With every cloud comes a silver lining. I always heard the saying growing up and never seemed to understand its true meaning. While taking a microeconomics class we dug deep into this topic. That’s when I was able to wrap my head around its true definition.
I feel as if the economy crash a couple years was bound to happen. Our morals were out the window for a few dollars. Everyone from the buyers to the sellers were jeopardizing significant values to make sells complete. I feel as if we could only go up at that point; but after we got over the horrible hump. We would be able rise into a more wealthy economy by learning from mistakes such as quality standards, making bad loans, loss of sight in the underwriting process, and aggressive financing. …show more content…
Making bad loans seemed right at the moment to benefit both parties in the home buying experience. The seller was making a commissioned sell and the buyer was getting a home that they didn’t deserve. Our falsely positive input created a terrible output. Faulty appraisals were being forfeited to create a sell for loan officers. This created problems such as approving people for homes with damages. Some damages, that the homeowner couldn’t afford to fix. High interest rates and bad loan contracts affected homeowners in such a way, that contracts that they were into or trying to get were just not …show more content…
The mistakes we all made are a part of history. We cannot erase them but we can surely learn from them. We now know, to create successful loans, we have to do major work in the research department. We must research applicant’s credit history, see the desire to make payments on time, and compare debt to credit ratio. The factors to get loans approved have to be different. A good input for a good output. Yes it will be hard but anything worth having is worth working hard for. The loan officer and applicant will have to put in the necessary labor to make beneficial loans. Getting individuals in homes at prices they can afford and only giving loans for reasonable amounts allows mortgage companies to create great opportunities for individuals trying to purchase homes. Education needs to be enforced of the tax benefit of ownership and the equity that comes with home loans. As long as the homeowner can see some benefits, they will be more willing to stay in good standing with the bank and loan
I feel as if the economy crash a couple years was bound to happen. Our morals were out the window for a few dollars. Everyone from the buyers to the sellers were jeopardizing significant values to make sells complete. I feel as if we could only go up at that point; but after we got over the horrible hump. We would be able rise into a more wealthy economy by learning from mistakes such as quality standards, making bad loans, loss of sight in the underwriting process, and aggressive financing. …show more content…
Making bad loans seemed right at the moment to benefit both parties in the home buying experience. The seller was making a commissioned sell and the buyer was getting a home that they didn’t deserve. Our falsely positive input created a terrible output. Faulty appraisals were being forfeited to create a sell for loan officers. This created problems such as approving people for homes with damages. Some damages, that the homeowner couldn’t afford to fix. High interest rates and bad loan contracts affected homeowners in such a way, that contracts that they were into or trying to get were just not …show more content…
The mistakes we all made are a part of history. We cannot erase them but we can surely learn from them. We now know, to create successful loans, we have to do major work in the research department. We must research applicant’s credit history, see the desire to make payments on time, and compare debt to credit ratio. The factors to get loans approved have to be different. A good input for a good output. Yes it will be hard but anything worth having is worth working hard for. The loan officer and applicant will have to put in the necessary labor to make beneficial loans. Getting individuals in homes at prices they can afford and only giving loans for reasonable amounts allows mortgage companies to create great opportunities for individuals trying to purchase homes. Education needs to be enforced of the tax benefit of ownership and the equity that comes with home loans. As long as the homeowner can see some benefits, they will be more willing to stay in good standing with the bank and loan