The Accunet Mortgage & Realty Show 2-9-25

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 ACU Net Mortgage and Realty Show,
getting you inside informationon buying, selling, and
financing your home with expertadvice from ACU Net Mortgage
and Realty. And now here'sDavid Wicker and Tim Holdman.

Speaker 3 (00:35):
Good morning and welcome to the Anette Mortgage
and Realty Show. My name isDavid Wicker. I am the
president and managing owner ofAcumen Mortgage. My individual
NMLS ID is 3 2 8 8 4 7. Joinedtoday by the one and only Tim
Holdman. Good morning, Tim.

Speaker 4 (00:52):
Good morning David.
Uh , happy to be here. Myindividual NMLS ID number is 1
5 9 3 1 4 6. Uh, Brian istraveling today, so we got
Young Gunn's Mortgage here thismorning, so excited to to chat.

Speaker 3 (01:06):
We've got stories on my list of things that , uh, I
wanna cover today. Obviouslythe jobs report on Friday , um,
I I had a conversation about abridge loan Yeah . Which was
all encompassing with thisparticular client last week. Uh
, wanna talk about credit scoreincrease , um, tools , how do

(01:26):
it tools ?

Speaker 4 (01:26):
Yeah .

Speaker 3 (01:27):
Uh , and some topics about student loans and some
homeowners insurance, you know, and whatever else

Speaker 4 (01:32):
Comes up .

Speaker 3 (01:32):
Real life stuff.
Yeah. Uh, let's begin with,what was the headline leader
for last week, which was thejobs report. Seven 30 on Friday
morning. We got the report forthe month of January that
congratulations to all of us.
We generated 143,000 new jobs,boom. In the month of January.

(01:57):
This was slightly below theforecast of one 70, to which
I'm always like, well, doesn'tthat just mean that the
forecasting isn't actually allthat good at the forecasting
piece? But that's a separateconversation. 1 43 that is
strong. You know, hishistorically it

Speaker 4 (02:12):
For January. Yeah,

Speaker 3 (02:14):
Absolutely. And , uh, more so the December jobs
report, which was reportedobviously in the early part of
January, received a revision, abump for anybody who didn't
have this tattooed to theireyelids. , we generated
250, we allegedly created inthe month of December, 2020 4,

(02:38):
250 6,000 new jobs as

Speaker 4 (02:39):
Was reported in

Speaker 3 (02:40):
January, as was reported. Then the Bureau of
Labor Statistics went back totheir spreadsheets and was
like, wait, wait, wait.
Actually not 2 56. 3 0 7. Yeah. And which as I think I have
said in previous shows, isawesome. Mm-hmm .
It is a good thing for all ofus and everyone, when people
have jobs , get jobs, keepjobs, and, and making money.

(03:03):
Yeah . 70% of the Americaneconomy is you and me and all
of our listeners getting outthere and spending money. Yeah
. And when people have jobs,they spend money . You

Speaker 4 (03:11):
Gotta , you , although you gotta make money
to spend money. Exactly.

Speaker 3 (03:13):
Someti . Anyway, so what that means for interest
rates is the bond market. It ,um, if you just went in , uh,
went into a coma on Monday,last Monday, and then woke up
on Friday. On

Speaker 4 (03:28):
Friday afternoon,

Speaker 3 (03:29):
Yeah . You're basically flat. There was some
up, there was some down. Yeah.
In between on , on Friday, thebond market was like, wow,
great. All these jobs got made.
But that means that the fightagainst inflation goes on.
Right. 'cause when people havejobs, they spend money. Yep .
And that can or will drive upthe cost of a scarce set of

(03:50):
goods. Right. Um, and just torun my joke back, Tim, how many
phone calls did you then get onmid Friday being like, oh man,
we didn't conquer inflation onFriday. I called off the house
hunt. Yeah .

Speaker 4 (04:05):
So far Zero. Zero.
Yeah.

Speaker 3 (04:07):
Because people buy houses for real life reasons.
Correct. The , the , i I have ashort example and story. Okay.
I got a text and call this weekfrom a young couple who I had
spoken to a year ago and theyhad deferred their house hunt,

(04:28):
you know, didn't really have,they wanted to do it, but they
didn't have a compelling, likethey

Speaker 4 (04:34):
Didn't want it bad

Speaker 3 (04:35):
Enough thing. Do you wanna guess the impetus of the
call that I got then this pastweek? Uh ,

Speaker 4 (04:41):
Baby on the way You got it. Yay .

Speaker 3 (04:43):
Come late. Summer Junior is on his way. There it
is. And so they perhaps in ourfirst conversation last year,
rates were part of thatconversation. Yeah. You know
what was not part of myconversation this week with
them. Rates. Rates. Yeah.
Because as is the story, or ,and perhaps as I joked , um,

(05:08):
hey client, I'm pretty sureyour wife would like to not
bring your newborn home to thissmall apartment. Mm-hmm

Speaker 4 (05:17):
. I have

Speaker 3 (05:17):
Some with noisy neighbors.

