As a mortgage professional I have recently spent considerable time defending my occupation. It’s no small wonder that many people have this perception with all the bad press on subprime loans being the evil cause of the mortgage meltdown.



Well let me present another perspective to you. You as a borrower determine what loans you qualify for. Very few mortgage loans by themselves are subprime. It is always the borrower that determines the nature of a prime or subprime loan.





The reason for that conclusion is simple. If you come to my office with a 680 middle credit score and on-time payment history and you listen to my recommendation about buying a house that you can actually afford based on your W2 and paystubs then you get a FHA interest rate for 100% financing.



On the other hand if you come to my office with a 560 middle credit score, several lates on your credit cards and rent or mortgage payment history and you refuse to get a mortgage based on what your actual income reflects.then you my friend are subprime.



As a result of your credit, income and payment history lenders created loan programs that account for the risk that you present to them. YOU are subprime and as a result then you get a loan program that is designed for your needs.



The message that seems to be lost in the media is that many homeowners have poor spending and saving habits which create a vicious cycle of overspending and under-saving. This trend and realization has not been lost on the financial services industry and as a result there have been many financial educational programs unveiled in the last decade in an attempt to turn Americans back to a sense of financial responsibility. Sadly, it seems that those efforts have not met with much success.



Now don’t get me wrong I realize that there are some terrible lenders, predatory loan officers and downright unscrupulous attorney’s that will lie, steal and cheat to get you to sign the papers. However, don’t tell me that you didn’t realize that the five thousand dollars you make a month before taxes is enough to afford a thirty-six hundred a month mortgage payment. What did you think would happen?



So before you badmouth your financial professionals ask yourself these questions.



Am I subprime? Am I able to manage my money responsibly?



If you answered yes to the first question and no to the second question, then spend some time to build up your credit and payment history and learn the financial tools that you need to not be labeled subprime.



But, don’t blame someone else for your mistakes.