Wednesday, August 12, 2009

Things I have Learned

while going through attempting to buy this house.

1) Most mortgage companies will not even touch the house if the asking amount of the loan is less than $50,000 - it does not matter what type of home it is, how much it is worth, etc. If you want less than $50,000 the mortgage company will likely not touch it.

2) Being debt free, with all bills paid early/on time, time at job/residence, does not count anymore than if you offer the banker a sucker...the part that screws you - the living debt free.

3) EVERYTHING requires a paper trail. This does not mean just receipts, but also canceled checks, money orders, or credit card statements. Paying something with cash and getting a receipt does not count anymore.

4) In order to GET credit one must first HAVE ESTABLISHED credit.

5) If you become divorced and in your divorce decree it states that your ex-spouse is responsibly for such and such debt, but does not take care of that debt, you are still responsible for it, if you take care of such things and try to sue your ex-spouse for the amount you paid to take care of it you must be able to prove without a doubt that it was you indeed who took care of such things and not your ex. Paying in cash does not count, paying in money orders do not count, only if you pay a LAWYER to go through to pay off these things, so as to have proof that you took care of these things, but ex is supposed to take care of it - basically it looks good on the paper, but if the ex is an asshole you're still screwed.

6) Having collateral that is worth more than the loan you're asking for does not mean anything either. OK, it might give you one or two credits in your favor, but not really, unless you have at least a 13 month paper trail on those items of collateral that you've been paying long term on them - again, a cash receipt does not count.

Basically to sum it up, living responsibly, with the idea to not spend more money than is necessary, ie not paying interest or fees, is the best way to screw yourself. The banks and financial institutions all want your money, if you don't spend roughly 5-20% of your yearly income on paying these fees and interest they're not going to do business with you, period - the less money you use from the financial institutions the higher your percentage. Don't believe me? Just think long and hard about it.

Many of these rules and regulations have been put in place over the last year since all the collapse of everything - many people were falsifying information in order to get this loan that they weren't able to responsibly take care of, so foreclosure rates rose, and then blamed it on the mortgage companies, that they made it "too easy" for one to get a loan. Now they've tightened up - TIGHT - making it very annoying/difficult for someone like my husband and myself to be able to even get a piddly $12,000 loan for a house.

No comments:

Post a Comment