C is for Credit
It is common knowledge that you need good credit to qualify
for loans, credit cards and other financial borrowing programs.
This rule follows with all home loans and all types of home
finance. Lenders want to see good credit before they can trust
you enough to lend you a mortgage. Once approved for a loan,
your credit history also determines the loan rate you can
be granted. Okay, so what is good credit?
Usually good credit just means that you do not have outstanding
balances on any of your credit accounts. It also means that
you do not have a lot to owe back to other lenders, and that
you have paid your bills in a timely manner in the past.
Lenders evaluate credit by looking at a couple of things.
First, they make sure you seem to have good credit. Then they
might look further at what is considered your credit risk.
This can be determined in several ways, but it is meant to
predict whether or not you will be able to pay back your loan
completely and make the payments on time throughout the course
of the loan.
Credit risk is generally measured by various records, including
income, assets, liabilities, payment history, credit reports,
debt-to-income ratio and other financial information.
Although good credit and credit risk seem to be one in the
same judgment, you can have good credit and still be considered
at credit risk. One scenario where this would occur is if
a couple applying for a loan had very low income and no credit
Obviously, risk does not determine you are unfit for a loan
and nothing can promise what the future holds. This is why
Countrywide thinks your present and future are most important.
Dedicated to helping you get that loan and buy your home,
the professionals at Countrywide can go over your credit with
you and give you the financial advice and information that
you need to secure the funding you are seeking.
Also be aware that you can easily obtain a credit report
by contacting Equifax, Experian or TransUnion online or by
phone. In most states, you have the right to receive a free
credit report once a year.