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In the meantime you seem to deny reality...this comes in the form of millions of default loans which equals NO cash inflow for the loan holder, which equals bankruptcies and failures and maybe your job...all you are doing is taking the long way of saying the mortgage business- lenders and clients- will become significantly smaller, and it will...you seem to neglect the fact that the people who were given these loans would've never been in the mix before...and that people who were seeking loans that were qualified, were not getting them- but they did...my sources tell me that some 40-60% of the loans orginated in the last5-7 years were of the subprime type...this means that the very business you expect to tighten up will do so be shrinking in size significantly...that means that realtors will be unemployed, mortgage brokers will be unemployed, interior designers, builders, craft and trades people, lawyers, accountants, restaurants and grocery stores, etc, etc...as I said before, I foresee lots of bad fallout that cannot yet be quantified...but when construction goes down, everything falls with it...and with no money to lend, and fewer people getting loans, it will be very cyclical, as you will see...the Charlotte MSA was literally built around the recent contruction boom...it's where the whole economy starts...just that simple....even a new business which brings jobs must be built first!
This is my point. Yes, the lending industry is a business. But there has to be room for subjective judgement beyond the numbers. Here we are a family wanting a modest home (and for the record, we were approved to buy WAY more house than we did in MA--we didn't want to be married to our mortgage so we purchased a less expensive and smaller house), yet due to unfortunate circumstances (some jerks flew some planes into the WTC and the Pentagon-- remember that? )the banking/financial industry as well as the entire economy tanked and my husband, who was in that line of work, wasn't anymore as the company went belly up along with just about everyone else.
So fast forward five years and we're making as much or more than we had coming in when my husband lost his job. But in the meantime, we lost just about everything. But tightening our belts, uprooting our children and hopefully moving somewhere less expensive, giving up my desire to be a SAHM, we will live on one salary and bank the other until we are debt free and have added substantially to our little pot of savings . But then what? We have a bankruptcy on record and the numbers will tell the lenders to stay away.
You know what the problem really is? It's not people like us who have a good income and can afford the mortgage payments. It's the lenders making up funny loans (interest only, negative amortization, ARMs, etc., ) that allowed people to buy way more house than they could afford.
And for that stupidity, we will suffer. It angers me to no end.
I dont know why you're still upset.
there are many ways to correct your credit for FREE....and you can have a 300 credit score and still obtain a 6.875% interest rate.
with 3% down.....
if you plan to purchase a house, i would recommend you start reviewing your credit profile now...
Quote:
Originally Posted by NChomesomeday
This is my point. Yes, the lending industry is a business. But there has to be room for subjective judgement beyond the numbers. Here we are a family wanting a modest home (and for the record, we were approved to buy WAY more house than we did in MA--we didn't want to be married to our mortgage so we purchased a less expensive and smaller house), yet due to unfortunate circumstances (some jerks flew some planes into the WTC and the Pentagon-- remember that? )the banking/financial industry as well as the entire economy tanked and my husband, who was in that line of work, wasn't anymore as the company went belly up along with just about everyone else.
So fast forward five years and we're making as much or more than we had coming in when my husband lost his job. But in the meantime, we lost just about everything. But tightening our belts, uprooting our children and hopefully moving somewhere less expensive, giving up my desire to be a SAHM, we will live on one salary and bank the other until we are debt free and have added substantially to our little pot of savings . But then what? We have a bankruptcy on record and the numbers will tell the lenders to stay away.
You know what the problem really is? It's not people like us who have a good income and can afford the mortgage payments. It's the lenders making up funny loans (interest only, negative amortization, ARMs, etc., ) that allowed people to buy way more house than they could afford.
And for that stupidity, we will suffer. It angers me to no end.
I dont know why you're still upset.
there are many ways to correct your credit for FREE....and you can have a 300 credit score and still obtain a 6.875% interest rate.
with 3% down.....
if you plan to purchase a house, i would recommend you start reviewing your credit profile now...
