Have you ever slowed down and really looked around at the goings-on of the simplest things around you? I was out this past weekend with my wife and decided to do just that, and some of the things I observed just did not make sense to me. For example, have you ever been in front of a movie theater where young people are trying to get you to see a particular movie that is going to be screened. While that in itself is not strange, have they ever began their approach to ask you to see one of their movies only to suddenly change direction completely and walk away without asking?
This past weekend I was the object of that exact scenario so I decided to question them about it. Their response was just short of alarming: they said it’s because I am too old and that is the reason they completely aborted the original plan in mid-approach. What exactly does that mean? Are they afraid I am going to sleep through the movie because I have been doing that since my early 30's and see no reason to stop now. Am I passed the age of reason because I am eligible for social security? If so, we have a serious problem in Washington.
Well, no need to spend any more of our precious time on incidentals when there are so many stranger things going on. I have recently found that most people think they know the secret to getting a home loan and that the whole process boils down to the money they make. The amazing part of that assumption is that out of the four factors for qualifying, earnings is actually the least important. I still find, however, that most borrowers always lead off their conversations with the fact that they make "way more" than is needed to qualify. Please remember the old saying when trying to understand how decisions in the mortgage industry are made: "Just because you can, doesn't mean you will”.
I cannot tell you how many people with a large income have poor credit. It always makes me wonder what’s going on. Two types of people who shouldn’t ever have bad credit are those with a large excess of earnings over debts and those who own a house with decent equity. Yes, both groups are guilty of having poor credit in numbers too large to be believed, and I am always baffled. While that might lead you to think that credit is the important factor, I would again have to say that it is not so. Credit is either second or third out of the four needed parts. In my judgment, it ranks third.
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.