The Accunet Mortgage & Realty Show 4-6-25

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 (00:21):
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'sTATed Wicker and Tim Holdman.

Speaker 3 (00:35):
Good morning and welcome to the Accu Mortgage
and Realty Show. I'm DavidWicker, president and managing
owner at Acuate Mortgage, wheremy individual NMLS ID is 3 2 8
8 4 7. Joined today by oneTimothy Holdman. His individual
NMLS ID is 1 5 9 3 1 4 6. Good

Speaker 4 (00:56):
Morning, David.

Speaker 3 (00:57):
Hello, Tim. We are back. We are back. Uh, if
anyone would like to catchprevious episodes of the
Academic Mortgage and RealtyShow, those are available in
podcast form wherever younormally get your podcasts.
Okay, Tim. So , uh, lothappened this past week. Busy

Speaker 4 (01:16):
Week

Speaker 3 (01:17):
Gyrations, I would say. Let's talk through the
sequence of all that

Speaker 4 (01:22):
Occurred. Sure . And then we will say what occurred.

Speaker 3 (01:25):
Pri primarily I would this , um, on Monday and
Tuesday, the world waited.

Speaker 4 (01:32):
It held its breath,

Speaker 3 (01:33):
Held its breath for the unveiling of, what was the
date ? Liberation Day?

Speaker 4 (01:38):
Is that what they're calling? Okay .

Speaker 3 (01:40):
Um , I believe that was the brand for the day on
Wednesday when in the RoseGarden the tariff plan was
released.

Speaker 4 (01:49):
Unveiled, yeah.

Speaker 3 (01:50):
Unleashed .
And with those plan , thattariff plan, the stock market
and the bond market mm-hmm . Began to
digest. Yeah .

Speaker 4 (02:03):
It , it started reacting.

Speaker 3 (02:04):
Reacting to the reacting and rates this last
week , uh, improved

Speaker 4 (02:11):
Mortgage rates.
Yeah.

Speaker 3 (02:12):
Mortgage rates improved. Mm-hmm
. The equity market, the stockmarket, the Dow Jones
Industrial Average, and the sand p 500 and the Nasdaq all
got absolute, there was anabsolute bloodletting Yeah. In
the equity markets, becauseultimately, and , and then that
continued into Thursday andthen , uh, China on Friday,

(02:38):
crack of dawn on Friday , um,reacted. Yeah . And, and said,
oh, yeah, , you got ,you got tariffs. We got tariffs
too. Yeah. And imposed theirown tariffs on US goods. I
think it was at 34%. Was thatthe number?

Speaker 4 (02:54):
Sounds about right.
Yeah.

Speaker 3 (02:56):
Okay. Some tariff, all this to say, so when there
is economic turmoil

Speaker 4 (03:04):
Yeah. And uncertainty.

Speaker 3 (03:05):
And uncertainty, generally speaking, if you had
a billion dollars that you needto invest somewhere, you are
going to choose while, whilethe fog, that's the , um,
metaphor that I think marketcommentators have begun to, to
use. Yeah . Use more than moreand more that like, Hey, I got

(03:29):
a billion dollars that I needto invest mm-hmm .
But as I look out into thefuture, all I see is fog.

Speaker 4 (03:34):
Yeah. It's foggy. I can't see far into

Speaker 3 (03:36):
The future. Right .
And so, because it is foggy,man, I don't know if I'm
willing to stick that billiondollars into Apple

Speaker 4 (03:43):
Yeah. Into tech or

Speaker 3 (03:45):
Something like that.
Right . Into the Nasdaq , uh,equity. So, you know what, I'm
gonna put it into somethingthat's more, I'm gonna pull it.
Maybe I out of risky thingslike stocks, and I'm gonna
repar it perhaps in somethingthat seems safer, like, I don't
know, mortgages,

Speaker 4 (04:02):
Mortgage backed security , mortgage backed
securities , more long termstable.

Speaker 3 (04:06):
And so that is what leads to a , uh, decline in
interest rates. Right. Is whenmoney flows from air quotes in
the spirit of Joey Tribiani ,air quotes, risky things Sure .
And flows to air quotes, saferthings like treasuries and
mortgage backed securities thatleads to lower interest rates.

Speaker 4 (04:30):
Yeah. So the , to put a button on it, it's like
economic uncertainty and stockmarket volatility. Yes.
Typically, not always, buttypically leads to mortgage
rates going down. Yes. And thatis what we saw Wednesday,
Thursday, and a little bit onFriday, and we'll get into
this. There was also some maybecounter influencing information

(04:54):
that came out Friday regardingthe jobs report. Well,

Speaker 3 (04:57):
And well, what's interesting, okay. Just on that
on Friday, it was, it , it waslike someone looked at the
calendar and was like, you knowwhat, let's have this huge
announcement on Wednesday abouttariffs, , and then
we'll get the jobs report onFriday. 'cause that came out.
Yeah. Forecast was for theeconomy to have added one

(05:17):
hundred and thirty five, ahundred thirty 5,000 jobs in
March. Yep . Rick Santelli onCNBC at , uh, said , uh, not
one thirty five, two hundredand twenty eight. Yep . That
normally Yeah . Such astrong jobs number on a Friday
would obliterate Yeah . Itwould the bond market.

