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

To: Lizzie Tudor who wrote (22153)	7/13/2004 1:05:22 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Hard to tell unless one also knows the rest of the couple's financial picture (which is why they have to talk to a lender instead of you or me--<GG>>). Mortgage qualification wouldn't be based only on how much salary income they have. It would be based on how much they owe all their other creditors, what type of other assets they have (preferably liquid ones), and how their monthly expenses on the property would add up, including property tax, insurance, utilities..... From there, the size of a "reasonable" mortgage would also depend on the interest rate, type of mortgage program, and what type of lifestyle these people want. Some people can easily spend more than others on a mortgage if they don't take expensive vacations, buy Rolex watches, eat in fancy restaurants and remodel their homes every year or two. If you're inquiring about a specific couple whom you know and you're wondering how they are affording a house, consider the possibility that they made a large down payment or have a hefty trust fund or inheritance money tucked away somewhere. I recall one couple I was working with who called one day to say that their Aunt Rose had died. I started to express my sympathy, but they quickly said NO! That's a good thing, because they could now look at higher-priced homes without feeling quite as pinched for money. Aunt Rose left a little sum that really helped. (Be nice to your relatives.)