The Blue Button Broadcast

The Accunet Mortgage & Realty Show 4-6-25

• Accunet Mortgage

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Speaker 1:

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 TATed Wicker and Tim Holdman.

Speaker 3:

Good morning and welcome to the Accu Mortgage and Realty Show. I'm David Wicker, president and managing owner at Acuate Mortgage, where my individual NMLS ID is 3 2 8 8 4 7. Joined today by one Timothy Holdman. His individual NMLS ID is 1 5 9 3 1 4 6. Good

Speaker 4:

Morning, David.

Speaker 3:

Hello, Tim. We are back. We are back. Uh, if anyone would like to catch previous episodes of the Academic Mortgage and Realty Show, those are available in podcast form wherever you normally get your podcasts. Okay, Tim. So , uh, lot happened this past week. Busy

Speaker 4:

Week

Speaker 3:

Gyrations, I would say. Let's talk through the sequence of all that

Speaker 4:

Occurred. Sure . And then we will say what occurred.

Speaker 3:

Pri primarily I would this , um, on Monday and Tuesday, the world waited.

Speaker 4:

It held its breath,

Speaker 3:

Held its breath for the unveiling of, what was the date ? Liberation Day?

Speaker 4:

Is that what they're calling? Okay .

Speaker 3:

Um , I believe that was the brand for the day on Wednesday when in the Rose Garden the tariff plan was released.

Speaker 4:

Unveiled, yeah.

Speaker 3:

Unleashed <laugh>. And with those plan , that tariff plan, the stock market and the bond market mm-hmm <affirmative> . Began to digest. Yeah .

Speaker 4:

It , it started reacting.

Speaker 3:

Reacting to the reacting and rates this last week , uh, improved

Speaker 4:

Mortgage rates. Yeah.

Speaker 3:

Mortgage rates improved. Mm-hmm <affirmative> . The equity market, the stock market, the Dow Jones Industrial Average, and the s and p 500 and the Nasdaq all got absolute, there was an absolute bloodletting Yeah. In the equity markets, because ultimately, and , and then that continued into Thursday and then , uh, China on Friday, crack of dawn on Friday , um, reacted. Yeah . And, and said, oh, yeah, <laugh> , you got , you got tariffs. We got tariffs too. Yeah. And imposed their own tariffs on US goods. I think it was at 34%. Was that the number?

Speaker 4:

Sounds about right. Yeah.

Speaker 3:

Okay. Some tariff, all this to say, so when there is economic turmoil

Speaker 4:

Yeah. And uncertainty.

Speaker 3:

And uncertainty, generally speaking, if you had a billion dollars that you need to invest somewhere, you are going to choose while, while the fog, that's the , um, metaphor that I think market commentators have begun to, to use. Yeah . Use more than more and more that like, Hey, I got a billion dollars that I need to invest mm-hmm <affirmative>. But as I look out into the future, all I see is fog.

Speaker 4:

Yeah. It's foggy. I can't see far into

Speaker 3:

The future. Right . And so, because it is foggy, man, I don't know if I'm willing to stick that billion dollars into Apple

Speaker 4:

Yeah. Into tech or

Speaker 3:

Something like that. Right . Into the Nasdaq , uh, equity. So, you know what, I'm gonna put it into something that's more, I'm gonna pull it. Maybe I out of risky things like stocks, and I'm gonna repar it perhaps in something that seems safer, like, I don't know, mortgages,

Speaker 4:

Mortgage backed security , mortgage backed securities , more long term stable.

Speaker 3:

And so that is what leads to a , uh, decline in interest rates. Right. Is when money flows from air quotes in the spirit of Joey Tribiani , air quotes, risky things Sure . And flows to air quotes, safer things like treasuries and mortgage backed securities that leads to lower interest rates.

