In a recent post, I wrote about Preparing a house for sale: Do the C's to get more C (Cash)
Then today , one of my favorite bloggers, Steve Harney, blogged about the 4C's of Mortgage Underwriting.
Who knew getting Cs could be such a good thing.
Here are Steve's C's:
CAPACITY is the analysis of comparing a borrower’s income to their proposed debt. It considers the borrower’s ability to repay the mortgage.
CREDIT is the statistical prediction of a borrower’s future payment likelihood.
CASH is a review of your asset picture after you close. There are really two components – cash in the deal and cash in reserves.
COLLATERAL refers to the appraisal of your home. It considers many factors – sales of comparable homes, location of the home, size of the home, condition of the home, cost to rebuild the home, and even rental income options.
Take a look. Pretty soon, someone may come up with more Cs' for other things. What to look for in a property inspection, perhaps?