Getting financed (Phoenix: short sales, foreclosures, mortgage)

[dadof2divas]

I am wondering if many people are receiving financing without alot of challanges. I am aware of the financial issues and so forth but I have a few friends in Phoenix that are more then able to pay cash for their house and they are getting the run around at the banks. Is anyone else getting a run around trying to get a home loan. We are planning on relocating but don't want to sell our house here and have issues there. My friend has put over 150k down and they are still giving them the run around and if they are having issues I am curious if anyone else is ?

[las vegas drunk]

Originally Posted by dadof2divas

I am wondering if many people are receiving financing without alot of challanges. I am aware of the financial issues and so forth but I have a few friends in Phoenix that are more then able to pay cash for their house and they are getting the run around at the banks. Is anyone else getting a run around trying to get a home loan. We are planning on relocating but don't want to sell our house here and have issues there. My friend has put over 150k down and they are still giving them the run around and if they are having issues I am curious if anyone else is ?

If someone really has $150,000 they might as well buy a house outright with cash. You can get a really nice house for that amount in the Phoenix area.

[dadof2divas]

They are building a house and it cost over 600k so they put down over 150k. I agree their are really nice houses for 150k but they wanted something over 5000 square feet and wanted it built.

[observer53]

If someone is willing to pay cash, why are they getting the run around at the banks (unless we are talking about short sales, foreclosures, etc., there shouldn't be a bank to deal with. Short sales ARE problematic. As far as your friend building the big house without knowing your friend's entire financial situation, (and not really wanting to) it's hard to comment on why a bank is giving them the run around about loaning them almost a half million dollars in these economic times.

In your own situation, if you are putting money down and can demonstrate the ability to make the payments and a good credit history, I would think you would not have significant difficulty.

[Zathras]

Originally Posted by dadof2divas

They are building a house and it cost over 600k so they put down over 150k. I agree their are really nice houses for 150k but they wanted something over 5000 square feet and wanted it built.

So they are attempting to get a mortgage or construction loan for 450k? Well, the banks are going to want to make sure they have the income or other resources to pay that kind of mortgage. They have formulas to determine what % of income-to-loan and income-to-total-debt they require. They will also consider the credit score. If all these numbers are good, then any bank will be eager to loan them the money. Banks are in the business of loaning money and will absolutely do so if it makes sense.

If you're concerned, just go to your bank and find out what you can get preapproved for. As long as that bank is qualified to do business in AZ, you can get your mortgage from them.

[smokemaster]

I went to Mortgage - Home Loans - Refinance - Mortgage Refinance - Mortgage Rates - Home Equity. What a joke. I have 50% to put down on a 100K house, that will appraise for 125. My score is over 700. Self employment is the problem, as I have zero debt.
They have no Alt-A programs now.

[AZJoeD]

Yes, lending has tightened up dramatically. Especially in the case of your friend who is looking at a Jumbo loan.

This is not a Phoenix area problem it is nationwide. They will be able to secure financing, but they will probably have to provide lots of documentation showing their ability to repay.

I find that people that have the money to pay often feel insulted that they have to "prove" their ability to pay, but lenders guidelines have tightened. That is just the way it is.

[Zathras]

Originally Posted by AZJoeD

Yes, lending has tightened up dramatically. Especially in the case of your friend who is looking at a Jumbo loan.

This is not a Phoenix area problem it is nationwide. They will be able to secure financing, but they will probably have to provide lots of documentation showing their ability to repay.

I find that people that have the money to pay often feel insulted that they have to "prove" their ability to pay, but lenders guidelines have tightened. That is just the way it is.

exactly. and that's the way it needs to be. The loose lending by the banks over the past decade is largely what caused this mess in the first place. Although I feel it was really the government regs of the 90's which put the wheels in motion of forcing/motivating lending institutions to get people into homes they couldn't really afford.
So, the fact that it is a bit tougher now is a GOOD thing overall.

[smokemaster]

What's scary is that the mortgage business is practically nationalized now, and the hemorrhaging at Frannie continues worse than the BP spill. The fact that they can't get someone a 50% down loan shows severe weakness in the financial system. They are a lot more interested in securitizing the paper than the property. Whatever happened to the good ole pawnshop system--if they get stuck with it, they will still make money? They are loaning to more cash strapped than they are to people with large down.

[dadof2divas]

Big goverment has gotten to involved now. I agree lending now has some challanges but I think at the under 200k price point should go a little easier for us. The higher loans seem to be getting harder to come by talking with some lenders since I first posted this.