Getting a mortgage used to be as easy as choosing the right color paint for a new home. Don’t have stellar credit? No problem. No verified income? Step
right over here. High debt-to-income ratio? Sign on the dotted line anyway.“Two years ago, we had a meeting where a mortgage broker said, ‘If you have pulse, I can get you a mortgage.’ ” said Klara Madlin, the president of the Manhattan Association of Realtors and owner of Klara Madlin Real Estate. “And I thought, ‘We’re in trouble.’ ”Most people have heard about foreclosures’ becoming more common because borrowers cannot pay the escalating rates on their mortgages. But what about those looking to get a mortgage now, either as a first-time buyer or someone hoping to sell a place and move on? What challenges face them? Many.
By Alina Tugend, June 1, 2008 NYT

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