The Accunet Mortgage & Realty Show 2-23-25

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 (00:34):
Welcome to the Accu Mortgage and Realty Show. I'm
Brian Wicker , licensed realestate broker with ANet Realty
Advisors, and also the majorityowner of Anette Mortgage, where
my individual MLS ID number is2 5 9 6 1 0. Here today with my
son David Wicker, who's thepresident and managing owner of
Anette Mortgage. And his NMLSID number is 3 2 8 8 4 7. Hey ,

(00:56):
David, we had a bumper crop ofour pre-approved home shoppers.
Yes . Turn into home wellaccepted offers this week,
which was nice to see , uh,despite , uh, frigid
temperatures and interest ratesstill, you know, hovering in
the high sixes. Yeah . So proofpositive that , uh, you can get

(01:16):
out there and , uh, become ahomeowner win , get that
accepted offer depending on whoyou work with. We'd like to
think that we had part , uh, todo with that by being clever
and, what do you wanna say?
Expert loan advisors. Um ,

Speaker 3 (01:30):
Well that, in that, in addition to our clients
being strong, who the namethat's on your pre-approval
letter matters more in 2025,perhaps than any year that came
before. 'cause sellers wouldlike you to actually show up at
the closing table and to havethe ACU net name on your
pre-approval letter givescomfort to sellers and listing

(01:53):
agents that it will actuallycome true.

Speaker 1 (01:55):
Another thing that I noticed , uh, with last week's
, uh, accepted offers were that, uh, half of them , uh, had to
pay over the asking price. And, uh, that compares to our
number that we reported lastweek for January close sales.
That was at 32% in the fivecounty Milwaukee metro area.
And we noted that that tends toclimb up to about 50% by March.

(02:18):
And I think last week'saccepted offers will be ones
that are closing in March. Sowe're, we're right at the, the
trend mark. Yeah. Uh, so David,do you wanna start out with ,
uh, one of your , uh, successstories of the recent , uh, of
the recent week?

Speaker 3 (02:32):
Oh, absolutely. So, one of my clients as to remind
our listeners, Acue is licensednot only in the state of
Wisconsin, but also inIllinois, Minnesota, and
Florida. Uh, Florida being themost, perhaps random of states
that we are licensed in yet,yet purposeful as our clients
continue to , um, move on tothat next chapter of their

(02:57):
lives. And I had a repeatcustomer of ACU Nets who we had
helped back in 2019. They hadpurchased a home kind of up in
the middle of Wisconsin. Mm-hmm. Uh , they were previously
down in the Milwaukee area.
They , uh, purchased thiscurrent property , uh, up in

(03:19):
the middle of the state as asecond home. They then
subsequently had sold theirproperty here in the Milwaukee
area and had moved up to thenorthern part of the state full
time ,

Speaker 1 (03:29):
Making it their primary residence. Now that's
good.

Speaker 3 (03:31):
You bet. And , uh, since that time , uh, I won't
EI don't even want to tell youthe interest rate that they ,
uh, had on their Wisconsinhome. They have since paid it
off. I was gonna guess becauseit was

Speaker 1 (03:43):
Don't tell me they paid it off. They did .

Speaker 3 (03:45):
Yeah. Well, now it's at zero. But , uh, tale as old
as time. They messaged me on a,we , yeah , I think it was
Wednesday. Hey, we're thinkingabout this home in the Tampa
area. Oh , can you, the sellerswould like a pre-approval
letter 'cause I'm consideringfinancing some, if not a lot of

(04:10):
the acquisition of this soon tobe new second home. Right.
'cause as we said, yeah . TheirWisconsin house is now their
primary and they're like, wow,I don't wanna shovel , um, or I
don't wanna need to not shovelsunshine Yeah . Down in
Florida. And so I was able toprepare. I mean, these clients

(04:31):
are absolute rock stars . They, uh, no problem. Uh,
qualifying for the financ .
Yeah . And yeah. And c andmaking the monthly payment. So
I was able to generate thatpre-approval letter. Easy
peasy. They then get theaccepted offer. Ooh . For this
Florida home

Speaker 1 (04:52):
Single family or condo. David ,

Speaker 3 (04:54):
This is so excellent leading question. A
condominium. Ah, and theanalysis then turns as we
often, you know , uh, uh, uh,begin when consulting with a
client that like, well, you areacquiring this Florida condo

(05:15):
property. What is the mostsavvy, least aggravating way
that I can lend you the amountof money that you want to show
up at the closing table with asuitcase of cash and give it to
the seller. And you want , doyou want to guess? You you

(05:36):
wanna try to, well forecast theanalysis that I began to do.
Sure .

