Why can I not get a loan?

[paramount]

I do recall though a few weeks ago where there were people on this board who were willing to give a family a Stater Bros. card for food – now that’s admirable and a large part of what’s important in life.

That I salute.

[temeculaguy]

nc4, don’t take this as one of the “sharp” comments but you’ve been a posting member of this site for 12 hours. Perhaps you lurked and read before posting but like any blog, this isn’t a press conference, you don’t need to respond to certain comments, free speach is very alive here.

I’ll ask you only a few questions and you don’t need to post the answers, just say them out loud to yourself. Is the house you want to buy the same price it was in 2001? Is it 40-50% less than peak? If the answer is no to both, that knife is too sharp to catch it yet. The observations made by others are accurate, if you can’t get a loan, very few others can either, therefore downward pressure will lower than price within the next year, it will meet demand (or ability), it is an economic fundamental. Prices rise when anyone and everyone can buy, prices fall when few can buy, these are basic market laws.

I personally don’t like 800k on 250k yr, 750k is 3x income, that’s the number I like to stay under and that is without any monthly loss if you keep the condo. You don’t even need to look for a 600k house, that 800k house will be 600k before you know it. Even the most staunch cheerleaders on the boards will tell you that the 800k hoods are some of the few that the most downside risk, the fact that loans cannot be obtained only serves to support that argument.

[temeculaguy]

nc4, don’t take this as one of the “sharp” comments but you’ve been a posting member of this site for 12 hours. Perhaps you lurked and read before posting but like any blog, this isn’t a press conference, you don’t need to respond to certain comments, free speach is very alive here.

I’ll ask you only a few questions and you don’t need to post the answers, just say them out loud to yourself. Is the house you want to buy the same price it was in 2001? Is it 40-50% less than peak? If the answer is no to both, that knife is too sharp to catch it yet. The observations made by others are accurate, if you can’t get a loan, very few others can either, therefore downward pressure will lower than price within the next year, it will meet demand (or ability), it is an economic fundamental. Prices rise when anyone and everyone can buy, prices fall when few can buy, these are basic market laws.

I personally don’t like 800k on 250k yr, 750k is 3x income, that’s the number I like to stay under and that is without any monthly loss if you keep the condo. You don’t even need to look for a 600k house, that 800k house will be 600k before you know it. Even the most staunch cheerleaders on the boards will tell you that the 800k hoods are some of the few that the most downside risk, the fact that loans cannot be obtained only serves to support that argument.

[temeculaguy]

nc4, don’t take this as one of the “sharp” comments but you’ve been a posting member of this site for 12 hours. Perhaps you lurked and read before posting but like any blog, this isn’t a press conference, you don’t need to respond to certain comments, free speach is very alive here.

I’ll ask you only a few questions and you don’t need to post the answers, just say them out loud to yourself. Is the house you want to buy the same price it was in 2001? Is it 40-50% less than peak? If the answer is no to both, that knife is too sharp to catch it yet. The observations made by others are accurate, if you can’t get a loan, very few others can either, therefore downward pressure will lower than price within the next year, it will meet demand (or ability), it is an economic fundamental. Prices rise when anyone and everyone can buy, prices fall when few can buy, these are basic market laws.

I personally don’t like 800k on 250k yr, 750k is 3x income, that’s the number I like to stay under and that is without any monthly loss if you keep the condo. You don’t even need to look for a 600k house, that 800k house will be 600k before you know it. Even the most staunch cheerleaders on the boards will tell you that the 800k hoods are some of the few that the most downside risk, the fact that loans cannot be obtained only serves to support that argument.

[temeculaguy]

nc4, don’t take this as one of the “sharp” comments but you’ve been a posting member of this site for 12 hours. Perhaps you lurked and read before posting but like any blog, this isn’t a press conference, you don’t need to respond to certain comments, free speach is very alive here.

