This week’s Highlights:
- Pros and cons of a dual pre-approval
- Greater Milwaukee Association of Realtors January home sale numbers
The Pros and Cons of a dual pre-approved mortgage
Our first-time home buyers you’ve read about the past couple of weeks have gotten a strategy locked down! We’ve been working with their real estate agent, whom we greatly respect and hope to work with a lot again, to get them the best dual pre-approval for their situation. They now have a letter for both 5% down and 20% down on a $275,000 house. The 5% is for the buyer’s peace of mind, and the 20% is for the seller.
But wait. What happens with two different pre-approval letters? Will the buyers get stuck paying 20% down regardless?
No. One letter indicates what they WANT to put down. Another just indicates what’s POSSIBLE. All we’re doing with the 20% down letter is letting the seller know “Hey, they have enough to make this payment, so don’t worry!”
Risks of dual pre-approval
While we’re confident in our rock-solid pre-approval strategy, we’d be silly not to share what the risks in this strategy could be.
Worst case scenario in this situation is their monthly payment could go up. Based on this dollar amount, they’d be looking at a monthly increase of about $20.46. Honestly, not so bad.
Keep in mind Wisconsin has a separate contingency that says your offer is contingent on the hole appraisal offer price. If the contingency was left blank, they would be at risk of needing to bring all the money to closing. Since the contingency is in place, they have a safety net.
Learn how to get the best rate for you with Accunet Mortgage and our team of refinance experts—click here to get started.
January home sale data from GMAR
Brian’s a proud, card-carrying member of the Greater Milwaukee Association of Realtors, and therefore always excited to share new data they release. They provide data for single-family detached houses and condominiums in Milwaukee, Ozaukee, Racine, Waukesha, and Washington counties. Here we have data from January 2021 compared to January 2020:
- Home sales: 5.7% increase
- Median sale price: 10.2% increase
- Single-family listings: 19% decrease
- Condominium listings: 5% decrease
- Overall listings: 6% decrease
With home sales increasing and listings decreasing, that means demand is high and supply is low. Our advice to first-time homebuyers: Buy as much house as you can afford and plan to stay there for a while because getting a home is only going to get harder as time goes on.
Buying a new home? Start here so you know what to expect from the process!