There are people with $1,000,000 homes with an 800 credit score, $1M in the bank and no mortgage who don’t qualify for a $200,000 refi loan.
The govt regulations have made getting a loan denial a humbling experience. I chuckle every someone tells me that they will have ‘no problem’ getting approved for a loan.[/quote]
Can you please explain how “govt regulations have made getting a loan denial a humbling experience.” Or is it that private lenders have their arbitrary guidelines?
I don’t understand why some people feel upset about being denied. These are private contracts, and outside of discrimination, denial is the prerogative of the lender. Why should someone with lots of cash in the bank be entitled to a mortgage?[/quote]
Private lenders can do whatever they want(and they do)
They charge 3-5 points up front and 8%-12% interest rates.
FNMA/FREDDIE MAC approvals are the same through every broker, bank or direct lender; (These are govt regulations) although some have additional overlays.
If you want the low govt backed rates you need to fit in a box perfectly.
Onky when you understand that someone with a net worth of $2m-$3m, 800 credit score, 6 figure liquid assets/cash in the bank, 5 figure monthly cash flow and very little monthly debt cannot qualify for a $200,000 loan on a $600,000+ house
YET
a salaried employee with 3% down payment (that was a gift)
negative net worth, a 680 credit score, and no other assets can qualify for a 97% purchase loan can you grasp what a humbling experience is.
