What do banks look at? According to Freddie Mac, it’s the 4 C’s:
- Capacity:Your current and future ability to make your payments
- Capital or cash reserves:The money, savings and investments you have that can be sold quickly for cash
- Collateral:The home, or type of home, that you would like to purchase
- Credit:Your history of paying bills and other debts on time
Be sure you are properly qualified before you begin the process of buying or selling your home.