Homebuyer Credit

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If you are buying a home chances are you will need a mortgage to do so. In the United States 65% of homeowners currently have a loan on their home. The mortgage debt of the country as a whole has reached nearly 9.9 trillion dollars, making it a part of most of the countries lives and the market has an impact on everyone whether you carry the debt or not. Here is what you need to know before buying a home.

There are Three C's of Lending:

Credit- your track record that has been established while maintaining credit and making payments overtime.

Collateral- something pledged as security for repayment of a loan, to be forfeited in the events of a default.

Capital- the value of your assets minus your liabilities or debts.

Credit is something that you maintain over the course of your life. You can't build it or destroy it overnight. It takes time and will move in one way or another depending on if you keep up with your loans.

What makes up your credit score?

• Payment History

• How much you owe

• Length of credit history

• Type of accounts you have

• Recent credit activitites

Before you start to look for a home talk with a mortgage loan officer to help you understand your credit and how much you can afford for a home.