With the Real Estate Market having been pummeled since 2008 and mortgage interest rates hovering at all-time lows,, I believe that current conditions present an outstanding buying opportunity .
With that said, I decided to "put my money where my mouth is" and purchase another property.
My partner and I found an exceptional restored mid-century 3-Bed 2-Bath home in Palm Springs. At around 35% less than the price levels seen in 2007/2008, it just made sense to buy the place. We decided to put down a respectable deposit and finance the balance of the purchase price with a mortgage.
That's when the fun and games started!
The Listing Agent suggested we work with a mortgage broker who is familiar with the area and the particular quirks that needs to be addressed with homes in the area, so we decided to apply with him, but at the same time, we decided to apply for a mortgage with the broker I regularly refer my clients to.
As a Broker I obviously don't receive a salary and my commission income can and does fluctuate. Accordingly, I was asked to provide my Tax Returns for 2007, 2008 and 2009 which I immediately supplied. Upon review of the documents, my mortgage broker emailed me back with a question that I took to be a joke: "What was the reason for the decline in income in 2008?"
Excuse me, was he being serious? .... It so happened he was.
I replied as follows: " I imagine you've heard of the Financial Meltdown of 2008 when more than 1 million homes went into in foreclosure; Government seizes Fannie Mae and Freddie Mac; Lehman Brothers declares Bankruptcy; U.S. Government gives 85 billion dollar loan to insurance company AIG; The Bush Administration announces bailout plan; Dow plunges in 2008; Emergency Economic Stabilization Act" (2008) passed .... Need I say more?"
The mortgage broker replied back to me: "I need a good explanation to provide to the bank for your personal situation from 2008, the banks don't want to guess what happened to you..."
At that point my head nearly exploded. I stopped emailing him back.
We decided to get our loan with someone else, and we did!