Speaker 4:

Yeah. So the , to put a button on it, it's like economic uncertainty and stock market volatility. Yes. Typically, not always, but typically leads to mortgage rates going down. Yes. And that is what we saw Wednesday, Thursday, and a little bit on Friday, and we'll get into this. There was also some maybe counter influencing information that came out Friday regarding the jobs report. Well,

Speaker 3:

And well, what's interesting, okay. Just on that on Friday, it was, it , it was like someone looked at the calendar and was like, you know what, let's have this huge announcement on Wednesday about tariffs, <laugh> , and then we'll get the jobs report on Friday. 'cause that came out. Yeah. Forecast was for the economy to have added one hundred and thirty five, a hundred thirty 5,000 jobs in March. Yep . Rick Santelli on CNBC at , uh, said , uh, not one thirty five, two hundred and twenty eight. Yep . That normally <laugh> Yeah . Such a strong jobs number on a Friday would obliterate Yeah . It would the bond market.

Speaker 4:

Right. But

Speaker 3:

All that did

Speaker 4:

Not happen. All this tariff news kind of canceled that out. I mean, there, there was, as we commonly see sometimes with the jobs report, there was a revision from previous months Yes. Where they shaved off, I can't remember if it was maybe 40 .

Speaker 3:

So 40 some thousand ,

Speaker 4:

40,000 jobs also, interestingly enough, the unemployment rate was at 4.2%. Yes. Slightly above the forecast of 4.1%. So, you know, kind of some contradictory information there too. But I think to your point is that all this jobs report information on a normal non tariff week would've caused mortgage rates to go up. Yes . Almost certainly. Yes. But the tariff news has kind of , uh, blown that out of the water, so to speak.

Speaker 3:

It is the 800 pound gorilla standing next to the 100 pound gorilla of , uh, jobs report. Yeah. I, when we come back from this first break, I want to give our listeners the two and a half rules for refinancing, because that opportunity might be in front of a lot of people, but there's a smart way to go about thinking about that. Yes. We'll cover that after this break. You are listening to the Accu Net 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:

Welcome back to the ACU Mortgage and Realty Show. I'm David, that's Tim over there. Good morning. Uh, Tim, we have enjoyed in , uh, a rally in rates Yeah . In mortgage rates.

Speaker 4:

Always fun to see, which

Speaker 3:

As my wife looks at me, she's just like, this feels strange that like, when you work in the mortgage business, you're always like yes to the tough economic news while the rest of the world's like, I don't know if I feel so good about this. It is, it is weird . It is at odds. Yeah.

Speaker 4:

<laugh>.

Speaker 3:

So , uh, the tariff , uh, 800 pound , uh, tariff gorilla , uh, arrived on the scene this week. And I think I, as I have been calling texting clients like late last week and all weekend long, I, one of my primary points is this relief in rates is not driven by an improvement in data. Correct. And so it's

Speaker 4:

News driven .

Speaker 3:

The punch bowl could be removed if on Monday morning tariff negotiations with 180 other countries all got done on late Sunday night and suddenly we are the fog . The fog clears.

Speaker 4:

The fog is lifted. Yeah .

Speaker 3:

Yes. And, and suddenly we look out into the future. It would be my expectation that yields the bond market would be like, whew . Yep . Not worried about the fog anymore and rates go back up. Yeah . Because again, this, this reprieve is not data driven . It is headline driven . Correct. Okay. But while the opportunity is here mm-hmm <affirmative> . Let's review.

Speaker 4:

Well , and, and the reason you're bringing this up, David, is that I'm sure we'll both talk to customers who will say the words, oh, well what if rates are better? Awesome. What if they get even better <laugh>.

Speaker 3:

Right . What if they go lower?

Speaker 4:

Okay . What if they go even lower? David,

Speaker 3:

You're you're teeing me up. Yeah . Okay. So we sent out a note. Jackie net customers and, and referral partners. Hey, here are the two and a half rules of thumb on refinancing one. Do the math on closing costs. Absolutely. My preposterous example is don't spend $12,000 in closing costs to save 60 bucks a month. Yeah.