Speaker 1 (05:40):
Well, let me just say a couple of things about
financing in Florida. One isthere are, because Florida
doesn't have any state incometax, they came up with a
mortgage tax. So if you borrowmoney in Florida, you get to
pay a tax. And then also thetitle insurance fees are much
more expensive on Floridatransactions than they are in ,

(06:02):
uh, Wisconsin. Say Yes . Sothis reminds me of somebody I
helped a year or two ago,similar situation where rather
than putting the mortgage onthe , uh, Florida property, we
opted to do a cash out refi Yes. On their Wisconsin property.
Is that what you suggested?

Speaker 3 (06:19):
Well, so let me kind of get into a couple more of
the follow-up questions that myclient had, right? Because I
kind of, they said vanilla andI said chocolate. And we kind
of talked about the flavors ofboth. So let's dive into that
after this break. You arelistening to the ACU Net
Mortgage and Realty Show on AMsix 20 WTMJ

Speaker 2 (06:41):
Home buying advice from the guys who know it best.
This is the ACU Net Mortgageand Realty Show with Brian
Wicker on WTMJ. Welcome

Speaker 3 (06:50):
Back to the ANet Mortgage and Realty Show. I'm
David Wicker, president andmanaging owner. That's Brian
Wicker, the Chief HonestyOfficer and chairman of ACU Net
Mortgage Dad , uh, telling youthe story of a repeat ACU net
customer. This is what happenswhen you're in business for
staring at 26 years . Yeah ,yeah , yeah. People, we helped

(07:14):
this client with the, you know,chapter five of their life, I
guess maybe we'll call it acouple years ago. And now
they're thinking about chaptersix. Hey, let's spend more time
in Florida where the sun shinesand I don't have to wear pants
so much. Even

Speaker 1 (07:29):
In February. Yeah .

Speaker 3 (07:30):
Yes. So this client , uh, w wrote an offer and got
it accepted on a condominium inand around the Tampa area. Um,
they got it from below listprice.

Speaker 1 (07:43):
I was gonna ask you, do you , do you think that they
were competing against anyother offers in the much
different Florida market? Much,much different than , uh,
Wisconsin.

Speaker 3 (07:53):
They were not. Uh, and, and so they, neither were
they competing, nor did theyneed to , uh, pay the list
price in order to acquire orget the house under contract,
get the condo under contract.
So my client accepted offerprice around $600,000. They
already, in their mind, wereready to make a down payment of

(08:15):
close to three 50 . Whoa . Andso bar borrowing only $250,000.
Okay . Which I can't, I can'thelp as the son of a mortgage
banker, I very, I very gently,I'm just like, why? What? You
know? Yeah . I will .

Speaker 1 (08:31):
Why do you want to use up your money and Well,
because they want a smallmortgage

Speaker 3 (08:35):
Payment . You want I know. It is like , got it . If
you want your filet mignonhockey puck, I I will do it. I
just want ask you, why can Itell you the chef's
recommendation? He just doesn'twant a mortgage.

Speaker 1 (08:48):
Right?

Speaker 3 (08:48):
Right. He's, he's more comfortable, which is not
a financial answer. That is anemotional answer. Which is,
okay. Well ,

Speaker 1 (08:55):
I mean all , although you are essentially
the more you put down, you'rekind of earning the mortgage
rate, you know, by, by avoidinginterest at whatever, 6.875
Yeah . It's kinda like earning6.875. So that's a pretty good
fixed rate return. But anyway,go on.

Speaker 3 (09:11):
So and so, given the large down payment and relative
size that they were consideringborrowing about $250,000, as
always, any ACU loan consultantis gonna be like, where's the
smartest least aggravatingplace where we can borrow you
this money lend you And so lend

Speaker 1 (09:31):
You the money Yeah.

Speaker 3 (09:32):
Lend you this money.
Sorry. So, no, it's not , youknow, verbs who needs them ?
Uh, so one , um, nerdy databasethat the acuate team has access
to is a , what do I wanna callthis? The condo naughty list.