Speaker 4 (05:38):
Right. But

Speaker 3 (05:39):
All that did

Speaker 4 (05:40):
Not happen. All this tariff news kind of canceled
that out. I mean, there, therewas, as we commonly see
sometimes with the jobs report,there was a revision from
previous months Yes. Where theyshaved off, I can't remember if
it was maybe 40 .

Speaker 3 (05:53):
So 40 some thousand ,

Speaker 4 (05:54):
40,000 jobs also, interestingly enough, the
unemployment rate was at 4.2%.
Yes. Slightly above theforecast of 4.1%. So, you know,
kind of some contradictoryinformation there too. But I
think to your point is that allthis jobs report information on
a normal non tariff weekwould've caused mortgage rates

(06:16):
to go up. Yes . Almostcertainly. Yes. But the tariff
news has kind of , uh, blownthat out of the water, so to
speak.

Speaker 3 (06:24):
It is the 800 pound gorilla standing next to the
100 pound gorilla of , uh, jobsreport. Yeah. I, when we come
back from this first break, Iwant to give our listeners the
two and a half rules forrefinancing, because that
opportunity might be in frontof a lot of people, but there's
a smart way to go aboutthinking about that. Yes. We'll

(06:46):
cover that after this break.
You are listening to the AccuNet Mortgage and Realty Show on
AM six 20 WTMJ

Speaker 2 (06:55):
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 (07:04):
Welcome back to the ACU Mortgage and Realty Show.
I'm David, that's Tim overthere. Good morning. Uh, Tim,
we have enjoyed in , uh, arally in rates Yeah . In
mortgage rates.

Speaker 4 (07:15):
Always fun to see, which

Speaker 3 (07:16):
As my wife looks at me, she's just like, this feels
strange that like, when youwork in the mortgage business,
you're always like yes to thetough economic news while the
rest of the world's like, Idon't know if I feel so good
about this. It is, it is weird. It is at odds. Yeah.

Speaker 4 (07:31):
.

Speaker 3 (07:32):
So , uh, the tariff , uh, 800 pound , uh, tariff
gorilla , uh, arrived on thescene this week. And I think I,
as I have been calling textingclients like late last week and
all weekend long, I, one of myprimary points is this relief

(07:55):
in rates is not driven by animprovement in data. Correct.
And so it's

Speaker 4 (08:03):
News driven .

Speaker 3 (08:03):
The punch bowl could be removed if on Monday morning
tariff negotiations with 180other countries all got done on
late Sunday night and suddenlywe are the fog . The fog
clears.

Speaker 4 (08:20):
The fog is lifted.
Yeah .

Speaker 3 (08:21):
Yes. And, and suddenly we look out into the
future. It would be myexpectation that yields the
bond market would be like, whew. Yep . Not worried about the
fog anymore and rates go backup. Yeah . Because again, this,
this reprieve is not datadriven . It is headline driven
. Correct. Okay. But while theopportunity is here mm-hmm

(08:46):
. Let's review.

Speaker 4 (08:47):
Well , and, and the reason you're bringing this up,
David, is that I'm sure we'llboth talk to customers who will
say the words, oh, well what ifrates are better? Awesome. What
if they get even better.

Speaker 3 (08:59):
Right . What if they go lower?

Speaker 4 (09:00):
Okay . What if they go even lower? David,

Speaker 3 (09:01):
You're you're teeing me up. Yeah . Okay. So we sent
out a note. Jackie netcustomers and, and referral
partners. Hey, here are the twoand a half rules of thumb on
refinancing one. Do the math onclosing costs. Absolutely. My
preposterous example is don'tspend $12,000 in closing costs

(09:22):
to save 60 bucks a month. Yeah.