I’ll ask you only a few questions and you don’t need to post the answers, just say them out loud to yourself. Is the house you want to buy the same price it was in 2001? Is it 40-50% less than peak? If the answer is no to both, that knife is too sharp to catch it yet. The observations made by others are accurate, if you can’t get a loan, very few others can either, therefore downward pressure will lower than price within the next year, it will meet demand (or ability), it is an economic fundamental. Prices rise when anyone and everyone can buy, prices fall when few can buy, these are basic market laws.

I personally don’t like 800k on 250k yr, 750k is 3x income, that’s the number I like to stay under and that is without any monthly loss if you keep the condo. You don’t even need to look for a 600k house, that 800k house will be 600k before you know it. Even the most staunch cheerleaders on the boards will tell you that the 800k hoods are some of the few that the most downside risk, the fact that loans cannot be obtained only serves to support that argument.

[temeculaguy]

nc4, don’t take this as one of the “sharp” comments but you’ve been a posting member of this site for 12 hours. Perhaps you lurked and read before posting but like any blog, this isn’t a press conference, you don’t need to respond to certain comments, free speach is very alive here.

I’ll ask you only a few questions and you don’t need to post the answers, just say them out loud to yourself. Is the house you want to buy the same price it was in 2001? Is it 40-50% less than peak? If the answer is no to both, that knife is too sharp to catch it yet. The observations made by others are accurate, if you can’t get a loan, very few others can either, therefore downward pressure will lower than price within the next year, it will meet demand (or ability), it is an economic fundamental. Prices rise when anyone and everyone can buy, prices fall when few can buy, these are basic market laws.

I personally don’t like 800k on 250k yr, 750k is 3x income, that’s the number I like to stay under and that is without any monthly loss if you keep the condo. You don’t even need to look for a 600k house, that 800k house will be 600k before you know it. Even the most staunch cheerleaders on the boards will tell you that the 800k hoods are some of the few that the most downside risk, the fact that loans cannot be obtained only serves to support that argument.

[Allan from Fallbrook]

Paramount: Amen to that, and well said. Your comments got me to thinking about the interviews with the parents of the Columbine shooters. All were upwardly mobile and upper-middle class and, in each and every instance, both parents worked. Not because they needed to, but because they wanted the BMW and the nice house and all the trappings of “success”.

Problem is, they spent no time with their kids and failed to recognize (in one instance) that their son was building bombs in the basement! How the f**k do you miss that?

These kids were ignored by their parents, who were so completely consumed by the consumer culture that they failed to notice what was happening in their own homes.

Screw the lifestyle. Your family is always more important. And I think, societally speaking, that we’re about to discover that again. Along with our values.

[Allan from Fallbrook]

Paramount: Amen to that, and well said. Your comments got me to thinking about the interviews with the parents of the Columbine shooters. All were upwardly mobile and upper-middle class and, in each and every instance, both parents worked. Not because they needed to, but because they wanted the BMW and the nice house and all the trappings of “success”.

Problem is, they spent no time with their kids and failed to recognize (in one instance) that their son was building bombs in the basement! How the f**k do you miss that?

These kids were ignored by their parents, who were so completely consumed by the consumer culture that they failed to notice what was happening in their own homes.

Screw the lifestyle. Your family is always more important. And I think, societally speaking, that we’re about to discover that again. Along with our values.

[Allan from Fallbrook]

Paramount: Amen to that, and well said. Your comments got me to thinking about the interviews with the parents of the Columbine shooters. All were upwardly mobile and upper-middle class and, in each and every instance, both parents worked. Not because they needed to, but because they wanted the BMW and the nice house and all the trappings of “success”.

Problem is, they spent no time with their kids and failed to recognize (in one instance) that their son was building bombs in the basement! How the f**k do you miss that?

These kids were ignored by their parents, who were so completely consumed by the consumer culture that they failed to notice what was happening in their own homes.

Screw the lifestyle. Your family is always more important. And I think, societally speaking, that we’re about to discover that again. Along with our values.

