old fashioned loan approvals: Lenders Going Back To The Future - 11/16/09 02:40 PM
A lot of us have started to go nuts as lenders are getting more and more nitsy, driving our beloved clients crazy with last second requests for documentation and other paperwork issues that seem to come to a head about two days before settlement. This morning, I had a talk with a lender who has been making loans as long as I've been selling houses, and we were laughing about how it's getting to be just like the good old days! So now, I'm coaching all of my buyers on what to expect during the process. By preparing them for all
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old fashioned loan approvals: Giving Credit Where It's Due - 03/11/08 11:51 PM
Back in the olden days, before there was any such thing as a credit score, mortgage lenders decided how much you could afford by looking at your income and your monthly debt payments, then applying ratios of mortgage payment to income. The way it worked, you could pay 28% (give or take) of your income toward your mortgage payment, taxes, insurance and, if applicable, condo fees. If you had debts you were paying off, like credit card or car payments, they’d allow the total of your debts and mortgage to add up to about 36% of what you made each month.
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