Credit 101

Find out how credit works. Any why it matters.

Take a few minutes to understand the role credit plays in the home financing process.

As part of the application process, we will check your credit by ordering a credit report. Your credit report is a record of how well you have managed your finances in the past with credit cards, car loans, student loans and more.

How to get your credit report

The Fair and Accurate Credit Transactions Act (FACTA) allows you to request a free credit report once every 12 months from each of the 3 credit reporting agencies.

What to look for on your credit report

It’s important to review your credit report and clear up any errors or unresolved negative issues by contacting the credit lender. These include:

  • A credit limit that is lower than what your billing statement shows
  • Accounts that are not yours but appear on your credit report
  • Open accounts you thought were paid off or bills that show delinquencies
  • Inaccurate information that can be removed by your credit provider

Next: Your Credit Score

Mortgage 101

There are three top national credit reporting bureaus or agencies: TransUnion, Experian, Equifax. Banks and lenders typically contact the “Big Three” to check your credit. Each bureau, or agency, independently reports information on you. That information is combined to create one complete credit report.