Speaker 4 (05:18):
I have some customers that I pre-approved
maybe a month and a half ago.
They have two kids in a thirdone on the way. Who , and
they're renting an apartmentright

Speaker 3 (05:27):
Now. That's the zone defenses they

Speaker 4 (05:29):
Say at that point.
Yeah . And Right. Yeah. Kudosto any parents out there who ,
uh, intentionally choose to beoutnumbered by their children.
, uh, and again is, youknow, we had some conversations
about rates more focused onaffordability. Right . It's
like, Hey, this is where themonthly payment would be. Yeah.
'cause it is important to havea

Speaker 3 (05:46):
Goal mind , not as a speed bump, but just as a
analysis. Not

Speaker 4 (05:48):
Just going eyes wide open. Yeah. But they went out
and got after it and , andsmartly started looking in
winter when there's maybe notquite as many home shoppers.

Speaker 3 (05:57):
Wait, but it still is. You mean like

Speaker 4 (05:59):
Yeah, but they, well, they got an accepted
offer last week. Oh , oh, oh ,oh , oh , oh . And they are
beyond excited because the reallife change of being able to
raise three kids in a houseYes. With a yard and multiple
bedrooms and all the thingsthat come with home ownership
far outweighed whatever the badvibes are around rates. Yep .

(06:21):
'cause we're gonna get 'em intothe house and then, you know ,
uh, hopefully there will beopportunities to refinance in
the future anyways.

Speaker 3 (06:28):
You got it. Alright.
When we come back, I want toget to , uh, some of the
stories that I had outlined aswe began beginning with a
bridge loan story on a client Ispoke to on Thursday and
Friday. We will cover thatafter this break. You are
listening to the AcuateMortgage and Realty Show on AM
six 20 WTMJ

Speaker 2 (06:50):
Home buying advice from the guys who know it best.
This is the ACU Net Mortgageand Realty Show with Brian
Wicker on WTMJ.

Speaker 3 (06:59):
Welcome back to the ACU Net Mortgage and Realty
Show. I'm David, that's Timover there. Good morning, Tim.
I took a call this week from anew client referred by their
real estate agent, who istrying to do the classic puzzle
of, I have my old house, helpme get to my new house. Right.

(07:20):
How

Speaker 4 (07:20):
Do I do that?

Speaker 3 (07:21):
One of the words that the internet feeds to
people when they're trying tosolve that puzzle is bridge
loan. Yes. Bridge, B-R-I-D-G-E,which doing what we do is
really just a placeholder forthe more generic help me get
from where I am to where I wantto be.

Speaker 4 (07:42):
Exactly. Right. So much like we, you know, we , if
we're playing mortgageterminology, bingo, ,
you know, bridge loan is a wordthat a customer will call in
and think that they need , needto say that word. And, and ,
and a lot of times it's , it's

Speaker 3 (07:59):
Helpful. It's helpful. It's ,

Speaker 4 (08:00):
Uh , yeah. But it's like, what are you really
trying to accomplish? When yousay the word bridge loan and
it's simply this, you aretrying to find money from
somewhere to use as a downpayment for your new home
purchase. Yes . Knowing that atsome point in the relatively
near future, you will get awindfall of cash. Yes . When

(08:20):
you sell your current home.
That's really philosophicallywhen someone says, I need a
bridge loan, that's whatthey're saying. They're saying,
help me come up with thesmartest down payment game plan
for my new home purchase. Keepit in mind that I have a home
that I'm going to sell.

Speaker 3 (08:35):
So my client, as they shared the story of their
life with me, had bought theircurrent home soon to be old
home 12 years ago.

Speaker 4 (08:45):
Nice.

Speaker 3 (08:46):
Okay. And they have had an enormous amount of home
value appreciation Absolutely.
In those 12 years. Yeah. Buthey, guess what? Now it's time
to go someplace else. Right.
They're actually looking at ahouse that's in my old
neighborhood.

Speaker 4 (09:01):
Hey, nice. Which

Speaker 3 (09:02):
Is super random.
They sent me the address. I waslike, I know where that is.
Yeah.

Speaker 4 (09:05):
I've , I've walked past

Speaker 3 (09:06):
That . I've walked those streets I've played in
that park. So they have thatincredible equity in their
home. Yeah.

Speaker 4 (09:16):
But it's trapped in

Speaker 3 (09:17):
There . But it's trapped. It's like an ATM but
you don't have the pin code towalk up and pull all the money
out of your house. Yeah.

Speaker 4 (09:24):
You gotta break the ATM .

