 3:Wait on that condo just , just for reference. Yeah , we're closing that before Christmas 'cause we're that good?
Speaker 1:We're that good? Yeah. Fast closings a specialty. Not a problem. Uh , and by the way, do , uh, off the top of your head, did they get it for under asking add over ,
Speaker 3:Uh, right at the list price.
Speaker 1:Okay . Any other competing offers?
Speaker 3:No, in fact, and this condo , uh, came back on the market, the went when I spoke to the listing agent because I call to advocate on behalf of my clients because, you know, every strength counts. They had shared with me that they got to two days before closing on a previous buyer before they had to cancel, I think a home sale contingency, I think spoiled the party previously . Um, so they were glad to get a buyer back on the horn. Um ,
Speaker 1:Back on the hook, right
Speaker 3:At the list price.
Speaker 1:You're like your mother, you kinda get things mixed up. That's okay. Back on the hook.
Speaker 3:Back on the hook.
Speaker 1:Not on the horn. Well , you're in the horns of a dilemma I guess. But anyway, so , uh, those takeaway folks is if you can find a house now, if you're a home buyer and you've taken a break, 'cause like, oh , racer at eight, they're not at eight anymore, they're down in the sixes. And, and also it's the holidays. Well, if you can find a home that you wanna live in, this is a good time to buy also, don't you think, David? There's gonna be a a cavalcade a what's a tsunami? What , what's the word you wanna use of home buyers getting back into the market in January with rates down?
Speaker 3:Uh , it , it happens every year on January. Well this year it'll be January, yeah. January 2nd. Yeah. It'll be, it'll be a rush 'cause 'cause you're gonna look across the Christmas dinner table at your significant other and be like, I wanna buy a house this year. Yeah,
Speaker 1:Let's get back
Speaker 3:And call in early January. Just like everybody else. Get a headstart is what we're saying.
Speaker 1:Alright. What do we wanna talk about again when we come back for
Speaker 3:Income? Uh , you had a story from Tim on Yeah . A client
Speaker 1:Variable income and why you wanna get pre-approved with acuate on a rock solid basis. 'cause most big credit unions and bank , uh, pre-approvals are not thorough. Not very good. Alright. You're listening to the Acuate Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 2:Find a place to call home without the headache. This is the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 1:Welcome back and thanks for tuning in to today's edition of the Anette Mortgage and Realty Show. David, I think we've taken it for granted. We launched the , uh, the Rock solid guaranteed pre-approval program in 2015. I think that's when you returned to academic mortgage. Yeah . Wasn't that coincident , uh, to that? Yes. And, and our pre-approvals folks , uh, not only do we verify credit, which, you know, a lot of the banks, maybe some of the credit unions, they're using what are called soft credit polls. They're not even real credit reports. Um, which means they cannot run your scenario through any kind of an automated underwriting system. So at Academic Mortgage, we are using real credit reports, which are a little bit more costly, cost us a little bit more, but we like to wr out any and all uncertainty out of your path , uh, to becoming a homeowner. And we see these other pre-approval letters from competitors from time to time, and they are scant on details,
Speaker 3:Useless would be my word.
Speaker 1:Correct. Some of 'em don't even have the interest rate, which is like, come on man, you gotta have the interest rate in the loan amount and the loan term because those are the things that go into the offer to purchase when you fill out that financing contingency area and the down payment . So in addition to doing real credit reports, we're also verifying income and that's what we wanna talk about. And we're verifying down payment so that all three legs of the actual mortgage stool are a rock solid level, even steady. Uh , yes . All of those good things. And , and so , uh, your brother-in-Law , uh, Tim , uh, my son-in-law, father of my other grandchildren, you know, is telling me about a situation he has going right now. And thank goodness it's pre-approval basis. We got this figured out before they went out writing offers because in the one case , um, one of the borrowers had declining bonus income. Okay? Mm-Hmm. <affirmative> . And , and so that got thrown out, meaning you can't zero , you use your bonus income. Yeah. It's like, well, can't you use the lower amount? Nope . And, and the reason this is a hot topic folks, is, you know, all these 30 year fixed rate mortgages or the vast majority of 'em get sold to Fannie Mae and Freddie Mac. And so then what Fannie Mae and Freddie Mac do is after they buy the mortgage, they look through it and they go, is there a reason we can say this loan doesn't meet our standards? And then they force the , uh, Fannie Mae seller to buy back the loan. Nobody wants to buy back a loan. Okay. If you're in the mortgage origination business, that's bad because now you gotta do something with it different. Yeah . And it probably means you're gonna lose money. And , and so this topic of what I'm gonna call variable income is the hot topic of the end of 2023. And it's not just on commission and bonus, it can even be on somebody with , uh, hourly income. Yes. Right? So it's, it's just a very important topic to make sure,
Speaker 3:Or, or even jobs like nurse or , um, law enforcement, if you've got like shift
Speaker 1:Differentials, any, any of that variable Okay. Flavor, yeah. Overtime . That would be another example. And , and so in this particular case, it was two, two borrowers , uh, working with Tim and one was declining. Uh, and so yeah , we're throwing that out 'cause it could be declining to zero, right? Yeah . So we're not gonna use any of it. The other borrower check this out in his first year had $600 of bonus income and his second year on this job had 1,350. So we're not talking about a lot. But in the third year now, this year to date , he's got 35 grand. And guess what the initial response was? We're not using any of it. It's like , whoa , none . That's where we had to go back. Come on it . It's varying in the right direction. Yeah. And so I , I , I believe we only needed like a hundred or 200 bucks a month. And so that's where we could press forth with our arguments and say, okay, you gotta give us some . And , and that was just enough to get it over the , uh, its approvable line. But that's how tricky it is in today's world and why you want to go with ACU Net mortgage, you know, we're gonna verify everything and then we stand behind it with a $2,000 guarantee. Plus, you're always gonna get smart people like David on your case, who are gonna find you the best , uh, lowest rate or lowest closing cost that there is out there in the marketplace. That's the value proposition. That's all the time we have for today's show. Thanks for tuning in. We'll see you back here next week. You've been listening to the Academic Mortgage and Realty Show on the biggest stick in the state 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 Academic Realty advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.