Tell a pre-2008 loan application story

[Chet Donnelly]

Some people may like to do that as its taken out each month. People need to realize that $500 dollars extra in your payment just doesn't go away. Its not your money even though its in your bank account. Some people Just need the extra help for discipline. No shame in that

I agree. But you can easily setup a separate account and have $500 each month automatically deposited into that account. You won't earn much interest, but hey...you can get a few bucks, where you otherwise wouldn't have.

 

[sickmint79]

I don't escrow either. No point in giving the bank money each month interest free, if I don't have to.

on the flip side, i'm not making safe investments myself and making a modest return on that money in the mean time.

at 37 and single my investment strategy has been a learning experience, most of it on the fly at the seat of my pants, and the opposite of risk averse. it hasn't been risk stupid or insane, but it has been let's throw a shit ton of money over here and see if any comes back. fuck yeah! oh fuck no! in the end safe and boring would probably have me in a better place today. my biggest recent bets are still alive and kicking but i really have no idea what is going to happen with them, zero is certainly a possibility !

 

[Pewter-Camaro]

I bought mine at a Very Unique time, Closing on Oct 28 2008. It was after the housing prices initially fell and during the time Banks were closing left and right. Lenders would give loans like candy but only to those with Excellent Credit and would still do the crazy ARM loans but not even look at you if you had middle of the road or worse credit. I bought the townhome for 150K. During the bubble the same place would have sold for 200K+. My loan was FHA, no ARM BS, but had a high interest rate of 6.75%, and only 3K down (basically 0% down). I was only making 38K a year at the time. The day of the closing the Sellers Bank announced it was being bought out which lead to the Lawyers freaking out and doing everything via paper with triplicate copies of everything. It was not easy as I spent a couple years struggling to keep up with payments as I took a pay cut at my job and did work a night job to make ends meet but I always paid my bills on time.

A couple years later my place appraised for 89K with foreclosures dragging the prices to the floor which put me way underwater on the loan. I had excellent credit still and refinanced, I think through one of those government funded programs, with a low interest rate saving me $400 a month. Since then the prices rebounded nicely with several units in the neighborhood selling for 130K-140K so I'm no longer underwater on the loan and have a great interest rate. It was not easy but worked out well and have gotten a couple promotions at work too so I'm getting paid considerably more than I was in 2008 and have been looking at getting a single family house and renting the townhouse to family.

I've been told in todays market I would have never gotten that loan like I did in 2008 so I was lucky as Fuck to get the place.

 

[Pewter-Camaro]

I bought mine at a Very Unique time, Closing on Oct 28 2008. It was after the housing prices initially fell and during the time Banks were closing left and right. Lenders would give loans like candy but only to those with Excellent Credit and would still do the crazy ARM loans but not even look at you if you had middle of the road or worse credit. I bought the townhome for 150K. During the bubble the same place would have sold for 200K+. My loan was FHA, no ARM BS, but had a high interest rate of 6.75%, and only 3K down (basically 0% down). I was only making 38K a year at the time. The day of the closing the Sellers Bank announced it was being bought out which lead to the Lawyers freaking out and doing everything via paper with triplicate copies of everything. It was not easy as I spent a couple years struggling to keep up with payments as I took a pay cut at my job and did work a night job to make ends meet but I always paid my bills on time.

A couple years later my place appraised for 89K with foreclosures dragging the prices to the floor which put me way underwater on the loan. I had excellent credit still and refinanced, I think through one of those government funded programs, with a low interest rate saving me $400 a month. Since then the prices rebounded nicely with several units in the neighborhood selling for 130K-140K so I'm no longer underwater on the loan and have a great interest rate. It was not easy but worked out well and have gotten a couple promotions at work too so I'm getting paid considerably more than I was in 2008 and have been looking at getting a single family house and renting the townhouse to family.

I've been told in todays market I would have never gotten that loan like I did in 2008 so I was lucky as Fuck to get the place.

ohh also have to add I was also approved for a loan up to 200K in 2008 and that was with a $250 a month Car payment on the Camaro on the books as well. I paid the Car loan off just before closing so I would not have to worry about it but still boggles the mind now that I was able to get the loan.

 

[1quick]

because the bills are the debt portion...


bills don't affect net income, or gross income.

taxes do.

Thats not how my stuff was calculated.

I've been pre approved several times and financed a couple they always used gross, once for my first time homebuyers they used gross adjusted to make me fit into the sub 48k bracket you needed to be able to get that loan, this was back in 09 I don't even know if that loan is a thing anymore