The Accunet Mortgage & Realty Show 1-26-25

Episode Transcript

Speaker 1 (00:00):
The following program. The ENT , mortgage and
Realty Show is paid for in fullby ENT mortgage, LLC and equal
housing lender consumeraccess.org number 2 5 5 3 6 8.
The advice and opinionsexpressed during the Academic
Mortgage and Realty Show aresolely that at the hosts and
guests of ENT mortgage, LLC,and not WTMJ or Good Karma
Brands.

Speaker 2 (00:20):
Welcome to the Accu Net Mortgage and Realty Show,
getting you inside informationon buying, selling, and
financing your home with expertadvice from Accu Net Mortgage
and Realty. And now here'sBrian and David Wickers.

Speaker 1 (00:35):
Welcome to the Accu Mortgage and Realty Show. I'm
Brian Wicker, majority owner ofAcuate Mortgage , uh, here
today, along with my son, DavidWicker, who's the president of
the mortgage company. Uh , Ishould also mention I'm, I'm a
licensed real estate brokerwith ANet Realty Advisors.
Although I really don'tpractice, I just have all the
credentials and think about ita lot. Uh, David's individual

(00:55):
NMLS ID number is , uh, 3 2 8 84 7 and mine is 2 5 9 6 1 0. If
you've got a question or acomment, you can , uh, call or
text us on the WTMJ talker textline , which is 8 6 6 6 1 6 1 6
20 , and you can get a podcastthat it's of today's show
wherever you normally get yourpodcast. Well, good morning,
David. Hello.

Speaker 3 (01:13):
Good to be back with you. Thanks for the week off
last week. How are you and Tim?

Speaker 1 (01:17):
Oh, we had a fun time on the show. Yep ,
absolutely. Uh , I got a lot totalk about today. I've got ,
um, home sale numbers, both atthe national level and locally
that we can , uh, take a lookat. But , uh, we've got a bunch
of stories to share with our,our listeners. And , um, also
got the latest forecast forinterest rates and home sales ,

(01:38):
uh, from both Fannie Mae andthe Mortgage Bankers
Association. Um, and maybelet's kind of start by putting
that in, in context. There wasan article last week on CNBC in
which , uh, Moody's , uh, chiefEconomist said that , uh, if
relative to 30 year fixed ratemortgages, quote anything over

(01:58):
7%, the market is dead. Andthen he went on to say,
mortgage rates need to getcloser to 6% or below to see
House , to see the housingmarket come back to life. Hmm ,
interesting. Uh, and so let's,that's one data point to put
out there. Uh, then let's turnour , our heads to the , uh,
Fannie Mae and , uh, mortgageBankers Forecast , uh, and also

(02:23):
Mortgage News Daily. Uh,publishes a great survey. Guess
what? Every day, and they'rereporting that for their all
the right stuff rate, whichthey call their top tier
scenario, it's at about 7.125%on a nationwide basis. And Accu
nuts , all the right stuffscenario would be 25% down with

(02:43):
seven 80 credit scores topurchase an owner occupied
single family home or condowith a price of , uh, $400,000
and a loan amount of 300. Andthat would be a rate of 6.99.
Um , and that would take $1,862of total loan costs , which
makes the a PR 7.01. And that'sidentical to last week. What
are you gonna say about that,David?

Speaker 3 (03:05):
So Mark Zandy is the chief economist for Moody's
former , uh, board member ofMGIC. If I don't, he,

Speaker 1 (03:12):
I didn't, not anymore . Look that he was,
maybe he still is. I think he

Speaker 3 (03:15):
So, so Mark Guy ,

Speaker 1 (03:17):
And he's on, he's on TV all the time, very well
spoken .

Speaker 3 (03:19):
You know what, you , you , the whole point is you
wanna get invited back by thejournalist or the broadcaster
to come on a second and a thirdtime. So of course you gotta
say something like, rates aboveseven, it's dead. But what,
let's quantify that. Let's turnon the light in the dark room
and point at the boogeyman.
This all depends on loan sizethough, right, dad, because

(03:41):
Okay. The difference between 7%and 6%, well, is that $50 a
month on your smaller loanamount? Is it $135 a month on a
larger loan amount? There issome payment difference. That
is not the thing that isholding anybody back from
deciding to get out there andbe a home buyer or a home

(04:04):
seller if you're trying tofigure out where you want to go
next. So it sounds savvy to belike, oh seven, bad

Speaker 1 (04:12):
Six . Yeah , bad .
Great.

Speaker 3 (04:13):
But you're talking about a payment difference
only.

