About four years ago we sold our house and moved 1800 miles back to my home state.
The first potential buyers were a young couple who were a) newly married, b) newly in business, and c) newly being approved for a 100 percent loan. Their new business? Selling window blinds to new homeowners or those doing a remodel. Their mortgage company assured them they were good candidates for such a loan.
We turned down their offer. We knew that a) nobody should be approved for a 100 percent loan, b) their new business of selling window blinds was a risky venture, and c) housing prices could go down leaving them owing more than the home was worth. If they needed to sell for any reason, they would be up the proverbial creek without a paddle.
If we knew that, why didn't the mortgage writer???
We sold to a second buyer who had a substantial down payment as well as a long and happy credit history. And he already had a secured loan.
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3 comments:
I think the mortgage writer didn't care. He planned to get his slice of the pie and the sell the mortgage to another bank.
Sheri
You sure would think that they would know things like this, but evidently they don't. Glad you made a good decision.
I still can't believe the greed that's been in the mortgage market. I hope all of those brokers can sleep at night.
It was a very wise move on your part to help out the first potential buyers. Even if they didn't know it.
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