Once you’ve made the decision to buy a home, it’s time to review your credit standing.
If you don’t, you can be sure your lender will when you apply for a mortgage. It’s
a good idea to know what you’re working with before you fill out your mortgage
application. That way you have some time to establish, improve or repair your credit
standing. Exactly where you stand will help determine whether you are approved for
a mortgage and, if so, the interest rate you will be charged.

Understand, establish and maintain - or regain - good credit

In today’s world, it’s just about impossible to live without
credit. It’s a powerful tool, but as with all tools, credit
can be extremely dangerous in the hands of those who
do not understand its power and how to use it.
Credit permits you to obtain something now for little
or no money out of your pocket and pay for it over a
specific period of time. Today, almost everyone uses
credit in one form or another. Mortgages, credit cards,
personal loans and car loans are all types of credit.

There are two types of credit…

Open-end credit is extended on an
ongoing basis, but usually with a limit
on how much you may borrow. It is often
referred to as revolving credit. As you
repay the balance due, a specified credit
limit is then available to you to use in
the future. Credit cards, such as VISA and
MasterCard®, are the most common form
of open-end credit.

Closed-end credit is extended on
a one-time, limited basis, such as a car
loan or a mortgage. Although you may
still have a positive relationship with the
lender after paying off the obligation,
you still must requalify each and every
time you want another loan.

TO GET A FULL BROCHURE on How to Understand, Establish & Maintain - or Regain - Good Credit, simply contact us and we'll email you a copy.