Speaker 1 (04:17):
So, so here we are, you know, and rates are at ,
at, or a little above 7%depending on, you know, what
you're looking at. But let'scall it 7% ish. And the , uh,
both the Mortgage BankersAssociation and Fannie Mae
agree amazingly that by the endof the year, by the fourth
quarter of 2025, the 30 yearfixed rate might get down to

(04:38):
six and a half . And that is ahigher number than they had
predicted a month ago. FannieMae had thought when they did
their forecast in December,that the 30 year fixed rate
would get down to 6.2. Sothey've increased their
forecast by 0.3, almost a halfa percent. Yeah. The mortgage
bankers were already a littlebit more doward . They had
previously said 6.4, and so nowthey're saying 6.5. And you

(05:01):
gotta keep in mind these guyshave been wrong.

Speaker 3 (05:03):
Yeah. Don't ask them , don't ask them what they
thought January of 24, whatthey thought the world would
look like or at now.

Speaker 1 (05:09):
Correct. They , they thought that rates would be at
5.875 and that has not come topass. And we should probably
mention the one of the reasonswhy is the current
administration's , uh, policyor , or , you know , talked
about policy about highertariffs. Sure. Uh , that, along
with two other things, and thisis in an article, I'm not

(05:30):
making this up. Um, so, youknow, tariffs are inflationary
and inflation is the enemy ofinterest rates. Yeah.
Deportations is another thingbecause what are you doing?
You're, you're reducing thelabor force and so you're
probably putting upwardpressure on wages. Right ?
Right. 'cause somebody's gonnahave to fill all the jobs that
are being done right now Yeah .
By those people that aregetting deported. And then the

(05:52):
third thing is tax policy. Uh,and , you know, talking about
tax cuts, which is gonnaincrease the deficit. And
that's not helpful for interestrates either, because we're
gonna have to borrow moremoney. Alright. So when we come
back, let's just do a littlebit more mop up on, on those
forecasts and then , uh, we'llstart to turn the page towards
, um, real life stories fromthe front lines. 'cause 'cause

(06:14):
David, you're telling me thatyou're busier than a one arm
paper hanger.

Speaker 3 (06:18):
Exactly. E exactly .
Even if, even if he , he , evenif he had two arms, he'd still
be busy.

Speaker 1 (06:24):
Alright , you are listening to the Academic
Mortgage and Realty Show on six20 WTMJ

Speaker 2 (06:32):
Home buying advice from the guys who know it best.
This is the Acuate Mortgage andRealty Show with Brian Wicker
on WTMJ. Welcome

Speaker 1 (06:42):
Back and thanks again for tuning in this
morning. I'm Brian Wicker, theElder, and that's David Wicker,
the younger over there withAcuate Mortgage. And , uh,
David, we're talking about,hey, where are we in terms of
the year just passed and alsogoing forward, we were talking
about the interest rateforecast. Both Fannie Mae and
the Mortgage BankersAssociation see rates going
from around 7% now here earlyin 2025, down to 6.5 by the

(07:05):
fourth quarter of 2025. And bygosh, we hope they're right.
Um, the , uh, in terms of thenumber of, of existing home
sales for 2025 Fannie Macy's,just a 2.3% increase this year
, uh, compared to 2024, whilethe MBA is a little bit more,
is the right word, sanguine?
Does that mean optimistic? Ithink it does, yes . And they

(07:27):
see a 5.3% , uh, increase. Um ,and then also Fannie Macy's,
total origination mortgageoriginations up primarily due
to , uh, increased refinancingwith the lower rates up by
about 13%, and MBA is about thesame. So , um, you know, that,
that's kind of the contextthere. If we wanna look a

(07:48):
little bit backwards, theNational Association of
Realtors just came out withtheir report for December and
the year just ended. And theysaid that nationwide , uh, 4.03
million existing homes , uh,changed hands with help from
one of their members, whichwould make it the lowest number
of sales since 1995.

Speaker 3 (08:11):
Okay .

Speaker 1 (08:11):
So that's interesting. Um, and , uh, here
in southeastern Wisconsin, thefive county Milwaukee area,
according to multiple listingservice data, I know 2024 can't
be the lowest year , uh,because we closed , uh, more
homes and condos. We closedexactly , uh, 309 more , uh,
closed sales in the five county. We

Speaker 3 (08:34):
Milwaukee. Yeah ,

Speaker 1 (08:35):
Milwaukee, I see .
Yeah. The region, not we acue,but we all the , all the
realtors who are members of theMLS closed , uh, 309 more.
That's a 1.8% increase. Okay .
So I know that 2024 can't bethe lowest year. Um, and get ,
get this, let's talk aboutmedian , uh, sales price for

(08:56):
just a second. Uh, inWisconsin, the median sales
price was $330,000 in December,that's almost 14% higher than a
year earlier. 40 grand, more sofor all of you who are waiting
for home values to drop. Yeah,because we've been hearing that
since what, 2022?

