Sep
03
why was my brother turned down suddenly for a home loan?
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IMy brotherwas pre-approved for a homeloan. His credit score is 680. He has a great job. His debt/income ratio is great. He has no bankruptcies. When he found a home to buy, all of a sudden, he needed a co-signer, or 20 percent down. He’s never needed a co signer for anything. He has been a homeowner for 25 years. He’s never defaulted on a loan. Should he go somewhere else? Does this sound strange to you?
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8 Comments
September 4th, 2009 at 3:26 am
It does not sound strange at all. With the current market conditions, the bank’s top concern is the value of the house. Second concern is the current employment stability in the U.S. The asking of 20% is now commonplace.
Welcome to a new market.
September 5th, 2009 at 10:35 pm
Whatever lender he’s working with has probably changed their criteria and now want 20% down. He might want to look into an FHA loan instead of a conventional one.
September 6th, 2009 at 9:54 am
Not strange at all. These companies are now overreacting to the bad loans they often lied on and gave out to total idiots. This now ruins it for those who have good histories…
September 9th, 2009 at 5:48 am
No.
Banks are going back to the old rules, which they should have been using all along.
Although 20% seems a bit high — is he refusing to pay for PMI? Is he trying to by a townhouse or condo? Is the appraisal lower than the offer price? Are you in CA, FL, or NV? Is the salesprice of the home more than (his gross income minus debt) times three?
Those are the reasons I can think of off the top of my head for a bank playing hardball with someone who has a good credit history.
September 12th, 2009 at 12:18 pm
These days, almost no one can get a mortgage without at least 20% down. Your brother is not alone.
September 13th, 2009 at 8:51 am
I totally agree with the abovve individuals. The market is pretty bad right nowso the banks want a little “cushion” by having that 20% down payment.
September 14th, 2009 at 11:00 am
That is definately strange. Even with the state of the market banks are still issuing mortgages. I just got one in June and the change I noticed is banks moved from 0% down to now 5% down. He should shop elsewhere and FHA is the best way to go.
I’d think though since he is a previous homeowner and does all other things by the book as far as credit goes, he should definately have a higher score than the 680. Something does not add up so I’d check into why his score in not in 700s. Did he open any new accounts after the preapproval?
September 17th, 2009 at 3:00 pm
My Name is Mrs Rita Morris i am from Ireland,i think the answer to your loan question is clear, there are so meny fake loan lenders out there and one has to be very carful, i have been scammed of euro 1200 befor untill a friend link me up with a loan company called skyloan fime they help me and i clear off my debt, they grant loan 2% intrest rate and even if you have a bad credit and low income they still offer their service to you, they grant loan to international companies and private individaul even with your bad credit, i know they are the right company you should contact for help.
here is their email address
just tell them that Mrs Rita Morris refer you to them