MUST READ ARTICLES FOR SELLING A HOME:
Is Your Buyer Qualified?
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 buyer’s financial status before signing the
contract. Ask:
1. If the buyer has been prequalified or
preapproved (better) for a mortgage. Such buyers will be in a much better
position to obtain a mortgage promptly.
2. Does the buyer have enough money to make a
downpayment and cover closing costs? Ideally, a buyer should have 20 percent of
the home’s price as a downpayment and between 2 and 7 percent of the price to
cover closing costs.
3. Is the buyer’s income sufficient to afford your
home? Ideally, buyers should spend no more than 28 percent of total income to
cover PITI (principal, interest, taxes, and insurance).
4. Does your buyer have good credit? Ask if he or
she has reviewed and corrected a credit report.
5. Does the buyer have too much debt? If a buyer
owes a great deal on car payments, credit cards, etc., he or she may not qualify
for a mortgage.