Speaker 3 (09:15):
Oh, 2020. Yeah. It's been, people have been running
that one back for year afteryear after year.

Speaker 1 (09:21):
So that ain't happening. Um, and then if you
look nationwide, the mediansales price is higher in, in ,
uh, America it's 404,000, andthat's only 6% higher, or
$23,000 more than a yearearlier. So here in our little
corner of Wisconsin , uh,median sales prices up both in
raw dollars and also on apercentage basis. So , um, you

(09:45):
know, that's, that's, that'swhat's kind of generally going
on. Uh , hopefully now thiscold snap that we've had may
have had a chilling effect onlistings. We'll find out. But ,
uh, literally

Speaker 3 (09:57):
And figuratively, but

Speaker 1 (09:58):
Yes. Yeah. Right, right, right. Uh, when I looked
, uh, last week when Tim and Idid the show, there were 2,400
homes in condos for sale in thefive county metro area when I
just ran it. Um , 77 more. So,you know, that that would take
away homes that closed. Oh .
And then, you know, add newlistings and we're up 77. So ,

(10:22):
uh, hopefully, you know , andmaybe that's what Mark Andy
meant, maybe he means that themarket is dead for listings.
You

Speaker 3 (10:27):
Don't have to come to his rescue. He's a big boy.

Speaker 1 (10:30):
Okay. So , uh, David, tell us a little bit,
what are you seeing on thefront lines of mortgage
lending?

Speaker 3 (10:36):
Uh , people aren't waiting. It's, you know,
usually when you doing thismortgage lending for quite a
while now, January, things pickup and really it, you know,
really, really, really picks upFebruary, March. But , uh, here
in late January, people are notwaiting. And it kind of didn't
matter that my phone read feelslike negative 25 this week.

(10:59):
Right. I was getting calls leftand right from people. So here
you, you decide, I have threestories that we , you could
pick from one , uh, a couplemoving from California back to
Wisconsin for a new job. Uh, Ihave some retired Texas
teachers coming to Wisconsin ,uh, for retirement. And then I

(11:20):
have a relocation , uh, couplecoming from Illinois. Any
preference as we begin to tellthe tale of real people?

Speaker 1 (11:28):
Oh, let's, let's go with relocation from Illinois.

Speaker 3 (11:31):
Okay. So this is, you know, relocation is nothing
new. Right? And what isbeneficial , um, in a
relocation particularly, I'mgonna say for a large
corporation, they've got aprotocol for helping a valued
employee get rid of basicallytheir soon to be old house and

(11:55):
transition relatively smoothly,smoothly to a new home. Whether
that be housing , um,allowance, you know, Hey ,
we'll put you up somewhere for60 to 90 days, you know? Yeah .
They're gonna

Speaker 1 (12:07):
Pay for the moving truck for sure. And

Speaker 3 (12:08):
The moving truck, maybe they're gonna cover,
maybe they're gonna cover someof the closing costs for the
sale of the home. 'cause as welike to say, dad, you know,
congratulations, you have a newjob. Maybe that doesn't
necessarily fit with thetimeline you wanted to sell
your home. So a lot ofcompanies will step up and
offset any of those closingcosts. Well, and

Speaker 1 (12:29):
A lot of times they'll buy your old

Speaker 3 (12:30):
Home from you. Well, exactly. So here's where I
wanna , uh, or cliffhanger. Isent this client three
pre-approvals, threepre-approval letters in an
email on Thursday and night.
When we come back from thisbreak, I want to tell you why
three, because it's based ontiming and the eventual sale of

(12:50):
that soon to be old home. We'llcover that after this break.
You are listening to the AccuMortgage and Realty Show on AM
six 20 WTMJ, getting you

Speaker 2 (13:00):
Into the home of your dreams. Here's more of the
Accu Mortgage and Realty Showwith Brian . We on WMJ

Speaker 3 (13:07):
Welcome back to the Accu Net Mortgage and Realty
Show. I'm David, that's Brianover there. Dad telling the
story of a young couplerelocating to Waukesha County
for a job. Um, they're notmoving that far. They're coming
from Illinois, which as Ialways like to say, like if
you're gonna move, man, don'tyou wanna make it feel like
you're like really moving likefar Yeah . Not just like, you

(13:29):
know, four houses downsometimes is , is what it feels
like . It depends where ,

Speaker 1 (13:31):
You know, it depends why you're moving. Right . In
this case it's for a job Ithink you said. Yes, exactly.
Location for

