Mortgage Loans

You can’t buy a home without the ability to pay for it. Usually this takes a mortgage loan.

To obtain a loan, you must apply for it and wait for the lender to determine if you are an acceptable credit risk. They want to know:

1. That you pay your bills promptly.
2. You can afford the amount of debt you are applying for.
3. Your employment history.

It is possible to have a good credit score and still be declined for credit. Handling your credit should be a lifetime project. Over time you can increase your credit score. Improving your score can help you:

1. Get better credit offers.
2. Get better interest rates.
3. Make the approval process happen quicker.

Potential creditors look at your credit report. This report tells them what type of credit you use, how long your accounts have been open and if you pay your bills as agreed.

You should check your credit report yearly. I found a free credit report at www.annualcreditreport.com You should obtain your report and review it carefully. In accurate information can affect your credit adversely.

Well, this has been Mortgage Financing 101. Stay tuned for more information on this subject and Real Estate.