What will the mortgage business be like in the future??
Who will be able to buy a house?
With many would be homebuyers falling behind on various payments, credit ratings across the country will be falling.
So who will be able to buy?
As the world digests the mortgage issues we are facing today, cash, not credit, will be king when it comes to who can purchase a home and who cannot.
What do I mean???
If I am a mortgage company looking at a potential borrower, although I like a high credit rating, I feel even safer if someone is able to come up with a large downpayment.
Gone are the days of 100% or even 110% financing. Hopefully at least.
You have 20% to put down? I will loan you the rest.
You have good credit? Well then you better have at least 10% to put down.
The large downpayments will convince me, the mortgage company, that even if I need to foreclose, I will still be able to get my money out of it.
I can sleep with that.
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