Speaker 3 (13:36):
Employment. Okay.
And , and so they are about tolist their soon to be old home
this week and their employerhas contracted with a
relocation company that, and Ihaven't put eyes yet on the
agreement Okay. Agreement. Therelocation agreement. But

(13:56):
generally it says, or a draftwould be, hi, we're the
relocation company. You can gosell your home and if you get
an accepted offer, we will stepin and take ownership of the
home so that you can enjoy theproceeds prior to the actual
closing date. Or , or if youlist your home for sale and

(14:17):
nobody bites , we, therelocation company will just
outright buy it from you sothat you can move on with your
life. And we will deal thenwith turning around and selling
it us the relocation company.
Yeah. It allows you can takethat risk. Yeah . It allows for
you just build the employerallows Exactly. It allows for
the liquidity of you can getrid of this house, walk away
with the proceeds and continueto your next chapter. So for

(14:41):
this client, they would reallylike to use all, if not most of
the proceeds from the sale oftheir home. 'cause they're
probably gonna clear dad almosta quarter million dollars for
this . Oh wow .

Speaker 1 (14:52):
All of this . Wow .
Yeah . That's real money.
Mm-hmm

Speaker 3 (14:54):
. And for them they'd like to roll a
lot of that into the new home ,uh, for payment comfort is how
I'll Sure ,

Speaker 1 (15:03):
I got you . Yeah .
Frame

Speaker 3 (15:03):
That. And as I have learned from you and doing this
a long time, well the detailsmatter because I'm glad you are
listing it for sale this week,but when exactly will the
proceeds or the funds hit yourbank account and under what
conditions? And so I am , uh,keen to review the language of

(15:29):
that relocation agreement thisweek because that timing
matters. They've got stupendousincome, so that's actually not
a point of concern. They can onpaper qualify for the new
mortgage payment and the oldmortgage payment on the old
house if they have not sold itat the nanosecond that they are

(15:51):
buying the new hull .

Speaker 1 (15:52):
So let me guess, you said you gave them three
pre-approval letters and one of'em Yes. I hope all of them are
not contingent ornon-contingent on the sale of
the home. Did I guess thatcorrect?

Speaker 3 (16:02):
So the first one that I wrote them, they have
other liquid funds. It wouldonly allow them to make a 5%
down payment on the new home.
Of course, if they bought asmaller home, their liquid
funds would make up a largerpercentage of down payment, but
they could buy as much as an$800,000 house. Okay.

(16:23):
Completely uncorrelated to thesale of their old home.

Speaker 1 (16:28):
Gotcha . So we say, Hey, use your , use your
savings that you have put 5%down and you can shoulder both
payments 'cause you've gotreally big income. Alright . So
that's, is that what

Speaker 3 (16:38):
They do ? You wanna buy

Speaker 1 (16:38):
An 800,000 home or

Speaker 3 (16:40):
Probably, probably not. But again, it's uh , any
good mortgage banker wants todeclare here's what's possible.
Yeah . Because then they'regonna go out into the world ,
uh, they may be looking at ahouse here today and and say,
well, do we want this house?
And if we decide it is worthit, yeah. It's not exactly the

(17:02):
down payment perhaps we want,but we are willing to change
our preferred game plan if itmeans we get this particular
house on a maybe acceleratedtimeline if they haven't sold
the old house yet. So my firstpreapproval to them was, Hey,
you wanna just have a game planthat's totally uncorrelated.
Here's that game plan. And thenmy second preapproval letter

(17:26):
was you had asked for probablyyour more target price range,
maybe a , which is half , halfmillion dollar house with
$200,000 down payment allproceeds right now, because
they have not,

Speaker 1 (17:42):
Yeah.

Speaker 3 (17:42):
They don't have, they they haven't sold, or it
is not under contract rightnow. I have to write that
pre-approval contingent on the,is it dispossession of that
property? And then my thirdpreapproval. Okay. So, so I , I
wrote the second one for500,000. Dad, I wrote them a
third preapproval that said youcan buy a million dollar home.

Speaker 1 (18:07):
Oh boy.

Speaker 3 (18:08):
Based upon your incomes with your excellent
down payment from yourproceeds. 'cause what I said to
them was, you know what? Aseller loves to see strength.

Speaker 1 (18:18):
Yeah. I got a story about that.

Speaker 3 (18:20):
Okay. And I said, I just wanna , I'm your mortgage
lender, I'm not gonna run outof electrons. So I can send you
multiple pre-approval lettersand then I'm gonna defer to you
and your smart agent, who ishow you got introduced to David
and Acuate to decide how do youwant, which pre-approval do you
want to show and use to showstrength? And when , that's my

(18:43):
relocation story.