Speaker 4 (09:24):
And we've said this ad nauseum, but it's worth
repeating on a refinance. Thoseclosing costs can be baked into
the new mortgage amount. Yes .
So just because you see a quotethat says no cash needed at
closing, that doesn't meanthere's no closing costs .
Right . If you get an actualdetailed written breakdown
quote from ANet or any otherreputable lender, they still

(09:44):
should itemize what are theclosing costs? 'cause Yes .
Even if you're not paying forit with cash out of pocket ,
you're paying for it. You'rejust paying for it with the
equity in your home, you're ,

Speaker 3 (09:53):
Well, you're chewing into the equity in your own
Possibly. Yeah . In yourexample. So go on. Okay. So do
the math on closing costs andbreak even. It would be our
advice if you need to breakeven on your closing costs
within 12 and maybe up to 18months. Yeah . Tops on your
monthly savings. So if you'regonna save a hundred bucks a

(10:15):
month on refinancing, you needto only spend 1200 to maybe
$1,800 on closing costs. Mm-hmm . Otherwise, it's
like, if your break even is,you know, 2.9 years down the
road, that is, you should wait.
That is financially foreveraway. Yeah. . So that's
rule number one. Rule numbertwo to what you said, don't be

(10:37):
a gambler. Yeah. If you'redealt, what's the poker
reference? Like if you'reholding, you know, ACE King if
you're

Speaker 4 (10:42):
Holding pocket ACEs Yeah . And it's a slam dunk,
right? Like don't take

Speaker 3 (10:47):
The win. Yeah. Don't be like, or maybe it's a
blackjack reference is what itreally is. It's probably
better. Yeah. But like, ifyou've, if you're showing a
great ham , don't be like, asthe question we get, well what
if, what if rates go

Speaker 4 (10:59):
Lower? Well then, yeah. So to keep with the cards
metaphor, it's like cash inyour chips, win that hand. Yes.
And then if rates do go lower,guess what? You can play
another game. Well , AKArefinance again.

Speaker 3 (11:10):
And it feeds back to thing number one. If you don't
have a large sunk cost on thefirst refinance Yeah . There's

Speaker 4 (11:18):
Nothing stopping you from doing it again, then come

Speaker 3 (11:20):
Christmas rates are lower still. It's like let's do
it again. Yeah .

Speaker 4 (11:24):
But if rates do level off, or if they go back
up, at least you capturedwhat's available today. Which
for a lot of folks that havegotten mortgages in the last
year, I would say it's animprovement over what you have
now. Of course.

Speaker 3 (11:38):
Well, I I sometimes frame it like, if I can save
you $2,000 in mortgagepayments, that is effectively
like almost a $3,000 raise atwork. Yeah. Because it , you
gotta make the gross to makethe net. Yeah.

Speaker 4 (11:51):
2000 in , in mortgage savings annually is
literally like a $2,000post-tax. Yes . Raise on your
salary. Literally. And whowould turn that? If you think
of it, like ,

Speaker 3 (12:02):
If your boss called you and was like, do you want a
$3,000 raise? Everyone would belike, I

Speaker 4 (12:06):
Accept and all I have to do is click your name
20 different times on a webbrowser to e-sign some
documents. Literally. It'slike, yeah .

Speaker 3 (12:12):
Alright . And then our last , uh, two and a half
or rule is make it personalbecause the, your mortgage is a
recipe and the ingredients arecustomized to you. Yeah. So
you're gonna read a headlinerates are this, well maybe
'cause we need to connect onwhat's your credit score?

(12:34):
Mm-hmm . What'syour equity position? Yep . All
of those details that are goingto line up to what's your
monthly payment savings or ratesavings. Yeah. You gotta get it
customized. A headline won't doyou any good. If it spurs the
conversation great.

Speaker 4 (12:50):
Then it accomplished all it's supposed to
accomplish. Yeah .

Speaker 3 (12:52):
But right then it needs to be, it's like a
diagnosis. It's like, I thinkI, I think I'm diagnosed with
refi. Let me go talk to mymortgage doctors at AED

Speaker 4 (13:01):
And he's got the prescription boom.

Speaker 3 (13:03):
for more refinance. Boom. Alright . Some
stories from the front lines ofhome buying . Uh , after this
break, you are listening to theAccu Mortgage and Realty Show
on AM six 20 WTMJ getting

Speaker 2 (13:16):
You into the home of your dreams. Here's more of the
Accu Mortgage and Realty Showwith Brian . We on WTMJ

Speaker 3 (13:24):
Thanks for hanging out with us here on the
accident Mortgage and Realtyshow . We've given Headline
world, Tim, and then as I havebegun to do over and over , uh,
none of my home shopper clientscalled me and said we're back
in it. Yep . We're, we'regetting out there. 'cause I saw

(13:45):
the 10 year hit 3, 8, 5 onFriday. The

Speaker 4 (13:49):
People who have decided to shop will keep on
shopping. Yes. And you know, ifanything, there's gonna be more
competition out there if thisrate improvement is significant
enough to lead to actualsavings. Yes. But there are
very few people who are goingto be informed enough and on
top of the ball enough torealize, oh, rates are a

(14:09):
whatever, quarter percent, halfpercent better. Yeah .
. Oh, now is the time,

Speaker 3 (14:14):
Honey, come on.

