Wells Fargo Names Most of California Severely Distressed

Now my wife and I have been house and loan shopping for a while, as we saw the market plummeting and thought that it would be a good time to jump in, as we intend to live within our means and not buy something that we can’t afford (e.g. either one of us, should the other lose a job etc will be able to cover the mortgage). The thing that I find amusing is that we both have really high FICO scores (not that really means all that much) hers is >790, mine is >760, but the banks are putting such hard restrictions on loans now that some are demanding 5% as a *buy in*, CW mainly, so if you want to put 5% down on a house, you have to come with 10%, as 5% is the buy in. Now I don’t agree with this, and will continue renting if all banks start requiring this for the time being. This is the difficulty right now, the banks don’t want to get burned anymore than they already have, but they are alienating a lot of people who actually *can* afford to buy a home right now, and by putting such tight restrictions will keep a lot of those people from jumping in right now. I am not an economist by any means, I didn’t even graduate from college, but I can read and learn, and know that this is not good for the economy. If you need more information read Mish’s blog, though to be honest he is a deflationista so everything has a negative (or realist some would say) spin.

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