Speaker 1 (18:44):
Alright , well let's take team maybe after the news
'cause I've got a strength.
'cause I, I too last week gavemultiple , uh, preapproval
letters to some clients. Okay .
And we can talk about, oh, whatdid the , what did the real
estate agent choose to use? Butright now it's time to turn it
over to the WTMJ Breaking NewsCenter.

Speaker 3 (19:02):
Don't break

Speaker 2 (19:03):
The bank to get into a house. Back to the ACU Net
Mortgage and Realty Show withBrian Wicker on WTMJ.

Speaker 1 (19:10):
Welcome back and thanks again for joining us ,
uh, today. So , um, David, youwere talking about multiple
pre-approval letters for aclient that you were helping
relocating from Illinois backup to Wisconsin. Yep . I have
some Illinois clients , uh,that worked on quite a bit to
get them rock solid ,guaranteed pre-approved. And as
often as the case, like as soonas we got that done , um, man,

(19:33):
they're out there looking andso they were looking Yeah . You
know, pretty, pretty pricey.
Um, you know, between 9 50, 90050,000 and a million dollars.
And so they were going to see aparticular house. And so I
wrote 'em an offer. I wrote 'ema letter rather , uh, right at
that listing price. Um, andthey're gonna put 20% down. Uh,

(19:54):
they, they are getting anamazing housing , uh,
assistance benefit from thehusband's employer , uh, which
is an interesting feature thatwe don't see too often. Um, you
know, literally it's a , it'san unsecured loan that , uh,
has deferred payments and it'sgonna help 'em with their down
payment quite a bit. Um ,they're also getting some gift
money and , uh, this coupleisn't married yet, so they have

(20:16):
separate bank accounts. So it'sgonna be a , a a little bit of
a , um, you know, when they dothe ball up on the big screen
of course. And brewer games,you know, hey, all , all this
money moving around and guesswhat? And I've warned them , we
gotta track all this moneycoming in. So, you know , like
make a copy

Speaker 3 (20:33):
Two words.
Transaction history.

Speaker 1 (20:36):
Transaction history.
That's right. And, you know, asyou like to say, the devil's in
the detail . So I'm talking tothis couple earlier or last
week and I'm saying, oh, Inoticed that , um, uh, Bob, not
his real name, that youraccount's , uh, bank account
statements closed on the 13thof the month. Oh. So let's make

(20:57):
sure for this end of Februaryclosing that we have all the
money in place by , let's sayFebruary 11th, so that we can
track , so that we can just getthat tidy February 13th
statement. Yes. And it showsall these deposits and we're
gonna have, you know, images ofthe checks coming in and, you
know, it's , it's quite , quitea bit of a deposit .

Speaker 3 (21:17):
And as I like to tell clients I have a smooth
plan. And then if you don'twanna do that, we can still get
there. But then you'll hate mefor asking you for PDFs of
transaction histories with URLson the bottom. Yeah . Just
like, please help me help youwith smoothness.

Speaker 1 (21:32):
Right. In this particular case, I could not
come up with a super smooth waybecause of all the different
chunks of money. So the mid the,

Speaker 3 (21:39):
The mid month , let's wait till this statement
generates. Well, that's right.
Right. So we can avoid that .
The delayed smoothness is whatit is .

Speaker 1 (21:45):
And in this particular case, a lot of
times, folks, we , we try notto document earnest money if we
can document sufficient funds.
Yeah . Uh , in excess of theearnest money. But in this
case, the earnest money is$48,000. Holy cow . It's a big
number. So, so we're gonna haveto document , uh, the payment
of the earnest money. Anyway,back to the thing we were

(22:05):
starting to talk about, whichis I gave them this, you know,
number in the mid nine hundreds, uh, for which this property
was listed.

Speaker 3 (22:13):
Was it, was it matchy matchy to their
contract?

Speaker 1 (22:15):
Well, no, no, no.
Because they ended up offeringless than the asking price. But
interestingly, I had also giventhem a preapproval for a
million dollars. A milliondollars. And that's the letter
that the , uh, buyer's agentdecided to attach. Smart to
your point. Yeah . To showstrength.

Speaker 3 (22:33):
It's

Speaker 1 (22:33):
Like, yeah, I know we're offering you less than
this, but, and different agentshave different mindsets on that
. Some, some of them wantmatchy matchy. Oh by the way,
the list EE even though ourrock solid guaranteed
preapproval letter for amillion dollars said, Hey, we
verified their income, weverified their down payment, we
verified their credit. Thelisting agent, which just fine,

(22:55):
still called me , uh, I thinkit was on Sunday morning to
say, Hey, are these peoplegood?