Speaker 3 (09:26):
So let's, let's just use some generic numbers. They
think that their home is nowworth , um, $300,000. Sure.
They have two mortgagesimportant to our story. Two
mortgages, a first mortgagecurrent balance, 60 and a
second mortgage on a homeequity line of credit that is
also at $60,000. Got . So theyowe one 20 on a $300,000 house.

(09:48):
Again, just to say it plainly.
And they're thinking ofthemselves, that $180,000
that's stuck in my house. Yeah. That would be really useful
if I could get at it. That

Speaker 4 (09:57):
Would , that would be incredible. Yeah.

Speaker 3 (10:00):
They had been consulting with another lender
who had reached for the bridgeloan tool, right . In their
toolkit mm-hmm .
As I kept unpacking what waspossible or kind of, it's
almost what the client alreadyhad set up in their life mm-hmm

(10:20):
. It became plainto me that they didn't need a
new loan to access the equityin their home. No. They just
needed to increase the limit onthe second lien home equity
line of credit. Yeah .

Speaker 4 (10:39):
On their existing, on the

Speaker 3 (10:41):
Existing debt line of credit. Again, a a line of
credit, it's just like anAmerican Express on your house.

Speaker 4 (10:47):
Yeah , exactly. And why is this a better execution
of that game plan, David, toyour customers, as opposed to
going out and opening up abridge loan, which would
actually, in essence replacetheir existing line of credit?
'cause a bridge loan is asecond mortgage, first

Speaker 3 (11:01):
Of all, it, i , it is an efficient way for them to
not spend $2,000 boom. Becausewhen you create a new mortgage,
a new bridge loan,

Speaker 4 (11:11):
There's origination

Speaker 3 (11:12):
Costs for that .
That costs money. Yeah. And sothey on Thursday, walked in to
the branch of who was holdingtheir home equity line . I was
like, hi, can you increase mylimit from 60,000 to $160,000?
Yeah . And by the end of theday on Friday, the answer was

(11:34):
uhhuh.

Speaker 4 (11:34):
Well, yeah. 'cause of course they're gonna wanna
do that. They already have amortgage open and they can do a
really little bit of quickresearch to figure out like,
wow, that home is worth$300,000 now. Oh yeah. You got
the equity in there to borrowmore against this line of
credit. Sure. We'll lend youthis money.

Speaker 3 (11:50):
Exactly. And, and better yet, the holder of their
home equity line of credit wasable to do a computer
appraisal. Yep . Just type inthe address 1, 2, 3 Main street
and the computer was like, toyour point mm-hmm
. Yeah. Yeah. Yeah. This houseis definitely worth no problem
. A number sufficient for us tolend you more mm-hmm
. And so ourclient, our new client suddenly

(12:14):
has this increased limit thatthey can draw on

Speaker 4 (12:20):
Whenever they want.

Speaker 3 (12:20):
So, so, and I don't wanna walk past this, but I ,
let me say it now as weconclude this segment and we'll
revisit in the next segment in, is perfectly permissible for
a client to take borrowed fundsfrom an old house. Mm-hmm
. Turn around anduse that as the down payment on
the new house. He is , if thatfeels like you're stealing from

(12:43):
Peter to pay Paul maybe alittle bit. Yeah . But at least
it's a securitized against ,uh, some real collateral called
your old house.

Speaker 4 (12:51):
And that's the key.
You can't go out to yourfriendly neighborhood loan
shark and get a loan for ahundred K and use that as a
down payment. 'cause that isnot secured borrowed funds.
Yes.

Speaker 3 (13:01):
So let's, I I just want to tackle this a little
bit more. There's more meat onthis bone for sure. Uh , after
this break, you are listeningto the ANet Mortgage and Realty
Show on AM six 20 WTMJ

Speaker 2 (13:12):
Getting you into the home of your dreams. Here's
more of the ACU Net Mortgageand Realty Show with Brian
Wicker on WTMJ.

Speaker 3 (13:20):
Thanks for hanging out with us here on big
football game Sunday. Oh, yeah.

Speaker 4 (13:27):
Go,

Speaker 3 (13:28):
Go. Kansas City team and Philadelphia team.

Speaker 4 (13:31):
The Taylor Swift versus the Eagles.

Speaker 3 (13:34):
All right . Yes.
Versus the , uh, BradleyCoopers

Speaker 4 (13:37):
. Oh , there

Speaker 3 (13:38):
You go. He's he Cheers for Philly. Sure. Uh,
I'll just be cheering for thecommercials. There you go. So
we were discussing in theprevious segment, Hey, help me
get from my old house to my newhouse. The buzzword that many
clients use or the internetkind of wax them across the
head with is bridge loan.
Mm-hmm . Okay.

