|
One of the biggest headaches any home seller can experience is working with an interested buyer and negotiating a sales price, only to find days or weeks later that the buyer is unable to obtain a mortgage. That's precious time wasted and frustration to boot. Here's how to sort the buyers from the lookers.
According to the Mortgage Bankers Association, roughly half of all mortgage applications are being rejected. Lenders aren’t giving mortgages to just anyone nowadays. They’re turning down applicants who don’t have a high enough credit score or are not making a sufficient down payment. As a seller, you’ll want to focus your attention on those who can afford your home and can get the necessary mortgage. Monitor the latest mortgage rates and lending news at our Mortgage page, with fresh content delivered daily by Bankrate. When you are contacted by a potential buyer, be prepared to interview the buyer as much as they are inteviewing you about the house. Your goal is to ensure that the buyer has the financial wherewithall to qualify for a mortgage that, with the buyer's down payment, matches the appraised value of your house. Questions to Ask "Are you prequalified for a mortgage from a lender?"  If the answer is no, ask the potential buyer to obtain a prequalification before setting up a time to see your house. Ask the buyer for a If the answer is yes, and the buyer is prequalified, here is the followup question: For what mortgage or purchase price are you prequalified? Pre-qualified or pre-approved? Being pre-qualified means that the potential buyer has a rough estimate from a lender as to how much mortgage they can afford. Being pre-approved means that a lender is ready to accept this buyer's mortgage application up to a certain loan amount, because the preliminary credit check, income verification and other initial steps have been completed. (click here for more about pre-qualified vs. pre-approved). |
