Mortgage Loan approval hell

[ljinvestor]

Its been brought up before, but it is pointless to complain about lender UW standards being to demanding.

Anyone loaning 80%-90% of an appraised value should be able to look closely under the hood. Personally I would UW the same for 50% ltv as I would for 90% ltv.

[Scarlett]

I am with UCGal about this one – mainly…

I am going to take the middle ground in this match. I have close friends that are almost in the same situation as sdr’s friend. Those people can rent a nice pretty big house, pay debt and save for downpayment. They can still have a very good lifestyle. But for such high income and good debt to loan ratios I think it would be a reasonable exception for the downpayment to be 10% and not 20% if they don’t have any student loans debt. Very low risk – for the current conditions.

(begin rant) Since sdr talked about advanced degrees, I have a PhD and for people like us there wouldn’t be any exceptions made… PhDs won’t ever have the income the MDs have, not even half of that. If we get into six figures that’s very fortunate and happens after 6 years of grad studies, 3-6 years of postdocs with salaries in the 20s and 30s (usually when they start having kids in their 30s) and a few more years in industry or as an assistant professor. So it’s around age 40 – when one finally is able to START saving for downpayment (from previous salaries, barely enough to save some for retirement). True, they won’t have much student debt (usually PhD students are payed a very modest stipend or they help with research and teaching). Same type of sacrifices. How long do you think it takes a pair of PhDs to save 100K for a house that’s going to be much less than the one that your doctor friend would buy (guaranteed!). yeah, quite a few years. What quality of life is that, sdr? Are you saying MDs more deserving that PhDs? (end rant)

[Scarlett]

I am with UCGal about this one – mainly…

I am going to take the middle ground in this match. I have close friends that are almost in the same situation as sdr’s friend. Those people can rent a nice pretty big house, pay debt and save for downpayment. They can still have a very good lifestyle. But for such high income and good debt to loan ratios I think it would be a reasonable exception for the downpayment to be 10% and not 20% if they don’t have any student loans debt. Very low risk – for the current conditions.

(begin rant) Since sdr talked about advanced degrees, I have a PhD and for people like us there wouldn’t be any exceptions made… PhDs won’t ever have the income the MDs have, not even half of that. If we get into six figures that’s very fortunate and happens after 6 years of grad studies, 3-6 years of postdocs with salaries in the 20s and 30s (usually when they start having kids in their 30s) and a few more years in industry or as an assistant professor. So it’s around age 40 – when one finally is able to START saving for downpayment (from previous salaries, barely enough to save some for retirement). True, they won’t have much student debt (usually PhD students are payed a very modest stipend or they help with research and teaching). Same type of sacrifices. How long do you think it takes a pair of PhDs to save 100K for a house that’s going to be much less than the one that your doctor friend would buy (guaranteed!). yeah, quite a few years. What quality of life is that, sdr? Are you saying MDs more deserving that PhDs? (end rant)

[Scarlett]

I am with UCGal about this one – mainly…

I am going to take the middle ground in this match. I have close friends that are almost in the same situation as sdr’s friend. Those people can rent a nice pretty big house, pay debt and save for downpayment. They can still have a very good lifestyle. But for such high income and good debt to loan ratios I think it would be a reasonable exception for the downpayment to be 10% and not 20% if they don’t have any student loans debt. Very low risk – for the current conditions.

(begin rant) Since sdr talked about advanced degrees, I have a PhD and for people like us there wouldn’t be any exceptions made… PhDs won’t ever have the income the MDs have, not even half of that. If we get into six figures that’s very fortunate and happens after 6 years of grad studies, 3-6 years of postdocs with salaries in the 20s and 30s (usually when they start having kids in their 30s) and a few more years in industry or as an assistant professor. So it’s around age 40 – when one finally is able to START saving for downpayment (from previous salaries, barely enough to save some for retirement). True, they won’t have much student debt (usually PhD students are payed a very modest stipend or they help with research and teaching). Same type of sacrifices. How long do you think it takes a pair of PhDs to save 100K for a house that’s going to be much less than the one that your doctor friend would buy (guaranteed!). yeah, quite a few years. What quality of life is that, sdr? Are you saying MDs more deserving that PhDs? (end rant)

[Scarlett]

I am with UCGal about this one – mainly…

I am going to take the middle ground in this match. I have close friends that are almost in the same situation as sdr’s friend. Those people can rent a nice pretty big house, pay debt and save for downpayment. They can still have a very good lifestyle. But for such high income and good debt to loan ratios I think it would be a reasonable exception for the downpayment to be 10% and not 20% if they don’t have any student loans debt. Very low risk – for the current conditions.

