understanding morgage loan underwriting: What Do Underwriters Use to Approve Your Mortgage Loan? - 08/26/09 01:45 PM
The three Cs of underwriting are credit reputation, capacity, and collateral. 
Credit reputation is basically your credit history, including past foreclosures, bankruptcies, judgments, and basically measures your willingness to pay your debts. These items will be reflected in your FICO credit score, which may halt furhter underwriting if you fall below a certain threshold.
Capacity deals with a borrower's actual ability to repay a loan, using things like debt-to-income ratio, salary, cash reserves, loan product and more. The underwriter wants to know that you can repay the mortgage you're applying for before granting approval.
Collateral deals with the borrower's down payment, property type, and … (1 comments)


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