Speaker 1 (09:53):
Oh, yeah. Or, or

Speaker 3 (09:54):
The Good list. And Fannie Mae or the Good List.
Fannie Mae keeps track of, Hey,we buy lots of loans from lots
of different places and lots ofcondo associations, so we know
who's doing a good job ofmanaging their condo structure
budget, and we know who's not.
And when Jason Hanson, directorof operations at Academic

(10:17):
Mortgage and managing owner ranthe address of Yeah . Our
client's new condo through thatFannie Mae system, the , um,
words back were not , uh,cautionary. That's the way that
I'll describe it. Hey ,

Speaker 1 (10:34):
The words that came back were cautionary,

Speaker 3 (10:36):
Were cautionary like, Hey, there's some weather
related , um, you know , uh,elements or, or concerns about
this condo project, probably,you know, as an after effect
from the hurricanes, was that ,uh, September and October ?
Yeah .

Speaker 1 (10:52):
Yeah . This last fall. This last fall. They had
Milton and Helene I think werethe two

Speaker 3 (10:56):
And the other one.
Right. So , uh, that was like ,uh, you know,

Speaker 1 (11:02):
Yeah . Do we were at try to fight through that.

Speaker 3 (11:04):
Right. We were at the top of the, we were at the
top of the first inning ofpossibly directly financing the
purchase of this Florida home.
But with this feedback aboutthe condo structure itself,
like we kind of almost knewwhat the bottom of the eighth
inning was gonna look like.
Yeah . At the start of thegame. Right. And so I shared

(11:25):
with the client, I was like ,they had paid off their
Wisconsin property. Correct .
And I said, look, look, if youwant the smoothest path to just
show up with money and acquirethis condo, let me lend you the
money on the Wisconsin Homecash out refinance. It will get
you the money two weeks beforeyou actually have to wire it to

(11:47):
the closing for Florida. Andthen you just show up and pay
what feels like cash to theseller. Yeah .

Speaker 1 (11:55):
And , and are they, they're obviously okay with
whatever the condo projectconditions are.

Speaker 3 (12:00):
Well, this, I , I also relayed, I was like, you
need to go in eyes wide openabout the health of this
current condo and theassociation. And, and I, if
you, I would advise you to getinvolved with the board because
you , in X number of years,when you might decide that you

(12:22):
want to sell this home, youdon't want to ignore or you
don't wanna exclude people whomight be considering financing.

Speaker 1 (12:30):
Well, sure. Well, and you know , you gotta be
aware, Hey , are they all okayfrom these latest , um, you
know , uh, repair ?

Speaker 3 (12:37):
Or what does it take to get 'em fixed? Yeah.

Speaker 1 (12:39):
Correct. You know, are they looking at a special
assessment, which is common,you know , along the Florida
coast where, hey, we didn'thave enough money saved up to
do all these repairs. Yes. Wehad insurance. Oh, the other
thing that's going up likecrazy for condo associations is
the cost to insure thebuilding. Yeah . 'cause
remember, as the owner, youonly insure the inside the
condo association gets toinsure the building. Alright .

(13:01):
What do you wanna talk aboutnext, David?

Speaker 3 (13:03):
After this, I want to talk about a Wisconsin
client. 'cause guess what?
People are getting out thereand doing it. And you had some
notes , uh, on some Januarydata from the National
Association of Realtors. Let'scompare that with, you know,
the active home shoppers thatwe are working with. And then I
want to talk about VA versusconventional for a real life
buyer who I spoke with thisweek after this break. AC uh ,

(13:27):
you are listening to the AccuMortgage and Realty Show on AM
six 20 WTMJ,

Speaker 2 (13:32):
Getting you into the home of your dreams. Here's
more of the Accu Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (13:40):
Welcome back and thanks again for joining us. Uh
, here on the Academic Mortgageand Realty Show. David, the
National Association ofRealtors came out on Friday
with their existing home salesreport for the month of
January. And a couple ofinteresting things about the
way they and others reportedthe headline that the
Association of Realtorsthemselves, their headline was,

(14:01):
existing home sales decreased4.9% in January, but increased
year over year for the fourthconsecutive month. Hmm .
Interesting. And then , uh,CNBC picked that up and made it
even worse. They said homesales dropped sharply as prices
hit all time high for January.
And so in unbundling that what,what the Association of

(14:23):
Realtors does is they take anygiven month and then they
adjust it to be seasonallyadjusted. Meaning that they try
to make January's number, whichare typically the lowest number
of sales for the year. And theysay, well, if it wasn't
January, if it was the averagemonth , uh, what would that be?
And so then they can comparethat to any other month. And so
sure enough, if you take theseasonally adjusted average for

