Now we are a credit risk… I guess!?

Today’s mortgage and financial institution mess has me more than a little bit irritated.  Besides being absolutely terrible for those who have been caught up in it, the impact of the financial troubles are affecting people that shouldn’t be touched by it at all.  It’s literally affecting everyone, some more directly than others.

Look out if you want to finance anything.

We’ve always played by the rules that were in play when we first started getting credit back in the early 1970s.  We always paid our bills, we never fianced anything that we couldn’t afford — and we saved.

Our credit rating, except when we first tried to borrow, — and then we had no credit rating at all — has always been stellar.  For the last 30 years, we’ve never had any problem at all getting financing for anything.

So it’s a little galling to get a phone call today from the RV dealership telling us that they are having problems getting money from the bank and that they need proof of income.

Good lord!  We’ve already got the motor home sitting in our driveway.  They’ve got our fifth wheel.  The deal is supposed to be done!

We’ve never been late on anything!  — well there was that time in the late 1970s when the electric bill from Bonneville Power fell behind the couch… it was for $55.

Our house is paid off.  Our one credit card is paid off every month.  Karen’s car will be paid off next month.

I guess the rules have changed and now we’re a credit risk.

give me a break!

Comments on this entry are closed.

  • teeni Jul 23, 2008

    Yes, it’s annoying as hell. But they are always going to look out for number one (their own dang selves).

  • Mike Goad Jul 23, 2008

    I don’t blame them for wanting proof of income. Given the current financial mess, I rather expected it. But I expected it before we were told everything was a go. It didn’t expect it when we already had the camper sitting in our driveway 150 miles away from the dealership.

  • Ricardo Bueno Jul 23, 2008

    Now it’s like they’re asking for:

    – An 800+ Credit Score,
    – A 25% loan-to-value,
    – 20% debt-to-income ratio,
    – Bank statements for the last 7 years,
    – and your first born child…

    They pile on the conditions until you damn near don’t qualify or you don’t qualify at all!

  • Mike Goad Jul 23, 2008

    Ricardo – It’s not quite that bad. I think what we are going to be seeing is overkill as the lenders start doing what they should have been doing all along… check to see that the people applying for the loan can really afford it.

    We didn’t get another call again today so I guess what I submitted as proof of income was good enough.

  • Ricardo Bueno Jul 24, 2008

    Mike: I know…I over-exaggerated a little. I meant to 🙂 But I have always said that we’re experiencing a correcting market. What people need to realize is that all of this is a result of us living beyond our means. Now we’re experiencing the side effects…

    Hope underwriting accepts and you get approved!

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