(begin rant) Since sdr talked about advanced degrees, I have a PhD and for people like us there wouldn’t be any exceptions made… PhDs won’t ever have the income the MDs have, not even half of that. If we get into six figures that’s very fortunate and happens after 6 years of grad studies, 3-6 years of postdocs with salaries in the 20s and 30s (usually when they start having kids in their 30s) and a few more years in industry or as an assistant professor. So it’s around age 40 – when one finally is able to START saving for downpayment (from previous salaries, barely enough to save some for retirement). True, they won’t have much student debt (usually PhD students are payed a very modest stipend or they help with research and teaching). Same type of sacrifices. How long do you think it takes a pair of PhDs to save 100K for a house that’s going to be much less than the one that your doctor friend would buy (guaranteed!). yeah, quite a few years. What quality of life is that, sdr? Are you saying MDs more deserving that PhDs? (end rant)

[Scarlett]

I am with UCGal about this one – mainly…

I am going to take the middle ground in this match. I have close friends that are almost in the same situation as sdr’s friend. Those people can rent a nice pretty big house, pay debt and save for downpayment. They can still have a very good lifestyle. But for such high income and good debt to loan ratios I think it would be a reasonable exception for the downpayment to be 10% and not 20% if they don’t have any student loans debt. Very low risk – for the current conditions.

(begin rant) Since sdr talked about advanced degrees, I have a PhD and for people like us there wouldn’t be any exceptions made… PhDs won’t ever have the income the MDs have, not even half of that. If we get into six figures that’s very fortunate and happens after 6 years of grad studies, 3-6 years of postdocs with salaries in the 20s and 30s (usually when they start having kids in their 30s) and a few more years in industry or as an assistant professor. So it’s around age 40 – when one finally is able to START saving for downpayment (from previous salaries, barely enough to save some for retirement). True, they won’t have much student debt (usually PhD students are payed a very modest stipend or they help with research and teaching). Same type of sacrifices. How long do you think it takes a pair of PhDs to save 100K for a house that’s going to be much less than the one that your doctor friend would buy (guaranteed!). yeah, quite a few years. What quality of life is that, sdr? Are you saying MDs more deserving that PhDs? (end rant)

[GH]

A person’s FICO score is indicative of their WILLINGNESS to pay their debts in a timely manner. It has EVERYTHING to do with the CHARACTER part of the 3 C’s of credit.

Almost everyone I know who has bad credit right now used to have good credit. One couple I know had pristine credit for over 25 years, but lost their way speculating on the sure thing housing market. You would be surprised how big medical bills or long term unemployment can turn even the most characterful individual into a no good deadbeat. Credit scores should be treated differently when the economy is going up and when it is going down.

With regards to home loans, I would question how a worthy borrower with high income would not have saved for a decent down payment. Personally I would rather someone with a lower score and bigger down payment.

[GH]

A person’s FICO score is indicative of their WILLINGNESS to pay their debts in a timely manner. It has EVERYTHING to do with the CHARACTER part of the 3 C’s of credit.

Almost everyone I know who has bad credit right now used to have good credit. One couple I know had pristine credit for over 25 years, but lost their way speculating on the sure thing housing market. You would be surprised how big medical bills or long term unemployment can turn even the most characterful individual into a no good deadbeat. Credit scores should be treated differently when the economy is going up and when it is going down.

With regards to home loans, I would question how a worthy borrower with high income would not have saved for a decent down payment. Personally I would rather someone with a lower score and bigger down payment.

[GH]

A person’s FICO score is indicative of their WILLINGNESS to pay their debts in a timely manner. It has EVERYTHING to do with the CHARACTER part of the 3 C’s of credit.

Almost everyone I know who has bad credit right now used to have good credit. One couple I know had pristine credit for over 25 years, but lost their way speculating on the sure thing housing market. You would be surprised how big medical bills or long term unemployment can turn even the most characterful individual into a no good deadbeat. Credit scores should be treated differently when the economy is going up and when it is going down.

