What Are The 4 C’s of Credit ? #credit #mortgagetips #homeownership
The 4 C’s of Credit are the best way to assess your creditworthiness and to improve your chances to secure a favorable mortgage.
What are the 4 C’s of credit ?
Character – This refers to credit history, which is a borrower’s reputation or track record for repaying debts.
Capital – The savings, investments, and assets you are willing to put toward a loan. (Like the downpayment on a house.)
Capacity – Your ability to payback a loan. Your DTI (debt-to-income) ratio comes into play here.
Collateral – An asset that a borrower uses to secure a loan. In the case of a mortgage, the collateral is the home you’re buying.
#credit #mortgage #investement #homeowner #homebuying #mortgagetips #madisonmortgage