Quote:
Originally Posted by tony404
I think if a lender told people they could afford something they believed it. I find the whole they are giving mortgages away like candy hard to believe. I bought my condo during the boom and for a small mortgage less than the value of the condo. They gave me a upper rectal.Now I dont know if it was because I told them fixed rate or nothing but it was a bunch work to get one and I dont have bad credit.
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When I bought my first house, I was amazed. yes, they crawled up my ass, but I was preapproved for an amount I couldn't possibly afford.
conventional wisdom is your mortgage payment should be about 1 week's pay. If you're young and expect your income to increase as your career progresses you might sneak up toward 2 weeks pay....never more. I was approved for an amount that would've barely left me enough money left over to eat Ramen Noodles.
I was wise enough not to take it and I bought something that was much less than even what I could easily afford. I sleep well at night as a result.
The approval process was strict, it was the amount they were willing to approve you for, especially with ARMs, that was jacked up.
Right now the credit market is pretty dry. It's not going to be easy to get a lone without good credit. And even then you'll do best at a small local bank.