Anyone here trying to buy a house? Im in the loan process for a
$300,000 house than Im putting $100,000 down me and my spouse and
credit scores of 780 & 740. And they are asking for every
document imaginable and some, I got loans in the past with only
paystubs and bank statements with a score of only 700 and 5% down,
the hard working honest American is the one really getting screwed,
cross your fingers that we get the loan!
Posted by shamutooth on 12th of Jul 2009 at 12:54 am
If you get denied for a conventional loan,just go FHA. You can
still borrow 97% of the home's value,at interest rates that are in
some cases much better than conventional,with credit scores down to
the 500's.Most of the time assets are not needed, and with assets
your debt to income ratio can be 60%. The only drawback is the
monthy PMI(although much lower than conventional PMI, and is waved
on a 15 year term,although a one time upfront MIP is still
required) And yes, any loan these days will come with increased
documentation.
wow -- my wife and I have been looking at houses, also planning
to put about 30% - 40% down. We've been going slow, though,
and planning to wait till after the next big leg down in the
market, because I don't want to buy such a big asset while prices
are still falling. Hate to say it and hate to anticipate it, but
I'm thinking like matt that the next leg down will really scare
people and we'll get a house for less money. Right now seems
to be a good time to rent since cash is the only thing increasing
in value..........
But I 've been wondering how difficult it would be to get a
loan............pretty difficult I guess.................anyway --
good luck with the loan, hope it goes through.......
Wow, good luck with your loan! Yes it's so much tougher
now. I'm looking to buy a new house next year; I expect
housing to still decline quite a bit further. I recently
about a used BMW and even though I could have easily paid for it
with cash, as an experiment I wanted to see how easy it would be to
get a loan since I have my own business and don't have pay stubs
like most people (and so already that's an issue), but of course I
have a lot of cash and savings and high credit scores. My
loan should have been approved right on the spot, but they still
needed to review it and get back with me. Therefore when my
wife and I plan to buy another house next year I can only imagine
how tough it could be! Listen, if my scenario plays out i.e.
the economy and stock market take a drastic down turn this fall and
go to new lows, along with deflationary forces coming back into the
economy NOT inflationary, then loans will be even harder to
get. I think this fall and into early next year is really
going to be a scary time for most Americans as things deteriorate
once again. Remember the 'dread' of last fall when the world
seemed like it was coming to an end, unfortunately I see that
returning again.
regarding your other questions, I'm over all that in the weekend
newsletter. Also OIK is another crude ETF.
Mortgage Troubles
Posted by arissaj on 11th of Jul 2009 at 01:49 am
Anyone here trying to buy a house? Im in the loan process for a $300,000 house than Im putting $100,000 down me and my spouse and credit scores of 780 & 740. And they are asking for every document imaginable and some, I got loans in the past with only paystubs and bank statements with a score of only 700 and 5% down, the hard working honest American is the one really getting screwed, cross your fingers that we get the loan!
If you get denied for
Posted by shamutooth on 12th of Jul 2009 at 12:54 am
If you get denied for a conventional loan,just go FHA. You can still borrow 97% of the home's value,at interest rates that are in some cases much better than conventional,with credit scores down to the 500's.Most of the time assets are not needed, and with assets your debt to income ratio can be 60%. The only drawback is the monthy PMI(although much lower than conventional PMI, and is waved on a 15 year term,although a one time upfront MIP is still required) And yes, any loan these days will come with increased documentation.
wow -- my wife and
Posted by Michael on 11th of Jul 2009 at 10:46 am
wow -- my wife and I have been looking at houses, also planning to put about 30% - 40% down. We've been going slow, though, and planning to wait till after the next big leg down in the market, because I don't want to buy such a big asset while prices are still falling. Hate to say it and hate to anticipate it, but I'm thinking like matt that the next leg down will really scare people and we'll get a house for less money. Right now seems to be a good time to rent since cash is the only thing increasing in value..........
But I 've been wondering how difficult it would be to get a loan............pretty difficult I guess.................anyway -- good luck with the loan, hope it goes through.......
Dont buy property now
Posted by steveo on 12th of Jul 2009 at 05:25 am
The property market will go down maybe 30% or 50% from July 2009. IMHO. After it drops 30% from the high, dont buy, its just the beginning.
Wow, good luck with your
Posted by matt on 11th of Jul 2009 at 02:01 am
Wow, good luck with your loan! Yes it's so much tougher now. I'm looking to buy a new house next year; I expect housing to still decline quite a bit further. I recently about a used BMW and even though I could have easily paid for it with cash, as an experiment I wanted to see how easy it would be to get a loan since I have my own business and don't have pay stubs like most people (and so already that's an issue), but of course I have a lot of cash and savings and high credit scores. My loan should have been approved right on the spot, but they still needed to review it and get back with me. Therefore when my wife and I plan to buy another house next year I can only imagine how tough it could be! Listen, if my scenario plays out i.e. the economy and stock market take a drastic down turn this fall and go to new lows, along with deflationary forces coming back into the economy NOT inflationary, then loans will be even harder to get. I think this fall and into early next year is really going to be a scary time for most Americans as things deteriorate once again. Remember the 'dread' of last fall when the world seemed like it was coming to an end, unfortunately I see that returning again.
regarding your other questions, I'm over all that in the weekend newsletter. Also OIK is another crude ETF.
Downturn this fall
Posted by steveo on 12th of Jul 2009 at 05:44 am
"Everyone" is thinking downtrn this fall.
I think everyone will be wrong. MY guess...sooner, on a big financial crisis.