(14:46):
January versus the seasonallyadjusted number for December,
it is down 4.9%, which is notgood. Uh, but if you look at it
January to January, hey, it'sup 2%. So if I was writing the
headline, I would've emphasizedthe , uh, positive of of being
up 2%. Uh , all that said, youknow, I always like to compare,
Hey, so you're hearing allthese national numbers, how

(15:08):
does that compare to the local?
And so if you were listening tolast week's show, you heard Tim
and I report that for the fivecounty Metro Milwaukee area,
January single family and condosales were actually up 12.4%
compared to a year earlier. Sothat compares to the national
number of 2% of January toJanuary. So we're doing better

(15:29):
nationally, the realtorsreported a 4.8% year over year
increase in the median salesprice, which nationally was
$396,900 in January. TheSoutheast Wisconsin median
sales price was lower inJanuary at 3 0 9. Uh, but that
number was up 14% from a yearearlier. So once again,

(15:50):
southeastern Wisconsin isoutperforming the national
numbers over on the supply sideof things nationally, the
inventory of existing homes forsale increased 17% , uh,
compared to a year earlier.
According to the NationalAssociation of Realtors, that's
a three and a half monthsupply. Okay . That's where you
take the inventory divided bythe rate of sales per month.

(16:12):
Three and a half . Tim and Ireported last week that in
southeastern Wisconsin, we havemore like a 2.6 month supply.
Um, and it's always interestinggoing , Hey, what are we going
to use as the number of salesif you actually use March sales
in divided by availableinventory, it's more like two.
So we are significantly tighterinventory , uh, here in
southeastern Wisconsin than thenational numbers. The last

(16:35):
couple of tidbits before we getto your next story , uh,
nationwide, only 15% of buyersin January paid over the
listing price in Southeast insoutheastern Wisconsin. The
five county metro area, 32%paid over asking in January.
And again, we see that going upseasonally. That should
probably hit 50% locally hereby March. And the last nugget I

(16:56):
have is 24% of sales inSoutheast Wisconsin paid cash
nationally. That number was wayup there at 29%. So how , how
does that in general, you know,supply and demand, David, what
are your home shopping clientstelling you here in , mostly in
southeastern Wisconsin,notwithstanding the fact that
Florida, what you just told thestory on is a much different
animal. Definitely a seller's.
Mark . I'm definitely a buyer'smarket in Florida seller's

(17:19):
market in Wisconsin. Yeah . Ithink

Speaker 3 (17:21):
My , yeah , my clients are hungry and would
like there to be more to pickfrom. You know, I think it , it
may be a matter of, I don'tknow how to quantify settling ,
um, that okay, we want morespace, right? The a client

(17:41):
decides, Hey, we, we want abigger house. They might be, I
would tell you in this storythat I'm gonna share with you
next is deciding to wait tohopefully, you know, have other
homes come on the market Yeah .
In the future might not beworth it to some of the clients

(18:03):
that I am talking to. And sothey're , they're trying to
balance immediacy versusquality. Right ? Right . Does
that make sense? Yeah .

Speaker 1 (18:13):
Oh , I'll tell you , I got a call from a client who
did not succeed last year, hadto re-up her lease, but is now
back at it. Her lease is up, Ithink in May, May 1st. So she's
like, okay, I'm getting backout there . And her comment
where she's looking like in thethree to three 50 price range
in Southern Milwaukee County,she thought that the inventory
was better , uh, this right nowthan what she had seen, you

(18:36):
know, last summer. So it alldepends on the micro market ,
you know, in which you'relooking Oh , she thought in
terms of quality of theproperties and, and so on. So

Speaker 3 (18:47):
I wanna , well, I wanna piggyback it . I'm gonna
call it, it's the, it continuesto be the bifurcation of the
good ones are going faster andthe homely ones are going
slower. That's what I'lldeclare. Alright .

Speaker 1 (19:00):
We'll cover that when we come back . But right
now it's time to turn it overto the WTMJ Breaking News
Center.

Speaker 2 (19:07):
Don't break the bank to get into a house. Back to
the ACU Net Mortgage and RealtyShow with Brian Wicker on WTMJ.

