If you’re interested in figuring out what you can afford in the San Francisco real estate market, the first step is getting fully preapproved for a loan. And part of that process involves a lender pulling your credit so it can verify the type of loan for which you’ll qualify.
I’ve heard prospective buyers question why it’s necessary to have a lender run their credit score as part of the loan process.
Lenders are interested in a borrower’s “depth.” For example, a lender wants to see that a buyer has used credit in the past 24 months, and believe that if the buyer doesn’t have debt, the credit score may be compromised. As a result, the lender may not be getting an accurate read on the borrower’s ability to pay. Continue Reading