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 Mortgage and Realty. And now here's David Wicker and Tim Holdman.
Speaker 3:Good morning and welcome to the Anette Mortgage and Realty Show. I'm David Wicker, senior Loan consultant and Chief client Experience officer. Joined once again by Mr. Tim Holman's, senior loan consultant. Hello, Tim?
Speaker 4:Yes, indeed. Good morning, David.
Speaker 3:Uh, if you've got a question or 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 and almost every show going back quite a ways, wherever you normally get your podcast
Speaker 4:Case . You want to hear what Brian sounded like in 2006, you know ? Yeah.
Speaker 3:We'd have to dig that one up. Uh, okay. Tim, once again, on January 1st, every year, like the sun without Fail Rising in the East, everyone, you know, gets back to it. And 2024, once again, like all the years that came before, a lot of folks, it doesn't matter if it was negative a thousand degrees outside, people wanna buy houses.
Speaker 4:The brave were out there, they were looking ,
Speaker 3:The brave were out there. Bears fans , Vikings fans , no. Last week. Anyway , uh, so what I wanted to get going on today was a conversation that I had. I actually had two versions of the same conversation, which was here's how much I can approve you for.
Speaker 4:Yep .
Speaker 3:And is that more than you actually want to spend on, you know, on any particular home?
Speaker 4:Probably, yes. But get into it. So I got , I got
Speaker 3:A call this week from a dad who is also a past customer and a real estate agent.
Speaker 4:Oh, nice. Okay.
Speaker 3:And he was like, David , uh, my daughter and her husband have a particular house in mind. Okay. And they're talking to some lender who doesn't give me the warm and fuzzy that they actually know what they're doing. Hmm . Can you please connect with them and help me feel confident in their mortgage game plan?
Speaker 4:It's a smart dad.
Speaker 3:Well , which is the, you know, the triple endorsement Yeah . Past customer, father and a real estate, estate
Speaker 4:Agent and real agent. Agent . Yeah. Truly.
Speaker 3:Which as , uh, my dad, I think the thing he is most proud of is when we help the kids and grandkids of ACNA
Speaker 4:Customers, it's the ultimate compliment. It really is. Oh, yeah. Yeah.
Speaker 3:So, you know, I connect with them and this home we started by saying, you know, the, the , they filled it out being like, oh , maybe the most we wanna buy is about 300. But the house that they were particularly interested in was all the way up to three 50 .
Speaker 4:Sure. Okay.
Speaker 3:Which, as I'm always mindful of a home makes it real. Yeah . It's , it's difficult to have the conversation in the abstract, like , uh, do we wanna buy this house or a house?
Speaker 4:Totally. $50,000 means something different when you are literally walking through the house and realizing what that 50 K could potentially get you. Yeah . Yeah.
Speaker 3:So I was able to really dial in their income. We were mindful about the student loan payments that were listed on the credit report. Sure. Because this is all about mass , not massaging, streamlining <laugh> the numbers to what their income is, to see if we could lend them more money on paper. Well, and in real life, ultimately though, the conversation that I enjoyed having, so I was able to get, get them all the way up to like, if you wanna buy this house at the price that it's listed at Mm-Hmm . <affirmative> , you can, yeah. And then the conversation turned to real life topics. The first was they, it would take both of their incomes to qualify
Speaker 4:Sure. For that amount. Yeah .
Speaker 3:Right . They also might want kids, ah , sometime in the near-ish future.
Speaker 4:Don't do it. No, I'm joking . <laugh> .
Speaker 3:Those are not free.
Speaker 4:No, they're not.
Speaker 3:And, and what they're mindful of, and this is a I I , I make the comment a lot that mortgage lending is a , a lot about numbers, but you're also making a life decision about ,
Speaker 4:Based on numbers Yes.
Speaker 3:And about not just who you are today, but also who you will become. Yeah. And so for them, if they make this reach for this house, man they are, they're in it. They can make it happen. It might be a little tight, a little bit a stretch Yeah. To get started. But they can't , if it's worth it to them, they can, but they're also just mindful of like, there's other expenses possibly in the future. Kids diapers, formula,
Speaker 4:Shoes that they grow out of. Right . Every month. New pairs of shoes. Yeah.
