Credit: What it Entails and Where to Go

Another thing you should consider when deciding if you are ready to buy a home is your credit situation. Do you owe people or companies money? Do you have a lot of credit card debt?

A lender will examine your credit history to see if you have a good history of paying back the people or companies that you owe. The lender wants to make sure you will repay the money he/she is loaning you.

In this section, you will learn about what makes up a credit history, how to get a copy of your credit report and ways to improve your credit score. Improving your credit may enable you to obtain a better loan. There are two free or inexpensive credit counseling agencies in the area that can help you improve your credit.

If you have never used a credit card or borrowed money, you may not have a credit history. This section will also provide you with information on establishing a credit history and sources of nontraditional credit.