That makes sense. I remember talking to lenders and them telling me how much I could ‘afford’ doing all sorts of various tricks… stated income, etc. I always thought it was strange they could tell me I could afford some rediculous payments. I would always say: no… I can’t afford that.
Seems like a combination of lenders, realtors, and ill-informed consumers. The perfect frenzi storm. Not to mention the ponzi schemers I just read about. Crazy stuff.
I’ve worked with many real estate agents. It shows how important it is to work with the right one. They should be looking for the best interest of the customer, not themselves. I guess that goes for the lender too. I can see all of the greed now.
Too bad they don’t make the real estate agent exam much harder. That thing is a joke. And, these ‘agents’ are advising people on probably the most expensive asset they own.
