I have been asked this question often lately and there are many reasons why that for the most part, the average person is unwilling to except. It is much easier to point the finger at someone else and blame them. So let’s go a little outside of the comfort zone and look at a few of the reasons that getting a loan today to purchase a home is difficult.
The fist place to look, and I think we all can agree, is at the banks. The problem here is we only look at the outside and not what is happening inside. Today we are experiencing the worst economic down turn in history, in my opinion. Yes greater then the depression in terms of dollars. Our Government has imposed such heavy regulations on the banks that they can only lend to the best borrowers. People forget that a bank earns most of its income from doing loans. So tell yourself “if Bank’s do not lend money then they do not make money.” So the imposed regulations are hurting the banks just like everyone else. So the Bank’s begin to charge us in other areas such as a monthly bank account fee, higher credit card fees, and etc. much like raising taxes on the citizens of a tax or a country to cover short falls.
The average person is the voice of any community and this voice is not being heard clearly. I have been reviewing residential loan applications for sometime now and I am very surprised to see how much money Teachers, Firemen & Policemen make when compared to the average person. I am not even going to speak about their benefits. We the people elect individuals to represent us when the deals are made with the Teachers, Firemen & Policemen Unions. The problem here is the candidates we elect all take money from the unions to get elected. So ask yourself, who is really representing us “the employer” at the negotiating table? It is no wonder how something like the Bell CA rip-off can happen. The people in Wisconsin are being a greedy as the so called Wall Street Fat Cats and this is why. My own income has been hurt dramatically much like the average person’s income. Why is it these people do not feel that they should not tighten their belts like the rest of us? This is not a Union issue but rather we all share in giving some back.
As for the three most emotional Unions the Teachers, Firemen & Policemen Unions pull at us emotionally the most which should make you very upset. Whenever they need more money then we see commercials with huge class rooms, homes burning and thieves robbing us. We do not like this but it is a sales job much like a used car salesman might try to pull. Policemen take the biggest risk as they do it everyday. Firemen take risk only when they go to a serious call and when compared to their overall work history this ratio is much lower than a Policemen. Teachers are a tuff group to understand and yes it is a difficult job. Bring back the real discipline and much of this nonsense will stop. Yes teachers, I agree that parents do not parent today and as a result kids to not respect Teachers. However, your income is very good when you consider that you only work ¾ of a year. You get all of the perks plus teacher days with no students, are you kidding me? It is a tuff job and if you do not like it do something else. We all have the same ladder to clime.
I am sure you have all heard of the noodle guy. Just a quick recap, this guy believes that he does not need to follow the owner’s business protocol and wants to do what he wants to do at work and share in the profits. Well he has that opportunity to do everything that he wants in our country if he wants to. All he has to do is open his own business and he can do whatever he wants to do. You see, the problem here is he needs to risk his own money to do it and he most likely does not have any money or the know how to pull off such an endeavor. This feeling of entitlement must stop in order to move forward. In other words “you do not get something for nothing.”
We are at the final steps to begin the economic recovery but we have to do it as a group. No one person is any better than the next as everyone Union or non Union must pull his or her own weight. Our Teachers, Firemen, Policemen and Political figures should know better and not striking or walking out in our country’s time of need. You all work for the public and if we have to endure it, then so should you.
I recently spoke to a borrower that had a loan locked, but due to many reasons outside of the lenders control the borrower exhausted the lock and extension periods. So this means that the borrower’s rate is now subject to current market conditions. The borrower does not understand why he can no longer get the lower rate and is unwilling to listen. I tried to show him the recent history of the bond market and explain it to him. This borrower’s unwillingness to educate himself has cost him the loan. The borrower wanted to wait for a lower rate and the market went back up and now he does not qualify due to back end income ratios.
My point in all of this is we all need to take a few minutes and truly understand what it is we are talking about in terms of obtaining a home loan and the details of buying a home. It is so much easier to cry foul and point the finger at someone else than to take the time to understand what it is we are doing. The Wall Street Fat Cat’s could not exist if our own greed did not allow for the Fat Cat’s to exist.