Inman

How credit score gives you an ‘in’ with buyers

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Last year saw an increase in high-credit borrowers; borrowers with FICO scores above 700. In fact, the average credit score for borrowers was at a record high of 755.

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Compare this score with the average credit score in the U.S., which is 695, and it’s clear that many homebuyers are getting their credit in good shape before they borrow money for their home purchase.

As a real estate professional, this news offers opportunities with two specific types of client:

  1. Qualified but hesitant buyers who need help getting off the fence and into a home.
  2. Buyers whose credit needs improvement and are ready to start working on it.

Here are several tips to help you work with each type of buyer.

Buyers with great credit who are still on the fence

Your clients have been diligently focused on paying down student loans, car loans and their credit card bills, and as a result their credit rating is good. But they’re still hesitant to apply for a mortgage and put an offer on a home.

“What are they waiting for?” you might ask. Before you throw your hands in the air in frustration, try this:

Buyers whose credit needs work

If you have clients who want to buy a home but their credit is holding them back, help them get on track. Although they don’t need perfect credit to lock into lower rates, it is important to tackle outstanding debt and take a good, hard look at their credit report.

Buying a home is a major financial decision for most people. However, it’s a great opportunity to show off your expertise and character, whether your clients are qualified to buy now or will be ready further down the road.

Brian Buffini is the Chairman and Founder of Buffini & Company. You can follow Brian and Buffini & Company on Facebook.

Email Brian Buffini.