When you apply for a mortgage one of the first things your lender checks is your credit situation and your FICO score. Adverse credits and poor debt repayment practices are most damaging to a loan request. Lenders are flexible with their guidelines on income requirements and debt ratios. But a bad credit record is not compensated for by a low loan-to-value or debt ratio. A mortgage loan may not approved if the credit report shows:
* Frequent late charges
* Accounts that are past due
* Judgments
* Bankruptcy
* Any previous foreclosure, etc
