people qualifying for new home loans as if they didn’t own first home??

[Anonymous]

I have surprisingly talked to more than a few people recently who basically told their mortgage broker they planned to sell their home, and got the broker to get them pre-approved for new loans that didn’t take their first mortgage into account (i.e. they were pre-approved for the amount they would get if they had the same income and no mortgage payment). * *How on earth are they able to do that?? *I thought they were taking all sorts of precautions against these things because of people doing ‘buy and bail’s.

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Is this just because they are going to turn around and sell the loan to a bigger bank? *I mean…I know in the heat of the sub-prime lending days they were giving people loans they couldn’t totally afford, but it seems like a pretty difficult ‘massaging’ of the numbers to just completely disregard a loan applicants current financial obligations. *I definitely don’t hear about any reputable banks doing this… eh…reputable may be the wrong word for any bank these days…

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