(13:58):
Again, what that means is help,I have equity trapped in my old
house, and I would really liketo be able to use that as the
down payment for some or all ofmy new house. Right . For my
client. I advised them and theywent and increased the limit
that is on the loan thatalready exists on their home

(14:20):
equity line of credit on theirsoon to be old house. Yep .
Thus giving them access to goyank that money out of the
house mm-hmm .
And turn around and use that asthe down payment Right . On the
new house. And that was my, aswe concluded on the last
segment, that is perfectlypermissible to borrow from a or

(14:41):
against an asset. Yeah. Youcould do the same with a , uh,
life insurance policy for cashvalue. And you can do the same
on a home equity line on aproperty. You can take that
money and use that as the downpayment on the new house.

Speaker 4 (14:55):
And here, so I get this question a lot from my
customers, David, I'm sure youdo as well. It's like, well,
I'm going, I , I don't , I'mnot trying to hold onto this
old home , home, I'm going tosell it mm-hmm .
And in a perfect world , uh, Iwould love to sell my home on
or before the day that I buy mynew home so that I can have all
of the proceeds and throw allthat into the down payment for

(15:17):
the new home. And yes, I agreethat would be the perfect
scenario, but here's why it'svery prudent and wise to set up
some type of bridge loan esquescenario. It's because from the
seller's perspective, you'renot gonna be a desirable offer
if you go in saying, yep , I'mgonna buy your house, but I'm

(15:38):
gonna sell my house first andthat's the only way I'm gonna
do this. Sellers don't want tohear that because I mean, think
about it. And from theirperspective now they're reliant
on this whole other transactiongoing off without a hitch
before they can sell theirhome. And that's just another
layer of uncertainty that like,they don't know how that other
transaction's gonna go.

Speaker 3 (15:57):
The metaphor that I have begun to use is I will
date you just as soon as Ibreak up with my soon to be
ex-girlfriend. Yeah. Yeah. Yournew girlfriend did not want to
hear that.

Speaker 4 (16:08):
It's like, I promise I'm gonna break up with her
three weeks soon , three weeksfrom now. At

Speaker 3 (16:12):
Least before.

Speaker 4 (16:13):
Yeah. Yeah. But it hasn't happened yet. So it's

Speaker 3 (16:15):
Like your new girlfriend says, I will
consider other people. Yeah.

Speaker 4 (16:18):
Right. So like, this is about this, there's a two
sides to this coin, which islike, how do we get you the
down payment Yep . For the newhome, but simultaneously, and
in this market, I think this iseven the most important part,
is how do we make your offerthe most attractive that it can
be to the seller of, of yourdream home that you're trying
to buy? That is the priority.

(16:40):
Yes. Right. So the, the the ,the pre-approval or the way we
can say, yes, you can buy thisnew home and it is not
dependent or contingent is thebuzzword. Mm-hmm
. Is not dependent on sellingyour current home first. You're
more than welcome to go try togo out and sell it, but at
least we have this other planthat we

Speaker 3 (16:58):
Yeah . If privately you can line it up, great. But
you don't want

Speaker 4 (17:02):
To , you don't wanna put that in the contract. Yeah
.

Speaker 3 (17:04):
Well, no. 'cause as we said, a seller will say, let
me consider anybody else mm-hmm. You that might
be available to you if you'rethe only one bidding on that
house.

Speaker 4 (17:13):
Right. If you're bidding on a house that's been
in the market for four monthsand there's no other offers,
then like, yeah, you canprobably get away with that.
But that's not the majority ofthe situations we're seeing
right now. I had some othercustomers where they had the
equity in their current homewhere they could have executed
a bridge loan. But the thingthat comes with that is that we
have to use a placeholdermonthly payment for that new

(17:37):
bridge loan balance. And a lotof times with a home equity
loan, it's an interest onlypayment, but that's still gonna
be a,

Speaker 3 (17:42):
It's something

Speaker 4 (17:43):
Several hundred dollars a month sort of , um,
liability, you know, that wehave to include in the , uh,
calculations. So I've had somecustomers over the past few
months where we've actuallypointed to other sources of
funds for that down paymentahead of getting their home
sale proceeds from their oldhome. Uh, one of the examples
that you already mentioned isif you have a whole life , uh,

(18:05):
policy that has a , has a cashvalue, yeah. A lot of times you
can borrow against that cashvalue and then just put the
money back, you know, after youdo sell your current

Speaker 3 (18:14):
Home. The other one is , uh, gift Of course.

Speaker 4 (18:16):
Yeah. Gift from family member, which that's the
, uh, you know , uh, blinktwice, you know, gift , uh,
your win twice where it's like,yeah. You might gift that money
back to your relative after yousell your

Speaker 3 (18:27):
Home . Well, yeah.
What I say is , um, whateveryou decide to do after you've
bought the new home and soldyour old home Yeah . Is no
longer any of my goodness.

Speaker 4 (18:36):
Um, something else if, if a customer has an
appetite for it , uh, a lot oftimes if you're sitting on an
IRA, you are allowed to drawthat money out. And if you put
the money back within 60 days,it is viewed as a non-event
essentially. As always,

Speaker 3 (18:50):
Please consult with your tax professional.

