If a borrower can’t save 20% down, they don’t want to buy a property bad enough. [/quote]
And you know that how?[/quote]
Saving the downpayment shows motivation for purchasing RE, IMO.
I should probably rephrase the “want” part of it. Of course, the “desire” is always there. But it has to be followed up by the motivation to make it happen.
If the buyer doesn’t have 20% down for the property they “desire,” they may have 20% down for a for a lesser-expensive property. There are all kinds of ways to cut corners (expenses) on a daily, weekly and monthly basis and I have done and am doing all of them.
If “cutting corners” is not palatable or doable for a particular buyer in order to eventually obtain 20% down, then their sights are set too high for a property that is out of their league. It’s as simple as that.
I’m not saying I’m “perfect.” There are many folks who wouldn’t live with the sacrifices I have made and am making. Living on a shoestring isn’t for everyone.
There is nothing wrong with not wanting to do what it takes to obtain 20% down for a property you really want to buy. There is also nothing wrong with purchasing property that is not your ultimate “dream” home OR renting.
That’s the crux of the problem with those on the fence. Even if they are fully qualified NOW in every respect, the properties currently available in their price range are not what they “desire” and there is nothing wrong with that – absolutely nothing wrong with renting.
I’ve never looked at residential real estate as a “desire” or “lifestyle” thing. I’ve only considered suitability and location for my purposes in my past buying decisions, but that’s just me.
If I was in a position to make residential RE loans myself, I would not consider a borrower with less than 30% down and would have to agree with the appraisal as a condition of making the loan.