Speaker 3 (19:15):
Welcome back to the ACU Mortgage and Realty Show.
I'm David the younger, taller ,more handsome wicker. That's
Brian Wicker, the wiser of allWicker's. Mm . Thank you. Um,
dad . You're welcome. Dad, I ,uh, was referred to a new
client who is the sibling ofthe real estate agent who is

(19:36):
going to help them go and findtheir new Wisconsin home.

Speaker 1 (19:41):
That's the highest of praise. You know, Hey, not
only am I giving you my client,but that client is my sister or
sibling or brother or

Speaker 3 (19:46):
Whatever. And , and we'll see if, we'll see if we
get to this story. But , uh, Ihad a another , uh, client this
past week and I copied you onthe email saying thanks to the
dad who had referred in hisson, which I know is your , uh,
highest , uh,

Speaker 1 (20:02):
Compliment. Yes.

Speaker 3 (20:03):
Yeah. Compliment.
What you love the most is whenwe can help the next, in the
next generation. But I , what ,what I always say to people is
like, I love theaccountability. Like, bring it
on. This is, I want to help youget into your next home. I
wanna make your relative whosent you our way also make them
look good. And if they are alsoyour real estate agent, it's

(20:25):
like, bring on the pressure. Noproblem. Yeah . It's like, is
it the fourth quarter and Ineed to hit both free throws?
I'm ready. So , uh, these , uh,clients are originally from
Wisconsin. They had gone outwest , uh, for some jobs out in
Oregon. They then have nowreturned to Wisconsin because

(20:46):
guess what? Who's the newaddition in their house? Oh ,
okay. Oh , oh. The six monthold who , uh, wakes us up in
the middle of the night. Sure,sure. Amazing. It's, it's, I am
not telling the story of Brianand Becky in 1989. Yeah . This
is, these are real people in2025. Right , right . So we
were

Speaker 1 (21:04):
Real people in 1989, just by the way.

Speaker 3 (21:07):
Okay. Yes. You were wanting to

Speaker 1 (21:09):
Come back to Wisconsin to be closer to
grandparents, blah, blah ,blah.

Speaker 3 (21:12):
Exactly. Hey, hey Marge, can you come be a
babysitter? Yeah. Uh , sothey're back and they ha they
actually sold a home that theyhad owned out west. And so
they've got, financiallyspeaking dad, they have jobs
and they have down payment.
They are a slam dunk. A and

Speaker 1 (21:34):
Nothing to sell.
That's good.

Speaker 3 (21:35):
And nothing to sell.
They are , they're ready. Theyare a seller's dream. The
interesting part of ourconversation was Mr. Borrower
is a military veteran. Oh . Andso has the VA mortgage benefit
available to him?

Speaker 1 (21:51):
Has he ever used it before?

Speaker 3 (21:54):
Uh, he has not. Oh , okay . When they were out's the
first time use , first timecheapest.

Speaker 1 (21:58):
Right .

Speaker 3 (21:59):
And cherry on top, he is exempt from the VA
funding fee normally. So, sofor anyone who has served in
the armed forces, you likelybecome eligible for a VA
mortgage benefit. The VApermits a , uh, service member
to put as little as 0% down ona home purchase. The way that

(22:21):
the VA goes about , um,creating the , um, fallback for
allowing for that low downpayment is they charge a
funding fee for a first timeuse that is just a little bit
over 2% of the mortgage amount.
So, you know, on a, if you'reborrowing $400,000, you are

(22:41):
talking about something thatcould be as much as 8,000 bucks
that you pay to the VA if youhave to pay that funding fee.
Yeah. You do not have to bringthat out of pocket necessarily.
But then it's like, okay, andI'm lending you four Oh , I'm
not legislating you a 0% downpayment. And that I can also
tack it on to the, on the totalbalance as well. We can

Speaker 1 (23:02):
Lend you more than the purchase price if that's
what you want to do.

Speaker 3 (23:05):
Exactly. But , but for, for anyone, I just

Speaker 1 (23:08):
Say this , the other good thing about VA loans is
there is no monthly VA mortgageinsurance, which is different
than if you get an FHA loan,you play monthly government
mortgage insurance in additionto an upfront fee. And then of
course, if you get a regular 30year fixed rate loan , uh, you
get to, you don't pay anythingupfront , but you get to pay
monthly. PMI. So at the VAloan, you don't have to do

(23:30):
that. So what are theydeciding? Are they, how, what
percentage are they gonna putdown? And you said he was
exempt anyway.

