Why Understanding Credit Scores Should be Every Real Estate Agent's Top Priority.

As a real estate agent, understanding credit scores should be one of your top priorities. Credit scores play a huge role in the home-buying process, and can often make or break a sale. In this blog post, we will discuss why understanding credit scores are so important for real estate agents, and how you can help your buyers avoid making costly mistakes. We will also talk about Continuing Education courses that are available on this topic, so you can stay up-to-date on the latest credit score information!

Credit scores can make or break a sale.

As a real estate agent, you know that the home-buying process is often contingent on a buyer's credit score. A good credit score can mean the difference between getting approved for a loan and being denied financing, which can ultimately make or break a sale. That's why being aware of a buyer's credit situation is important for agents. It's important for you to prepare your client and set expectations sooner rather than later.

Make your buyer aware of their options.

If you are aware that your buyer has a tricky credit situation, you can preemptively help match them with mortgage experts who specialize in handling buyers in these scenarios. Don't let a low credit score stop your buyer in their tracks! There are many programs out there that can help people with less-than-perfect credit buy a home. Understanding the situations that have shaped your buyer's credit can help you connect them with the resources they need so they can more confidently continue the home search, and ultimately, the purchase process.

Inform buyers of the decisions that can affect their credit.

Most people are aware of the prominent factors that affect credit like purchasing a new car with financing, or credit card debt, but there is much more to a credit report than just these factors.  Many lesser-known items can also ding a credit score like utilization or the portion of credit used compared to the amount of credit available. These factors are important because many lenders have very specific credit score ranges and cutoffs. This means the smallest of changes can increase or severely limit the options available to your buyer. Educating yourself on the nuances of a credit report can help your buyers avoid making decisions that could negatively impact their credit before a mortgage expert gets involved.

Healthier credit practices can mean more deals closed.

As we've said, in order to best serve your buyers (and yourself), understanding credit scores should be a top priority. Credit scores are important not just at the time of purchase but also for the long-term financial stability of your buyer. By helping your clients make better financial decisions and keeping them informed and aware of options based on their credit, you're also helping the health and stability of your own business, ensuring that more deals are closed successfully and without unexpected surprises.