[Allan from Fallbrook]

Paramount: Amen to that, and well said. Your comments got me to thinking about the interviews with the parents of the Columbine shooters. All were upwardly mobile and upper-middle class and, in each and every instance, both parents worked. Not because they needed to, but because they wanted the BMW and the nice house and all the trappings of “success”.

Problem is, they spent no time with their kids and failed to recognize (in one instance) that their son was building bombs in the basement! How the f**k do you miss that?

These kids were ignored by their parents, who were so completely consumed by the consumer culture that they failed to notice what was happening in their own homes.

Screw the lifestyle. Your family is always more important. And I think, societally speaking, that we’re about to discover that again. Along with our values.

[Allan from Fallbrook]

Paramount: Amen to that, and well said. Your comments got me to thinking about the interviews with the parents of the Columbine shooters. All were upwardly mobile and upper-middle class and, in each and every instance, both parents worked. Not because they needed to, but because they wanted the BMW and the nice house and all the trappings of “success”.

Problem is, they spent no time with their kids and failed to recognize (in one instance) that their son was building bombs in the basement! How the f**k do you miss that?

These kids were ignored by their parents, who were so completely consumed by the consumer culture that they failed to notice what was happening in their own homes.

Screw the lifestyle. Your family is always more important. And I think, societally speaking, that we’re about to discover that again. Along with our values.

[CA renter]

paramount wrote:

And another thing: a good house is one that keeps you and your family safe and warm and is a roof over your head.

If you don’t have 10% down on a 700k house, buy a cheaper house where your down payment is equal to 20%. Or would that house not be good enough for you?

I hear you, paramount, but one of the biggest problems with So Cal is the huge disparity in wealth and income. Back when I was growing up in L.A. during the 70s and 80s, middle-class neighborhoods were the norm. Let me define what I call “middle class”: **safe**, clean neighborhoods where the homes and yards were well-maintained, neighbors watched out for each other, usually one parent stayed home and the other worked in in jobs ranging from mechanic to engineering. The homes would range from 1,300sf to ~2,000sf, and had tile or Formica countertops and regular carpet (no marble floors for us regular folks!).

These days, those neighborhoods are in the minority. You either buy in “the hood” with SFHs filled with multiple families, gang members hanging around in driveways and on street corners, staring people down and making it VERY uncomfortable to let your kids play in the front yard or walk down the street, dirt yards filled with cars, etc…

…OR you’re forced to buy McMansions that have been built as though we are entertaining heads of state with 500sf grand foyers and granite countertops with stainless steel (commercial grade, no doubt!) appliances — for a princely sum of $800K or more.

It’s disgusting, but that’s where we are right now.

Many of us just want a safe, clean neighborhood for our kids. I’m perfectly fine with Formica countertops and linoleum/carpet flooring. We drive very basic cars and don’t wear jewelry or fancy clothing, but we DO want a clean, safe neighborhood with nice neighbors for our family. There is nothing wrong with that. What’s wrong is what people expect you to pay for it.

[CA renter]

paramount wrote:

And another thing: a good house is one that keeps you and your family safe and warm and is a roof over your head.

If you don’t have 10% down on a 700k house, buy a cheaper house where your down payment is equal to 20%. Or would that house not be good enough for you?

I hear you, paramount, but one of the biggest problems with So Cal is the huge disparity in wealth and income. Back when I was growing up in L.A. during the 70s and 80s, middle-class neighborhoods were the norm. Let me define what I call “middle class”: **safe**, clean neighborhoods where the homes and yards were well-maintained, neighbors watched out for each other, usually one parent stayed home and the other worked in in jobs ranging from mechanic to engineering. The homes would range from 1,300sf to ~2,000sf, and had tile or Formica countertops and regular carpet (no marble floors for us regular folks!).

