When it comes to getting approved for a mortgage, lenders don’t just look at one thing, they evaluate five key areas to assess your ability to borrow and repay a loan. These are known as the 5 C’s of Credit and understanding them can help you prepare and position yourself for success.
Here’s what they mean;
🔹 1. Character – Your credit history tells a story. Lenders look at your credit score, payment habits, and how responsibly you've managed debt over time.
🔹 2. Capacity – This is your ability to repay the loan. It includes your income, employment status, and debt-to-income ratio.
🔹 3. Capital – The savings or assets you bring to the table. It shows financial stability and your ability to cover down payments and closing costs.
🔹 4. Collateral – The property you're purchasing becomes the lender's security. Its value, condition, and location matter.
🔹 5. Conditions – The terms of the loan and external factors like the economy, interest rates, or lender policies.
✅ As a mortgage agent, my role is to guide you through these pillars and help you strengthen your profile wherever possible. Whether you're preparing for a purchase or planning ahead.
Knowledge is power and I’m here to support you every step of the way.
Let’s make your mortgage process clear, confident, and customized.