Speaker 4:

And we've said this ad nauseum, but it's worth repeating on a refinance. Those closing costs can be baked into the new mortgage amount. Yes . So just because you see a quote that says no cash needed at closing, that doesn't mean there's no closing costs . Right . If you get an actual detailed written breakdown quote from ANet or any other reputable lender, they still should itemize what are the closing costs? 'cause Yes . Even if you're not paying for it with cash out of pocket , you're paying for it. You're just paying for it with the equity in your home, you're ,

Speaker 3:

Well, you're chewing into the equity in your own Possibly. Yeah . In your example. So go on. Okay. So do the math on closing costs and break even. It would be our advice if you need to break even on your closing costs within 12 and maybe up to 18 months. Yeah . Tops on your monthly savings. So if you're gonna save a hundred bucks a month on refinancing, you need to only spend 1200 to maybe $1,800 on closing costs. Mm-hmm <affirmative> . Otherwise, it's like, if your break even is, you know, 2.9 years down the road, that is, you should wait. That is financially forever away. Yeah. <laugh> . So that's rule number one. Rule number two to what you said, don't be a gambler. Yeah. If you're dealt, what's the poker reference? Like if you're holding, you know, ACE King if you're

Speaker 4:

Holding pocket ACEs Yeah . And it's a slam dunk, right? Like don't take

Speaker 3:

The win. Yeah. Don't be like, or maybe it's a blackjack reference is what it really is. It's probably better. Yeah. But like, if you've, if you're showing a great ham , don't be like, as the question we get, well what if, what if rates go

Speaker 4:

Lower? Well then, yeah. So to keep with the cards metaphor, it's like cash in your chips, win that hand. Yes. And then if rates do go lower, guess what? You can play another game. Well , AKA refinance again.

Speaker 3:

And it feeds back to thing number one. If you don't have a large sunk cost on the first refinance Yeah . There's

Speaker 4:

Nothing stopping you from doing it again, then come

Speaker 3:

Christmas rates are lower still. It's like let's do it again. Yeah .

Speaker 4:

But if rates do level off, or if they go back up, at least you captured what's available today. Which for a lot of folks that have gotten mortgages in the last year, I would say it's an improvement over what you have now. Of course.

Speaker 3:

Well, I I sometimes frame it like, if I can save you $2,000 in mortgage payments, that is effectively like almost a $3,000 raise at work. Yeah. Because it , you gotta make the gross to make the net. Yeah.

Speaker 4:

2000 in , in mortgage savings annually is literally like a $2,000 post-tax. Yes . Raise on your salary. Literally. And who would turn that? If you think of it, like ,

Speaker 3:

If your boss called you and was like, do you want a $3,000 raise? Everyone would be like, I

Speaker 4:

Accept and all I have to do is click your name 20 different times on a web browser to e-sign some documents. Literally. It's like, yeah .

Speaker 3:

Alright . And then our last , uh, two and a half or rule is make it personal because the, your mortgage is a recipe and the ingredients are customized to you. Yeah. So you're gonna read a headline rates are this, well maybe 'cause we need to connect on what's your credit score? Mm-hmm <affirmative> . What's your equity position? Yep . All of those details that are going to line up to what's your monthly payment savings or rate savings. Yeah. You gotta get it customized. A headline won't do you any good. If it spurs the conversation great.

Speaker 4:

Then it accomplished all it's supposed to accomplish. Yeah .

Speaker 3:

But right then it needs to be, it's like a diagnosis. It's like, I think I, I think I'm diagnosed with refi. Let me go talk to my mortgage doctors at AED

Speaker 4:

And he's got the prescription boom.

Speaker 3:

<laugh> for more refinance. Boom. Alright . Some stories from the front lines of home buying . Uh , after this break, you are listening to the Accu Mortgage and Realty Show on AM six 20 WTMJ getting

Speaker 2:

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

Speaker 3:

Thanks for hanging out with us here on the accident Mortgage and Realty show . We've given Headline world, Tim, and then as I have begun to do over and over , uh, none of my home shopper clients called me and said we're back in it. Yep . We're, we're getting out there. 'cause I saw the 10 year hit 3, 8, 5 on Friday. The

Speaker 4:

People who have decided to shop will keep on shopping. Yes. And you know, if anything, there's gonna be more competition out there if this rate improvement is significant enough to lead to actual savings. Yes. But there are very few people who are going to be informed enough and on top of the ball enough to realize, oh, rates are a whatever, quarter percent, half percent better. Yeah . <laugh> . Oh, now is the time,

Speaker 3:

Honey, come on.

