A note in real estate is a promissory that you will repay a loan. It works with a mortgage which enforces the contract.

When you carry a note you finance the sale of your house. You loan money to the buyer to pay for your house, and they make monthly payments to you instead of a bank.

 
 
 

Buyers often get confused with the relationship between income and credit when buying a house. Banks will look at the total income and the lower credit score when approving a mortgage.

If one spouse has a very low credit score you will get a lower interest rate if you don’t include him/her on the loan. However, you also won’t be able to use his/her income, so you won’t be able to afford a more expensive house.