The 4 C's of Mortgages
Anyone who is new to the mortgage business is first taught about the 4 C’s to underwriting, Capacity, Credit, Cash, & Collateral. The #1 one thing to understand is you can’t have one without the other.
You might think because you have great credit and a lot of assets that you should get a loan but that isn’t the way it works anymore.
KeepingCurrentMatters.com does a great job in explaining what each C means http://kcmblog.com/2011/05/05/the-4-cs-of-mortgage-underwriting