Boring every day information does not "sell" on TV News (or advertising or blogs or newspapers). So when someone can write a story on either the basics of getting a mortgage OR the CRAZY and impossible rules that will STOP you from getting a mortgage, well disaster sells.
I have spent 19 years in the mortgage business of which the last 14 was in underwriting (the department that approves the actual loan). Lenders approve loans based on "the 4 C's"
1) Credit
2) Capacity (Can you afford the home)
3) Capital (Your Down Payment)
4) Collateral (The home your buying)
The lender does not care if you are self employed or employed, have $10,000 or 10 million dollars, black or white, democrat or republican. The lender DOES care that the loan you are asking for YOU can pay back (without taking back your house!). Too many articles are floating around out there telling you hard it is to get a mortgage, I am here to say its not!
A mentor of mine once told me that when people disagree about issues and topics you listen to both sides and the truth will always fall some where in the middle. That wisdom applies to mortgages, there are no such things as "black and white" rules when getting a mortgage. The truth is getting approved means you have to "balance" the 4 C's. So if you have bad credit you may need more capital, if you don't have enough income to support the house you want you may have to look for a less expensive property.
My goal for this blog is to help inform and try to be entertaining on answering your mortgage and real estate questions! I am looking forward to the conversation!
This post was contributed by a community member. The views expressed here are the author's own.
The views expressed in this post are the author's own. Want to post on Patch?