has market ever been hotter?

[TiltonBB]

Originally Posted by joey2665

I understand the strategy but it is a financial error. It’s pretty easy to be approved for a mortgage when your putting 50-60% down.
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Not necessarily.

Mortgage approvals are based on the debt to income ratio of the applicant. Your credit score and cash flow are most important. That is how all of the loans sold in the secondary market to banks like Bank of America, GMAC, Etc work.

If you put 60% down but have a debt to income ratio in the 60% range there is no way you will get a mortgage.

The guidelines don't care how much you put down or how much you have in the bank. If you put 50% down and have two million in the bank you would not qualify unless your $2 million was invested at a rate of return that would qualify you or you have other sources of income..

[joey2665]

Originally Posted by TiltonBB

Not necessarily.

Mortgage approvals are based on the debt to income ratio of the applicant. Your credit score and cash flow are most important. That is how all of the loans sold in the secondary market to banks like Bank of America, GMAC, Etc work.

If you put 60% down but have a debt to income ratio in the 60% range there is no way you will get a mortgage.

The guidelines don't care how much you put down or how much you have in the bank. If you put 50% down and have two million in the bank you would not qualify unless your $2 million was invested at a rate of return that would qualify you or you have other sources of income..

Your going down a completely different road. All the assumption in the above scenarios are strictly based on cash vs some % of mortgage and assuming approval isn’t an issue.


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[TiltonBB]

Originally Posted by joey2665

Your going down a completely different road. All the assumption in the above scenarios are strictly based on cash vs some % of mortgage and assuming approval isn’t an issue.

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Actually no. Your post said: It’s pretty easy to be approved for a mortgage when your (sic) putting 50-60% down.

My point is that the down payment has nothing to do with the approval. Mortgage approvals are not based on how much you put down. Anything over 20% down payment is subject to the same approval process and that is primarily about credit, debt to income, security of that income, and the value of the subject property.

[joey2665]

Originally Posted by TiltonBB

Actually no. Your post said: It’s pretty easy to be approved for a mortgage when your (sic) putting 50-60% down.

My point is that the down payment has nothing to do with the approval. Mortgage approvals are not based on how much you put down. Anything over 20% down payment is subject to the same approval process and that is primarily about credit, debt to income, security of that income, and the value of the subject property.

Yes it does. Down payment has everything to do with approval. It’s usually the largest debt number in the debt to equity ratio and cash flow ratio


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[Wentworth06]

Loan repayment ability is number one on any loan committee list.
Down payment is number 2
Where down payment came from number 3
What other collateral can we get from you as an abundance of caution
Credit score matters .but lots of wealthy people do not pay on time and have 650 credit.
FDIC.bank auditors are looking at a loan when they review the banks at audit time just like I described.
Homes that show pending and come back on are not always a issue with inspection. I suspect a lot are not qualifying
Like my friend mswego above said a cash offer close ASAP.has worked for me in the past.
If your able have a good line of credit for buying opportunities it really helps in getting a something locked up and closed