The academic mortgage and Realty show is sponsored by academic mortgage and equal housing lender and[inaudible] and academic Realty advisors, which is a separate company from, but still affiliated with accurate mortgage.
Speaker 2:Welcome to the Acushnet mortgage and Realty show giving you inside information on buying, selling, and financing your home with expert advice from accurate mortgage and Realty. And now here's Brian and David Wickers. All right, welcome to the active mortgage
Speaker 1:And Realty show and of August today. I'm Brian Wicker the owner back in a mortgage, and I can a Realty advisors along with my son, David who's our chief client experience officer over at academic mortgage. If you've got a question or a comment you can call or text us on the acronym mortgage talk and text line, which is 8 5 5 6 1 6 1 6 20. Remember you can also grab a podcast of today's show in any of our past shows, wherever you normally get your podcasts. So, Hey, before we get into the meat of our show, I just want to give a quick shout out to pro serv plumbing who kind of saved my bacon on Thursday. I was playing amateur plumber in anticipation. We're getting new countertops in our kitchen and our bathroom. And if anybody's ever done that, you may or may not know, Hey, you have to disconnect your faucets. And you're saying in this case, hers are a garbage disposal. So I'm like I'm handy taken off after my dad, Jack. And so there I am at 6:00 AM on Thursday, you know, disconnecting the, the kitchen sink and that's going great. Then I go into the bathroom and you know, those little valves, David on the wall that cannot cure faucet. Well, these were about seven years old and they get stiff and well, I turned mine a little too aggressively and I broke the valve and that is beyond my pay grade as amateur plumber. So thus the call to Prosser plumbing, who had a plumber out to our house by 10, 15, poser Prosser plumbing and
Speaker 3:Artificial starts. It wasn't because it wasn't because you barely had any coffee in your system at 6:00 AM. It was more mechanical than caffeine.
Speaker 1:It was just those little things. If you over-tighten them, they break. And, uh, I needed to turn it off cause I needed to get the faucet off. All right. Anyway, let's talk about mortgages and real estate. Um, we've been keeping folks up to speed on a first time home buyers journey. One of our loyal past customers, sons, and the journey started way back in late January after six unsuccessful offers, he got lucky on number seven and remember his offer got accepted for two reasons. He had a rock solid, fully verified, guaranteed pre-approval from accurate, which the listing agent specifically cited as one of the reasons his offer got accepted. In fact, I mentioned this situation, the seven offers and the rock solid as being important in our current, one of our current 62nd radio ads, which we'll get back to in a second. And the second reason was in his offer. He said, you know what? I will pay for the first$3,500. If any repairs that come up relative to the home inspection. Well, sure is shooting. There was actually$10,500 worth of repairs required on the home. And so Alex, not his real name, uh, was picking up that first 3,500, which left how much 7,000 for the seller to pay for the challenge though, is to turn that$7,000 credit or price reduction, right? So the seller saying, okay, you got me, I got to chip down to seven grand, right? I don't want to fix whatever that problem was, which we will not say. Um, so how do we monetize that? So that the buyer has cash to make whatever those fixes were after closing, because reducing the price does no good when you're only putting 5% down. Right? Right. Can you do the math in your head if you reduce the price by$7,000, how much more does that put in your pocket?
Speaker 3:Well, it depends how much he's, it depends how much he's putting down. Right? 5%, 5%. 5%. So the answer is 350 bucks. 50 bucks. Yeah. So
Speaker 1:That's like awesome. You lower the price by seven grand. I know I have to come with oh 3,350,
Speaker 3:Just to say it again. It's not about the lower price, which maybe makes you feel good. Cause you got a deal on the house. It's about, I need money to actually pay, to fix this thing. A lower price doesn't mean more money in my checking account to pay, to fix it, which is your, what you're trying to solve.
Speaker 1:That is the issue at hand. And so David, you mentioned something as we were talking, you know, getting ready for the show. What is your point about this whole story?