Speaker 4:

Yeah. Yeah . It's not like the, you know, the other real life reasons for you wanting to buy a home are still there. Your wife is still just as pregnant now as when your

Speaker 3:

On Thursday rates were higher Monday. Yeah. Yeah. So I got one of those calls, a referral on Thursday , uh, before, you know, I would say Fridays even more awesomer improvement in interest rates. Yeah. On , I got referred to this client by their real estate agent and it , it was like this conversation was just made for the radio show <laugh> because it was, it was, yeah.

Speaker 4:

So you're not just making up this No ,

Speaker 3:

No . This is very real. And I am , of course, I'm just paraphrasing the story, but it was the conversation, Hey. Yep . I called my bank and you know, I have done three loans with them before and I thought that would've

Speaker 4:

Led , I thought they cared about me ,

Speaker 3:

Me , I thought they would treat me special. And I so let, let's just make, take a moment to , to declare, I have a lot of friends and colleagues who work at banks and they're great people. Yeah. Oh, for sure. But if you listener are expecting a level of loyalty just because you've done a transaction or have a checking account, you are setting yourself up to be disappointed in the amount of loyalty you think you will, but won't receive from your banking partners.

Speaker 4:

Do you know , do you know how I know that if I went into my bank and said, hi, I'd like to withdraw all my money right now, they'd be like, okay, here's sign this form

Speaker 3:

Here . It's Yeah.

Speaker 4:

They don't care. Yes.

Speaker 3:

So the conversation began with like, oh, I've done, you know, X transactions bought , bought a home, sold a home, bought another one, refied great . Sure. Yeah . But when I, he , this client had just sold a home, has the proceeds, is self-employed. And he is like, I just, it seems to me his spidey senses were , I don't think they're approving me for all that I think I can qualify to borrow, or I'm going for my next steps,

Speaker 4:

Or I'm going to need to qualify to

Speaker 3:

Borrow well to get to the amount of house that he wants. Yeah. Right . Right. Okay. So self-employed, he's 50% owner of a business. Got

Speaker 4:

It.

Speaker 3:

The analysis or , or the, the , um, diagnosing for someone who's self-employed, particularly here in early April. I was like, okay, well have you filed your 2024 mm-hmm <affirmative> . Returns personal and business returns because if you, if all that we can rely on is 2023. Yeah . Because that's all that's been recently filed. That's ancient history at this point.

Speaker 4:

Yeah . To him as the business owner is, but on paper, that's the most recent data we can point to.

Speaker 3:

And he had shared with me, well, our business continues to succeed. You know, we made more money in 2024 than we did in 23 and even 22 before that. Amazing. It's like , well, but if I don't have, yeah . If your lender doesn't have the updated, you know, most here's what we did most recently, number then a, i I posed the question to him this way, Tim. I was like, did it feel like the person you were talking to at the bank was a smart person? Right. Or did you feel like you were just getting like, here's the cookie cutter and like, oh , you don't fit. Well, I guess I don't care. And he was diplomatic, but the clear answer was like, I didn't feel like I was getting the smartest doctor in the hospital. Right. I was just getting , uh, a doctor , a person.

Speaker 4:

And maybe that doctor did care the most that they could care, but maybe it was an experience issue. Maybe it was a combination of lack of experience with a little bit of apathy. You know, you , you just don't know

Speaker 3:

With a little bit of apathy. Yeah . So, just

Speaker 4:

A hint, the ,

Speaker 3:

Let me set up for the continuation of this story. When a self-employed borrower brings us their financial world, what , and , and the key element, David, our business continues to succeed. 2024 was better than 23 and 22. That's

Speaker 4:

What you like to see.

Speaker 3:

That's that . Absolutely. The opportunity is Well, and here's the prompt. How old is your business? Mm-hmm <affirmative> . And do I need to use a two year average of your self-employed income or can I use a one year analysis mm-hmm <affirmative> . Of the most recent year to be like, this is what your income is.

Speaker 4:

Yeah . I can't wait for the answer to that question after this break. That's right. A cliffhanger.

Speaker 3:

A cliffhanger, a mortgage cliffhanger. Alright , now it's time to turn it over to the WTMJ Breaking News Center.