Speaker 3:And so they're , you know, they're wrestling with like, 'cause this by by stretch. I remember dad, he , he's , he's always said this, you know, try to reach for the amount of house that you could be there for a long, long time.
Speaker 4:Literally said that to Grace and I, when we were looking for our first
Speaker 3:House , I guess it was
Speaker 4:The house that you'll be happy in, in five years from now. Not the house that you'll be happy in today.
Speaker 3:And these clients, you know, they're wrestling with that, which, you know, as we said, that is a numbers discussion. Yep . But it's also a life discussion. Alright . I, I , I want, I want to , so they were wrestling with that piece. I wanna talk about just the other , um, side of this back to the dad a little bit. I want to get to that after this first break. You're 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 Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Thanks for hanging out with us on the Anette Mortgage and Realty Show. I'm David Young Guns Edition Young Guns. I'm David, that's Tim. Hello, Tim. Telling a story about a client referred by the trifecta dad, repeat customer real estate agent. And they're wrestling, you know, just , um, the daughter and her husband. We figured out we, we can approve them for their maximum. But the conversation I actually had with the dad then was he was willing to help with gift money. Oh, nice. Let's say $20,000 because maybe on paper it would just give a little bit more elbow room to qualifying if he was also a co-signer Oh . On the mortgage. Okay. And then the other element to this, and there's, there's still , uh, here on Sunday, I don't know if they're gonna proceed with this particular house, but even if it's the next house. Right. The advice or the balance that I shared with him was it's, it's great that he's willing to, you know, if it makes it , um, easier for approval, he could gift $20,000. Sure .
Speaker 4:Grease the wheels a little bit. Yeah , exactly.
Speaker 3:The other thing that I wanted him to consider though, was maybe adding him as a co-signer gets us the approval for a larger loan amount so that he doesn't have to stroke the check for the $20,000 gift Mm . On the, you know, on the day of closing. Yeah. He
Speaker 4:Could still gift them money after the fact
Speaker 3:And a month by month. Sure. He could slow walk. Yeah . Maybe one month they, you know, might need the help one month. They don't. Yeah.
Speaker 4:It's like a li it's like a dad line of credit at 0% of Yeah . And
Speaker 3:He really appreciated that . It was like, I mean, he's willing to stroke the check on the day of closing if that's what it took . Sure . But he appreciated maybe more the flexibility of Oh yeah . You know what, David, that's a good idea. Because , well , and I think most , I think most co-signers are willing to put their name on the loan. Yeah. But they're , their expectation is you are making the monthly payment.
Speaker 4:Right. I'm just here 'cause I needed to be here for whatever reason that the lender told me. But I'm sure, you know, from the dad's perspective, it's probably nice knowing, oh, it's gonna be easier for me to maybe slowly part with my gift money Exactly. As needed, rather than literally grabbing 20 K outta my bank account and saying goodbye forever. So that's a nice , uh, nice little option that you presented David.
Speaker 3:And , and ultimately, Hey, come on. This is why we're <laugh> ,
Speaker 4:This is why we do what we do.
Speaker 3:And Yeah . Uh , so there might, I might have , uh, have more to that story in the weeks and months to come. Yeah . But it was nice to be able to offer those options and , and when you've got parents or grandparents or, you know, an , uh, another teammate Mm-Hmm. <affirmative> to try to figure out a game plan. It wasn't, you know, if they just ended up calling some dumb bank Oh yeah. Be and being like, can we buy this house? There's no,
Speaker 4:Can I, can I share a different parent perspective? Yeah, yeah. Yeah. So I've got one where the customer and I connected , uh, 'cause their realtor referred them to me. Yeah. And , uh, the , the guy , they're first time home buyers and the guy's dad is , is really, you know , wanting to help out and everything like that. Which is a totally a dad thing. It's
Speaker 3:A good ingredient to have.
Speaker 4:But , but here's the interesting wrinkle. So they're, they're looking in the North Shore area. They found a house that was just renovated beautiful, nice home. Okay . I think in Glendale, if my memory serves me correct. Okay .
