Credit is one of the main components of qualifying for a mortgage — and while some buyers have built a long credit history, others are just getting started. First-time homebuyers are less likely to have credit, which means they could face challenges getting a loan.
If you’re in this position, don’t fret, it’s still possible to buy a house with no credit. You’ll just need to show you can afford the upfront costs and monthly mortgage payments.
What is credit?
Credit is the ability to borrow money when you need it. If you’ve heard people talk about building credit, they mean taking steps to show you generally pay back the money you borrow as agreed.
There are three major pieces to your credit, and understanding how