4 Cs of Home Loans in Bay Area
Author bio section
I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
If you are planning to get a Home Loan in Bay Area, you should be aware of the 4Cs of Lending.
Capacity
Lenders usually look for a minimum of 2 years of work history in the same line of work. Any employment gaps or extended time off must to be explained. If you had a recent job change or if your income is derived from seasonal work, your income may be considered for qualifying purposes in certain situations. However, less than 2 years of work history may be acceptable if you have been studying and your current job is related to the subject you graduated in.
Cash
Cash is the funds that are required to close the purchase transaction. It calculated as down payment + closing cost & pre paids. To qualify for some programs, you may even be required to have some cash left to cover for housing payment for few months.
Credit
Past credit performance serves as a guide in determining a borrower attitude toward credit and predicting a borrower future performance. If the credit history, despite adequate income, is poor, strong compensating factors will be necessary to approve the loan. Lenders usually examine the overall pattern of credit behavior, rather than isolated late payments. A period of financial difficulty in the past does not necessarily disqualify the borrower if they have re-established a good payment record for a considerable time period after the difficulty. To qualify not all collection accounts need to be paid off, but all Judgments have to be paid off to qualify.
Collateral
Collateral for a mortgage loan is the underlying property against which the loan is provided. While evaluating the collateral a lender underwriter looks for security, safety and soundness of the property.
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