Speaker 3 (23:36):
So when you're exempt, if you have a service
related disability, it's rightthere on your certificate of
eligibility [e-mail].
Or I don't EI don't recall thename of the website, but we can
up for you. Yeah . A more , wecan look that up. And it says
exempt, which means you can doas little as 0% down. You don't
have a funding fee and youdon't have monthly PMI, so dad,

(23:59):
they were ready to make a 20%down payment on a conventional
because

Speaker 1 (24:03):
They have the money from the sale of their house.

Speaker 3 (24:05):
'cause they, 'cause they have the money, but they
also have this VA benefit. Andso as we always do, we just
talk about what's possiblebecause the mortgage banker in
me is like, wow, you could keepall the cash that you have
earmarked in your bank accountand get a screaming good rate

(24:26):
on a VA loan and not have anyfunding fee and not have any
monthly mortgage insurance.
That is if , if, if that is notavailable to me. 'cause I did
not serve in any of the armedforces, but if it was, man,
that's what I would be reachingfor as a Mortgage Pro.

Speaker 1 (24:46):
Would they be possibly able to write their
offer, however, with a biggerdown payment to look better to
the seller so that theirseller's now like, oh man,
they're only putting 0% down .
So

Speaker 3 (24:56):
Let's get into this.
I wanna , I wanna talk aboutthis after our next break
because Right. This now turnsto, and , and how can I go win
out in the real world? Yeah. Solet me, let's get into that
after this break. You arelistening to the Acuate
Mortgage and Realty Show on AMsix 20 WTMJ.

Speaker 2 (25:15):
Important home buying questions and answers
you can count on. This is theAcura Mortgage and Realty Show
with Brian Wicker on WTMJ.

Speaker 3 (25:24):
Welcome back. Thanks for hanging out with us here on
Sunday morning, dad telling thestory of a client , uh, army
veteran who is considering,Hey, should I use my VA
mortgage benefit or should Iconsider a conventional loan?
We, I pre-approved him forboth. I was like, I'm not gonna
run out of electrons. So I'mgonna give you, I I have

(25:46):
started to do this more andmore. I send people like three
or four pre-approvals. Sure .
It's like, here's what, here'swhat you wanted. Here's your
maximum, here's a third optionthat you can consider. 'cause
it's like my computer isstrong. I can get you all these
different versions and then youpick which tool to pair with
your offer so that you , thisgets us Go

Speaker 1 (26:05):
Ahead. You and your agent. You and your agent. Yeah
. And then, you know, hopefullyyou're having a conversation
with the agent as well as to,Hey, what do you want to
accompany , uh, this offer thatyou're writing? 'cause we can
easily customize it, you know,as the real estate agent and
the home shopper are writingthe offer. But

Speaker 3 (26:22):
Go on. So the question, so the question that
my client posed was, if wewrite an offer with a VA
mortgage in our contract, doesthat make us stronger or
weaker? Because they had beenpreviously told, and I I got
really irked about this. Theyhad previously been told , uh,

(26:43):
this was out west. Uh , if youwrite with a VA loan in your
offer, you're not gonna be asstrong as a conventional buyer.
Ah , I disagree. And I did notlike that. Oh, same because I
said your agent, who is yourfamily member, can turn that
around and just be like,whatever your concerns are
regarding VA financing, are yousaying seller, that you don't

(27:07):
think that your home is insufficient condition to meet
the bare minimum? Almost, youknow , uh, little stuff about
the , there's nothing but the

Speaker 1 (27:17):
VA loan isn't , uh, nitpicky like an FHA loan ? Is
it a

Speaker 3 (27:21):
Little bit more? It can be. It can be. Okay . It
can be.

Speaker 1 (27:24):
That's why people, some sellers are leery of FHA
financing because of the, youknow, no trip hazards , uh, no
peeling paint and uh , nobroken glass.

Speaker 3 (27:33):
No broken glass.
Yeah.

Speaker 1 (27:35):
But, but I didn't think that the VA was as
particular. And then they havethe advantage of they can write
it with a 20% down payment. Iwould , I would that that might
be the knock on VA financing isthat it's oftentimes with 0%
down.

Speaker 3 (27:49):
But the , but they could do , uh, Hey, here's my
VA pre-approval letter with 20%down.

Speaker 1 (27:57):
Yeah, that's what I was thinking.

