Understanding Your Credit

The status of your credit is a key factor in determining the interest rate on your mortgage, as well as the amount of money you can borrow. A mortgage lender will look at your credit score to determine whether or not you are a worthy financial investment by looking at your credit score. Your credit score is a number between 300 and 900 that rates your credit history, based on factors like credit card payments, collections, bankruptcy, outstanding debts, and the types of credit you use.

The higher your credit score, the lower your risk and the more attractive you will be to a mortgage lender. However, if you discover you have a low credit score, it can be raised over time by making wise credit decisions, like simply making the minimum payment on your credit cards on a regular basis.