In order to get approved for a home loan, your credit needs to be examined. Here’s what lenders are looking for in your credit report.


Today we are discussing the “4 C’s” of credit. These are the four main things that lenders use to evaluate your creditworthiness as a homebuyer:

1. Credit history. Do you know your credit score?

“Do you have enough cash reserves for a down payment?”

2. Capacity to repay the loan. Have you been employed for more than two years or self-employed for two years?

3. Cash asset. Do you have reserves in the bank for a down payment? Say you have a home that costs $100,000 and the minimum down payment is 3.5%. This means that you need to have at least $3,500 in the bank as reserves.

4. Collateral. The lender will send out an appraiser to appraise the home you want to buy, and it must come back at the price you’ve agreed to pay in order for you to get the loan.

If you’re a first-time homebuyer or would like to be one, don’t hesitate to reach out with any questions about the process. If you have anything else real estate-related that we can answer, feel free to reach out with those questions as well. We look forward to hearing from you soon.