What I tell everyone is that their perception of their credit situation is not clear until it’s verified by a professional. This cuts both ways….
I’ve had clients in my office who believed they had no stumbling blocks that stood in their way of obtaining a million dollar mortgage at an interest rate of under 4% with no money down. (Yes, I’ve heard it all!) What happens in some of those situations is that a person may have the financial “aptitude” but if they don’t have all the appropriate documentation to verify the source of their income and their holdings to prove their “mortgage-ability” — then they’re going nowhere.
On the flipside, there are buyers who believe they have horrible credit, they know they have credit lines and high balances on several cards and don’t believe they would be a good mortgage risk. They therefore assume they will be denied a home loan.
This is not to say that either one of these clients is ready to make a move, but neither should presume their reality. It takes a comprehensive investigation into everything from the verification of income, to the mitigating circumstances, to the solid assessment of the buyers’ ability, to finding a mortgage product that suits; in order to determine the ability and ease with which they can pay back their loan.
At the end of the day, we all know what happens when we assume.