I'm way ahead of you banker! I've already reviewed all three credit reporting agencies' files for both my husband and myself (well, he did his own with my help!) and we disputed EVERYTHING. I just got one back yesterday---a lot of stuff (including the bankrutpcy!) was removed from the file. YAY!
I'm not complaining. I'm just a bit anxious that if creditors start tightening up restrictions and go strictly by the numbers, we might not ever own a home again!
I'm way ahead of you banker! I've already reviewed all three credit reporting agencies' files for both my husband and myself (well, he did his own with my help!) and we disputed EVERYTHING. I just got one back yesterday---a lot of stuff (including the bankrutpcy!) was removed from the file. YAY!
I'm not complaining. I'm just a bit anxious that if creditors start tightening up restrictions and go strictly by the numbers, we might not ever own a home again!
No, we've never had an FHA loan. We've owned about 5 houses in as many different cities and we've always had conventional 30 yr fixed loans from a bank. (My husband used to work in banking so we usually got our loan there because we got a slight discount on their best rate).
If you have a 620, then you should look at MyCommunity/HomePossible.
If you need help repairing the credit...check out my link. there's info that can help you.
side note*
IF you have applied for a mortgage you will be able to do quicker credit repairs.
You will see that info listed on my site. It's free, and you are able to do credit repairs in a few business days.
Quote:
Originally Posted by NChomesomeday
No, we've never had an FHA loan. We've owned about 5 houses in as many different cities and we've always had conventional 30 yr fixed loans from a bank. (My husband used to work in banking so we usually got our loan there because we got a slight discount on their best rate).
Location: Sunny Phoenix Arizona...wishing for a beach.
4,300 posts, read 14,953,183 times
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Quote:
Originally Posted by NChomesomeday
This is my point. Yes, the lending industry is a business. But there has to be room for subjective judgement beyond the numbers. Here we are a family wanting a modest home (and for the record, we were approved to buy WAY more house than we did in MA--we didn't want to be married to our mortgage so we purchased a less expensive and smaller house), yet due to unfortunate circumstances (some jerks flew some planes into the WTC and the Pentagon-- remember that? )the banking/financial industry as well as the entire economy tanked and my husband, who was in that line of work, wasn't anymore as the company went belly up along with just about everyone else.
So fast forward five years and we're making as much or more than we had coming in when my husband lost his job. But in the meantime, we lost just about everything. But tightening our belts, uprooting our children and hopefully moving somewhere less expensive, giving up my desire to be a SAHM, we will live on one salary and bank the other until we are debt free and have added substantially to our little pot of savings . But then what? We have a bankruptcy on record and the numbers will tell the lenders to stay away.
You know what the problem really is? It's not people like us who have a good income and can afford the mortgage payments. It's the lenders making up funny loans (interest only, negative amortization, ARMs, etc., ) that allowed people to buy way more house than they could afford.
And for that stupidity, we will suffer. It angers me to no end.
Oh I have to agree with this completely. These funny loans were given to people with no money down, interest only just to get these folks into something, sometimes into something 500K on a beer pocket. What about regular people who have a small nest egg and good credit and just want to buy something modest so they won't have to pay rent.
Lots of money changing hands on these loans in the past, lots of dirty dealing.
Also, a lot of people took equity out of their homes when rates were low, now they own more then the house is worth ... the mortgage industry is the first to get hit, a lot of people who really could not have afforded homes, used "creative" mortgages and now are in trouble .. and yes there are things in life that can cause a down turn too, engery costs are up, in fact all costs and these costs go back to the consumer - I have read many an article that there may be other issues other then mortages in our economy ... unfortuntately we live in a world where people want it all now, borrow to the hills and when things go bad they do not have liquidity to dig them out -- if you look back to the late 80's this happened then too, like another poster stated, it is cylical - it will get better, it will be slow and I just wish everyone luck in those trying to buy, sell or even just be able to keep the home they are in
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