Oh I recall the days of the free money. In fact I will never forget the meeting I had with a mortgage lender when I left a 15 year career with a major financial institutions in the mid west to become a REALTOR in Coeur d’Alene. It went something like this:
Bank, “So I see here you were in investment management and now you want to sell homes in North Idaho”
Me, “Yeah that about it”
Bank, “Will you have any other household income”
Bank, “How much do you think you’ll make each year”
Me, “Don’t know…. but I’d like to qualify for up to $250,000 and I don’t have 20% to put down”
Bank, “We can figure that out and as far as the down we will loan that to you as well. Congratulations your approved”
Now, looking back it was an odd conversation but one that was not unusual. Don’t get me wrong, I was extremely grateful the bank took a chance on me and so far it worked out well for all involved.
But once the financial market fallout occurred banks had not choice but to tighten standards so that it became a very tedious process to get a loan. You could still get them mind you but the process was drawn out and every application went through several phases of underwriting.
Well times may be changing again as this recent article by
Contact me at www.kbennett.com if you have any real estate needs or questions.