Speaker 4 (18:52):
Absolutely. And yeah, your your financial
advisor who manages thataccount for you. But bottom
line is there's,

Speaker 3 (18:57):
There are ways to do it . Well , we just, a client
comes to us with the word andwe say, here are the seven ways
that I can translate the word.
Yeah. That you just brought tome. Bridge

Speaker 4 (19:07):
Loan . Right. And everyone's situation is
different. This isn't a onesize fits all solution, but
bottom line is, it's like ifyou come to us with that goal,
that's kind of all we need tomaybe dive deeper with an
analysis to figure out. Alright. What's the best game plan for
you?

Speaker 3 (19:23):
Alright . After the news here, Tim and I are gonna
flip a coin. If we're gonnatalk about either insurance or
we're gonna talk about studentloans.

Speaker 4 (19:32):
Okay.

Speaker 3 (19:33):
Uh , after this break right now it's time to
turn it over to the WTMJBreaking News Center.

Speaker 2 (19:41):
Don't break the bank to get into a house. Back to
the ACU Net Mortgage and RealtyShow with Brian Wicker on WTMJ.
Welcome

Speaker 4 (19:49):
Back to the ACU Mortgage and Realty Show. My
name is Tim, joined with El pte, David Wicker. Um, David, I
want to talk about a topic thatI think is relevant to a lot of
our home buyers, especiallyfirst time home buyers, which
is student loans.

Speaker 3 (20:05):
Yeah, yeah. Yeah.

Speaker 4 (20:06):
So a lot of us out there are sitting on some pile
of debt that we incurred to getour higher education,

Speaker 3 (20:14):
Get that education.
For

Speaker 4 (20:15):
Me, it's for a degree that is completely the
opposite of the industry that Ihave called home for the last ,
uh, you know , decade, 10 plusyears. Yeah. Anyways , um,
those people are now at thepoint where they're same,

Speaker 3 (20:28):
By

Speaker 4 (20:28):
The way, several Yeah, sure. Several years into
their job and they're like,yeah, I want to go buy a house,
but I have this student debt.
Is that gonna inhibit or affectmy ability to get a mortgage?
The answer is maybe , uh,

Speaker 3 (20:41):
, it depends.

Speaker 4 (20:42):
But what we've come across several, several times
over the last couple months ishow we have to treat deferred
student loans. Right. Becauseif you're making a monthly
payment, it's basically treatedlike any other kind of debt
where , uh, like a car loan ora credit card payment, for
example. Yep . Whatever thatmonthly debt is, it sort of
counts against the financialblood pressure calculation that

(21:03):
we do call the debt to incomecalculation. Uh, where all the
monthly payments of thosedebts, plus the house payment
cannot exceed generally 45% ofyour gross monthly income.

Speaker 3 (21:13):
50,

Speaker 4 (21:14):
But Sure. 50 for some folks. So for , uh,
deferred student,

Speaker 3 (21:18):
Whatever the software says Yeah. Is the
answer. There

Speaker 4 (21:20):
You go. For deferred student loans, their real life
payment is zero, but we cannotuse zero. 'cause Fannie and
Freddie have , uh, indicatedthat it's like, well, we gotta
use something 'cause that

Speaker 3 (21:33):
It's not gonna be zero for forever.

Speaker 4 (21:34):
Right. That debt is not going away theoretically.
So , uh, a lot of times we canuse either 1% of the balance or
even a half of 1% of thebalance as sort of the
placeholder monthly payment.
Mm-hmm . Mm-hmm. But on credit
reports recently we've seenthat the , uh, lending
institution that holds thestudent debt is showing an end

(21:56):
date for the deferment period.
Zero

Speaker 3 (21:59):
For now. Not for forever.

Speaker 4 (22:01):
Yeah . Deferment ending March 31st, 2025, for
example. So underwriters areperking up their ears a little
bit to that, where they'relike, well, okay, this
deferment is gonna end maybebefore you even make your first
mortgage payment. Yep . Right.
So we're not just gonna let youuse 1% or half of 1%. We need
to figure out what that monthlypayment is expected to be after

(22:23):
the deferment period ends. And, and that's where we're
relying on the help of ourcustomers , uh, to gather the
documentation that proves whatthat monthly payment will be.
And it, it , the documentationdoes exist. They , they've
either gotten a letter or theycan go online to the Well,

Speaker 3 (22:40):
'cause it's about to end. It's like, Hey, it's early
February mm-hmm .
And you just said in thisexample, if it's in writing on
your credit report end of Marchmm-hmm . You are
definitely in possession ofsome kind of communication.
Right. Hey, this is coming upfor you and you're gonna have
to start remitting some kind ofmonthly payment on your student
loan.

