A capable real estate agent who is attempting to make real estate sales, will only show the property to buyers who are considered pre-qualified. As the seller of your “for sale by owner” home, before you ever think about signing the sales contract, you must have the buyer pre-qualified. One of the biggest mistakes you can make is signing a contract with an unqualified buyer. For if the buyer is unable to attain a mortgage loan that is sufficient for paying for your home, you will be committed to a contract that will prevent you from seeking out another potential buyer.
The terms “pre-approved” and “pre-qualified” may sound unfamiliar. A buyer referred to as “pre-approved” is one who was approved for a loan for a %specific% dollar amount offered by a lending institution. A buyer referred to as “pre-qualified” is one with an unconfirmed estimate as to how much he will be capable of borrowing from a lending institution. You must try your best to find the appropriate buyer who can attain a loan that will cover the cost of your home.
The “for sale by owner” seller is completely responsible for pre-qualifying a buyer. In order to get information that is simple but personal, it is up to the “for sale by owner” seller to organize a meeting with a potential buyer. The buyer’s long-standing debt and compensation are two very important pieces of information. People tend to feel reluctant to ask this kind of personal information from a complete stranger or even a neighbor, but there is no need to feel this way. Buyers understand what they are getting into and are aware that questions of this nature are associated with real estate sales.
If you prefer to do the calculations by hand, a necessary item is the pre-qualifying worksheet. You will need to attain a maximum dollar amount estimation that the buyer will be capable of borrowing after you have recorded all of the buyer’s information regarding monthly long-standing payments and compensation.
There is a much simpler method. You always have the option of asking the buyer to visit a %trustworthy% website that will calculate the estimated maximum dollar amount that they will be offered by a lending institution.
In order to determine this estimation, you will need three factors: yearly compensation, monthly long-term debt, and the national average of cost of living. By adding the buyer’s down payment to the estimated mortgage loan you can find the utmost dollar amount that the buyer can pay for your home.
Finding the right buyer for your real estate sales is of the utmost importance, no matter how heavy it may seem. When you find an interested buyer who is unable to attain the loan required to complete the transaction, giving them all of your attention is an immense waste of time. The first time you meet an eventual buyer, everyone is on even terms. You want to pre-qualify a potential buyer as soon as they express excitement in purchasing your home. As soon as it has been confirmed that the buyer is qualified, everyone will be relieved. You will now be able to move on the more important business of purchasing your home.