There’s a story in the Pittsburgh Tribune-Review today that got me thinking.
It’s about the so-called “mortgage crisis” that’s going on.
Credit scores, larger down payments and income and asset verification are among the realities facing homebuyers in the Pittsburgh area as lenders comply with more stringent guidelines — a result of the mortgage/housing crisis that hit the nation last summer.
So-called subprime loans, the kind that have been available to people with poor or bad credit — and blamed for exacerbating the crisis — are either scarce or nonexistent, here and elsewhere.
–(Taken from the story)
If people have poor credit, why in the world do they need to be homeowners?
If a family has poor credit, there’s probably a reason for them to try to buy a house. Either reckless spending, not enough income, huge medical bills, whatever–something caused their credit to be bad.
A mortgage company should NOT approve people of these loans, especially subprime loans.
Those people already present a credit risk, so why give them a loan? It won’t end well for most borrowers.
The article goes on to tell the story of a few people who recently bought homes. They had to put 3 percent down. Last year, with their credit rating, they could have bought a home with no money down.
Three whole percent down? Wowie.
If people have no money to put down on a home, then they shouldn’t try to buy it. And, mortgage companies shouldn’t help them buy that house.
Not everyone needs to own a home. Just because a person thinks they should live in a house doesn’t mean they should.
You can rent a house or rent an apartment.
Be a renter, cut your spending, clean up your credit, and save up for a sizable down payment. Isn’t that what people did way back when?
Though my husband and I have excellent credit and a decent income, we don’t have anything saved up for a house. We wouldn’t dream of trying to buy one now, and no company in their right mind would give us a mortgage.
We’ll rent our apartment for awhile, save money, and buy a house we can afford on down the road. Check out our plan on how we’ll do this.
What do you think of this “mortgage crisis”?