Unless the buyer making an offer on your home has the resources to qualify for a mortgage, you may not really have a sale at all.
As a general rule, buyers connect with a lender before looking at property in order to get pre-approved for a loan. The lender will look at their income, assets, credit history, etc. to determine if they qualify for a mortgage and how much they can afford.
When you you receive an offer on your home, I will make sure it comes with a signed pre-approval from the buyer’s lender. Should you decide to accept an offer from this buyer and your house goes under contract, I will then call the lender to get more details to determine the strength of the buyer.
Here are some important questions I will ask the lender:
- Does the Buyer have enough credit to qualify?
- Does the Buyer’s debt-to-income ratio allow them to qualify for this mortgage?
- Does the Buyer have stable employment?
- Does the Buyer have enough money to pay for the closing costs and down payment?
Once these questions have been answered, the next step is to move forward with the contract terms and deadlines.