Blown Mortgage on Vacation: My Guest Post
My friend and colleague, Morgan Brown of Blown Mortgage, is basking on a beach in Fairfield County, CT, watching the leaves turn colors. Morgan's given me the opportunity to hijack his weblog and speak to his audience. I'll give you a sneak preview here and a link to Blown Mortgage when he posts it up:
Mortgage veterans will often refer to the Three C's of Lending when explaining how lenders view potential borrowers when underwriting a mortgage loan:
1- Credit- How does the borrowers pay his obligations?
2- Collateral- Is there sufficient equity protection if the loan defaults to recover the loan amount?
3- Capacity- Does the borrower have the income to make the payments?
Pay attention the the final factor, capacity. In short, the question is "can they afford this house?". In Southern California, among other fast-growing markets, the honest answer is
