The recent credit crisis in America has tightened most lending standards. Gone are the days of "no-doc", "stated income" or "liar loans" where no documentation was required. Looking back, it really is quite amazing that anyone with a pulse could walk into a bank and simply say they made big bucks get a mortgage with absolutely no income verification. A mortgage broker told me she routinely was told by people that they made 10-15 thousand per month. As we all know, there is only a slim portion of the US population making that kind of money. However, in the land of no-doc loans almost everyone was making six figures per year. This is part of the reason for the credit crisis and the housing bubble. People who normally would never have qualified for a normal mortgage because of limited income were able to get no-doc mortgages. These people were generally relying on the housing boom to continue indefinitely and their new homes to sky rocket in price. When Phoenix housing prices crashed so did their fantasy world. Now the major banks no longer offer the risky loan products like no doc loans or negative amortization loans.
Good loans are still available, it is only the risky loans that are gone. If you would like me to refer you to some great mortgage brokers or banks in the Phoenix area, just call me.
Marc Brodeur, DC
REALTOR
www.ThePhoenixExperts.com
Marc@ThePhoenixExperts.com
(602) 692-4288
1-800-300-0263
