The homebuying process can be an overwhelming ride for buyers, particularly first-timers. Add in the aspect of understanding credit scores and your clients can become even more perplexed. While most homebuyers will require a loan, a fundamental step in acquiring that loan will be an adequate credit score.
This blog breaks down four ways you can make the credit score topic more understandable to your clients.
#1. Understand Your Buyers
One of the crucial first steps is to create dialogue with your clients on their understanding of credit. Start this off by asking some general questions, as it’ll set the stage for clearing any confusion. Do they have any student loan debt? Do they know what their credit score is? Have they owned a property before? Knowing where your clients are financially and their knowledge level will help you to tailor the information you give them in a more relevant manner during the buying process.
#2. Avoid Technical Language
In your daily life as an agent you may use terminology that the average non-agent individual may have no clue on. Using terms like LLPAs, PITI and loan-to-value won’t impress your audience, it’ll just add complexity. Financial jargon may be useful when it comes down to understanding the paperwork, but creating explanations that your clients will understand is key in keeping focus.
#3. Explain the Typical Timeline
Walk buyers through the entire process, from the purchase and credit line decisions that could impact their credit score to prequalification and preapproval to the process of applying for a mortgage. Many don’t understand the process after they’re approved but before they close. This time period is critical in terms of keeping the financial of the deal intact, so don’t end the timeline prematurely.
#4. Utilize Visual Aids
Many people are visual learners and they understand topics better if they can see what they’re trying to comprehend for the first time. Touch base with lenders and mortgage brokers that you frequently work with and ask if they have infographics or charts that’ll help breakdown the complex loan process visually.
#5. Bring It All Together
The process of homebuying has many complex stages. From perfecting the home search for your clients to walking them through the mortgage process, credit scores are another area that can cause confusion. Utilizing the five ways explained in this blog can create a simpler and better understanding of credit scores. To learn more about guiding your clients through these processes, begin your seven-day free trial of AgentEDU and gain access to our fundamental “Representing Buyers” video course.
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