Where Credit Is Due… To Improve or Not
Do you know what actions could help improve a buyer’s credit score? Do you know how easily some of those actions are performed and how quickly they take effect? A recent survey from TransUnion indicates that an overwhelming majority of those planning on or considering buying a home in the next 12 to 18 months have little to no idea. This same survey found that while nearly three out of four (74 percent) of potential homebuyers believe it’s important to check the accuracy of their credit report, less than 45 percent correctly understand that their credit score measures the following:
• The amount of debt they hold
• The risk of not repaying a loan
• The financial resources they have to pay back loans
“As many people across the nation prepare to take advantage of still-low interest rates and look to buy a home, it’s essential they understand their credit score before applying for a home loan,” said Ken Chaplin, senior vice president at TransUnion. Here are some other interesting statistics that came out of the survey from TransUnion – although the majority of consumers recognize the importance of a credit score:
• 33 percent incorrectly thought increasing their income has the potential to help improve their credit score
• 28 percent incorrectly thought closing old accounts had the same potential
While this isn’t rocket science, looking at and analyzing credit reports is something your average buyer does not do on a regular basis (or ever). Free of charge, we’re happy to go over a buyer’s report and not only show them how to address those issues that may be adversely affecting their credit but educate them on the why’s and the how’s. Knowledge is power.
You’ll Find This VERY Interesting
We received a contract on November 17th. By November 30th – a mere fourteen days later – we closed that loan and everyone was a happy camper. Bear in mind, in that two-week period, we had the Thanksgiving holiday (November 26th), the day after (November 27th) when everyone was closed down, and the weekend (November 28th & 29th). This wasn’t luck – it was a product of our system we put in place LONG before TRID came along. We’re not bragging. We’re just letting you know the facts.