The Five C's of Credit

This will be a short review of one of the fundamental measuring sticks of mortgage applications and their success rate; the Five C's, in no particular order.

Before we begin, I myself do not hit all 5 C's so if you feel a bit frustrated about the difficulties in finding a house or mortgage in your price range, I hear you. The US housing crisis of 10 years ago continues to have trickle effects in Canada as lenders continue to require higher and higher thresholds to qualify for real estate while real estate itself continues to say 'can't hear you, i'm too high above your price range'.

THE FIVE C'S

It says here you are a professional hockey player?
Anything other than the sweater as proof?

Character - some say this is the most important C of them all yet others will repeat that old poker proverb of 'money talks, bullshit walks' when it comes to applying for a loan. This C ties in with the last C (credit) as huge factors in determining whether a lender is willing to take a financial chance on you for at least the next five years.

The Solution - Talk the talk. Learn from your mistakes and create the story that makes the lender believe that you are a person of honor and high credit. Show them that letter of reference from your long-time employer. Say you are personal friends of George Clooney, then prove it. Might help, might not. Depends if they've seen Leatherheads.

"Why Me?" asked the Mortgage Broker, "let me tell you."

To Bank or Not To Bank, that is the question.

Hobbits not included.

You found your dream house. Now you want to take the leap and buy it. Time for a mortgage and what's your first thought? Your bank, of course. You've been giving them your money for years, why wouldn't they want to return that loyalty by giving you hundreds of thousands of dollars so you can buy your dream house?

But did you know that your bank rarely gives you the best rates and products? Most homeowners prefer the convenience of renewing their mortgage every four or five years automatically without shopping around, so they rarely receive the best rates and programs. It's like how your telecommunications company offers great deals for 'new customers only', while their current customers still pay premium rates, despite their loyalty. If they already have your business what's their incentive to offer you the best mortgage out there?

You will Discover This Free New Post is Guaranteed to Make You think 'Mortgage Broker'

There's a lot of things to consider if you are thinking of jumping careers into a completely new field in a futile bid to ward off the specter of our imminent demise which will (unless 'science' gets in the way) claim us all in the next 100 years.

Because apparently, NASA becomes sponsored by the wine industry

I decided to juggle the mind field of mortgage brokering after some recommendations from family. This is on top of my job as a care aide, father, husband, volunteer firefighter and part-time writer for a popular webzine (if you live in the United Kingdom and still have an opinion of Christopher Nolan's Batman). I sometimes get them confused as on top of all these responsibilities, I also need to sleep.

The other day, slightly distracted by thoughts on my various career paths, I came across a minor accident; a few vehicles were pulled over to the side of the road and a few people were attending a middle-aged man with no visible signs of injury. He wore motorbike leathers and seeing as how there was no motorbike visible, only a slight skid mark that went over the side of the road into the bushes, it was pretty self-explanatory.

As all first responders, professional or volunteer should do, I identified myself to offer my trained assistance;
"Hi, I'm a mortgage broker, do you need any help?"

It took me a brief moment for my ears to catch up to my words as the 1/2 dozen assorted strangers looked at me. Too late, I corrected myself;
"I mean, I'm with the fire hall."

But by then it was too late, I lost their business.

"Are you looking for a variable or fixed rate?"