As we all know and hear on a daily basis, the lending landscape has changed and it is continuing to change. The majority of the changes are for the better, but some of the interpretations of the changes are not. One example being, in today’s market the qualifications required by a lender to obtain a San Mateo mortgage are much tighter than a year ago, but the interpretation by the general public is that obtaining a San Mateo mortgage in today’s market is nearly impossible. The truth is, lenders do require more stringent criteria when deciding to lend money for your San Mateo home purchase. Please note, the keywords in that sentence are ‘more stringent’ and not ‘near impossible’.
There are three key components that come into play when you apply for a San Mateo mortgage. In the lending world we label this the CIA of lending. The CIA stands for Credit, Income and Assets. All three factors determine your likelihood and ability to obtain a San Mateo mortgage and are considered in determining your risk factor to the lender or the likelihood of defaulting on your mortgage. The better your CIA, the higher the percentage you have of obtaining a San Mateo mortgage loan, the less you will pay upfront to obtain that loan, and the lower your interest rate will be.
The CIA can also compensate factors for one another. If you have a lower Credit Score, a high income and substantial assets can compensate. Minimal assets can be offset by a steady income and a higher credit score. Even if your CIA is totally out of whack and you do not qualify for a San Mateo mortgage loan at this time, all hope isn’t lost. My best advice is to sit down with your San Mateo Mortgage Advisor and they will be able to walk you through the appropriate steps in aligning your CIA.
Since the CIA can make or break you when it comes to obtaining a San Mateo mortgage, I will detail these individually over the next few posts. In the meantime, if you have any questions, comments or concerns don’t hesitate to drop me a line.
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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
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