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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Leland Charon who wrote (6177)	10/21/2002 12:44:23 AM
From: Elroy Jetson	Respond to of 306849

Normally, not having credit with at least three different lenders is viewed negatively. I suppose the ideal is a person with three credit cards with low limits - but not too low. You should try to be more like Goldilocks' porridge.

To: Leland Charon who wrote (6177)	10/21/2002 8:56:28 AM
From: Tradelite	Respond to of 306849

Leland, from what I understand about having too many credit cards/too much available credit is that underwriters believe this creates too much risk---at any time, the borrower could run out and charge up a huge debt. Actually, some people have been known to do this right before going to settlement or right after going to settlement on a new home. A few others have been known to get cold feet about buying a home, so right before the closing, they simply go out a buy a bunch of stuff, thereby disqualifying themselves for their already approved loan. This is one way to get out of a transaction without forfeiting earnest money, in some cases.