Speaker 3 (23:00):
Yeah,

Speaker 1 (23:01):
Yeah, yeah. We verified everything about 'em.
You don't have a thing to worryabout.

Speaker 3 (23:05):
Well , let's back , let's back up a second. They
called your cell phone ? Yes .
'cause it was listed on thepre-approval letter. They
didn't have to wait till Mondayat nine oh one. That's right.
To call the skyscraper to belike, Hey,

Speaker 1 (23:17):
Is this okay? And and then the other interesting
thing that was in the morningon Sunday. So I texted the
buyer and the um , and thebuyer's broker to say, Hey,
just got a call from thelisting agent. Just wanted to
make sure you're good. I told'em you were absolutely rock
solid. So, you know, looks likeyou're gonna be getting that
accepted offer anytime now. Mm. And guess, oh , then they
actually had an open house onSunday. Our buyers and one of

(23:41):
their parents went to the openhouse and they're like, oh,
congratulations. You know, it'sgonna be great that you own
this house. And , uh, but thenthey didn't get the accepted
offer until 10 30 at night. Soit was a little bit of a , you
know, angst waiting.

Speaker 3 (23:56):
Okay.

Speaker 1 (23:56):
For that accepted offer

Speaker 3 (23:58):
Company , was it competitive, do you know or

Speaker 1 (23:59):
Not that we know of.
No. Okay . Not , not that weknow of. But it was just maybe
,

Speaker 3 (24:03):
Maybe the sellers were Lions fans and they had to
watch to the bitter end orsomething.

Speaker 1 (24:09):
That could be, although they could have
stopped. Oh no . I guess thatgame was pretty good. So
anyway, that , that just goesto the topic of, hey, you know,
what is it gonna take to win?
You know, and, and to, to um,help the seller and the listing
agent know that you're good forit. And a lot of times, you
know, we'll proactively callthe listing agent , um, as

(24:30):
well. But in this case shecalled me. So yes . All all
good. We're on on the way to um, you know, getting that thing
in the end zone here by the endof February. Alright , when
don't we come back to , but yousaid you had a story about some
retired teachers relocatingfrom Texas. Yes . Do you wanna
talk about

Speaker 3 (24:44):
That next? Well, and better yet, soon to be retired.
'cause it's only January.
They're going to be retiredcome June. And navigating the,
I'm gonna be retired versus I'mnot retired yet. Let me get
into all that after this break.
You are listening to the AccuMortgage and Realty Show on AM
six 20 WTMJ.

Speaker 2 (25:04):
Important home buying questions and answers
you can count on. This is theAccu Mortgage and Realty Show
with Brian Wicker on WTMJ.
Welcome

Speaker 3 (25:14):
Back to the Academic Mortgage and Realty Show. I'm
David, that's Brian over there.
Uh, dad, as is the case, manytimes we have clients who are
retired or about to be retiredand as I like to say, retired
is not a swear word at aad .
No, no. Nor in lending ingeneral. But you know, most of
our clients, the story you werejust telling about your client,

(25:36):
I bet their income was vanilla.
Right. Maybe job

Speaker 1 (25:40):
W not exactly. Okay , but go ahead.

Speaker 3 (25:42):
Let's pretend it was vanilla. Okay. Maybe, maybe
retirement income then is justchocolate. It's still ice
cream. It's just a differentflavor. Right. Okay.

Speaker 1 (25:49):
It's not vanilla.

Speaker 3 (25:50):
So, but as kind of almost like a , the story we
told earlier in the show,timing is important. Okay. So I
talked to these people. It isJanuary, it is the middle of
the school year. They will beconcluding their teaching
career after three plus decadeswhen school lets out in the
early part of June. You want totry to read my mind? What was

(26:15):
the, it's not crummy, butwhat's the thing that I had to
tell them about their schoolincome for their new Wisconsin
house? Yeah.

Speaker 1 (26:22):
Can't use it. Can't use, can't use that . 'cause
it's ending and we know it'sending and we have to know, we
have to say we can only useincome that we think is gonna,
or prove or somehow believeit's gonna last for three years
at least. But the other thingthat crossed my mind is
occupancy. David. They have to,to buy a new primary residence,
they have to occupy it within60 days of closing on the new

(26:44):
mortgage. So I think that meansthe soonest they could buy is
and close in maybe early April,

Speaker 3 (26:51):
Uh , may , uh, so one of mid-April. Yeah. So let
me, I I wanna just the, I don'twanna call it umbridge, but I
felt like my clients werealmost hurt that, you know, the
income for this career thatthey've had for a long, long
time can't really be used.
Well, you know, it's, peopleare human and you only know

(27:11):
what you know. Okay. Okay. Andso to, to not be able, as I
said, or a version of what yousaid, I can't point to your
September mortgage payment andclaim that you're gonna make
that monthly payment for a jobyou don't have anymore. Right .
So

