24 Sep 07 
I’ll Buy From the Home Builder That Helped Me Rebuild My Credit!
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It’s difficult to read an article or watch a news story about our Arizona real estate market and not stumble across a statement or two about rising interest rates, tougher subprime lending, or diminishing loan programs. It’s also becoming increasingly difficult for consumers to make any major purchase without good credit history. It’s unfortunate that the aggressive lending practices of the last few years are catching up with us, and most, if not all lenders. In recent years, low interest rates and creative lending tactics have helped many home buyers get into homes that they would not have been able to otherwise afford. These same aggressive tactics and low interest rates have also helped Arizona home builders sell more homes.
Today, it’s a new market and I think we might see the rise of more home builder programs or home builder sponsored programs that help consumers fix or improve their credit rating. Every builder might offer these programs already; if so, I think that these programs will get more attention and more use as we move toward more stringent lending practices. I’m positive that home builders could successfully secure more home sales by helping walk buyers through credit repair/improvement programs. I don’t necessarily think these programs have to be developed by builders, but I do think that builders can find companies that offer successful credit repair/improvement programs and help the potential home buyer take their first steps toward home ownership. Who knows, home builders could even start, or begin to sponsor credit repair/improvement classes that would leave graduates with a greater understanding of their credit, and the ability to purchase a new home.
Obviously, this approach would lengthen the sales cycle, but it could pay off big. With a little creativity (putting the fees into the cost of the loan, giving discounts to credit repair/improvement graduates?), home builders may be able to use incentive money to help home buyers strengthen their credit. In the end, new homeowners would have a lower mortgage payment, lower interest rates, better credit and the knowledge to maintain their good credit. This is just an idea of how Arizona home builders might get more sales as we near the end of the recent aggressive lending practices. Any other ideas?
Tags: arizona homebuilder, Arizona Real Estate, credit score, home builder, Homes for Sale, new homes, rebuilding credit
