well than i guess my argument is with her.....Originally Posted by civic95
I bet she owns a home though... She probably got burned on a bad investment and a bad loan... who knows, but her article is terribly innacurate buddy!
well than i guess my argument is with her.....
I bet she owns a home though... She probably got burned on a bad investment and a bad loan... who knows, but her article is terribly innacurate buddy!
Latino Delegation Social and Events Coordinator
I think you guys took this whole post the wrong way. I really don't think she is against buying. You guys are used to the closing process, and are concentrating too much about that. Of course the payment is broken down at closing. She is trying to notify people of the extra 30-40% of cost beyond principal and intrest, before they even start the looking for a home process. I really don't think she is trying to make the mortgage industry look bad, or sneeky.
In other words if your maximum affordable rent is $1100. Then you need to factor in that other percentage, subract it from the $1100 to find out how much house you can really afford.
I dont think we are interpreting it the wrong way.. she is just wrong about all her points... Her factors are way too high and she really does not know what she is talking about..
So its not us... it is her and people like you who think a yahoo link sheds life on reality! your wrong shes wrong and anyone else who beleives her is wrong! thats all... have a nice day
Latino Delegation Social and Events Coordinator
So your saying Propery Taxes, PMI, Insurance, and repairs won't equate to a possible 40% more than your Principal and Intrest?
Let me ask you something:
Why would "dry" weight of a car matter since it will NEVER run "dry"?
Reason I use that analogy is because we use PITI to QUALIFY, so why would P&I ALONE matter in the first place? We HAVE to use PITI, unless you waive escrows. Even then in most cases the UW will still factor in the amount to make sure you still qualify. So the only reasons to advertise P&I ONLY are: A: you are trying to mislead someone; or B: those are the only figures that matter to the prospective person. I see no other reason(s) that matter IMO.
So when we say, "You qualify for $_________ price house and your payment will be $_________/mo...".....We ARE talking about PITI, not just P&I.
This is why this lady is pissing me off because she assumes EVERYBODY is unscrupulous and tries to mislead their customer. That is NOT true.
Again, I don't think this is targeting lenders at all. This is just info for people before they ever visit a lender. Things some people would never think about. The smart thing to do is go to a lender first, before ever looking at a house, and see what you can get approved for, run numbers. Then, try not to buy a house at the top of your approved price range because that is just based off debt to income ratios.
Unfortunately too many people find the house first, then get a loan. And it's possible to get approved for more than you can afford.
Listen, I don't want to get in a big debate with you because it's not your article. But remember this: Who is it that LENDS money to people buying houses??? LENDERS. What am I? A LENDER. So therefore, I take what she is saying, which is false, seriously because it affects ME. So when she insinuates that people are only quoted P&I and are not told about MI and not told about repairs.....WHO do you think she is talking about? Firemen? Come on, you're smarter than that. She's pointing the finger right at me.
You are right about getting pre-approved before buying. It's the smartest thing to do.
dude... you got this of a non-realty , non-mortgage website???? This woman is not qualified to give this kind of information out.. bottom line..
I have 8 years experience in this field, own my own mortgage company and my entire family has been in the business for over 40 years.. I grew up in the business.....
now Jaimee.. Also has been in the business for several years as is his family.. he also owns his own company...
we are not some tom dick and harry just sitting here arguing with you for shits and giggles..
you are wrong here man.. we are trying to make that clear to everyone who might read this thread, not just you....... your wrong... if there is an expert in this field it is jaimee and I not this lady who writes columns for yahoo..
So stand your ground.. argue all you want.. but at the end of the day, its not the mortgage guy that misleads the public it is idiots like the person who wrote that article..
Im done arguing! have a good one man..
Latino Delegation Social and Events Coordinator
To be honest, that's the only time you have a binding contract when it comes to financing a home, at closing.
She is trying to notify people of the extra 30-40% of cost beyond principal and intrest, before they even start the looking for a home process. I really don't think she is trying to make the mortgage industry look bad, or sneeky.
This is where you and I disagree.
She is not "notifying" anyone because she is using incorrect and inflated information. If she were accurate, I wouldn't have anything to say. But as we've shown here, she is in fact inaccurate about lots of things. Not some, but just about everything. So, when you pass off as an "expert" on a subject then people will tend to believe, as you have, that what she is spouting is true, when in reality it isn't. THAT right there hurts MY business directly and therefore I have a problem with it.
What neither you nor her are taking into consideration is that WE DO TAKE INTO CONSIDERATION P-I-T-I when quoting a customer ANYTHING. Some of these ying yang dumbasses that advertise shit, just like this lady, DON'T. But they are the minority, not the majority.In other words if your maximum affordable rent is $1100. Then you need to factor in that other percentage, subract it from the $1100 to find out how much house you can really afford.
Again, I challenge you or anyone else to ask any of MY previous customers if at ANY point in the transaction they DIDN'T know their ENTIRE payment and did it ever change at the table.......Ask any ONE of them. I tell my customers UPFRONT what their payment is going to be (sometimes we have estimate) and it ALWAYS includes the taxes and insurance(s) in there. ALWAYS.
So for her to make such a big deal, like she discovered the wheel all of a sudden, and act like this is some surprise to people......it ISN'T at all....IF they use the right Lender. If they go to these assholes that advertise on the radio and TV with their false ads, they deserve what they get for not doing their research because there are infinitely better companies out there.
What someone "qualifies" for has little to do with escrows and substantially more to do with themselves. I see people everyday with 500 credit scores, self-employed filing NO income taxes, no money in the bank, YET they want a NO DOC loan with 0% down and 0% interest......Where do you think these unrealistic expectations are coming from???? From ying yangs like this lady that are putting out FALSE information and people are believing her crap. Then they come to people like me and expect the undeliverable. This is why I have issues with FALSE or MISLEADING info like this. Not only does she scare people away, but she also makes my job 2x as hard.
Maybe one day I'll make a post about what the TRUTH is about buying and owning your own home. I'm willing to bet there will be LOTS of people that will suddenly have an epiphany.
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