Understanding the importance of having good credit when it comes to applying for a mortgage and buying a home is critical. Here are some things real estate professionals do to make sure you know the ins and outs of credit – reading credit scores and understanding reports.
Good credit will save my clients tens of thousands of dollars in financing costs over their life time, so it is very important! So don’t borrow more than you can afford to pay and be that person who pays your bills before they are due. If you have no credit, while renting, if you can get your land lord to report to credit agencies, obtain some small loans even if you don’t need them (loan guaranteed by a savings account) as well as get a credit card that you can pay off every month, your credit scores will go up quickly.Tony SanFilippo
Colorado House Offer.com
I build partnerships with my lenders and they will work with my buyers to help them understand how to establish credit and how to increase their credit scores. This can take several months to a year, but it is about building long-term relationships and finding what is best for the client.Nina Kuhl
HomeSmart Cherry Creek
Lending to a Stranger
I often give my clients an example: Let’s say a stranger walks up to you and asks you to loan them $450,000. You don’t know this person so you want some kind of proof that they will pay you back. You don’t know them at all so you want to see, in writing, if they have paid others back, on time, and each month. You want to see how much money they make to be sure they can pay you back. On that note, you also want to see who else they owe money to. That is what a lender is looking for.Katie Coleman
Katie Sells Castles
Ask the Loan Officer
The best way to address loan and credit questions is DIRECTLY with the loan officers who will be working the loan. My trusted Lender Partners are able to address all issues and impact of each on the specific loan scenario, and offer valuable planning advice. Many have blogs online where consumers can read up and gain this important financial education advice. My personal position has been to address a specific situation just like that – with attention to detail. In case of no credit – one does not necessarily need a loan to buy a home. If they do, see paragraph 1 above 🙂Tanya Brown
United Real Estate – Prestige Denver
If you’re in the market for a new home or have questions about credit and home loans, we encourage you to contact an experienced real estate professional. For more tips, insights, and expert advice from real estate professionals, like REcolorado on Facebook.
Originally published November 2, 2017 — Updated December 14, 2020