Speaker 3:Well, okay. So buying a house and why working with accurate mortgage is always different, better and more awesome than working with[inaudible] or the guys with the rocket, because it's, when you're buying a house, it's two parts. One, get you get the accepted offer. You need a rock, solid preapproval to be competitive, but then step two is equally as important. And you have a story for later in the show, in this example, keeping the deal together is equally as important as getting the accepted offer because if you get the accepted offer and then it falls apart, I don't know what the metaphor is for love, but it, it all ends up in heartbreak because you couldn't get to the closing table. And so that's the two part, that's the two part process to all of this and why you have to work with mortgage professionals like Acushnet to get there because it's not just about falling in love at the start. It's about getting to the altar. There you go. That's the man.
Speaker 1:All right. I like it. So, so the issue here was great. We get the$7,000 seller credit to work with Fannie and Freddie have this rule that says, though, you, Mr. Seller cannot give a seller credit that exceeds 3% of the purchase price. Hmm. All right. So after doing some math, that number turns out to be$5,500. Um, and the reason why they have that rule is if you start giving people, you know, these huge monetary credits will isn't that impacting the price, right? So we kind of turned a blind eye if it's under 3% of the purchase price. So, so great. Now we got this$5,500 credit. That limit has been established by the rule from our pals at Fannie and Freddie, but we don't have$5,500 of closing costs and prepaids to pay for it because the buyer wisely chose 2.8, seven five with Accu net paying all of the$1,234 of loan costs. So we didn't have enough money. Uh, you know, we didn't have enough cost for the seller to pay for. I'll remind you of how we solve that puzzle. Uh, when we come back, 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 accurate mortgage and Realty show with Brian Wichert on WTMJ and also
Speaker 1:The younger, taller, more handsome David wicked. And we're talking about this ongoing story of first time home buyer, oh, where we needed to monetize the$7,000 seller credits. So they didn't have to have money left over, to pay for the repairs on the house after closing that were necessary and the secret sauce here, and this all came under the category. David very aptly pointed out. It's not just about helping you get your offer accepted, which Acushnet is very good at with our rock solid guaranteed. Pre-approval verifying right on the preapproval letters. Hey, this borrower can afford to pay more, uh, than the asking price and the appraisal can come in low. You know that that's, we've already got that scoped out. Another thing we should do on that, David is we should state. If the buyer is willing to pay for some of the repairs, we should work that into our rock-solid pre-approval as well and say, Hey, this borrower has enough money for down payment closing costs and to pay for up to fill in the blank pairs. Just, yeah, we're all about putting buyers in a position, a verified position to make good on their offer and to convince the seller that our buyer's offer is legit and reliable. But then when things go off the tracks, which doesn't happen all that often, but frequently enough where you can't think that it's not going to happen to you. And in this case, it was that, Hey, there's$10,000,$10,500 of repairs, Cray. We've got this$7,000 credit. How are we going to soak it up? And David not knowing the answer you came up with, how to ways we did it. We reduced the down payment. The borrower was going to put 5% down and we said, you know what? You're going to put 3% down instead. And the only reason we were able to do that is because David,
Speaker 3:Uh, I'm going to guess you were using the extra special, awesome home ready program, which has great an
Speaker 1:And E that's one and any first time home buyer, which means you haven't owned a home in the last three years, you regain your first time home buyer status. If you've been renting for three years, any first-time buyer can buy with 3% down, uh, using a standard 30 year fixed rate loan, um, up to a loan amount of 5 48 to 5,540$8,000 to 50. If you're a move up buyer, then the minimum down payment is 5%. Okay. So, uh, the trick that we use here, and it's not important to know the trick, but you can pay for mortgage insurance either by the month, uh, which in this case was 50 bucks a month for this home buyer. Or you can buy a upfront mortgage insurance premium, you pay it in a lump sum, and then there is no monthly mortgage insurance. So we were looking for more closing costs for the seller to pay. So we switched gears and went from monthly mortgage insurance to single premium, which costs$3,900 for this particular loan. And we're having the seller pay for that. That's what soaked up is$5,500 closing cost credit.
