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.