That way, if there are any errors you can take steps to correct them before you make your application. If you have had credit problems, be prepared to discuss them honestly with a mortgage professional and provide a written explanation. Responsible mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit may be considered satisfactory. The mortgage industry tends to use its own language.
Credit rating is no exception.
Grading is based on factors such as payment history, amount of debt payments, bankruptcies, equity position, credit scores, etc. We have compiled a guide to help you estimate your credit grade. This is only a guide and each loan application is underwritten and approved on it own merits with many factors other than credit taken into consideration. Your record of bankruptcies and foreclosures will also help determine your credit rating. The ratings shown here are estimates.