Time and time again I hear from potential new clients that they have excellent credit. When I ask who ran their credit or who they are approved with for a loan, they answer, I ran my credit myself.
A perfect example happened about 10 days ago when I met a very nice gal and her fiancee who were looking for a home. When we first met, I asked if she was pre-approved and she said not yet, but it shouldn’t be a problem, I have a credit score above 730 and I have an excellent paying job, which she does.
She applied for a loan with her credit union and when they ran her credit, she didn’t have any! She was shocked to say the least. She had paid $15 to run her credit herself online and when the credit union ran her credit there was nothing.
Many people are fooled by these online credit institutions. I’m not going to say the name of the online credit company, but they are one of the big 3 who lenders verify your credit when applying for a home loan.
Now, some folks own rental properties and have used these online services to run credit checks for potential tenants, but after my latest experience, I think it’s time to change.
Even if you have been approved for a loan in the past, If you are looking to purchase a home, get pre-approved first, the criteria has changed and it will save you a lot of time.