Most lenders look at the five "Cs" of credit before approving a mortgage.
CHARACTER is a reflection of your stability and willingness to repay credit obligations. Have you used credit before and paid it back on time? Is your application completed accurately and honestly? Have you moved or changed jobs often?
CAPASITY is a look at your earning power, current income, and credit commitments. Can you really afford a loan now?
CAPITAL is your net worth (the difference between what is yours, free and clear, and your debts). This includes an in-depth look at your total financial situation, including the value of your home and other assets.
COLLATERAL is an item of value you own that can be promised to the lender. If you don't repay your loan, the lender has the right to take your collateral. By pledging collateral, you can sometimes get a large loan or lower interest rate - that's because you're more likely to pay back the loan when something you value is at stake, so the lender may be taking a smaller risk.
CONDITIONS include the national and local economic picture. Are there lots of layoffs or are employers hiring more people?
Allyson Foulis 746-5924
Cheryl Leukefeld 701-3978
CHARACTER is a reflection of your stability and willingness to repay credit obligations. Have you used credit before and paid it back on time? Is your application completed accurately and honestly? Have you moved or changed jobs often?
CAPASITY is a look at your earning power, current income, and credit commitments. Can you really afford a loan now?
CAPITAL is your net worth (the difference between what is yours, free and clear, and your debts). This includes an in-depth look at your total financial situation, including the value of your home and other assets.
COLLATERAL is an item of value you own that can be promised to the lender. If you don't repay your loan, the lender has the right to take your collateral. By pledging collateral, you can sometimes get a large loan or lower interest rate - that's because you're more likely to pay back the loan when something you value is at stake, so the lender may be taking a smaller risk.
CONDITIONS include the national and local economic picture. Are there lots of layoffs or are employers hiring more people?
Allyson Foulis 746-5924
Cheryl Leukefeld 701-3978
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