Would you want a new mortgage right now?
I am just curious. I have been in the mortgage business for 22 years. My company is just 5 people- we do only conventional, FHA and VA loans. We never got into the sub-prime business & probably would have made a fortune if we had. However, we saw it coming and did not want to be a part of it (I am so glad). My question is are you afraid to try to get credit, buy a home, refinance, buy a car right now. Our phone has not rung this week at all.
- No ShortageLv 71 decade agoFavorite Answer
We are in the process of getting approved for a mortgage right now to buy a second home. Our credit scores are excellent, and we have been told that we will be approved, but that the lender is asking for extra paperwork and extra time to look at everything, and it will take a little bit longer than usual to go through. The caution of the lender is due to the fact that I own my own business. I don't feel inconvenienced or upset about this at all. I appreciate the lender's desire to be conscientious and thorough, so we will wait and do so happily.
We are applying for a plain vanilla 30-year, conventional, fixed rate mortgage on a second home. We are not afraid. We want to take advantage of the tanked real estate market in our state and turn our home into a rental/income property and trade up for ourselves.
As for credit, we just used a local store's 18 months same as cash policy to purchase a mattress and some furniture. We have done this several times over the years to purchase big ticket items, such as furniture, a camera, and a diamond ring. We purchase the item on a credit card issued by the store, and we always pay it off well in advance of the expiration date. It allows us to pay in cash out of funds we have coming in without having to take any money out of our accounts. We also paid for our bathroom renovation this way, putting the bill on an interest-free credit card and then paying it off during the promo period. When the items are paid for, we always cancel the credit card.
As for a car, the car I drive is on its way out the door if it doesn't perform better for me this winter. Last winter was really bad here, and my car was terrible. We took off the factory tires and put better tires on it, and if that doesn't work, good-bye car.
As for refinancing our home, we don't refinance. It's a waste of money in our opinion. I know people who used to do it every other year or so before the real estate market really tanked, and I think that's nuts.
- JessLv 41 decade ago
I am extremely afraid of getting a mortgage right now. Luckily I already have a fixed mortgage, my cars are in great shape and are paid off, and anything we would "need" already under my roof. I feel so bad for those that are just starting out and wanting to have a family and get married and cannot do so very easily anymore. My sister and her hubby and baby recently moved back to the area from out of state and are having a horrible time trying to get a house even through the VA loans. They both have great credit. I would say that right now would be a good time for someone in the mortgage business to do the mortgage work part time and look into something else in the meantime cause I don't think the end is near.
- gosam777Lv 71 decade ago
Not at all. Time to buy is when the market is down. Sold most stocks, mutual funds last spring. Been putting it in Real Estate right and left now. Yes, you can pick up cheap cars, gas hogs right now. Almost ready to get back in stocks too. I have no problem getting financing.
Only thing that worries me, is how much faith to have in a socialized market. You know if these mortgages people believe may be profitable for the government, the private sector would have bought them. I believe it was a scam to socialize the government more. But hope not.
Aren't liberals and liberal panic mode GREAT?
- lv_consultantLv 71 decade ago
people that can truly afford those things will always have purchasing power. this country needs to go back when cash was king, not credit.
but I know what you are talking about. I've been a mortgage broker for about 14 years and in that time frame I think I've done about 5 sub-prime loans. I stick to A paper loans and work with buyers that have actual money in the bank and assets. I get most of my clients to docs in 14 days.
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- Anonymous1 decade ago
Not right now, no.
Wait until after the elections. If BHO gets elected you may just get a house for free! You probably won't have a job, but that's ok too because he has a government give away program for that too. No health care ? No worry, he'll have that taken care for you also.
It's really unbelievable what his economic policies are going to do to this country. Double digit inflation, double digit unemployment, nothing we have seen since the late seventies when Jimmy Carter was elected as a knee jerk reaction to the Nixon/Ford era. And BHO's policies are even more extreme.
- georgiannaLv 43 years ago
they're miraculous in that that's customary prepare. There are frequently lenders that acquire mortgages and there are lenders that service mortgages. the acquisition company is the corporate you close up with; the corporate you may make your first fee to. They get carry of the underwriting and closing costs, yet do no longer choose the hardship of servicing the interior maximum loan. They then sell it to a lender that centers loans. That company will service the interior maximum loan and convey jointly the pastime and any applicabe quotes (which includes previous due costs, etc). All of that's finished based on the businesses skills and desires; some businesses acquire and not service, some do no longer acquire yet service.
- 1 decade ago
I'm not afraid at all. In fact I just bought a new car 4 months ago, and boy did I get a bargain. As far as a new home I'm just set at the moment with the one I have.
I think half the problem is people listen to the damn news and believe that they can not get a mortgage or they will have to have perfect credit or 20% down.
Which as you know just is not true.
- MooseLv 61 decade ago
Heck no, my house is almost paid off, appx 3 more years. My cars are paid off and my credit cards are paid off. I pay them off monthy.
I have an excellant credit rating and I bet I could not get a loan now, so I am very glad I am not shopping for any type of loan at this time.
We paid extra towards our principal from day one and greatly reduced the amount of interest we had to pay and greatly reduced the time we owe on the mortgage.
- bleacherbrat34Lv 61 decade ago
yes , it is a great time to buy a home at the very low home prices.
and it is an great time to buy stocks ,,
right now I rather do either, I rather pay off my current debt before gaining some more,,
I am so close to getting out of debt,, and I did it on my OWN no help form banks, parent, friends etc etc,
then after a couple of months of debt free living then I buy a Home , a new car etc etc
- CHARITY GLv 71 decade ago
I wouldn't touch it with a ten foot pole . . . (and none of this is directed at you) . . . we've bought about eight homes over the last decade . . . we stopped about three years ago . . . because anyone with a brain new it was a racket . . . and to this day the same people (mainly agents) are running around with this market is localized crap and it's not as bad as it seems . . . well guess what . . . it's worse than what it seems. . . and it's not a hard formula . . . three times your earnings . . . plus 10 to 20% down . . . so in my area an average home sells for about 450k yet the average income is about 86k . . . and the agents have the nerve to tell me the market has stabilized . . .
Everyone with money is scared shitless right now . . . we've all been told to accumulate cash and are doing so . . .