Speaker 3 (27:58):
They they could do that. Yeah. And then if they
say, well, 'cause then theother element they're trying to
manage is, well, what do wewant our monthly payment to be?
They decide they'd wanna make a10% down payment. Okay. The
seller doesn't care how muchmoney you end up borrowing. If
you show up at the closingtable, they will take your bag
of money. That's right. Nomatter who puts it

Speaker 1 (28:16):
In there . But I don't think , I don't think
sellers and listing agents, Ithink it's not good if you
write your offer withconventional and then go via .
Correct . That's not good. Uh ,

Speaker 3 (28:26):
A hundred percent.
Well, and here's the otherelement too. Hey, you know,
depending on the house, I canrun that home through the
software as a conventional loanto see if we get an appraisal
waiver. Yeah.

Speaker 1 (28:40):
You're not gonna get that on a VA loan.

Speaker 3 (28:42):
You're not gonna get that on a VA loan. And, and
ultimately, if that's whatmatters most to the seller to
get them to say yes, maybe youas the buyer need to prioritize
winning over using the VAmonthly payment VA benefit.
Yeah. Well, and and we it's in

Speaker 1 (29:01):
Consideration. Yeah.

Speaker 3 (29:02):
Well, but this is why we're really good about
consulting. It's not just like,yeah , here it is. It's like,
well, as we saw this week withmany of our clients who are
winning offers, it's not justgood enough to be like, here's
your pre-approval letter. Goodluck to you. It's like Right .
That's, that is or has becomerelatively straightforward.

(29:24):
It's then how can the ac unitteam assist you in getting out
there and actually winning?
'cause walking through housesand losing doesn't help
anything really. Right, right.

Speaker 1 (29:34):
Right. How, how can we, oh , just like we're
talking about with this client,Hey, if we say, you know what,
go with the va, but, but sayyou're putting 20% down 'cause
there's nothing preventing youfrom putting 10% down. That's
cool. Exactly. Um , you know,it's, it's it's advice or ideas
like that in consultation with,with the , um, buyer's agent.
Yes . Yeah . But you're right.
The, the , um, appraisalwaivers only available on

(29:57):
conventional loans. And now theminimum down payment for that
is 10%. Correct. Yes . To beeligible for an appraisal
waiver, it used to be 20%. Sonow you, it's possible to get
an appraisal waiver with aslittle as 10% down. Uh , if the
computer believes the valuethat we feed it all Big data.

Speaker 3 (30:15):
All big data. Well, so, and this, you know, this
was one of those examples ofwhat I really enjoy is like
working with clients. I, I havebegun to say more so than ever
that we try to be the mortgagecompany that we would call that
Brian or David would call if weweren't mortgage people. Well ,
that's right . That's theadvice that we try to give to
our clients. Like a , like ahelpful uncle who's got less

(30:40):
opinions and just good words ofwisdom. That's what we try .
Uncle ANet , that's who we are. There

Speaker 1 (30:46):
You go. Uncle ANet .
That's what we've got. Hey,when we come back, you said you
had a , uh, story about a , um,a uh , grandma who's uh , what
, moving back to Milwaukee.

Speaker 3 (30:56):
Coming to Milwaukee because coming what? Coming to
Milwaukee ? What? Thegrandchildren. The
granddaughter's on the scene.

Speaker 1 (31:02):
Okay, cool. And tell us all this time , got a quick
update on what Fannie Maethinks is gonna happen with
interest rates. We'll coverthat when we come back. You are
listening to the AcademicMortgage and Realty Show on
Wisconsin's radio station. Asix 20 WTMJ.

Speaker 2 (31:15):
Find a place to call home without the headache. This
is the Acura Net Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (31:23):
Welcome back and thanks again for , uh, joining
us. Uh, so , uh, David FannieMae came out late last week
with their latest forecast forinterest rates and home sales ,
uh, for 2025 and 2026. Andguess what? They inched up
their interest rate forecast alittle bit. Their most recent
forecast had been for 6.5% onthe 30 year fixed rate by the

(31:43):
end of 2025. And they adjustedthat upwards of smidgen to
6.6%. But then they alsoincreased their forecast for
the end of , uh, 2026 saying,we think it's only gonna come
down a smidgen to six and ahalf . Now folks remember that
not too long ago, just inAugust , uh, the fine folks at

