Agent

How to handle homebuyers who don’t qualify for a mortgage

With the right approach and advice, being the bearer of bad news can be an opportunity in disguise
  • The U.S. average credit score is 687, well under the 741 average had by mortgage borrowers in Q1 2017.
  • Although it’s difficult to be prescriptive when helping buyers restore financial credibility, there are many solutions available.
  • If you have time, mold buyers into the clients they need to be.

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While widespread inventory shortages may lower a client's chance of finding their dream home today, poor credit can take this opportunity off the table altogether. According to Experian’s latest compilation of credit profiles, the U.S. average score is 687, well under the 741 average had by mortgage borrowers in Q1 2017. The homebuying process can be a grueling one not only for you as a real estate agent, but for your clients as well. The end result -- a new home and launchpad to building wealth -- oftentimes more than makes up for the nerve-wracking loan approval process, endless home searching, self-negotiations, doubt and frustration along the way. But what happens when you can’t get your clients past the loan approval? Many agents are able to qualify buyers before the first showing, which is ideal but not always possible. Chicago agent Mark Quesada says, “This is not an option with 30 to 40 percent of my leads: I have an agreement that I will meet them in person and sho...