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April is Fair Housing Month, a time to recognize the importance of equal opportunity in homeownership. Fair housing ensures that everyone has the chance to buy a home without discrimination, creating stronger communities and giving borrowers confidence when applying for a mortgage. At Coulee Bank, we are proud to support fair and equal access to homeownership for all.

Fair Housing helps to ensure everyone has an equal opportunity when applying for a mortgage. Tyler Draheim, Sr. Mortgage Loan Underwriter at Coulee Bank, says, “It gives the borrower the peace of mind that everyone will be treated equally when they apply for a mortgage.”

He says underwriters use the 5 Cs of Credit to evaluate a mortgage application. These five factors help them assess the borrower’s overall financial health, the risk of the loan, and whether the borrower is likely to repay on time.

The 5 Cs of Credit include:

• Credit – The borrower's credit history and credit score, showing their track record of paying debts on time.
• Capacity – Essentially, this is the borrower’s ability to repay the loan. All their current and proposed debts are divided by their gross monthly income. Underwriters call this their debt-to-income ratio.
• Capital – The amount of assets the borrower has saved to cover the loan or unexpected expenses.
• Collateral – The property which is being purchased or refinanced.
• Conditions - This determines the purpose of the transaction. Examples include purchasing a first home, buying a second home, acquiring an investment property, or using the funds for a cash-out refinance.

At Coulee Bank, we know our neighborhoods and our clients. We’re proud to provide equal opportunities for borrowers to purchase or refinance their homes. The first step for any potential buyer is to understand their credit score. From there, contacting a Coulee Bank mortgage loan officer can help guide them through the next steps to homeownership.

Contact someone from our mortgage team today!