The first step toward leaving credit challenges behind is understanding where you are right now.  Because your credit report is used by lenders to assess your finances, it's a good idea to review it yourself before hand.  This gives you the chance to correct any errors and identify any continuing problems.

You can order a free credit report each year from each of the three national credit companies. The three national credit companies are Equifax, Trans Union and Experian.  Examine your report closely to ensure it's correct.  Your explanations of any negative entries can play an important role in determining your mortgage options.

Credit bureau scores are often called "FICO Scores",  because many are produced from software developed by Fair Isaac Corporation (FICO).

There are five basic factors that determine your credit score.  The levels of importance shown here are for the general population, and will be different for each individual:

• Your payment history:  what is your track record?
• Amounts that you owe:  how much is too much?
• Length of your credit history:  how established is it?
• New credit:  are you taking on more debt?
• Types of credit in use:  is it a "healthy"mix?

My goal is to help you become a homeowner, and work with you to establish a positive history that can help you improve your standing in the future.  As you move up the credit ladder, you'll have an increasing number of programs and rate options available, giving you more ways to improve your financial security and purchase your first home!