Speaker 4 (14:15):
Yeah. Yeah . It's not like the, you know, the
other real life reasons for youwanting to buy a home are still
there. Your wife is still justas pregnant now as when your

Speaker 3 (14:24):
On Thursday rates were higher Monday. Yeah. Yeah.
So I got one of those calls, areferral on Thursday , uh,
before, you know, I would sayFridays even more awesomer
improvement in interest rates.
Yeah. On , I got referred tothis client by their real
estate agent and it , it waslike this conversation was just
made for the radio show because it was, it was, yeah.

Speaker 4 (14:47):
So you're not just making up this No ,

Speaker 3 (14:48):
No . This is very real. And I am , of course, I'm
just paraphrasing the story,but it was the conversation,
Hey. Yep . I called my bank andyou know, I have done three
loans with them before and Ithought that would've

Speaker 4 (15:06):
Led , I thought they cared about me ,

Speaker 3 (15:07):
Me , I thought they would treat me special. And I
so let, let's just make, take amoment to , to declare, I have
a lot of friends and colleagueswho work at banks and they're
great people. Yeah. Oh, forsure. But if you listener are
expecting a level of loyaltyjust because you've done a

(15:27):
transaction or have a checkingaccount, you are setting
yourself up to be disappointedin the amount of loyalty you
think you will, but won'treceive from your banking
partners.

Speaker 4 (15:38):
Do you know , do you know how I know that if I went
into my bank and said, hi, I'dlike to withdraw all my money
right now, they'd be like,okay, here's sign this form

Speaker 3 (15:46):
Here . It's Yeah.

Speaker 4 (15:47):
They don't care.
Yes.

Speaker 3 (15:49):
So the conversation began with like, oh, I've done,
you know, X transactions bought, bought a home, sold a home,
bought another one, refiedgreat . Sure. Yeah . But when
I, he , this client had justsold a home, has the proceeds,
is self-employed. And he islike, I just, it seems to me

(16:12):
his spidey senses were , Idon't think they're approving
me for all that I think I canqualify to borrow, or I'm going
for my next steps,

Speaker 4 (16:22):
Or I'm going to need to qualify to

Speaker 3 (16:24):
Borrow well to get to the amount of house that he
wants. Yeah. Right . Right.
Okay. So self-employed, he's50% owner of a business. Got

Speaker 4 (16:31):
It.

Speaker 3 (16:32):
The analysis or , or the, the , um, diagnosing for
someone who's self-employed,particularly here in early
April. I was like, okay, wellhave you filed your 2024 mm-hmm
. Returnspersonal and business returns
because if you, if all that wecan rely on is 2023. Yeah .

(16:57):
Because that's all that's beenrecently filed. That's ancient
history at this point.

Speaker 4 (17:01):
Yeah . To him as the business owner is, but on
paper, that's the most recentdata we can point to.

Speaker 3 (17:06):
And he had shared with me, well, our business
continues to succeed. You know,we made more money in 2024 than
we did in 23 and even 22 beforethat. Amazing. It's like ,
well, but if I don't have, yeah. If your lender doesn't have
the updated, you know, mosthere's what we did most
recently, number then a, i Iposed the question to him this

(17:30):
way, Tim. I was like, did itfeel like the person you were
talking to at the bank was asmart person? Right. Or did you
feel like you were just gettinglike, here's the cookie cutter
and like, oh , you don't fit.
Well, I guess I don't care. Andhe was diplomatic, but the
clear answer was like, I didn'tfeel like I was getting the
smartest doctor in thehospital. Right. I was just
getting , uh, a doctor , aperson.

Speaker 4 (17:51):
And maybe that doctor did care the most that
they could care, but maybe itwas an experience issue. Maybe
it was a combination of lack ofexperience with a little bit of
apathy. You know, you , youjust don't know

Speaker 3 (18:02):
With a little bit of apathy. Yeah . So, just

Speaker 4 (18:04):
A hint, the ,

Speaker 3 (18:05):
Let me set up for the continuation of this story.
When a self-employed borrowerbrings us their financial
world, what , and , and the keyelement, David, our business
continues to succeed. 2024 wasbetter than 23 and 22. That's

Speaker 4 (18:25):
What you like to see.

Speaker 3 (18:26):
That's that .
Absolutely. The opportunity isWell, and here's the prompt.
How old is your business?
Mm-hmm . And do Ineed to use a two year average
of your self-employed income orcan I use a one year analysis

(18:46):
mm-hmm . Of themost recent year to be like,
this is what your income is.

Speaker 4 (18:50):
Yeah . I can't wait for the answer to that question
after this break. That's right.
A cliffhanger.

Speaker 3 (18:54):
A cliffhanger, a mortgage cliffhanger. Alright ,
now it's time to turn it overto the WTMJ Breaking News
Center.

