How does my credit report affect my mortgage qualifying for home buying ?

Since good credit is viewed as someone who is more likely to repay a loan, and bad credit is viewed as a "high risk" loan applicant, the better your credit the better loan terms and rates you showed be able to get.

There are several factor that indicate your ability to qualify for a home mortgage loan, but good credit can always help.

A FHA loan is generally more flexible than a conventional mortgage loan in its qualifying guidelines. In fact, FHA home loans allow you to re-establish credit if:

• Two years have passed since a bankruptcy has been discharged
• All judgments have been paid
• Any outstanding tax liens have been satisfied or appropriate arrangements have been made
• To establish a repayment plan with the IRS or state Department of Revenue
• Three years have passed since a foreclosure or a deed-in-lieu has been resolved

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