Speaker 3:Well, and, and don't, don't, don't, uh, fly past the point using the rest of the seller's money. You are going to reduce our borrowers payment by the$50 a month that he's not going to pay in monthly private mortgage insurance, but he's getting paid for one time upfront with the rest of the seller's money.
Speaker 1:But the, the magic of this whole solution was, Hey, we had$7,000 of the seller's money that we would have liked to have turned into$7,000 in our home buyers checking account. We were able to get it to 5,500 bucks, so not bad. And then we reduced the sales price by 1500, but wait, there's more, the appraisal was still in play up until late this last week. We haven't gotten the appraisal back yet. And as our listeners may or may not know every, uh, appraisal gets ranked by either Fannie Mae or Freddie Mac's are both actually automated appraisal underwriting software. So not by a human, but a computer looks at it. And the scores it on the scale of one to five, with five being the most risky Fannie Mae's system came back with a 4.2, a high risk rating, which on a 3% down deal would have caused an appraisal review. And who knows what the outcome of that would have been. And so I'm getting kind of anxious and I'm emailing the buyer and seller, but wait, Freddie Mac's automated appraisal review software came in with a risk rating of we're out of time. I'm going to tell you that part of the story. When we come back, you're listening to the acronym, mortgage and Realty show on Wisconsin's radio station am six 20. WTMJ
Speaker 2:Getting you into the home of your dreams. Here's more of the Acura net mortgage and Realty show with Brian record on WTMJ.
Speaker 1:All right, our first time home buyer, we shifted from 5% down to 3% down then along comes the appraisal, which came in above the asking or the reduced agreed upon selling price. But doggone it, it comes with a high risk reading from Fannie may of 4.2 guaranteeing a human appraisal review and kind of a don't know where that's going to lead. Um, and we're going to get in the very close to the appraisal contingency. But luckily we have this loan pointed towards Freddie Mac instead of Fannie Mae and the Freddie Mac's automated appraisal underwriting system came back with the ultra low risk rating of one, which is so strong that neither the Freddie Mac servicer to whom Acushnet will sell the loan or can, it will ever be at risk for a buyback from Freddie Mac. If Freddie Mac, you know, if this borrower happens to go into default and then they look at the appraisals, say, oh, this appraisal was, you know, bad. Nope, we're off the hook. So that is the first time I have ever had that happen. Or Freddie Mac system says ultra low risk. Freddy says high risk. And what's the advantage of having both alternative Steven,
Speaker 3:At least you can, uh, deliver the appraisal to the buyer now, knowing that it's Bulletproof where it's not just one kick at the can, as you like to say, we have two different, we have Fannie Mae and we have Freddie Mac. So Hey, why wouldn't we use option B to reduce that risk and heartburn
Speaker 1:And smooth, smooth that out and get right to them. So now we're on the way, Hey, the commitment letter has been issued. We are on the way to closing on September 9th. Um, and, and the point is, okay, you with a brown sweater on what,
Speaker 3:Okay, this is, this is the part of the radio show where I stand on my chair or my soapbox. And I yell that you can't do this mortgage thing while you're standing in the living room of the house that you just fell in love with either either the house you fell in love with or after the fact is we've made the point on today's show. It's about keeping the deal together. It takes professional help to make sure that we keep, we created a great game plan. And then we keep the game plan together.
