Lenders will give careful consideration to any explanation of bad credit. They need to know if the difficulties happened due to a specific event, such as divorce, loss of job, illness or other life change, and that good credit has been or can be re-established. Previous late mortgage payments and bankruptcies have specific rules about acceptability. Check Your Credit Rating Purchasing a home is a big step which involves borrowing a great deal of money. Before you begin the loan process, prepare yourself by checking Your Credit Report to make sure that it paints a complete and accurate picture of your credit history.
Credit bureaus are private companies whose sole purpose is to keep track of all credit reports.
Any credit decision made by financial institutions is made using information supplied by a credit bureau. Consumers must protect themselves against credit fraud by keeping accurate records and checking their Credit Reports as often as possible, especially after being denied credit for any reason. Qualifying Income means that you can prove you make enough money every year to qualify for the loan. If you are salaried, a lender will use your gross monthly salary to qualify you. Alimony and child support can be used to qualify, but you will have to prove that you actually receive the money regularly.