Collateral and Capital are the final 2 components of the 5 C's of credit. The other 3 have been discussed in my previous articles. Collateral is a form of security for the lender. Banks require collateral as a type of insurance in the event that you cannot repay the debt. If you default on the … [Read more...] about Collateral and Capital
What does Character have to do with your mortgage? Believe it or not, it is one of the 5 C's of credit. As mentioned in previous articles, the 5 C's of credit are used by lenders to determine your creditworthiness. It is important to understand the components, as it will help you to assess your … [Read more...] about Character, how it relates to your mortgage application!
Do you know your Credit Score??? How about the importance of it??? Think of it as your financial "report card", as it is a track record of the credit that you have established over time. Your credit score is one of many indicators of the likelihood, that you will pay your debts. As mentioned in my … [Read more...] about What’s YOUR Credit Score?
TDSR and GDSR are common acronyms in the mortgage world. Lenders focus on the 5 C's of credit when determining suitability, TDSR/GDSR fall under Capacity to pay which is one of the five C's. They are critical tools that lenders use to help in the decision making process of approving your mortgage. … [Read more...] about TDSR & GDSR Explained!
The term "stress test" has generated a great deal of discussion in recent months. I have had numerous conversations with clients, family and friends who interpret it in different ways. One being, that the only way to qualify for a mortgage is to literally go to your doctor for a check-up. Perhaps … [Read more...] about What is the “STRESS TEST”?