Say you were bidding on my $750k to $1M plus listing rest assured your agent will be asked
to get a letter from you explaining why I should sell to you and take the home of the market.
A letter detailing what do you do, and why you want to buy the property.
Rest assured we have done many:
I would also call your lender to see if you qualify and what your FICO is
But lets say you were making $200K a year, had a FICO of 800 plus and were a doctor or a hot shot engineer.
But things went bad, and you screwed up and were fired in the middle of the contract now what.
what good is your income and your credit rating.
Forget being a doctor lets say you were a Fiber Optic engineer at many high tech companies like Lucent / Cisco / Ciena / etc., stock was at $300 / share and then in middle of contract down to $28, well then what?
Rest assured, a good Realtor or a Real Estate Lawyer in time will know and do it well.
The issue is times are tough and folks are trying to make it happen with changing circumstances.
The issue is simple , besides your credit rating, more importantly is what do you qualify for on the
Day of Closing the home, before the Lender funds and it is important that you have not borrowed money or bought a car before closing, and what is your Dent to Income levels from the original day of signing and turning in your loan App.
You may be the Don making $200K with $10M in funny money stocks, but loose your job and stocks down
to less than what you bought it for may mean You dont get that fine home with a FICO of 800.
Good luck to you.
Credit doesn't tell 1/2 the story. There are many many other items that go into making a loan decision besides a credit score.
I understand your pain and you are right about the trouble agents and sellers go through when buyers don't close. Actually the buyers often go through a lot of pain too. The potentially loose option money, inspection money, earnest money, appraisal fee, utility connection fees, and end up without a place to live when loans don't close.
Unfortunately there are many many pieces to the lending process today and they often change daily. So sometimes even if the only thing that would be required is let's say a 700 credit score, before the loan gets underrwritten it could change to 720. So checking the credit up front would not guarantee a closing.
These days and in fact for the last couple of years I advise both buyers and sellers to not count the deal done until they have cash or keys in hand. It just seems there are a million things that can go wrong even with the best transactions.
This is still not a guarantee that the loan will go through and that the deal will close. A good agent will stay in constant contact with the buyer's lender and try to keep things going smoothly throughout the transaction.
Deals do fall through, but the agents have to rely on the lenders AND the buyer. Sometimes buyers go out and make mistakes that damage their credit between the time the loan is first approved and the closing date. I've heard of buyers who ran up their credit card balances buying new furniture and one who got mad at his boss and quit his job out of anger. Needless to say, the bank bails out in these situations.