So, you've decided to begin your journey to home ownership. Whether it's your first time venturing into this territory, or you're an old veteran at home ownership, you will most likely be contacting a lender in the future to help you finance your new purchase. One of the processes of becoming qualified by a lender is going through a credit check. The lender will use the FICO® results obtained by the credit bureaus to decide whether or not they will be able to work with you on your financing needs.

"What is FICO®?" you may ask. Along with the credit report, lenders can also buy a credit score based on the information in the report. That score is calculated by a mathematical equation that evaluates many types of information that are on your credit report at that agency. By comparing this information to the patterns in hundreds of thousands of past credit reports, the score identifies your level of future credit risk. This scoring system is referred to as the Fair, Isaac and Company credit scoring model or simply, a FICO® score. Every time you buy something or pay a bill you are affecting your FICO® score.

If you've had little or no credit, bad credit or don't know about your credit, you will find Equifax.com a valuable place to get your credit ready to go house hunting. You will be able to learn how to repair your credit so you can go house hunting with confidence.

Did you know over 70 million Americans suffer from common problems that negatively affect their credit, such as:

Late Payments? Charge Offs? Bankruptcies? Tax Liens?

Judgments? Hard Inquiries? Incorrect/Outdated Personal Information? Mistaken Identity?

People often realize, too late, the impact a bad credit report can have on their lives. Here are a few things to consider:

• You may pay higher interest rates (if you manage to qualify for a loan at all). Lower credit scores mean higher financing costs.
• You may be passed up for the job of your dreams. Now, more than ever, employers rely on credit reports when selecting candidates for employment.
• You may not get the apartment you wanted. Landlords are very cautious and use credit reports to help determine who they should and shouldn't rent to.