CHAPTER 5
Getting Your Credit Together
Credit is the single most important risk element when applying for a mortgage. Information about you and your payment histories is evaluated and logged each and every time you make a credit purchase, apply for credit, or even make a payment. Knowing how credit can both help and harm you when lenders look at your loan application is key.
5.1 WHAT EXACTLY IS CREDIT?
Credit means I’m going to loan you some money and you’re going to pay me back. If you pay me back on time, every time, I’ll be happy to lend you more money or make a loan the next time you need it.
There are several definitions of credit, but it ...
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