June 10th, 2009
Categories:Home Buyer Education
Although specific guidelines can vary from one loan program to another, there are four basic principles evaluated for each homebuyer. These are referred to as
the 4C’s of mortgage lending: Capacity, Capital, Credit and Collateral.
The ability to repay your loan based on your employment and income history. Your lender will look at the amount and stability of your income. Housing costs including property taxes, homeowners insurance, mortgage insurance in some cases and homeowners association dues should be approximately 29% of your gross income.
Types of income that are considered will include: Read the rest of this entry »
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