Need Good Credit to Sell Your House?

J

James white

Member
A family member is thinking about selling their home, but their credit isn’t in great shape right now. They’re worried it might somehow affect the process or cause issues with the sale. From what I understand, buying a home definitely involves credit checks, but what about selling one?

Is bad credit something that could slow things down, or does it not really come into play if you’re just the seller?
 
Nope, your credit score has absolutely zero to do with your ability to sell a house. It’s mainly for buyers, lenders, and financing situations. If you're the seller, your house is the asset you’re not the one borrowing money. Unless there’s some debt tied to the property (like a mortgage or liens), your credit won’t even come up.
 
Lived this one! My dad had awful credit when he sold his home last year. He still sold it above asking. The only issue was that the mortgage payoff had to be done right his bank made it a bit slow because of some back payments but it didn’t tank the sale. Just added a couple of days of delay.
 
Unless they’re trying to buy another place simultaneously, bad credit shouldn’t stop them from selling. It could become a factor if there are liens, unpaid property taxes, or foreclosure risk, but that’s about the property title not the credit report. A good title company will flag all that.
 
People get this confused all the time. Selling a home doesn’t mean you need a loan, so no credit check. Your mortgage gets paid off from the sale proceeds. The buyer’s credit? Hugely important. Seller’s credit? Not even part of the convo 99% of the time.
 
Only thing I can think of where credit might impact the sale process is if there’s a HELOC (home equity line) still open that complicates the title transfer. But even then, it’s a matter of paying it off.......not your credit score. The title company just needs clear info.
 
Tbh, I’d be more concerned if the house has a bunch of liens or unresolved permits. That delays closings. Credit score? Doesn’t come up. The agent, title company, and lender (on the buyer’s side) never even ask about the seller’s FICO score.
 
Nah your family member’s credit score doesn’t matter when selling. Credit is a factor for the buyer, not the seller. The only time it could matter is if there’s some kind of lien on the house or if they’re trying to buy a new house simultaneously and need a mortgage. Otherwise, they just need to find a buyer, accept an offer, and close the deal. The title company and real estate agent handle the rest.
Been in real estate for 8 years......tell your family member to chill
 
Selling my house last year with a 590 credit score.....no one even asked. The only credit-related stuff was the mortgage payoff and that was handled at closing. Now if your family member owes a lot and is underwater, that’s another convo (short sale etc.), but poor credit by itself won’t delay the process.
The buyer’s financing is what makes or breaks the timeline
 
You’re totally fine selling with bad credit. The only exception is if the seller is buying at the same time and needs to qualify for a mortgage on the new place—then yes, their credit becomes relevant
Also if your family member has a HELOC or unpaid property taxes, that could delay things
Tell them to get a title check done early to make sure there aren’t surprises.
 
Sold my place with a credit score in the low 500s. You know what mattered? The buyer's pre-approval letter and the appraiser not being a drama queen
Don’t stress about credit. What you DO need is a good real estate agent who can manage timelines and disclosures.
 
Nope your credit score does not matter when you’re selling. The buyer’s the one getting the loan, not the seller. The only way credit might matter is if you’re underwater on the mortgage and trying to do a short sale then the lender might pull your credit to approve it. But for a standard sale? Nah, your family member should be fine. The title company and escrow folks won’t even ask about the seller’s credit. Selling is more about equity not credit.
 
I work in real estate and can confirm.....bad credit does not affect your ability to sell your home. What does matter is if there are liens on the property, like unpaid taxes or judgments. Those can delay or complicate closing. But that’s tied to the house not the credit score. If you’ve got equity you’re golden. Tell your family member not to stress. It’s not like buying where every financial detail gets dissected.
 
Selling a house with bad credit is like quitting your job with a bad resume....it just doesn’t matter anymore. Unless they’re trying to buy another house immediately after, their credit is irrelevant. Now if they’ve got unpaid HELOCs or liens, then yeah it could mess up the title search. But the score itself? Zero impact. And if they’re that worried they can always pay off debt from the sale proceeds.
 
The only scenario I’ve seen credit come into play for sellers is if they're also trying to refinance or buy another place concurrently. Then lenders might peek at their credit. But just selling? Nah. The buyer’s lender is the one with the magnifying glass. All the seller really needs is proof of ownership and the ability to pay off any remaining mortgage. Easy peasy, credit score be damned.
 
I sold my house last year with a credit score in the low 500s and it didn’t matter one bit. Title company didn’t ask, buyers didn’t care. I actually paid off a bunch of debt with the profit so it helped my credit. It was weirdly empowering, lol. Selling is more about what you own not what you owe. Unless you’re trying to juggle multiple sales or loans at once, credit is a non-issue.
 
Lemme just say this credit affects so much in life that it’s nice to find a thing it doesn’t touch. Selling a house is one of those rare times. You could have a 300 score and still hand over the keys. All that matters is the mortgage gets paid and the title is clean. Just be upfront with your agent so they know what to expect during escrow.
 
when you sell property, the title company runs a search for encumbrances, not your credit report. Judgments, unpaid property taxes, child support liens....they can block the sale if not resolved. But bad credit from maxed cards or missed payments? Irrelevant unless they turned into judgments. So in a nutshell: not great credit ≠ not able to sell.
 
My sister thought the same thing when she sold last year! She had two charge-offs and a car repo on her credit, was totally panicking. But nobody involved in the sale even mentioned her score. She got through the sale fine and even used some of the proceeds to pay off her car loan. If your family member has equity and no major legal issues on the house, they’re good.
 
Your credit could be 420 (nice) and it wouldn’t matter unless you’ve got a criminal record attached to the house or something. Selling is basically like saying, “Hey I own this. Wanna buy it?” Credit score isn’t part of the deal unless you’re trying to buy another house at the same time and need a mortgage. So unless your family member’s house is possessed or cursed, they’re good.
 
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