Speaker 4 (22:57):
So it's usually as simple as going online to, you
know, navient.com or whoeverholds your student loan, Nelnet
, Nelnet , moa . And basicallyjust saying, okay, I'm gonna go
here. I'm gonna find thisstatement that says this is
what your anticipated monthlypayments will be. And a lot of
times that's helpful 'causethat monthly payment might even
be less than 1% of the balanceor the placeholder or Yeah.

(23:19):
Less than the placeholder thatwe otherwise would have to use.
And that actually would allowyou to qualify for more
mortgage if you want to orchoose to.

Speaker 3 (23:28):
Sometimes the way that I described that is blank
is not an acceptable number forunderwriting. Yeah . We have to
have something. Right. Iteither needs to be a
placeholder or whatever we canget in writing Yeah . Based
upon it's about to arrive , uh,at the , at the end of March in
your example.

Speaker 4 (23:49):
Yes. Or even if it's just a notice saying that the
deferment period's gonna beextended out to a future date,
that's also acceptable. Butbottom line is, to your point,
we can't just tell the mortgageunderwriter. Yeah, no, it's,
it's zero. It's like, well no,it's not gonna be zero. Not for
forever. Forever. Yeah. So ,uh, the risk measurement of

(24:10):
mortgage underwriters is suchthat they tend to think in
worst case scenarios. So theyneed to get in front of that
with student loans and say,okay, well what is the monthly
payment expected to be this?

Speaker 3 (24:21):
Uh , it also reminds me that part of the artistry of
mortgage lending as well,particularly if we have a
couple or two, two borrowers.
Yeah. If one has a laundry listof student loans and the other
person does not, we can take alook if Well do you, 'cause

(24:41):
mortgage lending is, it's likebasketball. You only gotta win
by one. Mm-hmm .
Yeah . And so if putting thisloan in only the name of one of
you, but not both of you,allows us to basically, I don't
wanna say ignore, but it's justthe student loans of the person
who's not on the loan. That'skind of not in factor the
scope. Yeah. Yeah . Of, ofgetting to the yes or no black

(25:04):
or white.

Speaker 4 (25:05):
I , I have a married couple literally this week that
I intentionally did that on.
They're buying a house togetherand doctors

Speaker 3 (25:11):
Is a classic example. Yeah . Like, yeah. I
work at Milwaukee Tool and mywife just graduated from the
medical college. It's like,well maybe we just qualify you
based upon your job atMilwaukee Tool. Yeah . And
congratulations, you guys willfigure it out for your medical
career. Absolutely. But thatmight not be worth including

Speaker 4 (25:30):
Yeah. Getting into it to get Yeah.

Speaker 3 (25:32):
What's

Speaker 4 (25:32):
The easiest way towards approval? Yeah . A lot
of the art of mortgage lendingis, you know, there's a couple
ways we could probably get itdone. What's the easiest and
smooth way

Speaker 3 (25:41):
For what's the hard way?

Speaker 4 (25:42):
Yeah. No

Speaker 3 (25:42):
One's gonna pick that the easy way. Uh , okay.
When we come back, I, I justwanna talk about some
homeowners insurance. 'cause Ihad a great conversation this
week with a insurance pro andit opened my eyes to a couple
things. You are listening tothe Acuate Mortgage and Realty
Show on AM six 20 WTMJ.

Speaker 2 (26:01):
Important home buying questions and answers
you can count on. This is theAcuate Mortgage and Realty Show
with Brian Wicker on WTMJ.
Thanks

Speaker 3 (26:11):
For hanging out with us on the ACU Net Mortgage and
Realty Show. I'm David, that'sTim over there. Hello. Tim. I
continue to have excellentconversations with insurance
professionals because it ispart and parcel of owning a
home. Yeah . Because when youhave this giant thing, you want

(26:36):
to protect it and being smartabout how you protect it is
smart. Yeah. So I had a coffeeon Friday morning with an
insurance pro and what I sharedand I I , I think this is gonna
become almost part of myroutine with a customer. The,
the sequence that I haveobserved as a client reaches

(26:57):
out to their real estate agent,Hey, I would like to go see
this house at 1 2 3 MainStreet. They reach out to me
and say, Hey, we're consi .
We're gonna go see this houseon Sunday afternoon right
around kickoff. 'cause no oneelse will be at this house.
Smart. You know, Hey, whatwould the monthly payment be?
How much money would we need tobring to closing? Yeah . And
then the third element that Ihave seen a number of clients

(27:20):
do is they call their insuranceagent to be like, Hey, we are
considering either going to orwriting an offer on 1 2 3 Main
Street. What would my insuranceoptions be for this home based
upon any data that you can getfrom the listing or the Lexi

(27:41):
Nexus mm-hmm .
That insurance agents use Yeah. For property data
information. And I was thinkingas, as that kind of dawned on
me, I was like, duh, like this, why

Speaker 4 (27:52):
Don't , why doesn't everyone do this? If this was

Speaker 3 (27:54):
Brian Oh yeah . Or David, or not to speak of
myself in the third person,but, or you, I I think about,
okay, if I go buy a house in2025 or 2026, this is a, a
deal. This, I think insurancehas been a default Yeah . For a
long time. Like, oh, I, I willget that. I , yeah . I will

(28:16):
eventually wrangle that.

