Why So Many People Don’t Qualify Right Now
Posted on | January 15, 2009 | No Comments
I just talked to a couple of other people in the mortgage business around the country and they are experiencing the same thing lenders are experiencing here in Middle Tennessee; many people no longer qualify for a loan. I have taken refinance questions and applications over the last few months and there are people who no longer qualify to refinance their current properties, even though it would save them up to $400 per month AND they have never missed a payment on their house or other bills. The bottom line is many families have been forced to borrow money to survive over the past few years and their debt to income is now too high.
In one family the wife has gone back to school and also working but between the student loans and the reduced hours she is now getting on the job, they can no longer qualify. I have another gentlemen who started a business, an again has never missed a payment on anything but because he had to finance his business with personal credit cards, his debt to income is too high to qualify.
These people are not freeloaders or behind on payments on any kind and have outstanding credit. It’s just simply by taking the initiative to better themselves and pay their bills they are being punished by a system that is broken and won’t be fixed for quite awhile. In the old days their local bank would lend them money based on their good reputation and business practice. Today, if you don’t fit into a score or a ratio you are just out of luck. Maybe that’s one reason we ‘re in this mess to begin with.
Comments
Leave a Reply