Speaker 3:Sounds like it's gonna be a foot race for that house.
Speaker 4:Well, so not yet. It's been on the market for a week and a half and no offers. So what , uh, the, the dad of , of my buyer lives in Ki Wasum . Okay . And in his kiosk experience, the house is overpriced because guess what, if you picked up that house and plopped it in the middle of Kioski , it would be overpriced <laugh> by a lot. Yes. But in North Shore, that market, the house was actually pretty reasonably priced. Especially for a a , you know, renovated kitchen, renovated bathrooms, renovated living space. Oh . Everything was, was newly done. So yeah. The square footage a little bit small for a sprawling ki Wasum home for the, you know, for that price. Yes. But the comps in the North Shore supported the list price a thousand percent and then some . So it was , it was 30 grand over what they , the buyers originally told me was their max that they wanted to go to. Mm-Hmm . <affirmative> . Mm-Hmm . <affirmative> again, they could qualify all day for the higher list price of this property. So it came down to massaging. How do we get this monthly payment in line with where you actually want to be? Sure. So it may , after the break, I can get into a creative financing solution that I presented to them. They're in the midst of negotiations , uh, with some counteroffers. So
Speaker 3:You say creative, it's, it's, let's turn on the lights and point at the thing you're afraid of.
Speaker 4:Yeah . It's not scary. But after the break, we'll get into the details on how I think I'm gonna solve this issue for our customers. You're listening to the Anette Mortgage and Realty Show. WTMJ
Speaker 3:Getting
Speaker 2:You into the home of your dreams. Here's more of the Accu Net Mortgage and Realty Show with Brian Wicker on wg mj.
Speaker 4:Alright . Welcome back to the Ate Mortgage and Realty Show . I am Tim Holdman, senior loan consultant joined by my colleague and more senior loan consultant David Wicker. Ouch. I mean , yes. In a good way. But anyway , so before the break , uh, we're just swapping customer stories 'cause that's what Dave and I do. We're on the front lines of loan consulting talking to customers all day, every day . Yeah. Sometimes evenings and weekends too. 'cause that's what it's all about. Yeah . Uh , so I've got some customers who fell in love with a home in the North Shore that is listed for 30 K above their self-imposed maximum price range. And really, I , and I don't say that in a bad way, we arrived at a max of 300,000 to arrive at a monthly payment that they are comfortable with in real life. Okay . This home fully renovated, listed for I think three 30 or maybe 3 39. So they love it, but they're like, ah , Tim, what do we do to get this monthly payment where we can still be comfortable with the rest of our daily lives and not be house poor ? Yeah. David, without giving it away, and we didn't, we didn't talk about it at break. What do you think is the solution that I am talking about with them?
Speaker 3:Well, I would've begun , uh, maybe you copied it from me and now I'm copying it back from you <laugh> , but, you know, you're describing 30,000 more dollars. Yeah . Uh , the anxiety Mm-Hmm. <affirmative> Well, it's not 30.
Speaker 4:It's , it's about $200 more per month. Okay.
Speaker 3:Right. But it's not $30,000 that has now left your savings account. Right. You are making a $200 decision. Right . Not a $30,000 decision. Exactly.
Speaker 4:No. Yeah . So ,
Speaker 3:And , and the other thing too, given all the renovations you are outlining Mm-Hmm . <affirmative> , they don't have to pay for that <laugh> . Yeah . And, and they're , you know, in a reverse way, they're financing the seller's renovations via a monthly payment that they otherwise would have to stroke a check for
Speaker 4:Probably. Right. Save up for themselves and then, and then pay for that work to renovate the home . So
Speaker 3:In a way they're getting a discount. Right . Deal <laugh> .