(32:04):
Fannie Mae were predicting 5.9%on the 30 year fixed rate by
the end of 2025. So they objectthat up. Uh, um, seven tenths
of a percent. Uh, and it's allbecause of inflation. And um,
you know, they're just seeingthat inflation is gonna be
stickier. And, and so that isthe prime driver of , um,

(32:25):
interest rates these days iswhat's happening with
inflation. So interest ratesare gonna kind of stay where
they are. Hey, good news is ,uh, academic could offer a
6.875 , uh, 30 year fixed rateon a $250,000 loan as of the
end of this past week. That'swith 25% equity and all the
other Right. Stuff. And the aPR 6.9, that's again with 6.875

(32:46):
with no points. That's a prettygood deal. Uh, and then if you
wanna pay a little bit extra toget a lower rate, you, you can.
And you know, there's anargument for doing that given
the latest forecast. 'causemaybe they're not, maybe rates
aren't gonna come down thatmuch, but yeah. Anyway. Alright
. So do you have time to just ,uh, give us a little Yeah . On
the grandma moving back whereshe'll moving from?

Speaker 3 (33:05):
Uh, she's from Illinois. And do you know who
doesn't care what interestrates are? Grandma's?
Grandma's, grandma's don't carebecause , uh, granddaughter is
on the scene and that is theonly thing that matters. And so
grandma's coming to town andshe is , um, she owns a home in
Illinois. Uh, I think, I don'tknow if she's got plans to sell

(33:25):
it anytime soon, but she'scoming to Milwaukee.

Speaker 1 (33:29):
So does she , uh, does she need to sell it for
the down payment?

Speaker 3 (33:31):
No.

Speaker 1 (33:32):
Oh, okay. She's got money for down payment.

Speaker 3 (33:34):
She's got money, but , uh, the real life element to
this. So she is about to bedarn near full-time, you know,
taking care of granddaughter Oh. For her son and
daughter-in-law. But, so thatmoney is real. I just want to
say that out loud. Stand on mychair and be like, will

(33:55):
grandma, you know, be cashing acheck or Venmo from son and
daughter-in-law for taking careof granddaughter? Okay . Yes.
Can your friendly mortgagelender point at that? No . To
qualify you for a monthlypayment? No.

Speaker 1 (34:11):
No. 'cause she's newly self-employed. She hasn't
been a self-employed nannybefore and exactly doubtful
that they're gonna put her on aW2 or anything like that.
They're just gonna give her themoney and she's gonna have to
report it. So yeah, that'sineligible downfield. So what
are you left for as incomesources? So,

Speaker 3 (34:28):
So we , uh, she is of retirement age and so we are
simply reaching for differenttools in our toolbox. She's got
a pension slam dunk, she's gotsocial security. Okay . Slam
dunk. Easy peasy. And we, wemight reach for our favorite,
turn the IRA account intoincome on the application,

(34:50):
something we do every week.

Speaker 1 (34:52):
What about the , uh, sun perhaps co-signing? That
would be another thing youcould take a look at. If , if
they could stand . It's

Speaker 3 (35:00):
Okay . It's available to us. I don't think
it would be, it would, it wouldbe down the list of , uh,
implementable plans, but it'sat least it , it could be on
the list. I think we're gonnaget there just with what we've
got. It's just as is always thecase. Clients bring to us, Hey,
here's my bag of life. And,and, and you know, David, this

(35:20):
money is real. I understand.
Yeah.

Speaker 1 (35:23):
We can't use it,

Speaker 3 (35:24):
But , but the rule book says I can't use it, so we
just have to, if mortgagelending is like basketball,
it's like we only gotta win byone. And then in real life you
are go , you will figure it outon how to make your monthly
payment. I'm not worried aboutthat. My goal is to just get
you to the winner circle. Yeah.

Speaker 1 (35:43):
According to the rule book, the rules that we
have to play by. Well, we'dlove to help you or your loved
one, or your friend or neighboror coworker . Become a
homeowner in 2025. And all theygotta do to get started, just
click on that [e-mail]. Hey, thanks
for joining us today. You'vebeen listening to the Accu
Mortgage and Realty Show on AMsix 20 WTMJ. The

Speaker 4 (36:04):
Proceeding was a paid program. Advice and
opinions expressed during theAccu Net Mortgage and Realty
Show are solely that of thehost or guests of Accu Mortgage
and Acuate Realty Advisors andnot WTMJ Radio or Good Karma
Brands. Milwaukee, LLC.