Speaker 1 (27:25):
That's, so what kind of income are you gonna use?
Are they gonna get a pension?
Do they have 4 0 3

Speaker 3 (27:30):
Bs or So one of them is actually already retired
from teaching, the other onewill be concluding. So one of
them is drawing a pension fromtheir teaching career. They
have been in receipt of thatfor over a year. And it's plain
, that's almost vanilla tastingchocolate because pension, yeah
,

Speaker 1 (27:47):
That's just right .
It's just as good as a salary

Speaker 3 (27:50):
. So that's fine. Our other, the husband
will be retiring come June, butwould not be receiving the
pension until, you know, bestcase early part of July. Right.

Speaker 1 (28:05):
That's, or probably

Speaker 3 (28:06):
Problematic that into August. And so what I said
was, is this coming to youeventually, will it, will it be
close enough on the horizon toactual receipt that
underwriting will let us pointat it for you to use?

Speaker 1 (28:23):
I don't think so.

Speaker 3 (28:24):
It , well it depends. Right? If they're
buying a house in August andhe's already received his
pension, then of course, but Isaid, I don't think you are
going to given their timelineif they want to actually be
buying a house in May.

Speaker 1 (28:40):
Right . Okay . That sounds

Speaker 3 (28:41):
Reasonable. Yeah.
His pension won't have arrived.
It will, you know, but

Speaker 1 (28:45):
Not , yeah , we can see time , see it's on
schedule. Alright . And

Speaker 3 (28:47):
Then you're so whatcha are gonna use

Speaker 1 (28:48):
For income? I'm on pins

Speaker 3 (28:49):
And needles. Well, but hold on. 'cause you said
this thing about occupancy,they could go buy a house right
now

Speaker 1 (28:55):
And Yeah . As a second home.

Speaker 3 (28:57):
No, no, no. She could move in because Oh , she
is not , uh, her income, shecan occupy within 60 days.

Speaker 1 (29:04):
Yeah . Because she's not working in Texas. Okay,
good point.

Speaker 3 (29:06):
So, so we conquered that , uh, depending on how
much , uh, house they want tobuy and how much money they
wanna borrow. I reached for ACUNet's favorite retirement tool,
which as I said, do you guyshave any retirement accounts
that you've been saving intoduring your teaching career?
And they said, of course.

(29:28):
Awesome. With the help of yourfinancial advisor, we can take
the big asset number divided by36 months. Mm-hmm
. And with your advisor's helpto put that in a letter. We
say, to whom it may concern,please be advised that Bob will
begin IRA income in the amountof x beginning on X date before

(29:51):
closing or before your firstpayment. And turning that IRA
asset into income .

Speaker 1 (29:58):
Into income .
Qualifying, qualifying income,qualifying income. And they
don't have to keep taking thatif they don't want to.

Speaker 3 (30:04):
We only need to show that you can. Yes.

Speaker 1 (30:06):
Yep . Yep . And thank goodness it wasn't inside
of something like a 4 0 3 B ,which has all kinds of rules.
Like a 401k. Right. And thenwe'd have to document, oh ,
what are the rules for takingthat out, which is a pain. So
IRAs are our friend. Yes , forsure. And are they moving back
to be closer to grandchildrenperhaps?

Speaker 3 (30:24):
Uh, yes. Or as I joke, because it was negative a
thousand this week, I made thejoke. I said, you know, what's
the weather like in Texas andhere's what it is in Milwaukee.
He was like, well, when it's103 30 days in a row, 10
degrees in Wisconsin doesn'tseem so great . Sounds

Speaker 1 (30:39):
Sounds pretty good.
Yeah. Alright , uh, when wecome back, I've got a couple
other nuggets , uh, to shareabout , uh, market conditions.
Maybe we got another shortstory I do to tell, but right
now it's time for anotherbreak. You've been listening to
the Accident Mortgage andRealty Show on Wisconsin's
radio station AM six 20 WTMJ.

Speaker 2 (30:59):
Find a place to call home without the headache. This
is the ACU Net Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (31:07):
Thanks again for hanging out with us this
morning. I'm Brian the elder.
That's David the younger overthere, the wicker men . And ,
uh, David, a couple othernuggets. Looking at , uh,
December, which was a goodmonth , uh, uh, December in the
five county, metro Milwaukeearea , um, the home sales were
up compared to a year earlierby, what did I say? Thir 12%.

