Steps to Approval
In This Chapter
• Looking into your credit history
• Learning what credit scores really mean
• Bouncing back from financial mistakes
• Affording the down payment
Have you ever loaned anyone money? You might have asked them if they could afford to make payments, and then set up a payment schedule until the loan was paid in full. When you apply for a mortgage loan, the lender does the same thing. The lender is loaning you a very large sum of money and wants to make sure you’re going to pay it back. Lenders can’t just give a loan to anyone; they have to do a little investigating into a borrower’s background to make sure they’re taking a safe risk.
All the previous years of paying your bills (whether on time or late) and running ...