Speaker 2 (19:02):
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 (19:10):
Welcome back to the ACU Net Mortgage and Realty
Show. I am David Wicker. Thatis Tim Holdman over there. Tim

Speaker 4 (19:17):
Buenos di uh,

Speaker 3 (19:18):
Telling the story of a self-employed borrower. And
as I was on the phone with him,I, I highlighted like, most
clients bring their income tous and it's vanilla. Yeah .
Hey, I got a pay stub. I got aW2 and like, here's my savings
account statement. Yeah .

(19:38):
Amazing. Oh, you'reself-employed. Well , that's,
that's chocolate. And maybethat's not just chocolate. It's
like chocolate rocky road withlike brownies in it. Yeah .
Like it's just different.

Speaker 4 (19:50):
Yeah. It's not bad.

Speaker 3 (19:50):
It's still

Speaker 4 (19:51):
Ice cream. Ice cream still tastes good. Exactly.

Speaker 3 (19:53):
Yeah . But like, let's not pretend like it's the
same as vanilla. Right. Which

Speaker 4 (19:56):
I mean to the , the customer's point, how would you
know that? Right. Well ,exactly . I mean their exactly
. Their money in their bank isgreen just like everyone
else's. Whether they get itfrom a pay stub or from
self-employed income. But inthe mortgage world, we are
required to treat self-employedincome differently.

Speaker 3 (20:13):
Like the flavor that it

Speaker 4 (20:14):
Is. Yeah. And the, you know, the one of the key
things that we always look for,and that I'm sure you're about
to tell us about your diagnosiswith this customer is how long
the business has been inexistence for will dictate how
many years of tax returns weneed to analyze to sort of
calculate the income numberthat we get to use for helping

(20:36):
someone qualify for a mortgage.

Speaker 3 (20:38):
So , so that threshold Yeah . Is if your
business has existed forgreater than five years, and I
would take that as I have fivetax returns Yeah.

Speaker 4 (20:51):
Of existence. We can , we can look it up on the
Wisconsin registry and see thedata was incorporated. Yes. You
know, or something to thateffect. So

Speaker 3 (20:57):
This client's business has existed for 15
years. Fan tch . I did, youknow , the fist pump in the
air. Yeah. Because that's awin. Again, as my client
shared, hey, for the pastcouple years our business has
continued to do better andbetter and better. The, I don't
even wanna call it worst case ,but like the medium case

(21:17):
version is I have to use anaverage of your 24 and 23
income, an average. Well asthe, as I even reviewed in
their tax documents, thataverage is of course less Yeah
. Than what 2024 would be if itstood on its own.

Speaker 4 (21:37):
Because you said year over year they've been
doing better every year. Yeah.

Speaker 3 (21:40):
The magical opportunity and the key
difference between the ACU netanalysis and the bank analysis
is because the business hasbeen in business for more than
five years, well over fiveyears, I only need to use the
most recent one year of income,

Speaker 4 (22:01):
The most recently available tax return, which has
he filed 2024. He

Speaker 3 (22:05):
Has lovely. As of like Friday morning I think
, but now I've got 20,24 boom. And IO wait, when I
run everything through theunderwriting software, it says
I only need one year. Yeah.

Speaker 4 (22:20):
It confirms it

Speaker 3 (22:21):
Za , I don't need to take a two year average that's
gonna haircut us to aconservative, more conservative
monthly number.

Speaker 4 (22:28):
Right . And let me guess now using the 2024 income
Yes. Does he qualify for asmuch mortgage? You bet . As he
wants like

Speaker 3 (22:35):
To the tune of like a hundred thousand more dollars
of mortgage.

Speaker 4 (22:39):
Huge.

Speaker 3 (22:40):
And he's got a healthy down payment and it
just allows him to get into Ithink a whole other
stratosphere of house. Yeah .
Because we can lend him moremoney because we knew what
tools to reach for Yeah . Andwhich ones to not reach for
Correct. In order to maximizehow much money we can lend him.
Yeah.

Speaker 4 (22:57):
So if, and again, like this is not to disparage
banks or really any otherlender out there for that
matter, but if that customerdidn't do the wise thing of
contacting you Yeah . Or asecond opinion. Well,

Speaker 3 (23:10):
Following the advice and opinion of their real
estate agent Yeah . To be like,I I know a better doctor.

