What Factor Can Make or Break Your Deal?

Posted on 26. Jul, 2011 by in General

When was the last time you checked your Credit Score?If you hear yourself saying “don’t know” then it’s time you did.

Once you apply for a mortgage with any lender, the first thing they will do is pull your credit score. If there is something on it that doesn’t agree with what you have on your application then you have just lost two things:

  • credibility – both with your broker and the bank
  • the deal – maybe you can salvage it?

Banks really do want to lend money – hard to believe sometimes I know, but if they don’t lend out money,  they don’t make profits.

What they are looking for is a nice, safe borrower who presents them with all the information they need without complications.

If you haven’t checked your credit report and there is something on there that doesn’t agree with what you have said, the bank has a reason to move onto the next application or at least delay your application until it is resolved.

It is totally possible to find something on the report that does not relate to you. You would be amazed how often someone with the same name as you defaults or skips payments on a credit card and it ends up on your report.

If you aren’t checking your report yearly, or better still, twice a year you won’t pick up these errors.

Any error can easily be corrected by calling the credit company and explaining your situation and asking them to investigate. This process takes time. During the application for financing on that killer sweet deal – you know, the one with great cash flow, below market value purchase price and a motivated vendor – this is not the time to correct it!  Delays could mean losing the deal.

I’ve always believed there are three traits you must demonstrate in your investing – Confidence, Credibility and Integrity. Without them you will find it hard to create all the deals you want to obtain the lifestyle real estate investing can provide you with.

You must protect these traits and demonstrate them constantly.

Here’s to Your Investing Success!

Richard

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