3 C’s that Help Determine Mortgage Loan Approval
Georgia’s Own mortgage experts discuss the three basic C’s that help determine mortgage loan approval.
At Georgia’s Own Credit Union, we’re here to provide our members with an exceptional experience. While mortgage lending can be intimidating, we’ve broken it down into three things you should know.
- Creditworthiness – Contrary to popular opinion, this isn’t just a review of your FICO score. An assessment of your credit takes into account the details of all reported debts to determine a pattern of satisfactory payment history and your ability to support debt similar to what you’re requesting.
- Capacity – Capacity is how much you make, how much you have for a down payment and how much you’ll have when the transaction is done. The goal is to ensure that the home will not be a financial burden for you.
- Collatoral (Property) – This is the assessment of the home you want to buy which examines zoning, type, general condition, functionality, marketability and location because the home is the asset that secures the loan you’re seeking. The review also determines the value of the home.