Credit is the amount of money that a lender will loan to a buyer to purchase a home from the seller. The amount of credit loaned and the interest rate on that loan are dependent on the buyer's credit history and whether or not the lender views the buyer as a potential credit risk. The lender will often pull credit reports on the buyer from the three major credit bureaus prior to making a credit offer. It's always a good idea for a buyer to check his own credit history at TransUnion, Experian and Equifax prior to apply for credit in order to assure that their background is accurate and will not negatively affect their loan. After determining the buyer's credit history, the lender will make an offer, usually in a commitment letter, detailing the terms of the bank's mortgage offer.