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You have always been able to deal with your expenses with no need for loans and have never used a credit card. You're thinking of buying a home but you do not have any money on hand for doing it. That's when people decide to go in for a loan for dealing with the mortgage on their home. When approaching a bank, having no previous credit history, they will not be very happy to extend credit to you. no credit history could be as good as bad credit history among lenders. However it is still possible to obtain a loan or mortgage by having some documents ready and if you meet certain criteria.
When looking for a loan it is important to know beforehand what are the interest rates and also if there is any collateral required. If you are offering your car or some other property like your office as collateral, you will need to be sure you can pay whatever is due within the set time so as to not be a defaulter. You may end up losing the mortgage and your collateral. You also need to be sure that the APR provided on the loan is affordable and does not result in huge accumulated interests that you find difficult to deal with.
Even though you have no bad credit history, it can be quite frustrating when lenders turn you down on account of not having any credit scores for reference. You could go about it, by starting a checking account with the same bank which gives them a fair idea of your financial status and how much you can afford in terms of monthly payments. Your account history thus can validate you and offer you a good chance to obtain a loan in good standing.
You may also be required to reassure them on your employment and stability in a job. Seeing your employment history will let them know that you can hold down a good steady job over long periods of time. When you have proven to your creditors that there have been no intermittent periods of unemployment they will be more willing to endorse the loan.
Another way is by having them see your previous transactions. Being married also increases your standing with banks as you could have a joint loan taken and the earning power as well as the ability to pay back the borrowed money increases.
Another way to validate your credit worthiness with banks is through estimation of your property or belongings. If you own a good piece of property in a good neighbourhood or prime real estate then that can also be a boost in seeking credit. Your business records can also be shown to prove to them that you have steady income with no arrears. Ownership of affluent articles or collectibles can also be used.
With the right documents and planning, even people with no credit history can be eligible for obtaining sanctions on loans.