Speaker 4 (23:15):
Yeah. They would only know what the direction
was from their lender at theirbank. Yeah . And that direction
was two year tax returns andYep . Here's the income we can
use to help you qualify andthis is how much you're
pre-approved for Go forth. Yeah. And do your thing. Luck .
It's like he wouldn't know anydifferent and that's a cookie
cutter. Maybe , you know, maybethat lender, they just always

(23:37):
ask for two year tax returns nomatter what. 'cause that's just
what they were told and that'sjust the only thing they know
how to do. Yes. Right. So it'slike your experience will not
be the same at every lender youtalk to. Just like your
experience at every doctor yougo to will not be the same.
Right. So get connected withthe smartest and most
experienced mortgage doctor whoby , by the also way , uh,

(24:01):
cares, you know, the most.
Which maybe it's a selfishanalysis, but David and I, I
think care almost to adetriment sometimes. Well , you
know , more than others. I ,

Speaker 3 (24:11):
Again, to my , uh, as a love letter to my banking
friends, like they do greatwork, but like Absolutely. Do
you know what happens if, ifyou don't close your loan at
the bank, nothing happens tothe bank. They'll continue to
carry on. They'll be okay. It ,the only way that ACU net , uh,
remains is if we actuallysuccessfully help people do the
thing. Yeah . We

Speaker 4 (24:30):
Have the motivation, the, the correct amount of
motivation.

Speaker 3 (24:33):
Well, and my last thing is always, I've begun to
do this with clients. Let'sdeclare what your maximum is.
Yeah . And sometimes to yourpoint, it takes like, I want ,
I wanna get a second opinionabout what my maximum is mm-hmm
. Before I acceptthe reality. Yeah . So if any
listener feels like they'regetting trimmed on what their

(24:54):
maximum is, let's analyze thatand most people , and you get
that second opinion, most

Speaker 4 (24:58):
People, you kind of get you , you know, after you
talk to someone, maybe theirlevel of investment in your
situation. Right. Yeah . Youknow , you get that feeling on
it's like, am I getting takencare of the best that I can?
Yep . Or, or not.

Speaker 3 (25:12):
Alright . When we come back from this break, Tim
and I are gonna flip a coin'cause I have a , um, resident
physician story. Oh , okay .
And Tim's got a , you have aforeclosure story. Foreclosure
story. Yeah. Okay . We'll flipa coin , uh, and decide after
this break. You are listeningto the Acuate Mortgage and
Realty Show on AM six 20 WTMJ.

Speaker 2 (25:30):
Important home buying questions and answers
you can count on. This is theAccu Mortgage and Realty Show
with Brian Wicker on WTMJ.

Speaker 4 (25:40):
Welcome back to the Acuate Mortgage and Realty
Show. My name is Tim, seniorLoan consultant at ACU Mortgage
joined by President David PriceWicker. Uh, David, I won the
coin flip. So we're gonna talkabout my story , uh, first and
then, you know, as time allowswe'll jump into other things.
Yes. But I have a customer ,uh, first time home buyer , uh,

(26:01):
young guy, you know, reallygrinding , uh, at his job,
making a lot of good money anda lot of good overtime. And he
woke up one day and is like, Iwant to move outta my parents'
home and get my own place and Idon't wanna run . Yes.

Speaker 3 (26:13):
I know that feeling.
Yeah.

Speaker 4 (26:15):
So I said, awesome, like, let's help you do that.
So he's been actively lookingfor the last couple , uh,
weekends here. And his uh ,realtor texted me on Friday
morning saying, Hey Tim , uh,reaching out on behalf of our
mutual customer, we're lookingat this place. And I noticed on
the listing that it's listed asan as is property and you know,

(26:36):
to the realtor's credit, she'slike , uh, you know what , my
antenna went up a little bit.
Yeah. Because I was like, youknow, is that gonna be any
issues for financing? What doesthat mean? Mm . So I said, let
me take a look. So she textedme the address of the property.
I look it up. And it isactually owned by a bank
currently. Okay. Meaning it isa foreclosure Yes . Sale. All

(26:57):
that means is that previousowners defaulted on their loan.
The bank took it back, the banknow owns the property and is
trying to turn around and sellit Yeah. To try to recoup some
of their investment Yeah . Onthe old mortgage. Uh , and it's
very typical with foreclosedproperties that it is sold as
is . And really all that meansis that the seller, the bank,
the seller, or whoever it is,even if it's a a private party

(27:19):
who's selling a house as is.
'cause we've seen that too,just means they're saying, I'm
not doing anything to thisproperty to

Speaker 3 (27:25):
Get ready to sell.
I'm declaring beforehand. Yeah.
No matter what you find, Iain't fixing it.

Speaker 4 (27:30):
Yeah. You can get an inspection buyer for in
informational purposes,whatever that inspection finds.
I'm not doing anything to thishouse to sell it. Yep . And
from the real estate agentsconcern is like, okay, well
what if something comes up thatmakes the property ineligible
for financing? Right. Becausewhen we pre-approve someone, we
only pre-approve the borrower.
The other side of that coin isonce they have a particular

(27:53):
house in mind, we have to makesure that that house also is in
lendable condition. Yes. Whichfor conventional mortgage, no

Speaker 3 (28:00):
Holes in the roof.

