01/19/2023
The 3 Cs! You know, cut, color, carat...oh, wait. Wrong Cs. š When you apply for a mortgage, an underwriter will evaluate your credit and payment history, income and assets, then categorize their findings into the 3 Cs.ā£
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Capacity: Your ability to repay a loan by comparing your monthly gross income against your total monthly recurring debts.ā£
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Credit: A combined credit report from the three national credit reporting agencies.ā£
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Collateral: Here, the lender orders an appraisal to verify the homeās value, and then determines a loan-to-value ratio (LTV).