These days, those neighborhoods are in the minority. You either buy in “the hood” with SFHs filled with multiple families, gang members hanging around in driveways and on street corners, staring people down and making it VERY uncomfortable to let your kids play in the front yard or walk down the street, dirt yards filled with cars, etc…

…OR you’re forced to buy McMansions that have been built as though we are entertaining heads of state with 500sf grand foyers and granite countertops with stainless steel (commercial grade, no doubt!) appliances — for a princely sum of $800K or more.

It’s disgusting, but that’s where we are right now.

Many of us just want a safe, clean neighborhood for our kids. I’m perfectly fine with Formica countertops and linoleum/carpet flooring. We drive very basic cars and don’t wear jewelry or fancy clothing, but we DO want a clean, safe neighborhood with nice neighbors for our family. There is nothing wrong with that. What’s wrong is what people expect you to pay for it.

[CA renter]

paramount wrote:

And another thing: a good house is one that keeps you and your family safe and warm and is a roof over your head.

If you don’t have 10% down on a 700k house, buy a cheaper house where your down payment is equal to 20%. Or would that house not be good enough for you?

I hear you, paramount, but one of the biggest problems with So Cal is the huge disparity in wealth and income. Back when I was growing up in L.A. during the 70s and 80s, middle-class neighborhoods were the norm. Let me define what I call “middle class”: **safe**, clean neighborhoods where the homes and yards were well-maintained, neighbors watched out for each other, usually one parent stayed home and the other worked in in jobs ranging from mechanic to engineering. The homes would range from 1,300sf to ~2,000sf, and had tile or Formica countertops and regular carpet (no marble floors for us regular folks!).

These days, those neighborhoods are in the minority. You either buy in “the hood” with SFHs filled with multiple families, gang members hanging around in driveways and on street corners, staring people down and making it VERY uncomfortable to let your kids play in the front yard or walk down the street, dirt yards filled with cars, etc…

…OR you’re forced to buy McMansions that have been built as though we are entertaining heads of state with 500sf grand foyers and granite countertops with stainless steel (commercial grade, no doubt!) appliances — for a princely sum of $800K or more.

It’s disgusting, but that’s where we are right now.

Many of us just want a safe, clean neighborhood for our kids. I’m perfectly fine with Formica countertops and linoleum/carpet flooring. We drive very basic cars and don’t wear jewelry or fancy clothing, but we DO want a clean, safe neighborhood with nice neighbors for our family. There is nothing wrong with that. What’s wrong is what people expect you to pay for it.

[CA renter]

paramount wrote:

And another thing: a good house is one that keeps you and your family safe and warm and is a roof over your head.

If you don’t have 10% down on a 700k house, buy a cheaper house where your down payment is equal to 20%. Or would that house not be good enough for you?

I hear you, paramount, but one of the biggest problems with So Cal is the huge disparity in wealth and income. Back when I was growing up in L.A. during the 70s and 80s, middle-class neighborhoods were the norm. Let me define what I call “middle class”: **safe**, clean neighborhoods where the homes and yards were well-maintained, neighbors watched out for each other, usually one parent stayed home and the other worked in in jobs ranging from mechanic to engineering. The homes would range from 1,300sf to ~2,000sf, and had tile or Formica countertops and regular carpet (no marble floors for us regular folks!).

These days, those neighborhoods are in the minority. You either buy in “the hood” with SFHs filled with multiple families, gang members hanging around in driveways and on street corners, staring people down and making it VERY uncomfortable to let your kids play in the front yard or walk down the street, dirt yards filled with cars, etc…

…OR you’re forced to buy McMansions that have been built as though we are entertaining heads of state with 500sf grand foyers and granite countertops with stainless steel (commercial grade, no doubt!) appliances — for a princely sum of $800K or more.

It’s disgusting, but that’s where we are right now.

Many of us just want a safe, clean neighborhood for our kids. I’m perfectly fine with Formica countertops and linoleum/carpet flooring. We drive very basic cars and don’t wear jewelry or fancy clothing, but we DO want a clean, safe neighborhood with nice neighbors for our family. There is nothing wrong with that. What’s wrong is what people expect you to pay for it.

[Author]

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