Speaker 4 (28:00):
Yeah. For a conventional mortgage, it's not
really that hard of a thresholdto meet, but there can't be
anything egregiously wrong withthe property. Yeah. There can't
be a hole in the roof where acrow flew through.

Speaker 3 (28:11):
Yes. No puddles in the basement.

Speaker 4 (28:13):
Yeah. No cracks, you know, massive, you know, grand
canyons size cracks in thefoundation. Yes . No major.
It's really structural

Speaker 3 (28:21):
Or can't be stripped down to the studs.

Speaker 4 (28:23):
Yeah. It can't be a structural or a safety concern.
Right. Yep . There can't beexposed electrical wire handing
over the bathtub , stufflike that. Yes. So I looked at
the , uh, pictures in thelisting and they didn't show
every single room, but I said,Hey, this house looks in pretty
good shape, especially for aforeclosure. Huh . Like,
ultimately we don't know untilan appraiser would go out. Yeah

(28:45):
. Because that's in addition toestablishing value, they're
also on the lookout for thosehabitability concerns. But I
said Greenlight to go make anoffer on this place. Yeah.
Honestly, if he wants to,because going in eyes wide open
is key and it's good to do thatadvance reconnaissance, but

Speaker 3 (29:03):
To paraphrase you askins for free, but you just
need to expect the answer willbe

Speaker 4 (29:08):
No, maybe no. Yeah.
So go in , make an offer. Andworst case is that we did , we
determine the property is notin lendable condition. The
seller says, too bad, so sad.
You know, the contract isbroken. Yep . Legally, and then
the seller tries to sell thehouse to someone else. Yeah .
You know , which is fine. But

Speaker 3 (29:26):
Did he go make the offer or still waiting to hear
back?

Speaker 4 (29:28):
We made the offer, we're waiting to hear back over
the weekend on what theresponse of the seller is. But
you know, it's, it's just ifyou have a good realtor that
knows what to look for and thenhas the wherewithal and
foresight to reach out to thelender, that's the secret
sauce. Yes. Right. Becausemaybe I did see something in
the listing photos thatwould've given me more concern

(29:48):
and I would've said, yeah, youknow what? This property won't
qualify for conventionalfinancing. Yep . Don't really
waste your time. Yep . Right.
Because then he would've gottenor hope. Yeah, there you go.
Don't get your hopes up for,for nothing. So it's gonna be a
case by case basis. Just 'causea property is as is or a
foreclosure doesn't necessarilymean it's a deal breaker, but

(30:09):
it is worth having thediscussion and doing the
research on. For sure.

Speaker 3 (30:12):
I think the other element too is it's gonna slow.
Yeah. , you have to,you might want or think that
you'll get quick answers. Youwon't. Yeah. Because it's gonna
go through four differentdepartments mm-hmm
. And whoeverneeds to put their blessing on
the foreclosure department atthe bank that's trying to get
rid of this thing . That's ,

Speaker 4 (30:33):
That's a very good point and worth noting is if
you're trying to go buy aforeclosure, remember the
seller isn't Mr. And Mrs. SmithYep . The seller is a bank. Yep
. Which is a whole entity witha lot of cogs and wheels and
gears and levers. Yes.

Speaker 3 (30:49):
So slow levers.

Speaker 4 (30:50):
Yeah . So things are gonna move slower and it's not
your fault and it's not ourfault. We're just beholden to
this other party called theseller Yep . To get the wheels
in motion.

Speaker 3 (31:00):
So slowly .
Yeah.

Speaker 4 (31:02):
All right . So after this next break , uh, David
will probably win the coin tossand share his story. Yes . We
got one more segment. You arelistening to the Nan Mortgage
and Realty Show on a six 20 WTMJ

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

Speaker 3 (31:23):
Welcome back to the ACU Net Mortgage and Realty
Show. Thanks for hanging outwith us , uh, today, Tim, let's
conclude , uh, today's showtalking about a , uh, new MD
coming to Milwaukee. Love it.
Uh , and , uh, beginningresidency at MCW , which by the
way, this is my love letter toeveryone who works or

(31:47):
is in the orbit of the medicalcollege. We would, we know how
to spell MCW so call now. Yeah.

Speaker 4 (31:53):
We would love to help you 'cause we , uh, value
what you do and we want youowning homes in the community
where you serve. It's

Speaker 3 (32:00):
True. Uh , and all those within the freighter and
children's orbit as well. Ohyeah . All of it. Uh, so this,
I I am familiar with only maybe, uh, at , at a distance the
kind of like assignment processthat , um, yeah . Doctors go
through. Like, and indoornumber two , you are gonna do

(32:21):
residency in Yeah. Milwaukee.

Speaker 4 (32:23):
It's like price is right.

