Securing a mortgage can be difficult, but this process can be exacerbated if you don’t have a credit score. Traditionally, individuals have used “alternative credit” to apply for loans when they don’t have a credit score or insufficient credit history.  Today, few companies consider “alternative credit” and prefer a credit score instead.

If you have insufficient credit or no credit at all, you can meet with mortgage companies to see if you can work out a mortgage agreement. Although this is generally tough and fairly uncommon, it’s not impossible. Overall, the best way to obtain a mortgage loan is by creating or improving your credit score.

Although starting your credit journey can seem overwhelming, it doesn’t have to be. Individuals can simply begin their story by applying for a credit card. Once this first line of credit is open, it’s important that it’s used responsibly. Mortgage companies suggest that individuals pay their cards off every month, only use 30 percent of their available credit and always pay their bills on time.

Unfortunately, getting a mortgage takes work and dedication. However, the chance to create your credit report and eventually receive a mortgage loan is a large opportunity. Here at Castle and Cooke, our team is ready to help you through every step of the home buying process.

*Image Credit: Flickr.