The down payment saved up to apply to a Maine home mortgage used to require a twenty five percent down payment.
True Maine homes are way less costly so that amount can seem small to someone used to $400,000 home price areas. House prices with lots of zero places in them that Vacationland for the most part is not.
The norm for a house price in Northern Maine is $71,000 for a sticker median property listing sale cost.
The banking mess caused with escalating foreclosures was in part due to lenders offering 100% home financing.
And in some cases even banks, lending institutions in Maine offering to allow home buyers to finance 105% of the house's value.
Those zero down and low down payment home loan options helped pin prick the housing bubble burst felt nationwide.
Years ago like most things in a small Maine town, it was done pretty much local. We are wired to be self contained, self sufficient before Internets and Interstates. And the local banker made character loans. Studied the house, the borrower and considered lots of factors to determine is this home buyer a good risk with the house he has in mind? Is the bank going to have to foreclose, yank back the title to the place down the road or not? Gut feeling, what you felt in your bones instinct may seem primitive. But it worked.
Foreclosures happen due to death, disease, divorce, disappointment. But the loans on Maine homes that should not have been made happened in Vacationland. Local banks denied the home mortgage and low and behold, an online "exotic lender" offering to back a person the Maine banks shook their heads side to side "no" to in the final analysis.
When local banks all went both thumbs down, extended in the Maine home loan approval process.
The bad news given with a smile, arm around the shoulder as the walk out to the tile floor lobby happened. And the suggestion to come back and see me in a year extended. And this is the laundry list of what needs tinkering with, addressing, removal from your credit report.
When the score was not healthy, the debt ratios were pulling the borrower under like high tide on the Maine coast heading back out to sea.
When you have more money in the game, more skin in the roll of the dice to buy a Maine home, better mortgages are hammered out.
Better, bigger, healthier fishing is what the bank making the loan reasons.
Mortgages sold off on the secondary mortgage market or retained by the local Maine bank entity are made easier. Cause better financial shape candidates to step up to the plate. Banks need to make loans. Good ones.
A piece of the borrower, a sacrifice to save money every day to plop on the counter. To show the world I am ready. I have gone without, scrimped, saved and want this house in Maine. And am not going to give up the keys without a fight because of the committment, sacrifice to get the four walls and a roof.
The seriousness of making sure to make the Maine house payments on time.
Right from the get go. To keep the property taxes paid and insurance coverage current. To not commit waste. Until the mortgage on the Maine home is over, the discharge lien is recorded. The mortgage burning party is well underway in the living room fireplace. With a sigh of relief. Debt over, free and clear happens. That is a good partner for the bank to make loans with... over and over through the borrower's life time.
We got away from the chunk of change to buy a house, the cash outright to purchase a pre owned, used car in Maine.
Want it now, don't want to wait. Just sign here, here and (pointing by the red arrow sticky navigation help) here too.
There, you are now saddled with more debt.
How's that sleeping not so soundly at night working for you?
To go with the cost of living for the essentials like food, transportation, housing, insurance and all the ways you use fuel to heat and get from point A to B.
Could you save up the twenty five percent to get a better loan or a house mortgage at all if that was the only option, flavor?
Rural areas could pull it off, and already do easily. City concrete urban landscapes, not so much.
Prices for the homes are sky high like the buildings that block out the sunlight, cause the dark not so safe shadows.
Only route offered up ahead to take to get your set of house keys to a Maine home that never gets locked could be the gotta save or better keep renting.
Do you save money at all or pretty much live at the level or or just a tad beyond your means?
That is not simple Maine living where we all know you can not have everything going and money saved for the rainy day in the bank.
Or the ability to step out and put a large stack of currency on the table to pretty much have whatever you need. Just not necessarily everything you want.
That's the way things roll in the real Maine. The stuff that the tourist information brochure left out.
Does not always make the final proof approval of lighthouses, Mt Katahdin, moose, potatoes and blueberry field glossy photos.