* Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale. if possible, try to determine a financial status before signing a contract.
1. Has the buyer been pre-qualified or pre-approved (better, but in todays mortgage market not always possible) for a mortgage? Such buyers will be in much better position to obtain a mortgage promptly.
2. Does the buyer have enough money to make downpayment and cover closing costs? Ideally a buyer should have 20% of the home’s price as a down payment and between 2% – 7% of the purchase price for closing costs and pre-paids(taxes, homeowners fess, etc.) There are many loan products available and I have seen 0% with seller paying buyers closing costs. So make sure you work closely with buyers lender and ask for pre-qualification or pre-approval letters and maybe copy of their good faith estimate.
3. Is the buyer’s income sufficient to afford your home? Ideally, buyer should spend no more than 28 percent of total income to cover PITI(principle, interest, taxes and insurance.)
4. Does your buyer have good credit? Ask if he or she has reviewed and corrected their credit report. Again there are many types of loans and mortgages available and having a great mortgage person to talk to in invaluable.
5. Does the buyer have to much debt? if a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage.
Contact our office for a list of our preferred lenders and mortgage pro’s. Call/Text 352-572-1739 or info@homesforsaleocalamarion.com