David Wickert is flying solo this week’s Accunet Mortgage and Realty show on WTMJ.
This week on the Accunet Radio Show:
David tells us about a young couple’s journey to home ownership in downtown Chicago. The moral: don’t put the cart before the horse, get your paperwork to your lender quickly so you can put in an offer!
- Monthly condo dues in Chicago: $646!
- An accepted offer isn’t a Loan Guarantee
- When your down payment is coming from multiple sources: ie., a gift, a trust fund, and US savings bonds, a little lead time can make all the difference
Buying a Home with Future Income
Did you know you can get a loan and close on your new home before you start your new job? Here are of all things that had to go right for an Accunet customer relocating from Denver, CO to Milwaukee, WI to start their new career:
- A huge 160k gift from a parent
- Future income from a job that has not started yet
- Paying off two car loans
- Retaining a soon to be sold home in Denver
Not to mention dealing with a 49% debt to income ratio. David wants everyone to know, Brian Wickert is a Mortage Loan wizard.
The best way to get everybody on the same page, get everybody on the same phone call.
- Both borrowers
- Loan consultant
- Accunet’s Internal Underwriter
So, after writing an offer without a pre-approval, the Accunet team went to work. They were able to help the client create a financial snapshot to support the approval while using the future income program (more info here).
Future Income Program Criteria
The Future Income program is a great program, as long as you meet the conditions:
- Has to be a purchase
- Must be a single-family property
- Requires a down-payment
- Cannot be employed by a family member
- You can only qualify off the base salary (No bonuses, overtime, etc…)
- Cannot have any contingencies – Licensing, drug tests, etc…
- Must start the job within 90 days from signing
Accunet inventory check-in
Here’s a quick reminder, real estate markets are and will continue to be hyper-local.
Looking at a realistic price range between $250-$350k, the available home inventory is not keeping up with demand.
David’s Top 5 Tips for Buying a Home in a Seller’s Market
- Offer over the asking price
- No contingencies
- Be flexible on the appraisal
- The language has to be decisive
- Come to the table with a rock-solid pre-approval
Let’s talk about Refinancing in 2019
With thin inventory and strong offers, homes will continue to increase in value. That’s a major benefit for existing homeowners.
Here’s why you should consider refinancing at the current rates:
- Cash flow – pay less to live in the same
- Get rid of PMI or FHA mortgage insurance
If you’re thinking of refinancing to pay for home improvements, you may want to look at an alternative that will save you money:
A Home Equity Lines of Credit (HELOC) is like peanut butter. If you have it you’re going to use it, and it going to go straight to your hips.
- 99/100 HELOCs are tied to the Prime rate, which is currently at 5%. That means HELOC rates hovering around 6.5%.
- A Cash-out refinance with Accunet: 4.875% only up to 80% of the home value. If you use that money to further improve your home you’re adding to the value of the home and paying a lower rate. It’s a win-win.