I thought I would never in a million years write a post like this one but in order to get a construction loan or any type of home mortgage loan nowadays you need to have plenty of liquid assets, an excellent credit score and a high loan to value due to declining home values.

Do you remember the old adage where a person would ask the banker if they could obtain a loan for whatever reason and the banker would ask them “if they had the amount of money that they needed in their personal bank account”. The person would say “well if I had the money I would’nt need the loan”. Well that lenders philosophy is back and its going to be a serious problem for many new home buyers.

The lending world went form one extreme to another, “easy money” to “hard to get money”. The extreme is missing one key and important factor and that is the all important and needed “common sense factor”.

If this key lending factor is not added into the home loan and construction loan industry fast then this economy is going to fall harder than anyone is imagining. As a matter of fact this key factor “common sense lending” has always been missing in the lending industry. As a double matter of fact we need “common sense” added into every facet of the American way including our great planet earth.

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