When you are ready to buy a house and you need to get a mortgage, it is important to understand the 4 main factors lenders consider when determining if they will approve you for a mortgage. This article from Redfin does a great job of identifying and explaining the 4 C's of credit you need to understand about your financial situation. Enjoy the article and give me a call if you have questions or if you need help with any of your real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 - Cell
indyhomepro@outlook.com
Source: Redfin | Repost Houterloot 5/11/2022 -
There’s no doubt that one of the most important and often daunting steps in the homebuying process is qualifying for a mortgage. By understanding what lenders look for – the four C’s of credit – you can set yourself up for success and a smooth-sailing mortgage underwriting process. So, if you’re currently renting an apartment in San Francisco, looking at homes for sale in Austin, TX, or checking out another city where your money can go further, see how the four C’s of credit impacts the size of mortgage you can qualify for.
What are the four C’s of credit?
Credit: Do you have a track record of consistently making payments on time?
Capacity: Are you able to pay back the loan?
Capital: Do you have assets, cash reserves, or other funds?
Collateral: What property or possessions can you pledge as security against the loan?
While different lenders may have their own specific qualifications for securing a home loan, there are four main factors that they’ll review and analyze during the mortgage underwriting process. These main factors are credit, capacity, capital, and collateral.
Let’s dive deeper into each of the four C’s of credit.
Read the full article...
