Buyer Pre-Qualification
How to help your buyer get Pre-Qualified for a Mortgage
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 frustration to boot. Here's how to sort the buyers from the lookers.
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. Monitor the latest mortgage rates and
lending news at Bankrate.com
When you are contacted by a potential buyer, be prepared to interview the
buyer as much as they are inteviewing you about the house. Your goal is to
ensure that the buyer has the financial wherewithall to qualify for a mortgage
that, with the buyer's down payment, matches the appraised value of your house.
Questions to Ask
"Are you prequalified for a mortgage from a lender?"
If the answer is no, ask the potential buyer to obtain a prequalification
before setting up a time to see your house.
If the answer is yes, and the buyer is prequalified, here is the followup
question: For what mortgage or purchase price are you prequalified?
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 frustration to boot. Here's how to sort the buyers from the lookers.
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. Monitor the latest mortgage rates and
lending news at Bankrate.com
When you are contacted by a potential buyer, be prepared to interview the
buyer as much as they are inteviewing you about the house. Your goal is to
ensure that the buyer has the financial wherewithall to qualify for a mortgage
that, with the buyer's down payment, matches the appraised value of your house.
Questions to Ask
"Are you prequalified for a mortgage from a lender?"
If the answer is no, ask the potential buyer to obtain a prequalification
before setting up a time to see your house.
If the answer is yes, and the buyer is prequalified, here is the followup
question: For what mortgage or purchase price are you prequalified?
Pre-Qualified vs Pre-Approved- What you must know
Knowing the difference between getting prequalified for a loan, and
preapproved for a loan equips you to have the right information at the right
time.
Getting pre-qualified for a loan gives you an idea of how much you might
qualify to borrow. You have not actually applied for a loan and the mortgage lender
has only your word on your income, assets and liabilities. None of your information
has been verified, the loan amount is in no way guaranteed. You may be given
a pre-qualification letter that merely states you are likely to be approved for a
mortgage. Getting a pre-qualification is generally very fast and you can even
pre-qualify for a mortgage online in only a few minutes.
Getting pre-approved means that not only have you
given the mortgage lender information on your income, assets, and liabilities,
but your information has been checked and verified. The mortgage lender may also
have pulled your credit report to learn about your credit history and
credit-worthiness.
Getting a pre-approval letter means that you are likely to be approved for a
mortgage and also states the amount for which you may be approved. It carries
much more weight than a pre-qualification letter.
It's important to remember that you are not guaranteed to get a mortgage if
you are pre-approved or pre-qualified. Many things can happen during the
process—some lenders may give out pre-approval letters without actually
verifying your information or a borrower may not give completely accurate
information about his situation.
preapproved for a loan equips you to have the right information at the right
time.
Getting pre-qualified for a loan gives you an idea of how much you might
qualify to borrow. You have not actually applied for a loan and the mortgage lender
has only your word on your income, assets and liabilities. None of your information
has been verified, the loan amount is in no way guaranteed. You may be given
a pre-qualification letter that merely states you are likely to be approved for a
mortgage. Getting a pre-qualification is generally very fast and you can even
pre-qualify for a mortgage online in only a few minutes.
Getting pre-approved means that not only have you
given the mortgage lender information on your income, assets, and liabilities,
but your information has been checked and verified. The mortgage lender may also
have pulled your credit report to learn about your credit history and
credit-worthiness.
Getting a pre-approval letter means that you are likely to be approved for a
mortgage and also states the amount for which you may be approved. It carries
much more weight than a pre-qualification letter.
It's important to remember that you are not guaranteed to get a mortgage if
you are pre-approved or pre-qualified. Many things can happen during the
process—some lenders may give out pre-approval letters without actually
verifying your information or a borrower may not give completely accurate
information about his situation.
Mark Petrillo
Coldwell Banker/Tony Hubbard Realty
1795 East Highway 50
Clermont,Fl 34711
[email protected]
352-504-5780
http://soldbymark.mfr.mlxchange.com
Coldwell Banker/Tony Hubbard Realty
1795 East Highway 50
Clermont,Fl 34711
[email protected]
352-504-5780
http://soldbymark.mfr.mlxchange.com