home loans that are surprisingly small
Our two sons have applied for pre approval for a new to them home mortgage over the past couple of years. Our youngest just got back a pre approval for a $300,000 loan for New York City. He makes well into the 6 figures annually as a base pay, and the only debt he has is school loans for graduate and law school. He has been making payments on them for the past 5 years since he graduated.
What is with these impossibly small loans?
I did hear half of a radio interview with financier Zandi who said, if I remember correctly, that banks currently prefer to lend to other institutions where they make more money than to individual home buyers who will have 30 year loans at record low interest rates.
It is a vicious circle. The new home buyer cannot get into the market. The economy's recovery needs home buyers. Any advice?