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 perhaps you even turned down offers from other interested parties.
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 necessary. Ask interested buyers if they have a pre-approval letter from a mortgage lender. They might say that they are “pre-qualified,” which isn’t as strong as being pre-approved because the lender has not verified the buyer’s credit score, income, assets or liabilities. (click here for more about pre-qualified vs. pre-approved).
If the buyer is pre-approved, great! If not, before you spend any significant amount of time negotiating a sales price, ask that they take the important step of getting pre-approved. Not only will you be putting yourself in a situation to only work with those who are more likely to get a mortgage, you will be providing sound advice to buyers who will gain more confidence in buying a “for sale by owner” home without the help of a real estate agent.
Tell them to visit local banks that handle mortgages or contact any of the large home lenders, such as Wells Fargo or Bank of America, to get a pre-approval letter. Online lender Quicken Loans can even help buyers get fully approved for up to four months while they shop for a home.
Having your buyer get pre-approved is actually a very simple process and will benefit both you and the buyer.
Posts
5 comments:
This is a very good article. I am a realtor and of course I would ask a buyer if they are preapproved and they say oh yea I'll be fine I've got great credit and excellent income so I'll be fine. They need to call, email or visit a lender BEFORE they go looking at houses. I know that if I received an offer for one of my sellers without a pre-approval letter attached, I would recommend that the buyer get their pre-approval before my seller would consider the offer.
I agree but a pre quail from a reputable broker or lender is fine. With as busy as it is ans time consuming it is best to get pre quailed , they should run your credit , and if the broker is reputable the letter will be strong. I dont agree with going to the local bank , for one old fahsioned lending, two most are higher rates . One must remember it is the buyr who is in charge , not the seller in this market. In this market the seller should kss the buyers shoes and accept most any offer. For taht reason a buyer should contact a true mortgage broker and get the best deal for them , they are the ones making the payment for all those years. THE BUYER IS KING , THIS ECONOMY IS IN THE TANKS >
I have to agree the prospective buyer has to get pre-approved, this does help in getting to see what they qualify for and then one can work around that. I have to say that with how the times are right now banks are not that forth coming in giving out bonds, so new buyers, yes its a buyers market, may just have to wait a little while before going ahead.
I have to agree the prospective buyer has to get pre-approved, this does help in getting to see what they qualify for and then one can work around that. I have personaly made the mistake of not getting this when trying to buy a house and it turned out to be a disaster for me.
I must say I agree with the publisher. Looking for a home without a pre-approval letter is like flying blindly. You need to know if you can even get the property before you out looking for one.
Charlotte Real Estate
Post a Comment