The SCOOP! Blog by ChangeMyRate.com®

The 4 Cs You Need for a Home Mortgage

April 7th, 2015 7:12 AM by Jackie A. Graves, President

Spring Homebuying Series - 4 Cs You Need for a Home Mortgage

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 cash.

  • 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 payment assistance.

     

    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

Posted by Jackie A. Graves, President on April 7th, 2015 7:12 AM

Archives:

My Favorite Blogs:

Sites That Link to This Blog: