Wayne Boatwright wrote:

> That's for sure. When we were planning on buying our present home nearly
> two years ago, we were told by the lender that we qualified for more than
> double the amount that we felt we could reasonably afford. We went with
> the amount we felt comfortable with, and insisted on a 30 fixed rate
> mortgage. Doing anything else would have been foolish and would have put
> us at the very risk that many people are facing now. We have refi'd once
> since then, and are planning to do so in the near future as rates have
> continued to drop in our area.

We bought this house 16 months ago and we applied for our loan online.
Countryside approved the loan for the amount we requested, and they
asked for zero paperwork (we were both self-employed). Then the loan
officer telephoned us, letting us know that we could get a home loan for
up to 600K. Egads, that would be a whopper of a house, here in the
Louisiana where homes are dirt cheap.

He continued urging my husband into buying a more expensive home, so we
would, "Live in a better neighborhood... the quality of schools are
better.. you will have less crime... make your family proud, etc."

Thanks, but no thanks. We bought the house we wanted, for the amount we
were willing to spend. My husband wondered, if a younger, more
inexperienced couple who were raising a family would have fallen for his
hard sell techniques, especially since he mentioned a better quality of
schools. If you combine a loan officer like him, with a real estate
agent who is trying to upsell you into a house you can not afford, I
can see how problems can arise.

It is buyer beware, but I remember the days when I had to come up with
tax returns, profit & loss statements, etc. to qualify for a loan. Not
anymore. Now I can see why we are having problems.

Becca