Originally Posted By: billt460
Originally Posted By: Wolf359
So if you have a history of paying your bills on time for the last 10 years, but are paycheck to paycheck,
you're a better credit risk than someone who has a million, but no history. Also banks used automated underwriting systems, so
if your file meets their criteria, it's approved. They can also resell those loans that meet that criteria.
And we all saw just how well that all worked out back in 2008. Paper will never substitute cash. Never has, and never will. That is the problem today. If people can't borrow it, they can't buy it. And I'm not talking just houses either. Most of these clowns can't pull into a gas station and fill their tanks without some kind of credit.
https://www.marketwatch.com/story/most-a...ster-2017-01-12
This is a fact that can't be done away with by a, "good credit score". If a person has cash to back up a loan, it's called collateral. A word that has been lost in todays world of, "creative financing". That has proven to create nothing but problems. And it's worth a lot more than some silly nebulous number printed on a piece of paper. Today people have no money, pure and simple. Most can't even come up with 5% down to buy a home after all the loan fees are paid, and they move in. If the home drops 6% in value, they're wiped out and can't sell for what they owe. And don't forget the 6% commission that comes off the sale price.
We have gotten away from 20% down payments, because idiots today can't save money. And because of it we now have just as volatile of a housing market as we did back before the crash. These banks didn't learn a thing. They just got more comfortable walking on thin ice. Same with the idiots doing the borrowing. They have no more, "skin in the game", now then they did back then.
If people put as much effort into saving money, as they do getting a few bucks back on some silly credit card juggling scam, we wouldn't have these issues. As I said, this has all been built on the bigger idiot theory. The people doing the lending are as or more foolish as those borrowing it. That was a recipe for disaster 10 years ago. And nothing has changed because the people involved are all just as broke now as they were then.
It's a nice rant, but I sold a bunch of houses back in 2008 also and the difference now is that most people have the down payment. Sure FHA is still popular with a 3.5% down payment, but most of my clients typically have 20% or more. Some have cash too, but prefer the mortgage. Back, then there was subprime and option ARMS, all those are basically gone, it was really the subprime market that dragged down the rest of the market.
Basically you refer back to the old days when it was up to the bank manager to size someone up. Now it's just statistics and the probability that a certain percentage will default and bundling up a mix of them to spread the risk around. Don't see any coming banking crisis and the tendency not to loan money on new construction means that there's still more demand than supply. It's always been about supply and demand. Sales aren't anywhere near what they were back before the bubble burst. There's about 325 million people in the US. Sales for 2018 will probably be in the 5.5 million. So that works out to about 1.7% of the population. You can rant and rave about the majority, but it's a very small percentage that's actually buying homes.
Originally Posted By: miden851
im having a hard time to believe there is no fee balance transfer out there these days. I have FICO over 800 and the lowest they can give to me is 2% fee for balance transfer on CC; however, I am interested in cash transfer option only to my checking account and I've never had balance transfers from one loan to another line of credit for example
Yeah, I guess they're out there for 12 months balance transfers. Just search for them.
