The Accunet Mortgage Show (3/24/19 Episode)

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.

The Accunet Mortgage and Realty Show, February 10th, 2019

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.

CityMonths SupplyCityMonths Supply
Bayside3.1Milwaukee1.5
Brown Deer1Oak Creek1.3
Cudahy0.8River Hills1.3
Fox Point1.9St. Francis1
Franklin1.1Shorewood1.3
Glendale1.6South Milwaukee0.3
Greendale1Wauwatosa0.8
Greenfield0.9Whitefish Bay1.3
Hales Corners1.4

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.