(31:29):
Yeah . Uh , increase in thenumber of units sold and , um,
interestingly cash offers wereonly 22%. But the other fact
that I like to track is howmany home buyers had to pay
over asking in December. Andthe answer is 37% had to pay
over asking to get to theclosing table. Uh, 18% had to

(31:49):
pay 10 grand or more. Uh , thatusually bottoms out in January.
January. Home sales , uh, lastyear, only a third of buyers in
January of 2024 paid overasking. Uh , now we've had, we
had a good week of, you know ,not only issuing pre-approvals,
but a lot of our buyers aregetting accepted offers. Kind
of a surprising number franklyfor, you know, late-ish

(32:13):
January. And from what I cansee, only about

Speaker 3 (32:17):
Not , wait , not surprising for that AED is
helping clients, but just the ,uh, the tonnage of people
actually getting out there anddoing it is what you mean.
Yeah.

Speaker 1 (32:25):
Yeah. And, and succeeding, although you were
just telling me , uh, duringthe break that you've got some
people who wrote offers and,and and didn't get , uh,
accepted offers. Um, not Andwhy ,

Speaker 3 (32:38):
Why is that? Not because, well, not because that
they couldn't, but because Ithink on that first go around ,
they weren't yet willing toreach for what it takes to
actually win. And sometimes ittakes one or two times before
you say, I am, I am ready towin. And push all your chips to

(32:59):
the middle of the table to getthe seller to say yes.

Speaker 1 (33:01):
Right. 'cause losing Hertz, it's no fun. Oh yeah .
It's not 'cause you alreadykind of had your heart set on
it and, and then you find outand do you think that it was
mainly because they didn'toffer high enough price is ,
you know, that's the number onething that sellers look at is

Speaker 3 (33:15):
Of course , uh, it was per , yeah. It , uh, just
on price and, and , uh, as thisis the moment where I stand on
my chair and remind everyonethat the list price is a made
up number, the true value ofthe true value of the home is
what the seller is willing tolet it go for, and what the
buyer's willing to put in thesuitcase to push across the
table to the seller. So, well ,

Speaker 1 (33:37):
And sometimes, you know, depending on the listing
agent and the seller, sometimesthey'll intentionally list a
little low to incite a biddingwar, you know, if they're in a
popular area. Yeah. Uh , and aand a , that

Speaker 3 (33:49):
Listing agent would like more listings and a good
story, like I got my client 12offers is a good story to tell
your next prospect.

Speaker 1 (33:59):
Yeah. So, okay, so, so we have, you know, a lot of
people succeeding. Oh, by theway, just in case you're
wondering, cash buyers, I saidwe're 22% in December and on
average they only got a two anda half percent discount on the
listing price. That's kind ofsurprisingly small.

Speaker 3 (34:16):
You'll be humored this week. I had to gently
remind everyone that yes, ourANet client did write an offer,
not contingent on financing,but right there in line 3 0 4
of the templated offer topurchase. Yeah. Yeah . The
seller has to cooperate toallow an appraiser to walk
through the house.

Speaker 1 (34:34):
Oh. 'cause the , the seller or the listing agent was
indignant that they found outthey're getting mortgage .

Speaker 3 (34:39):
No, per , uh, surprised or just gently,
lovingly reminded that like,yeah, they can't get out of the
contract because they can't getfinancing. But you would've had
to have , they're choosing, youwould've had to have struck
those lines from the contractYeah. To be able to keep the
door locked on the appraiser.

Speaker 1 (34:57):
And I, you know, we don't know when, when the MLS
reports, 22% of December salesor cash, we don't know if they
actually closed as cash or ifthey're just written as cash.
I'm , I'm not sure what thepractice is amongst listing
brokers. You know, if like, oh,it was a cash offer, but they
got financing. Who knows howthey report it ? Nationwide,
the number of cash offers in ,uh, or percentage of cash

(35:19):
offers in December was 28%. Uh, well, e if you're not in the
position to write a cash offer,or even if you are, we would
like to help you win in thisstill competitive market. Yeah.
Uh , and we think we're reallygood at it, really good at
aircraft . Our track recordshows that , uh, people know
they can rely on a rock solid,fully verified and guaranteed

(35:40):
pre-approval from their friendsat Anette Mortgage. So let us
help you or your loved one ,uh, get into that winner circle
and , uh, become a homeowner in2025. All you gotta do to get
started is click on that [e-mail]. Thanks for
tuning in today. We'll be herenext week. Again. You've been
listening to the AcademicMortgage and Realty Show on

(36:00):
Wisconsin's radio station AMsix 20 WTMJ. The proceeding was
a paid program. Advice andopinions expressed during the
Accu Mortgage and Realty Showare solely that of the host or
guests of academic mortgage andAcademic Realty advisors and
not WTMJ Radio or Good KarmaBrands. Milwaukee, LLC.