Hi {first_name},

 

Here is the final money draining mistake…

 

Not Asking the Right Questions or Planning the Mortgage 

 

Example: Some loan types you can receive a seller credit of 6%. 

 

Are you familiar with this? 

 

Let’s say that you got offered a 3% credit, but you really could have had the 6%. 

 

Well, guess what… you just missed out on a four figure saving.

 

As Homer Simpson would say, "DOH!" 

 

If you would like a good list of the right questions (with the right answers) schedule a time to chat with me.

 

Right… so let’s talk about the four Cs. 

 

Remember what they were? 

 

Credit, Capacity, Capital and Collateral. 

 

So here’s the easy way of looking at them. 

 

Credit 

 

Income and DTI (Debt to Income Ratio) 

 

Assets and Down Payment 

 

Your New Home

 

I’ll cover each of them in more detail in the upcoming emails. 

 

Let’s start with Credit.

 

A quick tip…

 

Just because you have excellent credit of 800 doesn’t mean that you can skip ahead with no paperwork. You still have to prove how much you earn and where your assets come from. 

 

So…

 

Credit is all about your history. 

 

What really matters here is the “WHY”, more than the number. 

 

Imagine these scenarios: 

A lawyer who’s just about to finish paying off his student loans and has just bought a car (btw you’ll see this error in the “7 mortgage murdering mistakes” series) 
 

An ex-business owner with good credit history… Up until he filed for bankruptcy 4 years ago and now is rebuilding his score. 

A couple with excellent credit history. They missed one doctor’s bill due to a prolonged vacation, and got their bill sent to collections. 

 

All of these people can have the same score, but the reasons are very different and predicted outcomes as well. 

 

Also good credit does not “guarantee” a mortgage… 

 

For example, if you are unemployed you will most likely not qualify.

 

In the next email, I’ll cover the two ends of DTI -- your most important indicator of success. 

 

This can literally be the “Swim or Sink” test for your financial future. 

 

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