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Is Qualifying the same today? No Way!!!!!!

We have all been taught to pre-qualify our clients before wasting their time and ours looking for a house they can not buy.

Are you still doing that?

Do you realize just how much the qualifications have changed?

Geez. I remember not more than two years ago the lenders were touting that with a 700 credit score there would be "NO DOC'S" involved with this credit score....

Do you realize that the person that could buy whatever they wanted two years ago can not buy a tent today?

It's true. Including many of us Realtors. If you are a "STATED INCOME" BUYER, then forget it. NO MORE.

The old practice of simply checking your credit score is long gone. You could have a credit score of 850 or more but if you can't back up the score with check stubs of high $$$ and show that you have paid the government based upon a very high income you simply cannot qualify anymore. It's all over. No mas. No more.

Will there ever be another "STATED INCOME" LOAN???? Who knows?

Someday.

They say that history repeats itself. But don't hold your breath. HoldBreathTurnBlue.gif Hold Breath Turn Blue image by Zugzwang64 You will turn blue.

Wait 20 years....

Maybe then!

Later in the rain~ Deb

Brooks Prime Properties

Specializing in Lake Properties

Lake Livingston Texas

936-295-0005

Posted by Deb Brooks, Lake Livingston Real Estate on 10/06/2009 11:48 PM

Comments (16)

Loan Approval in the Mortgage / Finance Channel

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Originally posted at: Deb's Lake Livingston Real Estate & Stuff! : Is Qualifying the same today? No Way!!!!!!

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16 Comments on Is Qualifying the same today? No Way!!!!!!

OCT

We have seen a slight loosening of lender requirements in September. A couple of our stated income products are back. Still not the great stuff we used to have available, but enough that those who have legitimate businesses that do make money should be able to get financing now.

Robert, I do hope these are realistic. I will have to look into them. Thanks, Deb

Hi Deb! Your tent comment cracks me up! I am SO with you on this--how many times recently have we gotten that pre-approval only to get down to the wire and something in the lending criteria change? It's incredibly frustrating for all parties and can be costly to both buyer and seller when the deal falls through. yes, I still do get everyone pre-qualified, just because there are still those who have idea what their credit score is and that sometimes will shed some light on if they'll even be able to buy right now at all!

OCT

Hi Debe, I know you are still doing well with all the hardships the economy is throwing at us! I would certainly bank on you my friend! It is getting very scary though. I feel sorry for so many people that waited just a few moments too late before the drastic changes. Credit is still important but without the proper docs to back them up it's fruitless. Keep smiling my dear! I will see you around!

Deb

Hello Deb and you could say that again, it is very frustrating, please take a look at your first sentence you forgot the (h) in hours.

VB ;o)

It would be nice to have a true stated income loan, but the lenders require the 4506-T form which allows the lender to look at your tax return (transcript) so I don't see the "old stated" loans anytime soon.

Robert: I am guessing that Deb meant... wasting their time and ours... as in OUR time, too... not wasting their time and hours. But... it was a great try at being a human spell-checker. Take care...

I have talked with several folks that are saying just because you have a "stated income" does not mean the death nail. There are lenders that work with these folks...

Helping you live your American dream...

Deb - Pre - qualifying someone should be a pre-requisite for working with them and putting them in your car ! A lot of valuable time is lost on both the agent and client side doing it any other way. Today, I like to refer to lending as : " Sometimes your the windshield and sometimes your the bug ". It's sad that some have worked long and hard preserving their credit scores and history to not qualify while others with all the bare minimums qualify because of a tax credit for first time home buyers. What ever happened to proving money management with good standing open trade lines ?

I prequalify for price range and if they are serious, I get a credit approval quickly.

If the consumer can't document, we don't play with them.

Deb, we have a tough road to travel in the business these days and pre-approval is the only way....no more pre-qualifications!

Deb, every house we have bought has been stated income. I did not lie. I am making my payments.

The program was abused and not it effects the honest ones.

Yes, the qualfications have changed but we have no other option than to work with the new changes.

Deb - yes practices sure have changed dramatically! What is so hard now is that even though we "think" we have it "they" change the rules on us half way through the process!

There are still a few lenders that will complete a 'stated income' loan. The rates are not pretty, but they do exist.

Howdy there Deb

Folks in my area, don't have no worrys about this. One of the main, and bigges Bank here, do only in house, home loans. The Stated Income Load is still alive here. Very good post and info!

Baker Home, Commercial Properties Inspections and Consulting AR Signature

OCT

There is no queston the landscape is changing by the month. We have to live with the cards we were delt as Realtors. Someday things will get a little more relaxed.

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