Why It Is Important To Pull Your Borrower’s Credit Before Selling Your Property Using Seller Finance
3:43 watch · September 24, 2026 · With Dawn Bearden, Moxxie Asset Group
Why You Always Pull Credit Before You Close
- ✓ Knowing the buyer isn’t enough — Friends, family, and long-time tenants still need a credit check. Being a good person isn’t the same as paying reliably for 15–30 years.
- ✓ You are now the bank — Seller financing puts you in the lender’s seat — and no bank extends credit without checking first.
- ✓ Use an RMLO — A residential mortgage loan originator pulls the credit report and score and analyzes income, debts, and affordability.
- ✓ The buyer can pay for it — The RMLO’s fee can be one of the borrower’s closing costs, so the check doesn’t have to come out of your pocket.
- ✓ Credit drives resale value — It’s one of the first things a note buyer reviews. Weak or unknown credit means more risk and a bigger discount.
- ✓ Documented credit protects you — Solid, documented credit protects your note’s value while you hold it and when you sell it.
Full Video Transcript
The Step Many Sellers Skip
Hi, I’m Dawn, the Senior Note Analyst and Seller Finance Mortgage Note Advisor with Moxxie Asset Group.
Today I want to talk about something a lot of property sellers skip when creating an owner financed mortgage note, and it could really cost them later: pulling your borrower’s credit before you agree to seller finance a sale.
“I Know This Person”
Here’s what happens a lot. The seller already knows the buyer. Maybe it’s a friend, a family member, or someone who’s been renting the property from them for years.
They think, “I know this person. They’re a good person. They’re going to pay.” So, they skip pulling credit entirely.
You Are Now the Bank
But here’s the thing. When you agree to seller finance, you’re not just selling a property anymore. You are now stepping into the role of the bank. And a bank would never extend that kind of credit without actually checking who they are extending it to.
Being a good person and being able to reliably make a payment every single month for the next 15, 20, or 30 years are two very different things.
How an RMLO Helps
This is where an RMLO comes in. That’s a residential mortgage loan originator. During closing, you can actually have your buyer pay for this service as one of their closing cost expenses, and it’s generally worth it for both you and your borrower.
An RMLO pulls the borrower’s actual credit report and credit score and does a real financial analysis, looking at their income, their debts, and whether they can actually afford the payment they are about to agree to.
That gives you, the seller, and the borrower real information before you commit to that note for 10, 20, 30 years. As a note holder, you are now not just going on a gut feeling when extending this kind of credit. You can now make an informed decision based on actual numbers.
Credit and Your Note’s Value
And here’s the part that connects to everything else we’ve talked about. If you ever want or need to sell your note down the road, your borrower’s credit is one of the very first things a note buyer looks at.
A borrower with weak or unknown credit means more risk, and more risk means a bigger discount on your offer. Their poor credit makes your note less valuable.
A borrower with solid, documented credit protects your note’s value, both while you’re holding it and if you ever need or want to sell your note in the future.
Talk It Through With Us
If you are a property owner that’s considering financing the sale of your property, or you already are a note holder and you’re not sure how it was originally set up, we’re very happy to talk to you about it and talk you through it.
If you’re holding a note and want to know what it’s actually worth today, we offer a free, no-obligation review via our free note review form on our website, or you’re welcome to reach out anytime by calling us at 954-466-7111.
I hope this video helped you understand why pulling your borrower’s credit is essential for creating a high quality note that holds its value and protects you from a friendly borrower with an unknown low credit score. Thank you.
Want to Know What Your Note Is Actually Worth?
Send us your note details and our team will walk you through the numbers — no obligation, no pressure. When all documents are received and title is clear, most closings run 3–5 weeks. Have your promissory note and your mortgage or deed of trust (depending on your state) handy.
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