Applying for a home loan can be like being let loose on a free flowing river with a small paddle and not much skill. Some of the boulders that come up may include issues with your Credit Report. If you have not paid your bills and you have not been in contact with the lender or credit provider to work out a payment plan, the credit provider is likely to put your file into the hands of a debt collector and a default is lodged. Even worse, they could take you to Court and issue a Judgement against you. A listed default will stay on your credit record for 5 years. Bankruptcy will stay for 7 years.
Lenders assessing any home loan application will also look at the number of times you have applied for credit such as credit cards, store cards, consumer or home loan applications. If there are multiple applications over a period of time, this can impact on how the lender "scores" you.
Your credit file is your most important asset, treat it with the respect it deserves.
(Photo is of me and my family during our visit to Bali in January. Nothing like a great deal of excitment and free flowing adrenalin. Thankfully we had a strong, wily and good looking Balinese guide to get us down safely)
