financial: Pre-Qualification? Pre-Approval? What's the difference?
- 09/20/13 06:29 AM
Pre-Qualification is NOT the same as Pre-Approval. Pre-qualification for a mortgage loan is simply a mathematical look at the buyer's stated income and debts that produces a maximum home price the buyer could afford. There is no checking of credit and no verification of any of the information provided by the buyer. A loan pre-approval won't be provided from a lender until a buyer's credit has been run, the buyer has been evaluated for credit risk, their financials have been looked at more closely, and the lender is confident that everything should go through with the buyer's loan provided normal follow-up conditions … (3 comments)
financial: A Possible Solution to the Real Estate/Mortgage Crisis
- 10/02/08 03:54 AM
I would strongly urge lenders, banks and investors to consider agreeing to adjust notes back to the start rate on the adjusting and ballooning mortgages (or the start rate +.25% or .50%). Don't pay them any incentive or "bailout" to do so. They made the bad loans or let them be made. Let them take some responsibility for those actions. The result would keep a huge number of people in their homes who otherwise would lose them, preserve the value of the collateral and help minimize future defaults. True, the investors will get less return than they hoped. But … (37 comments)
financial: Bailouts Bids Benefit Banks but Borrowers Being Abandoned
- 10/01/08 08:03 AM
Why are we bailing out the banks when consumers were duped into the cruddy loan products the banks sold them...? (At least some of them were "up-sold" the ARM or some other ridiculous loan, perhaps with an inflated Debt/Income ratio as an added bonus?) Why should businesses be saved when consumers will lose their homes? The whole mess came about because loans were made that shouldn't have been made... (hundreds of thousands of loans, maybe even millions of them!) The facts are: Buyers should come in with down payment, Home prices should be set at an affordable level (by offering sound … (7 comments)
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