We are starting to see a trend of people coming into our offices not satisfied with what their lending institutions have approved them for. One young lady who had a 43,500.00/yr income was approved for a $180,000.00 purchase price by her bank. By simply switching her approval to a lender that insures with Genworth, we sent the pre-approval certificate to her Realtor for a $260,000.00 max purchase price.
This may not be the best idea for all purchasers. We explain to people the dangers of over buying. However, there are instances where this is the best solution, maybe they are a first year nurse or apprentice, their income will increase significantly over the next few years. There are times when one spouse is self employed and does not want his/her name on title. Other incomes that are not claimed are also quite common.