Apr 23 2008
Starting Over
I have just spent the last few weeks fielding several calls that have started out with the phrase “last year I qualified for $300,000″ or “last year a mortgage guy said I could get a loan for $300,000″. Well let me tell you, last year was a long time ago.
There is no more stated income, there are a lot less “bad” loan officers, there are no more “B” paper lenders and the concept of just saying yes and we will see what sticks is finally over.
The key is that these people who I have been talking to who are saying they qualified for $300,000 (a payment of about $2100/month) only made $2500 a month gross. They NEVER “really” qualified for $300,000 but they are in total shock when I tell them they can only qualify for about $140,000.
You may ask how can they be that *&%$#@, but the truth is, the mortgage industry and certain Realtors not only said it was possible but actually closed the clients friends and coworkers, who made exactly what they made, on the $300,000 house.
So what do we do now? Start over, get the correct answers and instead of being angry about how much you qualify for be thankful that you did not buy last year!