Speaker 4:Yeah. Even if,
Speaker 1:Even if we get blitzed, even if we get blitzed and tackled and have a 17 yard loss, Hey, we get another play where we can still make a first down. That's us. We're the scrambler. Sorry. So, um, I, I popped into closing late on Friday afternoon, just to say, thanks for your business. And it turns out with no prompting from me, this buyer says, oh, I hear your commercials all the time because I'm a letter carrier and I'm a big WTMJ listener. And she says, I got to tell you that ad, that you have running right now about the first time home buyer who got his offer accepted on the seventh time. I said to myself for the past several months, if only I were that lucky and I said, oh, really tell me more. Well, she started her home search in March, uh, had already sold her previous home. So she's not a first time buyer, but she had the money in the bank. So she didn't have to write contingent on the sale of her home. She was old for 12, from March through may. Oh, for 12. And I love what she told me. She said, uh, Brian, I knew one thing if I gave up, I would never own a new home. So I just kept trying. So imagine that you're old for 12, she's shopping in that 1 75 to$200,000 price range. She gets number 13 accepted. Okay. Lucky number 3, 25 grand over the list price. But the appraisal comes in 10 grand lower than that. In other words, 15 grand over the list price, apparently the seller wouldn't budge. So that deal falls apart. And one of the things you said should, it's really emotional Dr. Lee draining, and we've got to remind our loan consultants of this just to remember, to be empathetic, you know? Cause when you are even just writing the offer on a house, you're already imagining, you know, sipping your coffee in there. Oh, you're
Speaker 3:Moving in in your mind. Yeah. You're exactly what does John[inaudible] always say you're measuring the drapes on the windows. As you're walking through the house being like, you know, I want to paint the living room, this color when we move in. Right.
Speaker 1:So when you don't get the offer or when it falls apart, it is hard. So that deal the, the, the seller, um, must've said no, forget about it. You know, cause they probably remember this was in early June when the market was still red hot. I just looked up that house that our buyer did not get it sold for five grand, less than what our appraised value was, five grand less. And they had to chip in through grand towards closing costs. So that seller is probably kicking themselves for not accepting our buyer's 13th offer. So then on to number 14, she goes and um, she got an accepted and part of it was again the same trick as our first time home buyer, not trick, same technique. She offered to pay for$5,000 of any repairs that came up, uh, on the inspection. And luckily the total grand total of repairs, she had to shoulder 150 bucks. So I think I got to cut a new commercial about our most Intrepid to activeness of 2021 award. Uh, it goes to that home shopper and uh, that's awesome. All right. We have more stories. David does have a story about a first time buyer, uh, who was standing in their home and well, forget that one step of get pre-approved getting pre-approved until yesterday morning. We'll tell you about that right after the news and rusty Millbrook,
Speaker 2:Important home buying questions and answers you can count on this is the Acura net mortgage and Realty show with Brian Wicker on WTMJ
Speaker 1:And also David Wicker, chief client experience officer at Acquia mortgage. And so one of the things about being in business for 22 years is that, um, you start to get the children and in some cases, grandchildren of past clients who need help buying a home, that was the situation for our 3% down buyer we've been talking about in today's show as the son of a many time customer. And so, um, yesterday I got a text from a many time client recently we helped them buy a second home in Naples, Florida. And this was, Hey, my daughter is, uh, looking at homes, relocating, I think from California to Milwaukee area. And she doesn't have a pre-approval can you got somebody that can help her? And that's somebody happened to be this weekend, David Wicker, take it away with this story. Do you have it? How did it come to be?
