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Old 05-18-2009, 07:31 PM
 
Location: caribbean island
5,139 posts, read 4,568,320 times
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Default A question for those involved in mortgages /loans.

Tell us a bit about the subject of : Who is the best applicant today. What type of person goes to you and is rec'd with open arms.
For example: A man goes to your bank and wants to buy a $400,000house in a fine nabe close to uptown. He says he can make a sbstantial down payment and show a very strong financial statement.

What would you expect from this indiv. in the way of the D.P. and what would you want to see about his finances.
In summary, what type of loans are you giving to to people similar to what I decribed above?

If this is not a good profile then tell us what is the profile of the person you would love giving a loan to.
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Old 05-18-2009, 08:05 PM
 
Location: Charlotte, NC
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Well, in my area of expertise, we would require a 20% down payment, with verifyable funds that have been in the bank for at least 60 days. Full income docs including most recent paystub and last 2 years w-2s. If self employed, most recent 2 years tax returns (all schedules, signed & dated) plus an audited P & L for ytd 2009. Full appraisal (of course). Verification of occupancy. copy of homeowner's insurance, paid in advance for the year. Obviously, a credit score of 750 or greater with no derogs for the last 4 years.
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Old 05-19-2009, 03:35 AM
 
Location: caribbean island
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In the past one year how many applicants as described have you processed for a loan? (or % of all applicants).
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Old 05-19-2009, 04:34 AM
 
Location: Charlotte, NC
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We probably have at least a couple hundred applicants a day across the floor....each person has about 3-4 and there are about 50 people on the floor.

We don't do a lot of purchase money loans, however..that is another division. We mostly do home equity loans or refinances.

I think that the percentage of declines is hovering around 30-40% at the moment.
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Old 05-19-2009, 04:40 AM
 
Location: Charlotte, NC
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Sorry. Missed the actual question.

Again, don't do a lot of purchase money loans. However, our average fico score is 780 (across the board) and we do have people that have this kind of money in the bank...so, to answer the actual question, I would harbor a guess that there might be 5-10% of our applicants that could fit in that category.

In a separate "endeavor", we are shutting down home equity lines for people whose property values have declined dramatically. I am seeing people with large account balances, brokerage accounts and properties valued at more than $500k affected.
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Old 05-19-2009, 04:57 AM
 
Location: caribbean island
5,139 posts, read 4,568,320 times
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Quote:
Originally Posted by chicagocubs View Post
We probably have at least a couple hundred applicants a day across the floor....each person has about 3-4 and there are about 50 people on the floor.

We don't do a lot of purchase money loans, however..that is another division. We mostly do home equity loans or refinances.

I think that the percentage of declines is hovering around 30-40% at the moment.
So, if I understand your stats, 60-70% of applicants meet the standard of what you described in your first post?
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Old 05-19-2009, 04:59 AM
 
Location: caribbean island
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Whoops, just realized, you're talking re-fi. Not interested in those numbers. Interested in new loans. Sorry CC.
je
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Old 05-19-2009, 06:27 AM
 
Location: Carolina Blue Skies
1,652 posts, read 1,827,519 times
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Quote:
Originally Posted by chicagocubs View Post
Well, in my area of expertise, we would require a 20% down payment, with verifyable funds that have been in the bank for at least 60 days. Full income docs including most recent paystub and last 2 years w-2s. If self employed, most recent 2 years tax returns (all schedules, signed & dated) plus an audited P & L for ytd 2009. Full appraisal (of course). Verification of occupancy. copy of homeowner's insurance, paid in advance for the year. Obviously, a credit score of 750 or greater with no derogs for the last 4 years.
I'm looking to refi and plan to put 30% or more down on $330K loan, 790 FICO. It looks like Wells Fargo has been offering good published rates on 30 yr (yesterday 4.75% 1pt). When I discussed my refi with WF rep couple months ago they said I would would qualify for .25 discount on the published rate due to credit score and optimum size of mortgage. I'm aware that mortgage companies will offer higher rates to those that may not have ideal credit/downpayment but is it typical for mortgage companies to discount the rate they are offering on certain customers?
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Old 05-19-2009, 08:11 AM
 
Location: NC Native
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Just a quick note...banks are holding deeds on tons of foreclosed property in the $75k to $200k range. Concessions are being made for people with qualifying credit, down payment, steady work history and verifiable information. Spending habits and large withdrawals or expenditures over the past six months are also looked at. The ability to loan large amounts has been severly hampered by all the lower middle class homes that have been foreclosed on in the past year. Not saying they don't do $400k loans, but now is the time to buy for anyone with good credit wanting a starter home or to invest in rental property, etc. I know people who are in the market for a loan with excellent credit, money to spend, collateral, etc. who can't get a loan in the $400k+ range. I know people who are in the $150k market who are having no problems at all with lower credit scores, less income, etc.
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Old 05-19-2009, 12:25 PM
 
Location: caribbean island
5,139 posts, read 4,568,320 times
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Quote:
Originally Posted by ChelleC View Post
Just a quick note...banks are holding deeds on tons of foreclosed property in the $75k to $200k range. Concessions are being made for people with qualifying credit, down payment, steady work history and verifiable information. Spending habits and large withdrawals or expenditures over the past six months are also looked at. The ability to loan large amounts has been severly hampered by all the lower middle class homes that have been foreclosed on in the past year. Not saying they don't do $400k loans, but now is the time to buy for anyone with good credit wanting a starter home or to invest in rental property, etc. I know people who are in the market for a loan with excellent credit, money to spend, collateral, etc. who can't get a loan in the $400k+ range. I know people who are in the $150k market who are having no problems at all with lower credit scores, less income, etc.
This is a very interesting pcs. of information. I sell to people that buy my houses at about 97-99K. I have found absolutely NO difference in the past 6 months in a person "qualifying" than when we were in a frensy.

Still "no money down" (b/c I basically I am giving them the credits for them to buy). I'm closing on a house the day of the CD reunion that is selling for 97,000 and I doubt these buyers have more than a $1000 bill in the deal.

So, what I find interesting about this post is "he" gets his house and "money bags" doesn't. What's wrong with this picture? I'm serious. Pls. answer.

BTW: I have a good horse in this race so it doesn't bother me from that angle.
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