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If there were two offers on a house for the same price with one person having 10% down and excellent credit and the other having 20% down but less than excellent credit which one do you think would be picked?
If there were two offers on a house for the same price with one person having 10% down and excellent credit and the other having 20% down but less than excellent credit which one do you think would be picked?
as a seller, I've never had any knowledge of the buyer's credit score. It's between the buyer and their lender.
That’s interesting because I know someone who apparently got their house due to having a better credit score over a higher offer. I would share my credit scores with a seller if it meant having a stronger offer, anything that can help especially with how competitive it is now.
If there were two offers on a house for the same price with one person having 10% down and excellent credit and the other having 20% down but less than excellent credit which one do you think would be picked?
Credit score. Because if they have bad credit they are considered a riskier borrower and banks may not want to actually give them the mortgage.
That’s interesting because I know someone who apparently got their house due to having a better credit score over a higher offer. I would share my credit scores with a seller if it meant having a stronger offer, anything that can help especially with how competitive it is now.
When we sold our co-op, we weren't told the actual # of their score but we were told what range they were in "good, excellent, poor" etc.
I think credit score is way more important than having a downpayment. If you have a good credit score you can still get a mortgage regardless of downpayment... if you have a bad credit score, you may have problems getting a mortgage regardless of how much downpayment you have.
Bad credit scores are riskier for the seller to entertain.
How times have changed since 2005 when if you could fog a mirror with a 450 score you could get an interest-only 105% no money down ARM mortgage.
Unless paying 100% in cash I would think the important criteria is to have an approval letter from a bank for the amount of the offer (including down payment).
Down payment, credit score, debt to income ratio AND income are ALL factors for underwriting.
I wouldn't accept any offer unless I saw a pre-approval letter.
I would obv accept the 'good' over the 'average' but if you only got one offer with a person who had good or average, I would take it as opposed to waiting for another offer to come in... unless of course you weren't really all that desperate to sell. I think there are not many people in the 'excellent' range so good is fine.. those scores are in the low to mid 700's usually... people in the good range will be fine getting a mortgage. 'Average' is def riskier than someone with a 'good' score.
How times have changed since 2005 when if you could fog a mirror with a 450 score you could get an interest-only 105% no money down ARM mortgage.
Unless paying 100% in cash I would think the important criteria is to have an approval letter from a bank for the amount of the offer (including down payment).
Down payment, credit score, debt to income ratio AND income are ALL factors for underwriting.
I wouldn't accept any offer unless I saw a pre-approval letter.
Right, but the pre-approval letter will only tell you how much they are approved for and how much the down payment is. So in this scenario that is all you have to go on and therefore the higher down payment would win? Even if the lower down payment has better credit?
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