Credit Check Catch 22
Hello,
Curious...When getting a TB to do a LO/LP, isn't the reason they're most likely interested in this type of entry into a home due to the fact that their credit isn't so hot anyway ? So doing a credit check seems not too important. Maybe I'm being too logical and someone with experience here can educate me.
Thanks !
It could be that they just don't have the necessary down payment at this time, but there are circumstances that may affect that (to their advantage) in the near future, that will change their financial situation, making L/O a viable way to do the deal. Or, they may want to do a L/O now, because they aren't sure whether they want to buy a house in a particular area. And by going the L/O route, they have time to live in the area, before actually making their decision to actually purchase. So, in either event, a credit check is still vital for you to get.
Dave
Thanks for your reply Dave
You want to verify that they will be able to buy the house with in the LO term. If they are LO from you, because they have bad credit and can not buy - then you want them to be on the upswing and improving their credit. have them meet with a mortage broker and determine the steps necessary to clean up their credit.
Brenda