I recently helped a young couple purchase a condo. It was their first purchase, and they will qualify for the $8,000 first-time home buyer's credit. Nice. They were very excited, and I was excited for them.
One of the things that helped them purchase this condo was their excellent credit score. I gave them the name of a local lender I have used in the past, who's performed some miracles, and she got them preapproved, primarily on the strength of their credit score. They have scores in the very high 700's. A very nice number for anybody, but highly unusual for young folks...these days or any other days.
I remember, as part of a young couple, many years ago, we didn't pay a whole lot of attention to my credit score. I wasn't overly concerned... I didn't have bad credit... I generally paid my bills on time, but If I missed one by 30 days (or more)... I didn't give it much thought... Don't worry... I'll pay the bill when they call me.
This young couple doesn't have a great deal of money to put down, so they're only putting 10% down... which as you can imagine, today makes a lender look at them cross-eyed and proctoscopically. But because they have "golden" credit, they qualify for a very nice rate, and a clean conventional loan. If their credit had been significantly lower, they wouldn't have qualified for much of a loan at all.
So, if I can send a simple message to potential new buyers it's to "protect your credit"... it's not fun, it's not sexy, it's not hot... but it will save you money and heartache in the future... and makes your Realtor's job a heck of a lot easier and more pleasant.
Thanx.
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