Speaker 4 (28:17):
So often it's like the last thing that customers
get me before the clear toclose. 'cause it's like you're
juggling a million differentthings, you know, and it's like
you got, okay , uh, oh, I now Idecide I want to , to buy the
house, I gotta make an offer.
Oh, I got an accepted offer.
Great. Okay. Next thing is thehome inspection. Gotta find a
home inspector. Go through thatreport.

Speaker 3 (28:39):
What schools are my kids gonna need to go to? Oh
yeah. I gotta , before we movein,

Speaker 4 (28:42):
I gotta hire movers.
I gotta , yeah. I mean, there'sa million things, right? So
it's, I think very prudent andwise to like, have those
conversations. And a lot ofpeople have a go-to insurance
agent. Other people are, are

Speaker 3 (28:55):
More people need a go-to, as I say, what is the
cell phone number of the personyou will call mm-hmm
. After the treefalls on your house. Oh yeah .
Because if the answer to thatis an 800 number Yeah. I don't
think we've quantified that's

Speaker 4 (29:10):
Next level adulting is if you do have like a go-to
insurance guy. Yes . Shout outto Matt Austin at Goose Head
Insurance, who's , who's myinsurance guy. There you go .
But like, truly, it's like, andyou know, not only is coverage
important in figuring out whatcoverage you do or don't want,
also it helps you figure out a, a closer to accurate number
on what is the premium for thisinsurance policy gonna be

(29:31):
Because ,

Speaker 3 (29:32):
And and what is the premium on this house that I am
considering based upon all thethings that we know about this

Speaker 4 (29:37):
House. That's your monthly payment. Uh , is the
insurance premium gonna gonnabe 500 or $5,000 a year or
something in between? Exactly.
Right .

Speaker 3 (29:46):
And as I , um, noted in my coffee on Friday, I, the,
the best way to approachhomeowners insurance in my
opinion is just ask yourhomeowner's insurance agent,
what do you have on your house?
Yeah. True . And then you say,give me some of that please.

(30:08):
Yeah. Because I don't think anyof us, you know, novice , uh,
uh, uh, uh, regular people.
Yeah. We don't understand .
Could claim that we know how todo insurance better than the
actual insurance person.

Speaker 4 (30:23):
I would be terrified if someone were saying that and
believed it because it's like,it's like asking my mechanic,
it's like, what kind of car doyou drive? What's the year, the
make and the model that's ,

Speaker 3 (30:32):
I got my oil changed . I was like, gimme whatever
you put in your car. Yeah.
Because I don't know anything.
And you do. So I would likewhat you have. Yeah.

Speaker 4 (30:42):
Uh , when we get back for our last segment,
David, I want to pivot and talkabout credit scores. 'cause
we've recently launched a newtool at Acuate Yes . World HQ
that can help our customersimprove their credit scores
ahead of when they actuallywanna take out the mortgage,
which can save people some realmoney. So we'll talk about that
in our last segment. You arelistening to the Aate Mortgage

(31:03):
and Realty Show. AM six 20WTMJ.

Speaker 2 (31:07):
Find a place to call home without the headache. This
is the Acuate Mortgage andRealty Show with Brian Wicker
on WTMJ. Yeah .

Speaker 4 (31:17):
Alright , we're back with the Acuate Mortgage and
Realty Show. David , uh, forthis last segment, I would like
to talk about credit scores.
Yes. Uh, because it is one ofthe three big legs of the stool
for qualifying for mortgage, aswe like to say. The other being
debt to income ratio, the thirdbeing assets for down payment
and credit score. For most, notall customers, but for most

(31:39):
credit scores , it does have abearing on the rate and amount
of closing costs you need topay for the mortgage because
logically , uh, if credit scoreis an indicator of your
responsibility of paying backdebt

Speaker 3 (31:52):
On

Speaker 4 (31:52):
Time. On time, thank you. The , the higher your
credit score is, the more of aresponsible borrower you are
deemed to be in the eyes of themortgage world. Right. So when
we accessed credit , uh, wechecked to see if someone even
has a credit score. Ironically,our shout out to our producer,
Isaac , uh, he said that, youknow, he was proudly did not
even have a credit score untilrecently because he just hadn't

(32:13):
opened up any loans. Yeah. Uh ,so

Speaker 3 (32:16):
That's a flex.
Ironically,

Speaker 4 (32:17):
No score at all.
Yeah. You need to have debtand, and show that you
responsibly pay it back on timeto even generate a credit
score. But for most folks, whenwe check credit, everyone has
three credit scores from thelovely bureaus over at Equifax,
Experian, and TransUnion. And ,uh, we get to use the middle of
those three scores as the onethat we qualify our customers
on. Now here's the interestingnew development , uh, through

(32:41):
the vendor that we use toaccess credit. We automatically
get a simulation for ourcustomers on how they could
easily and quickly boost theircredit scores.

