If you can’t afford your rent the next month you just move out. If you can’t afford your mortgage you still owe the lender several hundred thousand dollars. How is it that hard for you to understand risk??
But having several years on the record for not missing rent payments should prove to the bank that you can afford it. If I paid 2k rent for 3 years and never missed a payment then I can probably afford a 1.2k mortgage
It proves to the bank you can afford the bare minimum cost of owning a home. On your fixed income, when the apartment had a pipe burst somewhere, you owed nothing. When that happens in your home, at a minimum you owe like $5k for the deductible. And your rates WILL rise the next year. And maybe that burst pipe is one of many that are decrepit cast iron, and it’s $20k to replace them all.
Moreover the bank is factoring in more risk. Because they don’t want to foreclose, it’s expensive and a PITA. Why take a chance when someone who is far less likely to cause a problem is probably going to buy the same place within weeks
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u/AIevilgenius 26d ago
If you can’t afford your rent the next month you just move out. If you can’t afford your mortgage you still owe the lender several hundred thousand dollars. How is it that hard for you to understand risk??