You can ask the buyer to prove that they are prequalified for a loan before your contract negotiations proceed.
Fast House Selling – Harahan LA: The buyers of today have an advantage over sellers. They have lots of choice and are able to get homes for much less than even the current market value might be at the time of purchase. Since the advantage is on their side, make sure you protect yourself as a seller to avoid problems with the sale when it comes time to close the deal and exchange keys. Many people are seeing the low prices of homes all over the country and are looking to buy.
That doesn’t mean they are all qualified to obtain mortgage loans. The one thing that is more of a challenge to buyers today is the loan process. Banks have tightened up their criteria and aren’t giving loans out so easily as they were a few years ago. Since your buyer will need a loan to complete the purchase of your house, you can ask them to prove that they are prequalified for a loan before your contract negotiations proceed.
“A buyer can get a prequalification letter from the bank or mortgage lender that sees their income and financial health and believe that they will be able to do business.”
One of the most common deal breakers in today’s housing market is the buyer that doesn’t qualify for the loan needed to pay for your house. After so many months on the market and all the trouble you’ve gone through to get the house sold, it can be very frustrating to think you’ve finally sold the house only to have it fall through on closing day. The closing should be your best day in the whole sale process, but can become the worst day if you end up having to start all over again trying to sell the house. A buyer can get a prequalification letter from the bank or mortgage lender that sees their income and financial health and believe that they will be able to do business.
Don’t be shy about asking for this letter from potential buyers as it has become commonplace. The information will tell you that the buyer can get as much as is needed to buy your house. A pre – approval letter will be another form of proof that a lender has checked the buyer’s credit report and income information and says that the buyer may indeed be eligible for a loan that will cover the cost of your house when they complete a full application. These are great tools that you can use to avoid the pitfalls of selling to someone who will not be able to get a loan and will therefore be unable to follow through.
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