We all know that in the past, buyers only had to make a phone call to get a mortgage. Those past years showed that almost anyone could get financing without any credit, or with zero down, or even with no job if a 10% or 15% down payement was on the closing table.
Today, it seems that it's exactly the opposite.
I made a few stats about buyers and sellers so far and saw that 87% of my pre-approved buyers have been denied. That was huge enough for me to put my number on paper.
My last 3 buyers had a lot in common:
* They were all employed at their same position for more than 2 years.
* They all had their last 2 years of tax returns.
* Their FICO score were all in their low to mid 700.
* They were all tenants and had a down payment.
* They all made an offer on a property priced below $100K.
However, they have been denied by their respective lenders, all different, for different reasons.
What's strange to see is that those buyers are paying their rent, month after month, religously, sometimes a higher amount than their mortage payment, but still are seen as a risk by those lenders.
The sub-prime put the mortgage field in a big mess that we know today. The lack of common sense may put it in an even worse situation...
Comments(4)