It’s not the borrower that’s called this type, but merely the borrower needs to be placed with a certain type of lender.
We could talk about the 6 C’s of Lending here and go into exhausting detail about how every client is different; because they are. Instead, we will sum up the types of borrowers by matching them to the types of lending Mortgage Suite achieves approvals with.
Indeed, borrowers can be categorized.
The Private Lending / M.I.C. Lending Borrower
These types have very little to no credit. As a borrower, you would be categorized as “thin credit”. Thin credit borrowers usually end up having to come up with larger down payments. We would consider these borrowers as non-conventional and with other factors can also be considered private or mic borrowers.
Private Mortgage Closing Costs differ from M.I.C. Closing Costs. Always get a breakdown of costs.
The B Lending Borrower
These types of borrowers have income and claim it to a certain point. Again, the down payment is 20%. Their 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 smaller bad debts (i.e., cell phone mispayments). A 20% down payment is required, but rates are very comparable to A-Lending clients.
The Triple-A Borrower
Overall good income, validated down payment, 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 types of borrowers usually have a 5% down payment or more, but less than 20% needs to be put down toward your new home purchase. For a refinance, there are fewer rate increases and they have awesome rates.
At Mortgage Suite, we think EVERYBODY deserves to be a Triple-A borrower!
That way we can obtain you the best rate. Sometimes it takes a mortgage path to get there. Let us show you a plan today to work your income, credit, and get you the best rate.