Speaker 4:Well, they are . No, it's true. So I I, all those points I brought up, especially about this particular property being renovated, I said, listen,
Speaker 3:Imagine if this house was ugly. Yeah . And at 2 95 Right,
Speaker 4:Exactly. If you paid two 80 for this, sure. Your monthly payment would be, you know, maybe $500 cheaper. But are you gonna , it's gonna take you a long time to save up $500 a month and then pay for 30 grand worth of renovations. Yes. You , it's , you know, it's actually a , a sort of accelerated way to get a nicer house doing it this way. Yes. So we talked about that and we absolutely talked about, Hey, what's the worst case scenario? Let's say you, you do buy this full for full price, the list price, they're coming in with 5% down. Yeah. So here's that ugly higher monthly payment. Again, $200 a month higher than, than their maximum. They where they want to be . Yeah .
Speaker 3:This is some version of like substitution analysis. Right? Yeah . So yes, the payment's uglier and higher, but you're, you need to take into account. Mm-Hmm . <affirmative> .
Speaker 4:But, you know, listen, like they're, they're young. Uh, they, I think they have plans for kids and they're , you know, all those things that they don't have this 10 year career path where they know they're gonna be making crazy money in a couple years. So like , I, I get the uncertainty. I really do. So here's what I suggested. Come in at a competitive offer price . There's no other offers on the table, which is really helpful. The agent literally told me any other time of year this house would be going for over asking . Sure. So it's a benefit to be shopping out there in the bitter cold
Speaker 3:When it turns 33 degrees outside the place is gonna go. Yeah,
Speaker 4:Exactly. So come in with a competitive offer, but ask for a seller credit. Uh, they can ask for a seller credit up to 3% of the list price and they can use all of that. Yeah. To do a temporary rate buydown. And I know that we've talked about that on this show previously, I think I talked about with Brian. But basically it's a behind the scenes subsidy account that we can set up that throws money at lowering the monthly payment for the first 12 or even 24 months of the mortgage plan . Mm-Hmm . <affirmative> what flavor you pick out. And the seller is the one who pays for it and puts that money in that little With
Speaker 3:The credit Yeah. In the contract. Exactly.
Speaker 4:So I would never recommend this. I shouldn't say never. I would rarely recommend this product to a customer who doesn't have a seller credit coming in. 'cause otherwise they're just paying the money to
Speaker 3:Themselves .
Speaker 4:Themselves. But
Speaker 3:You're stealing from yourself to pay yourself in the future later.
Speaker 4:Yeah. Yeah . Might as well just keep that money in the bank on day one. But if the seller's paying for it, it's literally the seller paying for them to have an effective interest rate of either one or 2% lower than where the rates are at currently.
Speaker 3:Right . And then they kind of glide into it a little bit.
Speaker 4:Yeah. And I said, Hey, that worst
Speaker 3:Get comfortable.
Speaker 4:We still know what the worst case payment is starting on year three, but you may not even have the same mortgage in three years from now. Rates Yeah . Might come down. You might refinance before then. But, you know, that's not a guarantee. So I, I very much wanted to go in showing them, Hey, this is what the worst case scenario could be three years from now. But in the meantime, starting in year one, they're gonna , uh, use the seller credit if the seller agrees to get a, I think it was a 4.625% rate for the first
Speaker 3:Year Effective interest rate .
Speaker 4:Effective interest rate, yes . Thank you. Which brought their monthly payment actually even under their monthly payment goal while still paying full price for the house, by the way. Yeah. So like, the guy was ecstatic. He's like, you're telling me I , and you know, we uh , a lot of texting, a lot of phone calls, a lot of go to meetings .
Speaker 3:Wait, you can text your loan consultant. Sure can . That's a thing.
Speaker 4:Yeah. My personal cell phone . Yeah . Now, you know, again, please don't text me at two in the morning with like a Hey , you up .
Speaker 3:I won't get back to you.
Speaker 4:Yeah. <laugh> . I will not. But absolutely. Uh, we, we use text messages. So they're in negotiations. Hopefully next week we'll have an update about them having an accepted offer. Uh, but in the meantime, more stories to come on the Nette Mortgage and Realty Show. And now we're gonna toss it over to Wyatt Barmore Pooley at the 24 hour newsroom.
Speaker 2:Don't break the bank to get into a house. Back to the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.
