The ABCs of Mortgages

Credit Rating

When you apply for a mortgage, the lender checks to see whether it should lend you the money, and under what conditions.

The lender will ask your permission to obtain a copy of your credit report. This report shows your previous and current credit rating and indicates how well you handle credit. If you do not have a good credit rating, the lender could deny your mortgage application or charge you a higher rate. Some lenders may still consider your application if you have a large down payment and an acceptable co-signer.

For more information about how to obtain a copy of your credit report, what it contains, or how to correct errors on your report, consult our publication Understanding Your Credit Report and Credit Score.