Speaker 3:Well, um, it's, uh, I feel like, uh, in fatherhood now, all I do is talk in metaphor. So it's, you know, you're only when you find a house that you love does it suddenly become very real. I think up until that point, you're just, um, dating and then you're just like, Hey, I really need a ring. Is your jewelry shop open? Like right now on Saturday morning so that I can go buy a ring. I want to propose. Um, and cause guess what, when you fall in love, it just hits you over the head. So, you know what I was able to do, um, on Saturday morning, pick up the phone, connect with a daughter, uh, and dad, um, especially because, you know, one of the things, one of my bad jokes is nobody goes to mortgage class in high school or college. And so kind of, well, okay. I've said it enough times where I think all of our staff just kind of chuckles at me cause because it is so true. And so, you know, I, I don't want, um, you know, daughter to feel like she has to play a relay between her and dad, if parents are gonna be involved in, um, you know, in this transaction, in this home purchase. And so it's like, okay, let's just get everybody on the phone right now. So that everybody's hearing the same thing and we're putting the game plan to together together. Did
Speaker 1:You share your screen with both of them did
Speaker 4:Come on, I'm not only participating
Speaker 3:In the radio show. I'm I'm doing the actual things that we talk about. So I shared my screen and man, there was, there was a lot, um, that, that we covered. So in particular, the, the one, uh, the one thing that I had in mind was, oh, you're relocating from out of state to Wisconsin. Let's make extra sure that your job, you could work from the moon cause you work remote now, check, uh, Hey, you know, uh, what is your base salary? Because Hey, you just started a job X number of months ago. We can just use base salary to qualify him. Talk to me about your down payment. Where is that coming from? Hey, what's the address of the house that you're looking at? And so we very quickly got to, yes, you can afford to buy this house and, and, and kinda, you know, that was step one. And then we started to get into step two, which is a lot of what we talk about weekend and week out. Okay, how much should you offer? Hey, what are the benefits of, uh, this borrower? She could put 20% down
Speaker 1:And seller's going to like that.
Speaker 3:Seller's going to love that. But here's the thing. When you put 20% down, you, you have to put, you're putting 20% down. And as I pointed out on the phone, what every home buyer, um, wants after they move in is to, you know, uh, set down their stuff and then drive to home Depot to pick up that gallon of paint. Cause they really want to paint that room that they were saying they want to,
Speaker 5:They want to, uh,
Speaker 1:They want to go to penny mustard or Steinhafel's and buy that room full of furniture that they want to do, which is yeah, exactly.
Speaker 3:And so we started having that conversation around, okay. Here's I remember it. Now you could put 10% down and your payment would go up by all of$200 a month and you will keep$30,000 in your pocket to be able to, you know, buy that furniture. Maybe make those upgrades that you, uh, haven't have in mind. And I just don't, I don't think that that conversation is had when you go to[inaudible] dot com to slam through a pre-qualification letter to go write that emergency offer on a house you just fell in love with.
Speaker 1:Well, and so wait a minute though, what do we have to put on that preapproval letter? Do we have to put on the 10% down or the 20% down? You know, what are we obligated to?
Speaker 3:Well, I'll tell you that, uh, we're right after we come back, you're listening to the accurate mortgage and Realty show on am six 20 w T M J
Speaker 2:Find a place to call home without the headache. This is the accurate mortgage in Realty show with Brian Wicker on WTMJ
Speaker 1:And also David Wicker, who is mid-story here talking about a first-time home buyer who, uh, he is helping get positioned to relocate from California to Milwaukee. And, uh, and, and this borrower has 20% available to put down, which looks better to the seller. But David is saying, well, maybe you only want to put 10 or 15% down. Um, and so how did, how did our buyers react to that in terms of, okay, well what do I put on my offer?
Speaker 3:Well, so, um, what I ended up doing, uh, I call this, you, you tell me if you like this description, I call it the cause I know you've done this with buyers yourself. I call it there's the public, pre-approval 20% down. You, my wife calls this, you want to flex, you want to show the seller. Like I got this, I got 20% down, you know, without those like Yonis, after he, you know, dunks the ball and he flexes and the paint, okay, you want to flex that's the public pre-approval and then there's the private pre-approval. So I sent this borrower a preapproval that says 10% down and for her comfort, because when I did my, when I shared my screen with her and her dad, you know, we went through like, man, yeah, I would love to just put 10% down. And then, you know, you keep the money that you're not making as down payment in your checking account and you can do whatever you want with that money. And, and, and so that was attractive to them. And so by having S by coaching her, to write the offer at that 20% down and having the private confidence that we're going to put together, the bag of money called the mortgage at 10% down, that is the best of both worlds, because I think, uh, often, uh, borrowers and maybe even agents get stuck that, oh, if I put 20% down on the offer, then like someone is going to come and like double check that I actually did that at the club.
