There is a terrific amount of work that goes into having a loan application approved. Every broker knows it. You also know with absolute certainty that nasty surprises on a credit file may kill a deal, so it’s best to check first.
But what if a credit file check reveals a poor credit score. What then?
There are a few ways the deal can go from here:
- The deal can die right then and there. Letting a client know this can be devastating, as they may have to wait it out until their credit score improves while property prices keep rising
- You can recommend a second-tier lender with higher upfront application and risk fees and ongoing higher interest rates, but the downside will be client capacity to service the loan ongoing
- You can suggest there are credit repair companies “out there” and let the client do their own research, or
- You can partner with Princeville Credit Advocates, push the client to us and after we get ou work done offer the client the most affordable loan on the market.
Credit repair takes six to eight weeks to complete, on average. But the upside is that your client will be able to buy into an ever-increasing property market at a good interest rate. That’s gold.