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SURE sales group Ep. 6 – What is a Mortgage / 5Cs of lending

  • What is a Mortgage?  – a legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.
  • 5 Cs of Lending;
    • Character – borrowers reputation and and track record for repaying debts (credit score)
    • Capacity – borrowers ability to repay the loan by comparing income vs current debts (Debt to Income Ratio -DTI)
    • Capital – borrowers down payment (how much skin does the borrower have in the game)
    • Collateral – what else can the borrower offer the lender in case of default (for mortgages the collateral is the house, for car loans the collateral is the car, etc…)
    • Conditions – what type of mortgage loan is the buyer applying for (10% down? 20% down? Fixed Interest Rate?  30 years? 15 years? etc…)
  • Contact Us @ 410-814-2403 if you have any questions about Mortgages and how you can get the BEST interest rate AND the BEST service.

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