How to Talk to Your Borrowers About Credit Scores

Loan Pipeline Management

How to Talk to Your Borrowers About Credit Scores

Credit Scores

There are a lot of reasons that your leads and borrowers might be worried about their credit scores right now. Below are free resources you can share with prospective home buyers to help them understand everything they need to know about their credit score. 

Credit Scores

Here’s what’s going on with consumer’s credit right now:

1. Higher credit scores are needed to buy a home

First, in the face of the Coronavirus, mortgage requirements are becoming even stricter. So, it’s harder for borrower’s credit scores to qualify them for a mortgage. This is because, as you know, it’s becoming riskier for lenders. Credit scores that a year ago would have earned a borrower a mortgage just aren’t high enough today. Your borrowers may be wondering how they can qualify for a mortgage during this time. 

2. Financial hardship can lead to damaged credit

Additionally, many of your clients may be facing financial difficulties due to the Coronavirus. They may have lost their job, and had to go into forbearance on their mortgage. Although the CARES Act protects consumer’s credit, it can still be a nerve wracking time for those with credit scores (read: everyone). 

Here’s what you can do right now:

Your customers are looking for guidance, and you should be there to support them. By becoming a trusted advisor, you’ll not only be able to help your borrowers, you’ll also be earning their trust (and hopefully their continued business in the future). 

Free, Shareable Resources

Here’s an article that you can send your clients to help them understand their credit scores and how that affects their ability to get a mortgage:

Post this article on on social media, send out an educational email, and also call up your borrowers who are struggling with their credit. 

Read the Article Now:

Bottom Line

If your customers have questions or concerns about their credit, you have a great opportunity! Give them helpful resources and guidance, so that they can better understand their financial situation. This will help make you a trusted advisor to your borrowers.