Should Realtors work with Low- FICO buyers?

Should you work with Low- FICO buyers?

It depends. (I know, I say that a lot…)

First of all, keep in mind that if you don’t work with buyers that want to work with you there may be a claim of discrimination headed your way. Probably more for the lender than the Realtor, but do be aware that there are those who may interpret your actions as discriminatory. Always do your homework and be sure that if you choose NOT to work with someone that it is for the right reasons.

2nd, recognize that often if a FICO is low there are other problems to go along with it. Do they have sufficient credit? Are their judgements, liens, or collections? Do they have the cash to close?

There are loans that have no FICO requirement, but we need to evaluate the whole scenario. Preferably sooner rather than later. It is true that a low credit scores often accompanies other issues and may eliminate or exclude that borrower from certain loan programs, but there are often alternatives. 

If a borrower is motivated, responsive, and has shown a sense of responsibility there is a greater chance that we will be able to work through the issues & get them to the closing table. If they give up easily are not willing to take the relevant steps, they probably aren’t ready.

Also, even if they aren’t ready right NOW there may be steps that can be taken to get them there.

If they are motivated and willing to take the steps to get there they may be worth the effort, and not only could become a customer, but a referral source.

That, of course, depends on their character, and yours…