Credit. Besides values and down payment, is there any one particular subject keeping you from closing loans more than the credit and the resulting score of your borrowers?
The answer is no and in order to close loans, for otherwise qualified borrowers, you must know more about credit than you do and need to learn everything you can as fast as possible.
Over the next few weeks, this article will deal with this subject but if you need to know more today, let me know by sending me an email to
The key to helping your customers qualify for a loan is to really understand what makes a borrower credit worthy and what types of habits are reflected in the credit report. This will let you know why a borrower will not only not qualify but fail in the ownership of a home.
The key element is how much do they owe and how much are they paying in interest. Interest is just a killer. Why? Interest must be paid first and principle second. If a person is only paying interest, working hard every day just to come up with enough money to stay afloat, and never pay extra to pay off the underlying balance, it is worse than the proverbial carrot. If a guy never ever gets the carrot, he will default eventually.
Interest runs 24/7. Since no one can work 24/7 it is impossible to catch up.
This is really basic information but it is the cornerstone to what is keeping more potential borrowers from qualifying. More next week.
If you want to know more and to be in a position to actually help your customers, give me a shout via email. I'll send you the info that you can put to work right away.
