Jeff Thomas, mortgage advisor, explains the steps you have to go through when buying a house, like what is collateral
Tags:what is a collateral loan,buying a house,How to Get Credit,jeff thomas,monkeysee,mortgage,mortgage advice
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What is collateral? Collateral is, in my opinion, is four or five different things but it's obviously the house because you are purchasing the house and that's the asset that's going to be encumbered by the loan. It's also your credit. It's your income and the way you paid your bills in the past because if you paid your bills in the past on time, typically you are going to pay your bills in the future on time. Everybody runs into problems in life and that can be taken into account but, so collateral is all of those combined rolled in together and it basically says, “Yes, you can get approved, no, you can't” and if you can't, then what do we have to do to get you approved for your mortgage.