Join us as Brian Wickert (Accunet Chief Pre-Approval Officer), David Wickert (Accunet Chief Millennial Loan Officer) and WTMJ’s Mark Seigrist walk you through this week’s top mortgage and realty topics.
This week on the Accunet Radio Show:
Brian and David go over this week’s mortgage rate highlights and walk you through Milwaukee County’s supply of single-family detached homes city-by-city. They also give an update on the retiree who wanted to pay cash for her condo — and how her financial advisor and Accunet managed to save her $90,000.
This week’s highlights:
- The Federal Reserve said it probably won’t change rates for the rest of 2019! Great news for those looking to take advantage of low rates.
- This week, Germany came out with its manufacturing index, which isn’t looking too hot — And it seems like Europe (whose economy is just as big as the United States’) might be heading for a recession. If the United States follows them, mortgage rates could drop even lower.
- How low are rates? On a $200,000, 30-year fixed-rate loan with 25% equity, we can offer an interest of 3.99% — just $1,834 of total loan costs.
People are getting approved at a regular or accelerated rate — there just isn’t enough product to keep up.
Single-family detached homes in Milwaukee County
The local housing market still can’t keep up with consumer demand. For the average price range, it’s still very much a seller’s market, meaning if you’re planning on selling your home, the sooner the better. Remember: anything under a 3-month supply is considered a sellers’ market.
To give you some idea of what this looks like in real life: In Greenfield, Wisconsin, 16% of listings with an accepted in the process of closing got accepted within one day or less. 63% of Greenfield listings got an offer within a week. So, 79% of accepted offers in Greenfield came in less than a week.
|City||Months Supply||City||Months Supply|
|Brown Deer||1||Oak Creek||1.3|
|Fox Point||1.9||St. Francis||1|
What not to do before closing on a house
Earlier this week, we had a call from a Chicago-based couple. They had been pre-approved from another lender, but got denied after they accepted an offer on their current home — how could this happen?
Turns out, after they received pre-approval, her husband (who has the main qualifying income), decided to switch careers. He left his job as a restaurant manager to take a job as a driver. That’s good and well, until we found out her husband was paid by the mile. This qualifies as a commission-based income, which is notoriously tricky to use in applying for a loan.
Moral of the story: Get yourself fully prepared with a rock-solid pre-approved so you can avoid making costly mistakes. Commission-based income is hard; It pays to do things in the right order. Literally.