Today’s Tip is Qualifying Your Buyer,
Most sellers are so eager to get people in the door they don’t stop to think about qualifying their prospects before allowing them to view the home. This process will help weed out the tire kickers from the folks who are serious about buying.
Due to the recent changes in the lending industry, fewer and fewer buyers are qualifying for a home purchase as available shrinks. Higher credit scores, higher minimum down payments, and a lower debt to income ratio are now required.
Additionally, many banks have gone out of business or have been absorbed by other financial institutions. This has created utter mayhem for many buyers and sellers who have a transaction in progress and many deals are falling apart after the buyer and seller have reached an agreement.
One suggestion would be to request a letter from buyer’s lender stating the following:
- That this individual(s) has completed a Good Faith Estimate.
- That the lender has verified their credit score, their income and verified the availability of funds to for their down payment and closing costs.
- That the buyer DOES NOT need to sell another property before they can complete their purchase.
Finally, there are many advantages to using a local lender. Here in Alaska we can be proud to learn that most of our local branch offices have highly trained and highly ethical loan originators. If you need any recommendations feel free to contact me and I’ll pass on some reference for you.
I hope this helps!