Speaker 2:

Don't break the bank to get into a house. Back to the ACU Net Mortgage and Realty Show with Brian Wicker on WTMJ.

Speaker 3:

Welcome back to the ACU Net Mortgage and Realty Show. I am David Wicker. That is Tim Holdman over there. Tim

Speaker 4:

Buenos di uh,

Speaker 3:

Telling the story of a self-employed borrower. And as I was on the phone with him, I, I highlighted like, most clients bring their income to us and it's vanilla. Yeah . Hey, I got a pay stub. I got a W2 and like, here's my savings account statement. Yeah . Amazing. Oh, you're self-employed. Well , that's, that's chocolate. And maybe that's not just chocolate. It's like chocolate rocky road with like brownies in it. Yeah . Like it's just different.

Speaker 4:

Yeah. It's not bad.

Speaker 3:

It's still

Speaker 4:

Ice cream. Ice cream still tastes good. Exactly.

Speaker 3:

Yeah . But like, let's not pretend like it's the same as vanilla. Right. Which

Speaker 4:

I mean to the , the customer's point, how would you know that? Right. Well , exactly . I mean their exactly . Their money in their bank is green just like everyone else's. Whether they get it from a pay stub or from self-employed income. But in the mortgage world, we are required to treat self-employed income differently.

Speaker 3:

Like the flavor that it

Speaker 4:

Is. Yeah. And the, you know, the one of the key things that we always look for, and that I'm sure you're about to tell us about your diagnosis with this customer is how long the business has been in existence for will dictate how many years of tax returns we need to analyze to sort of calculate the income number that we get to use for helping someone qualify for a mortgage.

Speaker 3:

So , so that threshold Yeah . Is if your business has existed for greater than five years, and I would take that as I have five tax returns Yeah.

Speaker 4:

Of existence. We can , we can look it up on the Wisconsin registry and see the data was incorporated. Yes. You know, or something to that effect. So

Speaker 3:

This client's business has existed for 15 years. Fan tch . I did, you know , the fist pump in the air. Yeah. Because that's a win. Again, as my client shared, hey, for the past couple years our business has continued to do better and better and better. The, I don't even wanna call it worst case , but like the medium case version is I have to use an average of your 24 and 23 income, an average. Well as the, as I even reviewed in their tax documents, that average is of course less Yeah . Than what 2024 would be if it stood on its own.

Speaker 4:

Because you said year over year they've been doing better every year. Yeah.

Speaker 3:

The magical opportunity and the key difference between the ACU net analysis and the bank analysis is because the business has been in business for more than five years, well over five years, I only need to use the most recent one year of income,

Speaker 4:

The most recently available tax return, which has he filed 2024. He

Speaker 3:

Has lovely. As of like Friday morning I think <laugh> , but now I've got 20, 24 boom. And IO wait, when I run everything through the underwriting software, it says I only need one year. Yeah.

Speaker 4:

It confirms it

Speaker 3:

Za , I don't need to take a two year average that's gonna haircut us to a conservative, more conservative monthly number.

Speaker 4:

Right . And let me guess now using the 2024 income Yes. Does he qualify for as much mortgage? You bet . As he wants like

Speaker 3:

To the tune of like a hundred thousand more dollars of mortgage.

Speaker 4:

Huge.

Speaker 3:

And he's got a healthy down payment and it just allows him to get into I think a whole other stratosphere of house. Yeah . Because we can lend him more money because we knew what tools to reach for Yeah . And which ones to not reach for Correct. In order to maximize how much money we can lend him. Yeah.

Speaker 4:

So if, and again, like this is not to disparage banks or really any other lender out there for that matter, but if that customer didn't do the wise thing of contacting you Yeah . Or a second opinion. Well,

Speaker 3:

Following the advice and opinion of their real estate agent Yeah . To be like, I I know a better doctor.

