The 4 C's of Mortgage Underwriting

The 4 C's of Mortgage Underwriting

Preparing to buy a home? Here are the 4 C's that determine your ability to get a mortgage. 

1. CREDIT assessed the borrower's payment history and financial reliblity. A good credit score signals the borrower's willingness to repay loa so time,... influencing mortgage eligibility. 

2. CAPACITY gauges the borrower's ability to repay, considering income stablity and amount. Lenders analyze debt-to-income ratio, employment history, and financial stablity to determine if the borrower can consistently meet mortgage payments. 

3. CAPITAL reflects the borrower's financial investment in the property, including the down payment. A larger capital commitment indicates financial stablity and boosts the lender's confidence in the borrower's ability to handle mortgage payments. 

4. COLLATERAL involves the property's value and marketablity, assessed through an independent appraisal. A property with a higher appraised value and good marketability provides better security for the loan, ensuring the lender has a tangible asset in case of default. 

If you are considering buying a home and need a mortgage, contact me to discuss your individual scenario and mortgage options. 

Pauline Lee | (617) 965-1988 x205 | pauline@indmortgage.com

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.