The Lenders take special attention about the “4Cs” of the Mortgage – Credit, Capacity,
Capital, and Collateral. The Credit is about the score which you must build through the
years, there are programs which just need to show any score rather than a long time of
history. Capacity is about if you can pay the monthly payments with your income that
you earn and other source of income like a coborrower. Capital is about your savings,
the money that you have in order to pay a portion of the purchase price as a down
payment and closing costs; and if you can show reserves you can improve the terms of
the mortgage. Collateral is the home which is giving as a guaranty or mortgage, has to
be habitable and in good shape.