Speaker 4:

Yeah. They would only know what the direction was from their lender at their bank. Yeah . And that direction was two year tax returns and Yep . Here's the income we can use to help you qualify and this is how much you're pre-approved for Go forth. Yeah . And do your thing. Luck . It's like he wouldn't know any different and that's a cookie cutter. Maybe , you know, maybe that lender, they just always ask for two year tax returns no matter what. 'cause that's just what they were told and that's just the only thing they know how to do. Yes. Right. So it's like your experience will not be the same at every lender you talk to. Just like your experience at every doctor you go to will not be the same. Right. So get connected with the smartest and most experienced mortgage doctor who by , by the also way , uh, cares, you know, the most. Which maybe it's a selfish analysis, but David and I, I think care almost to a detriment sometimes. Well , you know , more than others. I ,

Speaker 3:

Again, to my , uh, as a love letter to my banking friends, like they do great work, but like Absolutely. Do you know what happens if, if you don't close your loan at the bank, nothing happens to the bank. They'll continue to carry on. They'll be okay. It , the only way that ACU net , uh, remains is if we actually successfully help people do the thing. Yeah . We

Speaker 4:

Have the motivation, the, the correct amount of motivation.

Speaker 3:

Well, and my last thing is always, I've begun to do this with clients. Let's declare what your maximum is. Yeah . And sometimes to your point, it takes like, I want , I wanna get a second opinion about what my maximum is mm-hmm <affirmative> . Before I accept the reality. Yeah . So if any listener feels like they're getting trimmed on what their maximum is, let's analyze that and most people , and you get that second opinion, most

Speaker 4:

People, you kind of get you , you know, after you talk to someone, maybe their level of investment in your situation. Right. Yeah . You know , you get that feeling on it's like, am I getting taken care of the best that I can? Yep . Or, or not.

Speaker 3:

Alright . When we come back from this break, Tim and I are gonna flip a coin 'cause I have a , um, resident physician story. Oh , okay . And Tim's got a , you have a foreclosure story. Foreclosure story. Yeah. Okay . We'll flip a coin , uh, and decide after this break. You are listening to the Acuate 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 4:

Welcome back to the Acuate Mortgage and Realty Show. My name is Tim, senior Loan consultant at ACU Mortgage joined by President David Price Wicker. Uh, David, I won the coin flip. So we're gonna talk about my story , uh, first and then, you know, as time allows we'll jump into other things. Yes. But I have a customer , uh, first time home buyer , uh, young guy, you know, really grinding , uh, at his job, making a lot of good money and a lot of good overtime. And he woke up one day and is like, I want to move outta my parents' home and get my own place and I don't wanna run . Yes.

Speaker 3:

I know that feeling. Yeah.

Speaker 4:

So I said, awesome, like, let's help you do that. So he's been actively looking for the last couple , uh, weekends here. And his uh , realtor texted me on Friday morning saying, Hey Tim , uh, reaching out on behalf of our mutual customer, we're looking at this place. And I noticed on the listing that it's listed as an as is property and you know, to the realtor's credit, she's like , uh, you know what , my antenna went up a little bit. Yeah. Because I was like, you know, is that gonna be any issues for financing? What does that mean? Mm . So I said, let me take a look. So she texted me the address of the property. I look it up. And it is actually owned by a bank currently. Okay. Meaning it is a foreclosure Yes . Sale. All that means is that previous owners defaulted on their loan. The bank took it back, the bank now owns the property and is trying to turn around and sell it Yeah. To try to recoup some of their investment Yeah . On the old mortgage. Uh , and it's very typical with foreclosed properties that it is sold as is . And really all that means is that the seller, the bank, the seller, or whoever it is, even if it's a a private party who's selling a house as is. 'cause we've seen that too, just means they're saying, I'm not doing anything to this property to

Speaker 3:

Get ready to sell. I'm declaring beforehand. Yeah. No matter what you find, I ain't fixing it.

Speaker 4:

Yeah. You can get an inspection buyer for in informational purposes, whatever that inspection finds. I'm not doing anything to this house to sell it. Yep . And from the real estate agents concern is like, okay, well what if something comes up that makes the property ineligible for financing? Right. Because when we pre-approve someone, we only pre-approve the borrower. The other side of that coin is once they have a particular house in mind, we have to make sure that that house also is in lendable condition. Yes. Which for conventional mortgage, no

Speaker 3:

Holes in the roof.

Speaker 4:

Yeah. For a conventional mortgage, it's not really that hard of a threshold to meet, but there can't be anything egregiously wrong with the property. Yeah. There can't be a hole in the roof where a crow flew through.

