|
5 Credit
Mistakes Buyers Can Avoid
Giving top-notch service to buyers starts with making sure they’re on solid
footing to obtain a home loan. Help them bypass these common credit mistakes.
- Not leaving enough time
to fix errors. Consumers should review their credit report at least once
a year. Inaccuracies aren’t uncommon, and it takes time to set the record
straight. Each of the three major credit reporting agencies – Equifax,
Experian and TransUnion – provides one free credit report per year (www.annualcreditreport.com).
There’s a charge, typically about $15, to see the actual credit score, but the
cost is worth it.
- Changing spending
behavior. A surprisingly good credit score can tempt prospective home
buyers to open credit card accounts or take out a loan for a new car. Such
actions can damage their credit score during a critical time, making it harder
to obtain the loan they want.
- Seeking a subprime loan.
Even those with a marginal credit score can qualify for conventional loans.
Tell customers to apply for the best mortgage loan they can find and to
remember that other factors besides their credit score, such as the size of
their down payment, come into play when applying for a loan.
- Confusing
“pre-qualified” for “pre-approved.” Prequalification doesn’t require the
lender to verify income and means very little in terms of a consumer’s ability
to obtain a mortgage. Encourage customers to get pre-approved, a process in
which the lender checks employment history, income, and bank funds, and
reviews the credit report.
- Forgetting about credit
after the purchase. Your customers moved into their new home, happy
they’ll never have to worry about credit scores again. Not so fast. If they
decide to refinance or move, their credit will once again take center stage.
Remind customers to keep their credit score in mind as they deal with the
expenses of being a homeowner.
Source:
1,200 Great Sales Tips – National Association of REALTORS®
Purchase Online at
http://www.realtor.org/prodser.nsf/products/141-61?OpenDocument |
