To determine if
a borrower is an acceptable risk or not, the bank has
Capital - Does the borrower have money for the down payment or for reserves?
Collateral - Is the property worth the money? Just as important, in the event of default, is it a property that can be sold with ease?
Capacity - Does the borrower earn a good income? Can his or her current level of income handle all of the bills along with a new mortgage payment?
Credit - What is the borrower’s track record on paying his obligations and commitments? This is reported by the credit bureaus in the form of a credit score.
To satisfy the 4 C’s, the lender requests information from other parties in order to substantiate the claims made by the borrower. For example, information may be requested from the employer, the bank in which the borrower does business, an appraiser, credit bureaus, etc.
One of the keys to obtaining an excellent interest loan rate is being able to document income, assets, and credit history. Unfortunately, some people such as waitstaff, performers, trades people, and those self-employed frequently cannot provide paycheck stubs that accurately portray their real earnings. Still other people have blemishes on their credit report that may impair their ability to obtain the most favorable rate.
The local bank or investor has one, maybe two sets of guidelines to work with. If you do not fit into their underwriting “box” they cannot grant you a loan. This is where your Mortgage Corporation loan officer will be of service to you. We have access to hundreds of lenders with thousands of different guidelines to work with. For example, one lender might not accept business bank statements to prove income, whereas another lender would.
will provide you with:
What distinguishes Mortgage Corporation from our competition is our attention to detail for what our clients’ goals and needs are, and being able to match them up with the proper lender. Please contact us today.