Speaker 3:

Yes. No puddles in the basement.

Speaker 4:

Yeah. No cracks, you know, massive, you know, grand canyons size cracks in the foundation. Yes . No major. It's really structural

Speaker 3:

Or can't be stripped down to the studs.

Speaker 4:

Yeah. It can't be a structural or a safety concern. Right. Yep . There can't be exposed electrical wire handing over the bathtub <laugh>, stuff like that. Yes. So I looked at the , uh, pictures in the listing and they didn't show every single room, but I said, Hey, this house looks in pretty good shape, especially for a foreclosure. Huh . Like, ultimately we don't know until an appraiser would go out. Yeah . Because that's in addition to establishing value, they're also on the lookout for those habitability concerns. But I said Greenlight to go make an offer on this place. Yeah. Honestly, if he wants to, because going in eyes wide open is key and it's good to do that advance reconnaissance, but

Speaker 3:

To paraphrase you askins for free, but you just need to expect the answer will be

Speaker 4:

No, maybe no. Yeah. So go in , make an offer. And worst case is that we did , we determine the property is not in lendable condition. The seller says, too bad, so sad. You know, the contract is broken. Yep . Legally, and then the seller tries to sell the house to someone else. Yeah . You know , which is fine. But

Speaker 3:

Did he go make the offer or still waiting to hear back?

Speaker 4:

We made the offer, we're waiting to hear back over the weekend on what the response of the seller is. But you know, it's, it's just if you have a good realtor that knows what to look for and then has the wherewithal and foresight to reach out to the lender, that's the secret sauce. Yes. Right. Because maybe I did see something in the listing photos that would've given me more concern and I would've said, yeah, you know what? This property won't qualify for conventional financing. Yep . Don't really waste your time. Yep . Right. Because then he would've gotten or hope. Yeah, there you go. Don't get your hopes up for, for nothing. So it's gonna be a case by case basis. Just 'cause a property is as is or a foreclosure doesn't necessarily mean it's a deal breaker, but it is worth having the discussion and doing the research on. For sure.

Speaker 3:

I think the other element too is it's gonna slow. Yeah. <laugh> , you have to, you might want or think that you'll get quick answers. You won't. Yeah. Because it's gonna go through four different departments mm-hmm <affirmative> . And whoever needs to put their blessing on the foreclosure department at the bank that's trying to get rid of this thing . That's ,

Speaker 4:

That's a very good point and worth noting is if you're trying to go buy a foreclosure, remember the seller isn't Mr. And Mrs. Smith Yep . The seller is a bank. Yep . Which is a whole entity with a lot of cogs and wheels and gears and levers. Yes.

Speaker 3:

So slow levers.

Speaker 4:

Yeah . So things are gonna move slower and it's not your fault and it's not our fault. We're just beholden to this other party called the seller Yep . To get the wheels in motion.

Speaker 3:

So slowly <laugh>. Yeah.

Speaker 4:

All right . So after this next break , uh, David will probably win the coin toss and share his story. Yes . We got one more segment. You are listening to the Nan Mortgage and Realty Show on a six 20 WT MJ

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 3:

Welcome back to the ACU Net Mortgage and Realty Show. Thanks for hanging out with us , uh, today, Tim, let's conclude , uh, today's show talking about a , uh, new MD coming to Milwaukee. Love it. Uh , and , uh, beginning residency at MCW , which by the way, this is my love letter to everyone <laugh> who works or is in the orbit of the medical college. We would, we know how to spell MCW so call now. Yeah.

Speaker 4:

We would love to help you 'cause we , uh, value what you do and we want you owning homes in the community where you serve. It's

Speaker 3:

True. Uh , and all those within the freighter and children's orbit as well. Oh yeah . All of it. Uh, so this, I I am familiar with only maybe , uh, at , at a distance the kind of like assignment process that , um, yeah . Doctors go through. Like, and indoor number two , you are gonna do residency in Yeah. Milwaukee.

Speaker 4:

It's like price is right.