Speaker 3 (32:55):
Here's where you are on the left side, on the right
side, here's where you couldbe,

Speaker 4 (32:58):
Here's where you could be. And here is the
step-by-step things that youcould do to get those higher

Speaker 3 (33:05):
Credit scores . It's like diet advice for your
credit score. Chicken and ricebaby.

Speaker 4 (33:08):
Yeah. And it , this is again, one of the many tools
that we have at our disposablewhere we're not every customer
of ours will need or want totake advantage of this, but I
love connecting with customers.
The , the earlier in theprocess the better. Frankly, if
you're even six months awayfrom even going on Zillow, I

(33:28):
would still love to talk toyou. Yes. 'cause if we are in
the process of formulating thatgame plan, if you thought you
had 800 credit and you have 600credit, okay, I want to know
that as soon as possiblebecause likely we can map out a
game plan. There's a path overthe next couple months to get
your score up to some higherlevel and, you know, again, set

(33:50):
up well

Speaker 3 (33:50):
And the , and the, the goal being you will get a
lower rate and lower closingcosts the higher we can get
your credit score. Yeah . Soit's like, it's like asking a
customer, do you wanna pay lessand the answer's gonna be
mm-hmm

Speaker 4 (34:03):
. Or , or like to, I mean, let's say,
let's say it takes you a totalof two hours of your life to do
whatever these things are .
Yeah. That's a little bit of aninconvenience and maybe you
don't wanna spend the two hoursto do that. But if you put it
in terms of savings, let's sayyou can get a quarter percent
lower rate due to, you know,the credit score increases. And

(34:25):
let's say that saves you $60 amonth every single month on
your mortgage payment. Yep .
Oh, wow. Uh , you just savedover the course of a year,
$300. Right.

Speaker 3 (34:36):
7 20, 7 20,

Speaker 4 (34:37):
Thank you. And you spent two hours of time, that
is a really good return on yourtime. Yeah . You're not, you're
gonna make save more money thatway than working two hours at
your job Yes. For the week. Sowhen you put it in mind like
that, it , it , I think it'sworth it If we recommend it
after we do our analysis thatyou take those steps.

Speaker 3 (34:56):
I want to , and as you noted, let's do that before
you are pregnant with anaccepted offer. Yeah . Because
as you're on the hunt, you'reonly maybe spinning one or two
plates. Right. When you get theaccepted offer, suddenly you
are spinning 11 plates as wenoted. You're not gonna time ,
where are my time ? My kidsgonna go to school movers, we
energies bill, all that. Sowhen we can get better when

(35:21):
we're not under the gun. Yeah .
That is better.

Speaker 4 (35:23):
Absolutely. Yeah. If you're, if you have an accepted
offer, the opportunity haspretty much passed for you to
make any meaningful , uh,positive changes to your credit
score

Speaker 3 (35:33):
Or it slides down the list. Well ,

Speaker 4 (35:35):
Right . Sometimes because it's like we're closing
in 28 days, we don't reallyhave time for this anymore. You
kind of have to dance with thegirl that you brought Yeah . At
, at that point.

Speaker 3 (35:44):
Indeed. The spring home buying season is here. Yep
.

Speaker 4 (35:50):
It's gonna be wild.
Uh,

Speaker 3 (35:51):
And if you want to be moving into your new home in
March, April, April or May, yougotta get going right now. The
academic mortgage team is readyto help put that game plan
together. Uh, and we've beendoing so for 25 plus years, by
the way. Coming up on 26. Uh ,shout out to dad. I went and

(36:11):
looked. Uh, the AcademicMortgage and Realty show has
been on the air for 15 years.
Nice. At this point. The firstone with one Eric Bilad back on
Valentine's Day 2010. Uh, we'vegot the show notes right here ,
uh, and we'll keep , uh,marching along, helping home
buyers get into their nextplace. Uh , all you gotta do to

(36:31):
get started is click on thatblue [e-mail]. Tim,
thanks for hanging out. Always.
You have been listening to theAcuate Mortgage and Realty Show
on AM six 20 WTMJ.

Speaker 1 (36:44):
The proceeding was a paid program. Advice and
opinions expressed during theAcuate Mortgage and Realty Show
are solely that of the host forguests of Mortgage and Academic
Realty Advisors and not WTMJRadio or Good Karma Brands.
Milwaukee, LLC.