For some entering the housing market, the notion of facing the facts on a credit report inspires more fear than anticipation. The truth is, according to lenders, that an individual's or couple's credit history is still the basis on which home loans are based. But establishing and maintaining good credit may be a different process for this generation of home buyers than it was for their parents.
Good credit is everything.
The difference is knowing how to build a credit history. And in the past, that often amounted to paying cash for everything from groceries to rent. These days, though, it is necessary to demonstrate healthy money management by paying bills on time and creating a paper trail to prove it. But they've got to get that money out of the mattress and into the bank to create a paper trail. The trail is necessary, Youngs says, because lenders look for consistency in meeting financial obligations over time.