Speaker 3:

<laugh> kinda . And so this, I think as I spoke to this client late last week, I think MCW was on their , uh, preferred list of places to do residency. And so she starts on that in here in summertime. Awesome. So they're coming to town, Hey, we'd like to buy a house. Yeah. Amazing. The element in all of this, you know, when you do residency, you get paid to practice Yeah. Medicine. And we are in receipt of the offer letter that says, welcome. Yeah.

Speaker 4:

Here's your start date, here's your salary. So the , all that key information,

Speaker 3:

All that key information, as I noted to my client on Friday, being a good mortgage lender is like climbing Kilimanjaro <laugh> . It's not.

Speaker 4:

Do you have any personal experience with that ?

Speaker 3:

I do, but it's not just, it's, it's, it's all the same Mortgage Mountain, but it really matters who's taking you up and down the mountain. And so

Speaker 4:

You wanna be their mortgage Sherpa.

Speaker 3:

Yes, exactly. That was her word. Exactly. Mor Sherpa. And I said, you're exactly right. Because here's the thing about residency, it concludes Yeah. Versus air quotes. Regular employment has the Yeah . You know,

Speaker 4:

Illusion of

Speaker 3:

Permanency. Exactly .

Speaker 4:

Even though it's not, but

Speaker 3:

Perpetuity. Yeah . Okay. But residency concludes, I don't really want to go seven rounds with an underwriter about like, well, but in the year 2028, when she's done with residency, what's gonna happen? What's gonna happen? It's like, I can't,

Speaker 4:

They're a doctor, they're gonna get another job.

Speaker 3:

Yeah. They'll be fine. But it's like, this is real life versus mortgage life. In real life. She's an md, she's gonna do residency, and then she's gonna go forth and do it, you know, post-residency. Okay. But in the mortgage world, the dumbness is like, yeah , well what's gonna happen later? This

Speaker 4:

Is , this is the disconnect between what we refer to as common sense lending. Yes . And the uncommon, the , the regulated mortgage industry, which, you know, really tends to think in worst case scenarios pretty much exclusively. And that's what we have to inoculate mortgage underwriters against.

Speaker 3:

And so the good news is her spouse has , uh, income and a job where he can work remote from anywhere. Lovely. And his income is such that it can qualify them for the amount of money and the amount of house that they want to buy.

Speaker 4:

Fantastic. Where

Speaker 3:

Ultimately I won't have to document anything having to do with the medical college because we've got sufficient income to get us there. And which is my here at Metaphor Mortgage, it's like basketball, you only need to win by one. Of course. I prefer when Giannis wins by 20. Yeah. But the win is the win, whether it's one or 21. Right. And so for this couple on paper, the husband's income carries the day Yeah. And gets them the amount of house that they wanna buy. Regardless.

Speaker 4:

Qualifying for a mortgage is pass fail . Yes . Ladies and gentlemen. So, you know, in real life they're gonna , they're gonna be a dual income household. Right ? Right . But on the mortgage, it's much easier to selectively not use the MDs, you know, MC w income Yep . To help qualify, because if we do, it opens up the door for underwriting to bug them for a lot more documentation and Right. And heartburn that frankly is unnecessary. Right. So to go back to your Kilimanjaro metaphor Yeah . It's like, okay, you're gonna hike up this mountain, you're gonna get to the top of the mountain. Either way, do you want to take the long way? Yeah . Where maybe you add, do you have a hard path two or three days to your hike? Oh. And maybe your water bottle has a leak in it. Yeah . And you know, <laugh> ,

Speaker 3:

It's just not fun. You

Speaker 4:

Could torture this metaphor as much as you want. Oh yeah. But let's get you up to the mountain as easiest and you know, with as little exertion as possible. Right.

Speaker 3:

If you are looking for smooth Smart Mortgage, the Sherpa at Acuate Mortgage can help you get to the top of the mountain and back down with your rock solid guaranteed pre-approval, as well as the smart rules of thumb if we're looking at refinancing. And all you have to do to get started is click on the blue button@acuate.com. That's A-C-C-U-N-E t.com. Tim, thanks for hanging out Always. You have been listening to the ACU 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 Accu Net Mortgage and Accu Net Realty Advisors and not WTMJ Radio or Good Karma Brands. Milwaukee, LLC.