Think Like A Lender

Have you ever wondered how a lender makes decisions? Who qualifies for credit, and why?

After you apply for credit, all you can do is wait and wonder. But what if you could get inside the lender's head? That might make the waiting easier.

In this section, you'll learn:

How to think like a lender
How credit evaluation works - from the lender's perspective
About the "three C's" of creditworthiness: capacity, collateral and credit
The meaning of credit risk and credit scoring.

Use the links below to get started:

Are You Creditworthy? - Creditors and lenders must assess your "creditworthiness" – your ability to pay back a debt – before issuing credit to you. Creditors want to know that you'll pay them back.
The 3 Cs - Capacity, collateral and credit. Together, these "three C's" help a creditor decide whether to grant you credit.
Credit Risk - Creditors look for ways to help them predict the future behavior of borrowers. They want to minimize their financial risk. Each creditor decides how much credit risk it can afford.

 

    Fannie Mae
    Freddie Mac
   
Ginnie Mae
   
VA
   
FTC
   
FDIC
   
FRB
   
HUD
   
Complaints

 

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By visiting Allie Mae you have taken your first step toward becoming an educated borrower. Allie Mae is an objective, independent source of information for the mortgage consumer. Whether you are buying a home, refinancing, taking a home equity loan, building a home or in need of a mortgage for any purpose, Allie Mae is here to help. Allie Mae has helped thousands of people with their mortgage needs. We have a complete selection of articles, charts, calculators, and checklists designed to help you through the mortgage and home buying process.

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