The Accunet Mortgage Show (11/24/19 Episode)

David Wickert and Tim Holdmann walk you through Accunet’s Rock-Solid Guaranteed Pre-Approval, a recent study on homeowner tenure, the latest updates on mortgage rates, and how it all affects you.

This week’s highlights:

  • Tim and David explain how Accunet’s Rock-Solid Guaranteed Pre-Approval can help you be a stand-out home shopper.
  • Redfin released a study claiming that, in 2019, the typical American homeowner has lived in their home for 13 years – a 62% increase since 2010.
  • Did you know it’s possible to buy a home in retirement, even without a steady income?

Trade war updates, and the impact on mortgage rates

Economic uncertainty or bad news is almost always good for mortgage rates. Why? Well, when there’s bad news, money managers tend to pile into “safer” assets, and mortgage-backed securities are one of the safest out there.
A catalyst for today’s economic uncertainty is the trade war between China and the United States. In the last few weeks, it looked like the trade war was moving toward resolution, but this week marked another challenge; deciding when and where the resolution will happen. Because of this hurdle, interest rates have improved slightly, leaving us at 3.75% on a 30-year fixed rate at the close of last week.

What is a mortgage pre-approval – and why is Accunet’s Rock-Solid Pre-approval the best on the market?

Spring homebuying season is just around the corner, which means it’s time for a refresher on what you need to buy a home. One of the most important components is a mortgage pre-approval – but what is exactly is it?
A mortgage pre-approval is a documented review of your eligibility for a mortgage by a loan officer. It takes income, expenditure, and debt into account, and determines whether or not you’re able to afford the mortgage you want. This sounds cut and dry, but be warned – a lot of folks get burned in their pre-approvals.
Why? Well, we won’t mention any names, but most banks and lenders only verify your credit score and take your word for the rest of it. Which is all well and good, except mortgages are complicated – and a lack of thoroughness could break your loan.

Why is the Rock-Solid Pre-Approval better?

When you request an RSPA, we don’t leave anything up to chance; we fully verify your credit, income and down payment. This seems simple, but reaps a host of benefits for borrowers:

  • Since you’re fully-verified, you’re a more attractive buyer.
  • The thoroughness reduces stress throughout the homebuying process.
  • Buyers need to stand out to get an accepted offer. The RSPA helps you do just that.
  • If Accunet can’t make good on its RSPA, we’ll send the borrower and seller a check for $1,000 each.

Redfin study: People are living in their homes for longer

A recent article from Daryl Fairweather of Redfin claims homeowners in 2019 have spent an average of 13 years in their home – up drastically from 8 years in 2010.
Redfin analyzed 55 metro areas to reach this conclusion, and while Milwaukee wasn’t included in the study, there are still local implications. Specifically, there are two important conclusions we should consider:
Conclusion #1: First-time homebuyers are having a rough time finding a home because there are so few houses on the market.
Conclusion #2: Older generations (like baby boomers) are choosing to age in place – meaning the market could get even tighter.
We’re not in the business of speculating on when home prices will change – but there are definitely some signs of turbulence. Given the current market, this isn’t really a surprise, but it supports our argument that buying a home soon is better than waiting.

How to buy a home in retirement

When buying a home, you usually need a sufficient credit score, income and assets. Once you’re retired, the line between assets and income gets blurred – but that that doesn’t mean you can’t buy a home. Instead of your salary, you can qualify for a mortgage using things like:

  • Social security
  • Pensions
  • Retirement income (IRAs)

There are ways to manage your retirement income to make sure you’ll qualify for a mortgage. Just recently, Tim had a client who used their social security income to qualify – all it took was a little financial magic – and Accunet, along with your financial advisor, can help you do that.

Ready to hit the market? Contact Accunet today to get started!

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