Speaker 3:Good morning and welcome back to the ACU net Mortgage and Realty Show telling stories. 'cause that's what buying a house is all about. Uh , Tim, I wanted to talk about local real estate knowledge. Oh,
Speaker 4:Good.
Speaker 3:Okay. Because I have said more than once in the last week or two, even in 2024, relationships matter the same if not more. Oh,
Speaker 4:Big time. Yeah.
Speaker 3:Uh , particularly between agents, between your lender and the agents. And this comes to , uh, a particular client referred to me by their brother. Okay . Who I had helped buy a house in 2023 and now his brother with his fiance is looking at a home on the south side of Milwaukee. Okay . In the three 50 to four 50 price range, which is competitive. Yep . And as is the case, a lot of times they have a particular house in mind. And , um, and so we connected on Friday. Uh, they were scheduled to go see the house on Saturday, waiting to hear back. And the question that I posed to my client was, okay, your realtor Vicki , and as Vicki looks at this home is her local knowledge, give her that this home is underpriced overpriced or
Speaker 4:Goldilocks. Yeah.
Speaker 3:Yeah. Exact . Is it spot on ? I ended up connecting with their agent on Friday. And I'll paraphrase her analysis was, this house is gonna go way over the list price. Sure.
Speaker 4:So it's listed under
Speaker 3:It . Theoretically given, yeah. Given the price range, the, you know, demand . There's just demand . The demand. There's more people in the three 50 to four 50 mm-Hmm . <affirmative> price range than there are in the nine 50 Yeah .
Speaker 4:Price range. And you know, to steal your line that you've said a million times, the list price is kind of the made up number anyways. The value of a home is what two parties agreed that it's worth.
Speaker 3:I think I stole that from dad. All right . Well , but stealing it
Speaker 4:From him. Stealing it from you. Yeah .
Speaker 3:Yeah . And that's why having a great local agent and your local lender team up Yeah. To advise you. It's hard to give advice about the whole market. <laugh> all the market.
Speaker 4:But it's impossible
Speaker 3:Actually when it, when it's about a specific home. Yeah. You can dial in on what will it take to win this house. Yep . You know, 'cause and also the listing agent is no fool. They want to successfully get this home sold for their client.
Speaker 4:Absolutely.
Speaker 3:Yeah. And so they're gonna , what I told my client was the seller or the listing agent has an audience. It's the seller. Mm-Hmm. <affirmative>. And it all depends on what is the goal that you want to get this, what is the story that you wanna deliver to your seller? Right. When you're a listing agent, what is the story you want your client to go tell their friends at Friday? Fish Frye.
Speaker 4:Exactly. Yeah.
Speaker 3:In this case, our init our, our original analysis was this home is probably underpriced. Yeah. Which means kind of the goal is the listing agent would like their client to go tell all their friends, we got seven offers. Yep . All above list. And our listing agent is the best thing since tap beer. 'cause we got all these offers. Yeah . That's the story that the listing agent is trying to deliver to their client. Right. And if you're in competition with any number of other hungry buyers, you are probably gonna have to play a role in that story.
Speaker 4:For sure. Yeah. And then it's like if everyone's offering over list, what are the other things that you and that agent are gonna do to make your mutual client's offer stand above the crowd. Right. Exactly . 'cause if everyone's offering above list, it's like, okay, what else? Table stakes. Yeah. It's like Exactly. That just gets you in the door. Yep . That gets, that gets your offer not thrown in the trash. It gets your offer on the kitchen table with the seven other offers. Yes . So now it's like, okay, what else are we gonna do to make you win? Because it's like this , this is Ricky, this is Ricky Bobby. If you ain't first, you're last. Right. There's only one winner. It doesn't matter if you were the second best offer, you might Ricky, Bobby Real Estate <laugh> , you might as well have been the worst. Ricky Bobby Mortgage. Ah , man. You know,
Speaker 3:There's still time. All right .
Speaker 4:We'll put a pin
Speaker 3:In that. Yeah . Yeah.
