April 7th, 2015 7:12 AM by Jackie A. Graves, President
You'd like to buy a home but you're not sure
what mortgage lenders look for in a borrower or whether you could qualify?
Lenders consider the 4 Cs:
Capacity – Your current and future ability to pay back the loan.
Capital – The money and savings that you have on hand plus
investments, properties, and other assets that could be sold fairly quickly for
Collateral – The value of the home that you plan to buy.
Credit – Your record of paying bills and other debts on time.
What about the down
payment – the percentage of the cost of the home that you put down in cash when
you buy it? Although 20 percent is something of a magic number, many homebuyers
put down much less. Freddie Mac's new Home Possible AdvantageSM mortgage, for example, is available to qualified borrowers
with as little as 3 percent down. And a majority of homes qualify for down
To learn more about what
it takes to buy a home, read SVP Chris Boyle's Executive Perspectives.
Read other posts in our Spring Homebuying series.
To view the original
article click here