Speaker 1:Yeah. They're going to, when I deliver the commitment letter that says your financing is all in the bag, if it doesn't say 20% down, there's somehow some foul that's going to be called[inaudible]. No, that is not the case. The way the financing contingency works in Wisconsin is I can only back out of the deal, invoking my financing contingency. If I can not get approved for a 20% down mortgage. Okay. That's what the financing contingency means. If you write with 20% down on the offer, and then you say, oh, I can't get approved for that 10% down mortgage we'll get out of here. That doesn't count. You can't use it. You have to have a letter that says you can't get approved for the 20% down. So thus it is our buyer. If they really desire to put 5% or 10% down, who's taking the risk, uh, by then writing the offer with a greater down payment. All right. That's what I'm legally obligated to, uh, with the seller. But we're giving our buyer the peace of mind and saying, here's a private rock, solid pre-approval letter that says you're good for this lower down payment. So you have nothing to worry about.
Speaker 3:What I, what I pointed out to her was I, you know, okay, I'm going to get you what I'm calling the private pre-approval. Um, you know, she could share that with the seller if she really wanted to, but why? Well, uh, uh, because the, uh, I lost my train of thought. Uh, here's the reason
Speaker 1:Why I thought of why, because if the appraisal comes in low, uh, then the buyer know, or the seller knows that she can go with less money down, but think the way to solve for that, the way to solve for that is to use our version of the rock solid pre-approval. If she was willing to give the seller, what we call appraisal wiggle room is to say, okay, you can afford to buy this$350,000 home with 20% down. Even if it appraises out at, fill in the blank 3 25. And I'll tell you another true statement. Um, I was talking, I think last, uh, the week before last with two very experienced real estate agents to at a closing. And we were talking about, you know, okay, what are the market conditions? And you know, what about offering more than the listing price? Because that was the case in this particular successful closing is the buyer had written above the asking price. Yep. And then put in a caveat that said, and the appraisal can come in as low as, you know,$15,000 less. And I said, you know, the 99% of real estate agents and buyers think that the buyer has to come up with the cash, if the appraisal comes in low. And they said, well, yeah, of course, like,[inaudible] Nope, we are doing this. Oh, what? It was an epiphany for them that, okay. When the appraisal comes in low, we can keep the mortgage amount the same, as long as you didn't put 3% down. Okay. Um, because we can just lend you more money and then you're going to pay a little bit of PMI, uh, but it's only temporary. And that, uh, fact of how it's okay to pay for private mortgage insurance is part of our follow-up story on our low ball construction, refi appraisal, that we started this story last week. I've got to follow up on that right after this final break in the show, you're listening to the academic mortgage and Realty show on am six 20 WTMJ
Speaker 2:WTMJ W2, 77 CV and WK T I HD to Milwaukee from the annex wealth management studio. This is news radio. WTMJ getting you through the home buying process. Welcome back to the Acushnet mortgage and Realty show with Brian Wichert on GM J
Speaker 1:All right. We were just talking about the, a first time home buyer and Hey, you should put 20% down or 10% down. And, uh, we had a caller asked the question, why aren't they going to pay out a lot more interest over the, of the loan, uh, by putting less money down. And here's a couple of fun facts. The answer is, of course, yes, they will. But, um, home buyers don't necessarily care about the financial aspect, right? This is about, Hey, I can either tap out all the money I have, and then I'm going to go, you know, by my couch or a room full of furniture or whatever, and put it on my credit card, which is going to cost me what a credit card rates today. David, I don't know, 20%, 15%, 2010, even if you had a 10% or you're not going to do it. So this is a enjoyment factor. The other true statement is if you just took that 30 grand and your example, and I think you said it was 30 grand and the payment difference was 200 bucks a month. You could put that 30 grand in a sock drawer in your sock drawer, and you could take out$200 a month for a ready 12 and a half years to supplement your payment or to pay it that fast or whatever you want it to do.