With regards to home loans, I would question how a worthy borrower with high income would not have saved for a decent down payment. Personally I would rather someone with a lower score and bigger down payment.

[GH]

A person’s FICO score is indicative of their WILLINGNESS to pay their debts in a timely manner. It has EVERYTHING to do with the CHARACTER part of the 3 C’s of credit.

Almost everyone I know who has bad credit right now used to have good credit. One couple I know had pristine credit for over 25 years, but lost their way speculating on the sure thing housing market. You would be surprised how big medical bills or long term unemployment can turn even the most characterful individual into a no good deadbeat. Credit scores should be treated differently when the economy is going up and when it is going down.

With regards to home loans, I would question how a worthy borrower with high income would not have saved for a decent down payment. Personally I would rather someone with a lower score and bigger down payment.

[GH]

A person’s FICO score is indicative of their WILLINGNESS to pay their debts in a timely manner. It has EVERYTHING to do with the CHARACTER part of the 3 C’s of credit.

Almost everyone I know who has bad credit right now used to have good credit. One couple I know had pristine credit for over 25 years, but lost their way speculating on the sure thing housing market. You would be surprised how big medical bills or long term unemployment can turn even the most characterful individual into a no good deadbeat. Credit scores should be treated differently when the economy is going up and when it is going down.

With regards to home loans, I would question how a worthy borrower with high income would not have saved for a decent down payment. Personally I would rather someone with a lower score and bigger down payment.

[sdrealtor]

scarlet
Its not that they are more deserving, its that they have more income. That is what it is and should be all about for those guys. Its not just the level but the nature of it. Its recesssion proof (unless you are plastic surgeon) and it is not employment income. As a PHD you are someone’s employee and could be let go. Your income is not of the same nature as an MD’s. The point is not that these people are fabulous but rather different because of their incomes. My point is that when you all try to pigeonhole everyone and declare there should be no exceptions to 20% down you are not acknowledging that some people are different than you. I learned long ago that there are people who are smarter than me, better looking than me, have more money than mee, can do things I cant do and I’m OK with that. They desereve what they can get and I dont beleive I should try to limit them.

FWIW this particular friend is not, never was and never will be a client of mine.

[sdrealtor]

scarlet
Its not that they are more deserving, its that they have more income. That is what it is and should be all about for those guys. Its not just the level but the nature of it. Its recesssion proof (unless you are plastic surgeon) and it is not employment income. As a PHD you are someone’s employee and could be let go. Your income is not of the same nature as an MD’s. The point is not that these people are fabulous but rather different because of their incomes. My point is that when you all try to pigeonhole everyone and declare there should be no exceptions to 20% down you are not acknowledging that some people are different than you. I learned long ago that there are people who are smarter than me, better looking than me, have more money than mee, can do things I cant do and I’m OK with that. They desereve what they can get and I dont beleive I should try to limit them.

FWIW this particular friend is not, never was and never will be a client of mine.

[sdrealtor]

scarlet
Its not that they are more deserving, its that they have more income. That is what it is and should be all about for those guys. Its not just the level but the nature of it. Its recesssion proof (unless you are plastic surgeon) and it is not employment income. As a PHD you are someone’s employee and could be let go. Your income is not of the same nature as an MD’s. The point is not that these people are fabulous but rather different because of their incomes. My point is that when you all try to pigeonhole everyone and declare there should be no exceptions to 20% down you are not acknowledging that some people are different than you. I learned long ago that there are people who are smarter than me, better looking than me, have more money than mee, can do things I cant do and I’m OK with that. They desereve what they can get and I dont beleive I should try to limit them.

FWIW this particular friend is not, never was and never will be a client of mine.

[sdrealtor]

scarlet
Its not that they are more deserving, its that they have more income. That is what it is and should be all about for those guys. Its not just the level but the nature of it. Its recesssion proof (unless you are plastic surgeon) and it is not employment income. As a PHD you are someone’s employee and could be let go. Your income is not of the same nature as an MD’s. The point is not that these people are fabulous but rather different because of their incomes. My point is that when you all try to pigeonhole everyone and declare there should be no exceptions to 20% down you are not acknowledging that some people are different than you. I learned long ago that there are people who are smarter than me, better looking than me, have more money than mee, can do things I cant do and I’m OK with that. They desereve what they can get and I dont beleive I should try to limit them.

FWIW this particular friend is not, never was and never will be a client of mine.

[Author]

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