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Old 11-16-2011, 03:13 PM
 
Location: West Orange, NJ
12,542 posts, read 17,775,887 times
Reputation: 3681

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Quote:
Originally Posted by tdstyles View Post
I wish that were the case but as you pointed out, banks are not doing due diligence, even now, which is mind blowing. People are preapproved for way too much. There needs to be stricter lending guidelines not just in regards to credit worthiness, but also in maximum allowable borrowing. The current ratios are still far too liberal.
but even still, that would require the bank doing due diligence to come to that ratio, not just taking a consumers' word for it.

i can tell you when i purchased my home, and i sent in my documentation, that as someone with a business degree and numerous years of financial audit experience, I found the entire process on providing documentation mind boggling. some of the stuff the bank asks for is virtually irrelevant, while they leave out things they should absolutely be asking for. and in the end, they mostly just took my word for it on some documents. now granted, I have a high score, but i still think the bank could have done a lot more, and i find it disturbing that they told me i could afford much more than i would ever be able to without living on Ramen...
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Old 11-16-2011, 04:03 PM
bay
 
425 posts, read 2,594,377 times
Reputation: 172
when we bought ours (576k) in 2009, we put down 30% and rented out the condo we used to live which covers mortgage+tax+maintenance. With 1 kid in preschool/daycare ($1145 per month), our monthly expenses were approx. 7000. We basically remodel everything before we moved in so less expense on maintenace on the house. If not, probably will need to reserve few hundreds per month for fixing/maintenance.
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Old 11-16-2011, 06:29 PM
Status: "Even better than okay" (set 21 days ago)
 
Location: Coastal New Jersey
51,489 posts, read 50,749,733 times
Reputation: 60512
Quote:
Originally Posted by bradykp View Post
but even still, that would require the bank doing due diligence to come to that ratio, not just taking a consumers' word for it.

i can tell you when i purchased my home, and i sent in my documentation, that as someone with a business degree and numerous years of financial audit experience, I found the entire process on providing documentation mind boggling. some of the stuff the bank asks for is virtually irrelevant, while they leave out things they should absolutely be asking for. and in the end, they mostly just took my word for it on some documents. now granted, I have a high score, but i still think the bank could have done a lot more, and i find it disturbing that they told me i could afford much more than i would ever be able to without living on Ramen...
Same here. Two different mortgage people tried to tell me to go higher, one offering to preapprove me for twice what I paid for my condo. I went with the bank with the guy who listened to me when I said I wanted very conservative numbers. I bought something for $30K less than that preapproval. I wanted a mortgage/tax payment that will be something I can still pay after retirement.
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