Speaker 3:So, yeah, to say that the other way is to say, honey, I know we didn't get the new couch or ever remodeled the kitchen, but think of all the interests that we saved on our own mortgage
Speaker 1:That's right. So that is a very, you know, uh, financial oriented. But what we try to do is help people. We try to give people oxygen to live the lives that they've dreamed of. Right? So they're going to buy this house and live like this first time home buyer, the letter carrier, um, you know, who, who was successful on her 14th, try, she wants to redo the basement, right? And so she, she chose to put 5% down and now she has money left over to redo the basement that is called about enjoying life. And, and so that's where we're just trying to help people understand their options and quantify their options. And then they can decide if saving interest is their number one thing, or if really enjoying their newly purchased house is more important to them. How's that you like that?
Speaker 3:Yep. Yup. Yup. Balance is what it's all about.
Speaker 1:Okay. So, so, um, speaking of private mortgage insurance, which everybody I say loves to hate, I don't want to pay private mortgage insurance, but it's really kind of a miracle work and kind of a tool. And so w we talked last week about this, um, uh, home owner now who got a construction loan, built their house. You know, they bought the house, bought the lot. Let's see for Ron a hundred grand then spent$700,000 building the lovely home. And so that's a value of 800 when they got their construction loan almost a year ago. The appraised value was for slightly less than that, which can happen because building costs are so darn high in today's economy. Um, but now we come along and he wants to pay the balance down from jumble land. He's in the low six, down to the Fannie Mae Freddie Mac limit of 5 48 to 5,540 8,002 50. And we got them locked in at a 1.9, 9%, 15 year fixed with no loan costs, actually based on the day, he locked in his loan in early August and doggone it. Our refire appraiser goes out there and brings in the appraisal at under 600 fully 200 grand below the, uh, construction appraisal, which is not good. And the reason is they didn't have the benefit of knowing how much he paid to build the home. And they're just going out there. And the appraisal rating, we talked about that earlier is a one very low risk appraisal. Now, the other thing though, that turned out to be a killer that we hadn't discovered, uh, when we were taking the application in August was he's in the process of putting in an, in the ground pool, which is a huge stumbling block because that's a safety issue. And there's also a code issue here because I looked it up and the municipality in which this house is located, the local code is to have a fence around the pool. So not only does the pool have to be completed before we close on is refiled. The fence has to be up because every Fannie Mae seller or Freddie Mac seller has to warrant to Fannie Mae and Freddie Mac that the property to the best of their knowledge meets all local codes. Well, it doesn't right now until the fence goes up. So the good news is, um, the appraiser who brought it in woefully low, gave$25,000 of value to the partially completed pool. And so as we're going through this, I'm learning that the appraisal that the actual pool is going to be done and much to my delight, we asked the appraiser back through the appraisal management company. How much more value will you give if the pool's completed? The answer is 40 grand. Wow. Okay. So we'd get another 40 grand of value. That's great. And so now we're presenting options to the home owner of, Hey, let's keep going on this 1.99. And what we settled on is a loan where he will pay private mortgage insurance or$41 a month for 23 months. That's a grand total of PMI cost of$945. And he still gets the 1.99 rate. And that is still infinitely better than the automatic refile. Let's say the no fuss, no muss from the construction lender, which is at 2.375 with about two grand and closing costs. So we're able to use PMI as a tool to save the deal. Did you mention that early in the show, is this just about getting the order, getting the accepted offer or getting started on a refi it's overcoming obstacles when they occur on the path that we're set upon? That's all the time we have for today's show, please tune in next week for another edition of the academic mortgage and Realty show, which you've been listening to on am six 20 WTMJ. The proceeding was a paid program. Advice and opinions expressed during the accurate mortgage and Realty show are solely that of the hosts or guests of active mortgage and accurate Realty advisors and not WTMJ radio or good karma brands, Milwaukee LLC,