<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > I visited a mortgage originator
 

I visited a mortgage originator

February 16th, 2012 at 06:19 am

DW and I will probably be looking in to getting a new mortgage on the house we're currently living in to pay family member toward Mort 2. We're looking at an April time frame to apply for the mortgage.

I thought it would be a good idea to get some pre-approval information. I made a spread sheet detailing our current net worth, our montly obligations, and projections of what our front end and back end DTI ratio would be after the new mortgage.

I took a print out of that spread sheet to a morgage originator yesterday. And boy was that interesting. I consider my situation to be "struggling financially". But it turns out that, as long as I can verify the information I submitted, and both our credit scores are considered good enough, that we will qualify with no problems. In fact the mortgage originator said that anyone with a DTI ratio (with the new mortgage payments calculated in) of any where at or below 45% - yes 45% - would qualify for a new mortgage. I couldn't believe what I was hearing. I wanted to scream "YOU HAVE GOT TO BE KIDDING ME! THAT'S WHAT GOT US INTO THIS TOXIC MORTGAGE BUSINESS TO BEGIN WITH!"

But, she did ask for verification of employment, W-2's and two years of tax returns. So, I guess it's better than the NINJA loan days of the recent past.

BTW, our DTI ratio, with the new loan would be 34%, which I consider to be plenty high.

1 Responses to “I visited a mortgage originator”

  1. PauletteGoddard Says:

    The idea that mortgages are hard to get is a popular belief but mostly untrue. Yes, lenders are cautious but they won't make money denying applications to everybody, and even limiting the approvals to people with under 45% DTI and/or 10% downpayment eliminates the kind of people who were buying real estate in the heady mid2000s and reneging once their ARMs reset. Congratulations on qualifying with no problems!

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 9.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]