Speaker 4:Uh , and you know , 'cause you're right. And some of those conversations, it actually makes sense to have them when a particular house is in mind. Just like you said. 'cause like we can talk about strategies and, and you know, I do with my customer of course a couple different things, but a because that's way that's before it's real. It's before they have a house that they've walked through. And also some strategies will make sense for certain homes and , uh, and sometimes they won't based on what the list price is and the the local market and all that stuff. So I've actually got a good story to dovetail off of yours. Yeah . Uh , when we come back , uh, you're listening to the Ate Mortgage and Realty Show. WTMJ,
Speaker 2:Important home buying questions and answers you can count on. This is the Accu Net Mortgage and Realty Show with Brian Wicker on WTMJ. Alright .
Speaker 4:David and I are having a good time on the Acuate Mortgage and Realty Show. Uh , just swapping home shopping stores. 'cause it is January 21st and there's already a lot of activity out there. Yeah . So it bodes well for spring and summer. But , uh, we're talking about All right , if you know the house has seven offers and they're all above list, what else , uh, can be done to make your offer more competitive? Right. Yeah . So I connected with some customers earlier , earlier this week. Uh , really great story. They're really sharp. Uh , young , married couple, first time home buyers . So they don't know a lot, but they're really enthusiastic about learning a lot. Okay . Which I, I love those kinds of customers. So they reached out to us .
Speaker 3:When the student is ready, the teacher will appear.
Speaker 4:Absolutely. The the teacher has appeared. Uh , 'cause they reached out to Tim Aon . Yeah. So their dad listens to the radio show his dad, and he didn't know about Aon . My , my customer had no idea about Aon , but his , his dad did. And yeah . He said, Hey, you should check out these guys. 'cause he had talked to a couple banks and credit unions, whatever. Yeah . He was like, yeah, well I was actually set with talking to these other folks. And then my dad said, Hey, it's worth checking out ACU net . Yeah . So we connected and the conversation quickly , uh, because I , you know, when I know someone is talking to other lenders, I just cut right to it, Mr. Customer, what is , what are your best priorities? What are your biggest priorities for choosing your lender? Right. Yeah . What matters most to you? 'cause I'm, I wanna deliver that so it it quickly
Speaker 3:Or tell you if I can't deliver that for
Speaker 4:Sure. Yeah. And then I'll tell you to go run to whoever else you're talking to that can deliver that thing. But we try to be the best of everything at Acuate , obviously. So we quickly , uh, was apparent that we were just as competitive as anyone else on rate and loan costs . In some cases more competitive for sure. But it turns out his priority was more, Hey, I know I'm shopping. He's like, Tim, I know this sounds cliche, but me and my wife wanna buy where everyone else wants to buy. We wanna buy tosa, Whitefish, bay Shorewood. Yeah . Bayview. Right. You know, all the hot spots . I'm like, yeah, it is cliche, but you're right. That's where everyone else is shopping. Yeah . So he knew already from talking to his realtor and, and fa friends and family, I gotta be competitive. I, I am gonna be going up against the hordes of other millennials who are trying to buy their first home in 2024 ERs or whatever they're called. Gen Zers . Yeah. So we immediately dived into that. We ended up talking for about an hour on the phone. We did a Go-to meeting and we talked about some strategies aside from just offering a healthy asking price. Sure . 'cause certainly that is important. Money talks. But if that's just getting you
Speaker 3:Into the court , that's like going on a date and you have a clean shirt. It's like, that's kind , it's a low bar. You're shower.
Speaker 4:Yeah . Yeah . You smell good.
Speaker 3:You offered more. You are not smelling,
Speaker 4:You brushed your teeth. Yeah. So it's like, okay. But now personality, humor, all those other things. Right. Uh , it's true . So the mor true the mortgage version of that is we talked about, Hey, you're , and by this point they had already filled up my application. I had their financials in front of me. They were saved up. They had a 20% down payment. Wow . As the first time home buyers . I was like, good for you guys. I was like, not a lot of people know this, but we can actually find out if you have a particular house in mind before you make an offer. I can find out if we can waive the appraisal on that purchase
Speaker 3:Dinging D
Speaker 4:Ding. And he's like, what? How is that possible? I was like, trust me, we can do it. And your agent's gonna love me for that. Yes. Because guess what? If you're offering the same price as someone else, but they have an appraisal contingency and you don't, holy cow, is the seller gonna love your offer more? Right? Yes .
