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5 C's of Credit

December 6, 2021 | Posted by: Resvick & Associates

Getting a mortgage can be nerve - wracking experience you're not sure what to expect. Take a few minutes to understand what Lenders/ Banks are looking for when you are submitting an application. This is done for your own protection and the Lender/ Bank to ensure that when you obtain financing that you will not have diffculty repaying the loan.

The Five C's Of Credit

Capacity:

Your income will be compared against your monthly expenses.Will you be able to repay the loan?

Capital:

Your downpayment demonstrates that you can save and accumulate assests and Lenders / Banks want to know that you have some assests or cash to paydown your mortgage.

Collateral:

The mortgaged property is marketable and can be re-sold. Provides a means of at least partial recovery if a loan defaults.

Credit:

Your habits in the neeting your debt obligations; do you pay your bills on time?

Character:

Are you suffciently trustworthy to meet your obligations? Sense of responsblity been demostrated with your financial activities?

Do you have any questions on your credit worth, or even if you just have any questions give us a call and we would be happy to answer them.

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