08-28-2007, 08:45 AM
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CC Member
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Join Date: Feb 2000
Location: Neverland,
TX
Cobra Make, Engine:
Posts: 7,460
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Not Ranked
Jamo,
They are already are doing that. Mortgage companies are now going to the extreme for qualifications. Interesting that all the Realtors and mortgage brokers that were making a killing over the last two years now have their big a$$ homes for sale and are looking for work.
Here is an example of what is coming for the mortgages of our future. This is a true example of a client I "was" working with. Lost the deal because of financing. He said "I guess Now is not the time to buy after all"
EXAMPLE: (real numbers were different but you get the picture)
New home cost $100K
Appraisal is $100K
On his job for over 20 years
790 FICA score
All is right with the deal right?
NOPE:
Mortgage company writes down appraisal 20%
Home now appraises for $80K (cost more than that much to build)
Mortgage company will finance 80% of appraisal amount or $64K
Client has to put $34K down payment and pay TWO points.
That is 36% down with excellent credit, very stable and on job over two decades!
The guy walks and Says "Now is not the time to buy a new home."
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