[blahblahblah]

Yeah, it is silly that they ask for all that stuff when in the worst case they could never get it. My guess is that in the good old days of responsible mortgage lending, one’s retirement account balance showed how “serious” the borrower was. If someone who’s trying to purchase a home doesn’t have anything saved for retirement, they’re probably not very responsible. Of course in the last few years anyone that could fog a mirror could get a loan, but I think we’re heading back to the old standards before much longer.

Also there will be the feeling among borrowers that “my retirement is half what it used to be” which will make them (if they’re responsible anyway) a bit reticent about stretching to purchase a home.

[blahblahblah]

Yeah, it is silly that they ask for all that stuff when in the worst case they could never get it. My guess is that in the good old days of responsible mortgage lending, one’s retirement account balance showed how “serious” the borrower was. If someone who’s trying to purchase a home doesn’t have anything saved for retirement, they’re probably not very responsible. Of course in the last few years anyone that could fog a mirror could get a loan, but I think we’re heading back to the old standards before much longer.

Also there will be the feeling among borrowers that “my retirement is half what it used to be” which will make them (if they’re responsible anyway) a bit reticent about stretching to purchase a home.

[blahblahblah]

Sorry to be so direct, CONCHO, but when I saw this I realized that even some fellow Piggs have more education ahead of them.

I didn’t mean that people were borrowing against their retirement savings, I was just referring to the fact that borrowers’ balance sheets have been drastically reduced. When you apply for a home loan, you disclose all of your assets and debts, including your 401K/IRAs, etc… Your lender will use this value, along with your income and credit history, in determining how much to loan you. The buyer who a year ago had a $300K 401K now has a $175K 401K, so lenders will not be willing to lend him as much. He’s not borrowing against those savings, but the lender is using that amount in determining how much he qualifies for. I totally agree that you shouldn’t borrow (much anyway) against your retirement savings to purchase a home.

[blahblahblah]

Sorry to be so direct, CONCHO, but when I saw this I realized that even some fellow Piggs have more education ahead of them.

I didn’t mean that people were borrowing against their retirement savings, I was just referring to the fact that borrowers’ balance sheets have been drastically reduced. When you apply for a home loan, you disclose all of your assets and debts, including your 401K/IRAs, etc… Your lender will use this value, along with your income and credit history, in determining how much to loan you. The buyer who a year ago had a $300K 401K now has a $175K 401K, so lenders will not be willing to lend him as much. He’s not borrowing against those savings, but the lender is using that amount in determining how much he qualifies for. I totally agree that you shouldn’t borrow (much anyway) against your retirement savings to purchase a home.

[blahblahblah]

Sorry to be so direct, CONCHO, but when I saw this I realized that even some fellow Piggs have more education ahead of them.

I didn’t mean that people were borrowing against their retirement savings, I was just referring to the fact that borrowers’ balance sheets have been drastically reduced. When you apply for a home loan, you disclose all of your assets and debts, including your 401K/IRAs, etc… Your lender will use this value, along with your income and credit history, in determining how much to loan you. The buyer who a year ago had a $300K 401K now has a $175K 401K, so lenders will not be willing to lend him as much. He’s not borrowing against those savings, but the lender is using that amount in determining how much he qualifies for. I totally agree that you shouldn’t borrow (much anyway) against your retirement savings to purchase a home.

[blahblahblah]

Sorry to be so direct, CONCHO, but when I saw this I realized that even some fellow Piggs have more education ahead of them.

I didn’t mean that people were borrowing against their retirement savings, I was just referring to the fact that borrowers’ balance sheets have been drastically reduced. When you apply for a home loan, you disclose all of your assets and debts, including your 401K/IRAs, etc… Your lender will use this value, along with your income and credit history, in determining how much to loan you. The buyer who a year ago had a $300K 401K now has a $175K 401K, so lenders will not be willing to lend him as much. He’s not borrowing against those savings, but the lender is using that amount in determining how much he qualifies for. I totally agree that you shouldn’t borrow (much anyway) against your retirement savings to purchase a home.

[blahblahblah]

Sorry to be so direct, CONCHO, but when I saw this I realized that even some fellow Piggs have more education ahead of them.

I didn’t mean that people were borrowing against their retirement savings, I was just referring to the fact that borrowers’ balance sheets have been drastically reduced. When you apply for a home loan, you disclose all of your assets and debts, including your 401K/IRAs, etc… Your lender will use this value, along with your income and credit history, in determining how much to loan you. The buyer who a year ago had a $300K 401K now has a $175K 401K, so lenders will not be willing to lend him as much. He’s not borrowing against those savings, but the lender is using that amount in determining how much he qualifies for. I totally agree that you shouldn’t borrow (much anyway) against your retirement savings to purchase a home.

[blahblahblah]

Also, don’t forget that many of the financial geniuses (I unfortunately must include myself in this group) who have been waiting to purchase a home have had their down payments reduced because they had some portion of it in stocks. Even if they didn’t have any of their down payment in stocks, they probably had a lot of their retirement portfolio in stocks and that value is now much less. When lenders look at these borrowers balance sheets, they will be hesitant to lend as much as they would have before because they have fewer assets now.

[blahblahblah]

Also, don’t forget that many of the financial geniuses (I unfortunately must include myself in this group) who have been waiting to purchase a home have had their down payments reduced because they had some portion of it in stocks. Even if they didn’t have any of their down payment in stocks, they probably had a lot of their retirement portfolio in stocks and that value is now much less. When lenders look at these borrowers balance sheets, they will be hesitant to lend as much as they would have before because they have fewer assets now.

[blahblahblah]

Also, don’t forget that many of the financial geniuses (I unfortunately must include myself in this group) who have been waiting to purchase a home have had their down payments reduced because they had some portion of it in stocks. Even if they didn’t have any of their down payment in stocks, they probably had a lot of their retirement portfolio in stocks and that value is now much less. When lenders look at these borrowers balance sheets, they will be hesitant to lend as much as they would have before because they have fewer assets now.

[blahblahblah]

Also, don’t forget that many of the financial geniuses (I unfortunately must include myself in this group) who have been waiting to purchase a home have had their down payments reduced because they had some portion of it in stocks. Even if they didn’t have any of their down payment in stocks, they probably had a lot of their retirement portfolio in stocks and that value is now much less. When lenders look at these borrowers balance sheets, they will be hesitant to lend as much as they would have before because they have fewer assets now.

[blahblahblah]

Also, don’t forget that many of the financial geniuses (I unfortunately must include myself in this group) who have been waiting to purchase a home have had their down payments reduced because they had some portion of it in stocks. Even if they didn’t have any of their down payment in stocks, they probably had a lot of their retirement portfolio in stocks and that value is now much less. When lenders look at these borrowers balance sheets, they will be hesitant to lend as much as they would have before because they have fewer assets now.

[blahblahblah]

If at all possible I would get out of IT permanently – I know that’s easier said than done but in the long run it’s probably the smart move.

What would you recommend as a new career for those folks?

[blahblahblah]

If at all possible I would get out of IT permanently – I know that’s easier said than done but in the long run it’s probably the smart move.

What would you recommend as a new career for those folks?

[blahblahblah]

If at all possible I would get out of IT permanently – I know that’s easier said than done but in the long run it’s probably the smart move.

What would you recommend as a new career for those folks?

[Author]

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