Speaker 3:Say it again for the people in the back, Tim. Sure.
Speaker 4:If you have a particular property in mind and you're putting at least 20% down, you, Mr. Customer can text to me or email me the address of the house you're making an offer on. And within 10 minutes I can turn around and tell you if we have the ability to waive the appraisal for loan approval purposes. AKA you can get your loan approved with no appraisal. Nobody
Speaker 3:Walks through the house,
Speaker 4:No one walks through the house. There's
Speaker 3:One less thing. Sellers love less things ,
Speaker 4:Less stuff and saves you 475 bucks. But that's really just the cherry on top. It removes the uncertainty of, oh my goodness, what happens if the appraisal comes in low? 'cause that's what the seller's worried about. Right? Yeah. So , or
Speaker 3:Or , or what if it's picky? Yeah. Yeah . It's just, it's just, it's
Speaker 4:One more opportunity for something to go sideways. Exactly. And the deal. Right. So that was a big one. Uh , we also talked about a rock solid pre-approval. The other folks he had talked to , uh, did not offer any sort of pre-approval with a money backed guarantee. Yeah . From the lender, that vote of confidence. And then the last thing we talked about was what Brian likes to call appraisal wig room. So let's say we can't waive the appraisal outright, but maybe you're feeling a little uncomfortable offering 30 grand above list even, although maybe that's what the house is actually worth. Yeah . Maybe the house is just listed low. Um, if the seller is concerned about the appraisal contingency, we can write a modified version of that Yes. To add in wiggle room, which says to the seller, Hey, we're offering 500 K. The home only needs to appraise for four 70. Right. And if it appraises for four 70 or or above, we're not gonna come back to you , Mr. And Mrs. Seller, and ask for a , a lower purchase price. And on the buyer's side, it's not scary at all. If the appraisal does come in low, they don't have to bring the difference to closing. We can bridge that low value from our end by lending a greater percentage of that home's value. Nice. And it basically only changes their monthly payment by about 15 or 20 bucks a month. Which is nothing. The
Speaker 3:Grand payments , these are the tools in our toolbox.
Speaker 4:Yeah. So , uh, one more segment to go. When we come back on the ANet Mortgage and Realty show,
Speaker 2:Find a place to call home without the headache. This is the ANet Mortgage and Realty Show with Brian Wicker on
Speaker 3:WTMJ.
Speaker 4:All right . Welcome back to the Acuate Mortgage and Realty Show. I am Tim, that is David , uh, ending the show with kind of an interesting topic.
Speaker 3:The other side of the fun parts of buying. Yeah.
Speaker 4:We are , we're pivoting away from house hunting and ho home shopping to , uh, Wisconsin marital property law and refinancing. So we, we've both had interesting stories about this lately. Uh , I'll begin with mine. I have a customer of mine that we helped him refinance his existing mortgage a couple years ago. Uh , so this wasn't a purchase mortgage. He already owned the home , uh, and just refinanced into a lower rate . 'cause it was 2021. And that's what everyone was doing back then. Yeah . Yeah . So at the time he was married and we didn't need his wife on the loan to qualify. So for simplicity purposes, we left her off. They're both jointly on title owning the home, but just him , uh, was on the mortgage. So the
Speaker 3:Borrowed money. Yes.
Speaker 4:So in Wisconsin, and David, I know you know this, but I'm saying this for all the listeners out there, if you are married and refinancing a mortgage, your spouse needs to attend closing to sign not the note, which is the promise to repay the borrowed money. But they need to sign the mortgage because Wisconsin is a marital property state, which means that state law dictates that a spouse is on the hook for a mortgage. Uh, as long as they are the spouse. You know, even if they're not on the loan. Yeah. I guess that's the simplest plain English way I can put that
Speaker 3:As always consult with your attorney, but Yeah . For, for purposes of this story. Yeah. Yeah. And and your spouse in your example has to give the permission to collateralize the
Speaker 4:The
Speaker 3:Primary property primary home.
