Saturday, September 14, 2013

The state of Mortgage lending today....

Well unfortunately I have found out how much 'fun' it is to try and get a mortgage in 'today's world'.

I have been looking for something since Jen and the boys have moved down.  We had optimistic hopes that we could find something doable at a reasonable price....

One of the first things we found out is just how much the mortgage industry has changed since the crash of 2008.

They have pumped how much money into our 'economy' with QE and all of the other programs that our wonderful administration came up with so banks will lend.  But the banks have cranked down hard on the credit scores so they aren't loaning the money they received.  It's a lose lose situation for everyone it seems...except for the big banks that is that received all that money.

One of the first changes was that you have to have a 'paper trail' for any cash that you put down.  You can't just slap down cash you have to show where it came from all thanks to our wonderful Federal government.  They also have to do a more extensive 'background check' to see your past history.  All of this mandated by Homeland Security to 'track' terrorists.

Honestly, do you think terrorists are going to use a mortgage company to buy a home or property when they are trying to keep a low profile?  They are more than likely to do a cash purchase 'under the table' to where it would be untraceable.  Do they think we are dumb?

All our wonderful 'Federal government' did was elicit more control over our lives.  What is it to them where I get my money?  Why should they be in the middle of a written contract made between me and the lender I have chosen?  What and how I live my life is not their problem, I should be able to do it how I please.

One of our options is to go back to Texas where the boys and Jennifer lived.  They have a nice property with everything a person would need on it.  We were using this as a 'fallback' option in case of a SHTF scenario.

We did get qualified on a manufactured home.  The problem is that the payment was twice what we anticipated with an outrageous interest rate to boot.  The other problem was that it was only a 20 year mortgage since its not a standard home.  Taking that into consideration we decided we didn't want to be up to our ears in debt like that.  We both kinda like the idea of not having a huge house payment so we can continue to get the small things we need to be self sufficient.

So right now we are just looking at any other options and see where life will lead us.

1 comment:

  1. Be wary about cash. The IRS gets reports from the banks when people do anything that triggers a "flag." Any deposit over $10,000 gets reported, for instance. I wouldn't be at all surprised if the bank didn't turn over a person's financial info on their application to the IRS so the IRS could check to see if cash was declared. The banks and the federal government work so hand in hand now that you can't tell where one starts and the other begins.