We could go into the 6 c’s of lending here and go into exhausting detail about how every client is different because they are. Instead we are going to sum up types of borrowers by matching them to the type of lending Mortgage Suite achieves approvals with. It’s not the borrower that’s called this type, but merely the borrower needs to be placed with a certain type of lender. Due to this, borrowers can also be categorized.
The Private Lending Or M.I.C. lending Borrower
When you have no credit, or very little. You as a borrower would be categorized as “thin credit”. Thin credit borrowers usually end up having to come up with bigger down payment. We would consider these borrowers as non conventional and with other factors could be considered private or mic borrowers. Private mortgage closing costs differ from M.I.C. closing costs. Always get a break down of costs.
The B Lending Borrower
These type of borrowers have income, and claim it to a certain point. Again down payment is 20%. But credit is existent but there are bad debts, or a bankruptcy on file. B lending borrowers pay fees and have higher rates. Check out B Lending Closing Costs.
The Alt A Borrower
Alt a borrowers have good credit and overall provable income. Their credit generally is better with small bad debt ( cell phone mispayments for example). 20% is required, but rates are very comparable to a lending clients.
The Triple A Borrower
This is overall good income, down payment is validated, and credit is a breeze. These borrowers have the access to insured mortgage rates, which are slightly lower than the rest of the lenders. These type of borrowers usually have 5% or more, but less than 20% needs to be put down toward your new home purchase. For a refinance there are less rate increases and they have awesome rates.
At Mortgage Suite we think everybody deserves to be Triple A borrower. That way we can obtain you the best rate. Sometimes it take a mortgage path to get there. Let us show you a plan today to work your income, credit the best rate.
14 responses to “Borrower Types Explained In Few Minutes.”
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