[quote=HLS]BANKS don’t make the rules for underwriting and servicing 15/30 YR fixed mortgages. Anybody who questions what “banks” do with mortgage applications hasn’t got a clue about reality today.
Banks don’t lend their money on 15/30 year mortgages. Banks have divisions that are nothing more than mortgage brokers, often with ignorant employees who unknowingly lie to borrowers about loans with no fees and no costs, with rates that are .50-.75pts higher than what is actually available.
30 YR fixed rates are as low as 4.375% at the moment, but “banks” don’t usually offer them.
They are too busy fooling those that go to banks for no cost loans that will cost tens of thousands of dollars in the long run.
Many people think that banks make the rules and make exceptions for current customers. It rarely happens..
Assets and equity don’t get you a mortgage today. It’s all based on verified income. Salaried wage earners have the best chance. Commission, bonus, overtime and self employed have it much more difficult today, REGARDLESS of credit score, equity, down payment, income, number of properties owned or how important of a customer they think they are.
It’s a humblimg experience for someone who earns $150K with 40% equity and an 800 credit score to get turned down for a $300K loan, but it happens every day with today’s guidelines.
It has never been more difficult for many to qualify for a loan….HLS[/quote]
Very interesting, HLS. Thanks for sharing your insight.
Might this be because lenders really don’t **want** to lend right now — especially FRMs when rates are at rock-bottom lows? Also, with all the talk of dollar devaluation, I’d be scared to death to lock in a 30-YR FRM at 4.X% as a lender. Could this be why things are tight?