Speaker 3 (32:24):
kinda . And so this, I think as I spoke to
this client late last week, Ithink MCW was on their , uh,
preferred list of places to doresidency. And so she starts on
that in here in summertime.
Awesome. So they're coming totown, Hey, we'd like to buy a
house. Yeah. Amazing. Theelement in all of this, you

(32:45):
know, when you do residency,you get paid to practice Yeah.
Medicine. And we are in receiptof the offer letter that says,
welcome. Yeah.

Speaker 4 (32:56):
Here's your start date, here's your salary. So
the , all that key information,

Speaker 3 (33:01):
All that key information, as I noted to my
client on Friday, being a goodmortgage lender is like
climbing Kilimanjaro .
It's not.

Speaker 4 (33:13):
Do you have any personal experience with that ?

Speaker 3 (33:14):
I do, but it's not just, it's, it's, it's all the
same Mortgage Mountain, but itreally matters who's taking you
up and down the mountain. Andso

Speaker 4 (33:25):
You wanna be their mortgage Sherpa.

Speaker 3 (33:27):
Yes, exactly. That was her word. Exactly. Mor
Sherpa. And I said, you'reexactly right. Because here's
the thing about residency, itconcludes Yeah. Versus air
quotes. Regular employment hasthe Yeah . You know,

Speaker 4 (33:45):
Illusion of

Speaker 3 (33:46):
Permanency. Exactly .

Speaker 4 (33:47):
Even though it's not, but

Speaker 3 (33:48):
Perpetuity. Yeah .
Okay. But residency concludes,I don't really want to go seven
rounds with an underwriterabout like, well, but in the
year 2028, when she's done withresidency, what's gonna happen?
What's gonna happen? It's like,I can't,

Speaker 4 (34:05):
They're a doctor, they're gonna get another job.

Speaker 3 (34:07):
Yeah. They'll be fine. But it's like, this is
real life versus mortgage life.
In real life. She's an md,she's gonna do residency, and
then she's gonna go forth anddo it, you know,
post-residency. Okay. But inthe mortgage world, the
dumbness is like, yeah , wellwhat's gonna happen later? This

Speaker 4 (34:27):
Is , this is the disconnect between what we
refer to as common senselending. Yes . And the
uncommon, the , the regulatedmortgage industry, which, you
know, really tends to think inworst case scenarios pretty
much exclusively. And that'swhat we have to inoculate
mortgage underwriters against.

Speaker 3 (34:42):
And so the good news is her spouse has , uh, income
and a job where he can workremote from anywhere. Lovely.
And his income is such that itcan qualify them for the amount
of money and the amount ofhouse that they want to buy.

Speaker 4 (35:00):
Fantastic. Where

Speaker 3 (35:01):
Ultimately I won't have to document anything
having to do with the medicalcollege because we've got
sufficient income to get usthere. And which is my here at
Metaphor Mortgage, it's likebasketball, you only need to
win by one. Of course. I preferwhen Giannis wins by 20. Yeah.

(35:23):
But the win is the win, whetherit's one or 21. Right. And so
for this couple on paper, thehusband's income carries the
day Yeah. And gets them theamount of house that they wanna
buy. Regardless.

Speaker 4 (35:36):
Qualifying for a mortgage is pass fail . Yes .
Ladies and gentlemen. So, youknow, in real life they're
gonna , they're gonna be a dualincome household. Right ? Right
. But on the mortgage, it'smuch easier to selectively not
use the MDs, you know, MC wincome Yep . To help qualify,

(35:57):
because if we do, it opens upthe door for underwriting to
bug them for a lot moredocumentation and Right. And
heartburn that frankly isunnecessary. Right. So to go
back to your Kilimanjarometaphor Yeah . It's like,
okay, you're gonna hike up thismountain, you're gonna get to
the top of the mountain. Eitherway, do you want to take the
long way? Yeah . Where maybeyou add, do you have a hard

(36:18):
path two or three days to yourhike? Oh. And maybe your water
bottle has a leak in it. Yeah .
And you know, ,

Speaker 3 (36:24):
It's just not fun.
You

Speaker 4 (36:25):
Could torture this metaphor as much as you want.
Oh yeah. But let's get you upto the mountain as easiest and
you know, with as littleexertion as possible. Right.

Speaker 3 (36:33):
If you are looking for smooth Smart Mortgage, the
Sherpa at Acuate Mortgage canhelp you get to the top of the
mountain and back down withyour rock solid guaranteed
pre-approval, as well as thesmart rules of thumb if we're
looking at refinancing. And allyou have to do to get started

(36:54):
is click on the [e-mail]. That's
A-C-C-U-N-E t.com. Tim, thanksfor hanging out Always. You
have been listening to the ACUMortgage and Realty Show on AM
six 20 WTMJ.

Speaker 1 (37:06):
The 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 Net
Mortgage and Accu Net RealtyAdvisors and not WTMJ Radio or
Good Karma Brands. Milwaukee,LLC.