When visiting with a Mortgage Consultant, should they take all pieces of financial information?

Visited a consultant and he asked us what price we were looking at vs. telling us our approval price. Is this right? This individual did not let us finish disclosing all accounts but just recommended that our "guess-timation" was good enough...|||In the days before the meltdown, we used to invent an income high enough to cover the amount the borrower needed. The real income did not matter because we'd have to boost it quite a bit anyway. What would happen is someone who wanted to buy a $450,000 house could really only afford a $150,000 house, so we'd have to jack up the income enough to qualify for the bigger loan. Kinda like working backwards.





It sounds like the same thing is happening here. once he knows the price he can back out of that and create an income figure. So you know in a few years you will be in foreclosure too, and you will lose the house and all the money you put into it.





Go someplace else for the mortgage..|||The mortgage consultant should gather ALL of your financial documentation when deciding what your maximum approved qualification price should be.





This consists of what is the max amount of down-payment you are willing to put down on a home, coupled with your fico, Gross yearly earnings, and cash reserves (liquid cash assets).





Obviously he/she might bluntly ask you what price range you are looking for to get a general idea before proceeding. However, they should provide your final approved price based on the information above. I would definitely take your business else where to ensure you don't waste your time and/or the seller's time if for some reason you won't qualify for a home you make an offer on.





-David Wacker|||Given the meltdown, you are the best judge of your own financial situation. Don't exceed 30% of your NET income in your mortgage payment.





In essence, what the mortgage consultant was telling you, it is up to you.|||Buyers perception of an affordable/desired home vs what they can afford...that is why that question came out but obviously your consultant did not explain nor answer all your questions. In our Market, a guesstimation is NOT good enough. they affordablity and pre-qualification process is Black and white, Either you can afford the house or you cant. If you have questions or your consultant is making you ask too many questions.... get a new one who knows what they are doing.








Hope this helps,








Jason