Are you wondering where to live or what type of home you can afford in North Carolina or South Carolina? We can help you with our Mortgage Estimator tool.
First, know this: when you’re buying a home, mortgage lenders don’t look just at your income, assets, and the down payment you have. They look at all of your liabilities and obligations as well, including auto loans, credit card debt, child support, potential property taxes and insurance, and your overall credit rating. We can help connect you to a preferred lender or talk to you about getting your information ready to qualify for a loan while we start your search for the perfect house.
Consider the ‘Four C’s’ lenders look for from an article we found on Freddie Mac website…
What is Freddie Mac? Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Freddie Mac’s statutory mission is to provide liquidity, stability and affordability to the U.S. housing market.
When deciding whether to make a loan, lenders evaluate the four Cs:
1• Capacity to pay back the loan. Lenders look at your income, employment history, savings, and monthly debt payments, such as credit card charges and other financial obligations, to make sure that you have the means to take on a mortgage comfortably.
2• Capital. Lenders consider your readily available money and savings plus investments, properties, and other assets that you could sell fairly quickly for cash. Having these reserves proves that you can manage your money and have funds, in addition to your income, to pay the mortgage.
3• Collateral. Lenders take into account the value of the property and other possessions that you’re pledging as security against the loan.
4• Credit. Lenders check your credit score and history to assess your record of paying bills and other debts on time. (Even if you don’t plan to buy a home now, it’s always a good idea to build and maintain strong credit. Landlords often check it to make sure that you can pay the rent. It’s also important if you want to apply for a mortgage or other credit line in the future, such as a student loan, car loan, or credit card.)