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When people buy diamonds they know it pays to look at the four C's -- cut, color, clarity and carat weight. And, it turns out, there are also four mortgage C's to consider when financing or refinancing a home.
"To get the best possible rates it pays to know about the four C's that underwriters consider," says Peter G. Miller in his latest consumer column for Mortgage-Lenders-Plus.com. "Those C's include credit history, capacity, capital and collateral. Score well in each category and you'll fly through the lending system."
"The real importance of the four C's," says Miller, " is that "each "C" a by-product of borrower choices and actions. They each can be controlled and improved. In effect, you can begin to better your credit standing at any time and lower credit costs by handling money and bills the right way, the way that scores a solid "C".
"Lenders use the four C's because they need a quick and fair way to grade the mortgage applications they receive. The idea is to match the right borrower with the right loan to assure that borrowers pay no more than they should for real estate financing. For borrowers, the importance of this system is to know how it works so you can get the best possible financing and refinancing."
The new Miller column is one of a series of consumer-oriented features published by Mortgage-Lenders-Plus.com as part of its public education program. The entire series -- which includes such subjects as credit score myths, how to get a first mortgage, when to refinance and other important topics for real estate borrowers -- can be found by going to the latest Miller column.
Established in 2000, Mortgage Lenders Plus provides a unique online destination for borrowers seeking to finance or refinance real estate. Mortgage loan requests worth nearly $10 billion have been processed on the site, and that number grows each day. The company is not a lender, broker or escrow agent; instead it provides an unequaled marketplace where you can match your needs and wants with nearly 200 competing mortgage lenders.