Speaker 4:Exactly. Yep . So fast forward to a couple weeks ago, my customer reaches out to me and he is like, Tim, unfortunately I'm getting a divorce. And I was like, oh , I'm sorry to hear that. And he is like, yeah, you know , we're, we're moving forward with it. My soon to be ex-spouse hired a quote unquote expert . And I'm using air quotes in the studio here , uh, who says, Hey, you gotta get a letter from your lender releasing your soon to be ex-wife from the mortgage. And I was like, oh, that's interesting. No problem. Yeah. Except she's not on the mortgage because she wasn't on the note. She didn't sign the note. Yeah . And she wasn't on the loan application at all. So kind of hard to release her from something that she's not on . Uh , and I went on to explain that yes, she did sign the loan at closing to basically give permission for the mortgage to happen since she was a , a wife of yours at the time. But once the divorce is finalized, she is now no longer your spouse and therefore marital property does not apply anymore .
Speaker 3:Well , generally the , the cleanest way would be you, your attorney or a title company could draft up a quick claim deeded Absolutely. Remove her,
Speaker 4:Remove her from title, and as soon as she's off title, she's not obligated on that mortgage anymore. 'cause she wasn't really part of that
Speaker 3:Loan application to be given . I'm gonna obligated on the ownership. Yes . Because he is obligated on to pay the money back.
Speaker 4:Right. Solely. Yes. And he al always was the sole person to sign the note, which is the promise to repay. So kind of just an interesting , uh, uh, exercise in semantics that's for , for anything else. 'cause you know, I I told him, listen, I'm happy to review whatever this person sends us. But the reality is, is once she's no longer your spouse, she is not obligated on the mortgage anymore.
Speaker 3:The, and that's kind of the, I'm gonna call that the clean version <laugh> Yeah . Of how to go your separate ways. I, I got a separate call from a client or from their realtor who they also set , uh, you know, parting ways his client's pain point though was I got this two and a half percent interest rate Yeah . With my, in this case they were not married.
Speaker 4:Ah, but they were both on the loan
Speaker 3:Together. But they're both on the note, the borrowed money together. And, and you know, the question was just like, is there any way in all the world where my client, 'cause he's gonna keep the house sure that he can keep his low rate, but also remove his now ex-partner . Hmm . And, and my verdict was I don't, I don't believe so.
Speaker 4:Yeah. That's tough.
Speaker 3:Be and , and , and part of the reason why, as I described to my client was the traditional path is if you, if you owe this money together Mm-Hmm . <affirmative> and you'd like to remove someone from the borrowed money you must refinance to prove again Yeah . That you alone Right. Can swing the borrowed money in the monthly payments.
Speaker 4:Well , and not to mention that a refinance truly is just a new mortgage is created, which pays off and closes the loan that both of them are on. And then the new loan is just in the, the new single borrower's name.
Speaker 3:Well, and as I, I, I hyperbolically phrased to the agent who called, I was like, well, what if your client, you know, just started a new business, you know, two months ago, doesn't really have any income to speak of that they could then qualify for a refinance. It's , um, so in in that case, you, if you want to hang onto the home Mm-Hmm . <affirmative> , but release as you phrased it, Uhhuh <affirmative> , you are now XII have some Every expectation should be that you'll need to go refinance. Yeah . And actually I have another client who I helped buy a house in early 2023. Hmm . They're also getting Oh boy. Separated. Yeah. Uh , but the quick version is he was on the borrowed money, they owned it together. Ah , now she is refinancing in her name only to release him and remove him from the loan. Yep . And over . But now we using , we're her income, but we , we need to go through that step again to prove that she can qualify, can qualify on her. Absolutely. If you'd like to connect with this Smart Mortgage folks at ACU Net Mortgage, all you gotta do is click on the blue button@accunett.com. Tim, thanks for hanging out. Absolutely. You've been listening to the Anette Mortgage and Realty Show on AM six 20 WTMJ.
Speaker 1: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 Acuate Mortgage and Acuate Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.