The entire worshiping of Credit Scores is somewhat laughable to me. My Father was a mortgage broker and land developer, who developed properties and then funded the mortgages that people took out -with his own money-. That subtle difference, between selling mortgages with OPM (Other People's Money) and your own money makes for a certain "clarity of perspective."
He always used to recite the Five C's, Collateral (what percentage of the value of the property where you borrowing against), Capital (How much money do you have in the bank), Capacity (what is your income) Character (what type of person are you) and Credit (The infamous credit score).
When you are lending with your own money, only of those Five C's is worth a squat - and that's collateral. What percentage of the asset where you lending against. Anything north of 50% was considered risky.
He always used to recite the Five C's, Collateral (what percentage of the value of the property where you borrowing against), Capital (How much money do you have in the bank), Capacity (what is your income) Character (what type of person are you) and Credit (The infamous credit score).
When you are lending with your own money, only of those Five C's is worth a squat - and that's collateral. What percentage of the asset where you lending against. Anything north of 50% was considered risky.