How To Pre-Qualify A Home Buyer
Most of us can remember the first time we bought a home and how it seemed to take forever, right? And now when you’re thinking about selling your home it’s a good time to remember that the process can be very time-consuming and actually frustrating. The goal is to close the sale, and that happens at the end of the long process that starts with finding a buyer. Thinking ahead to the closing process when you’re just getting started looking for a buyer will save you some time in the long run.
So, the first thing to consider when you are looking for a buyer is to understand that you want a “qualified” buyer, meaning someone who will qualify for a mortgage loan or who has enough cash to purchase your home outright. You still have to get the title work done, but you don’t have to wait a long time for the loan approval process if your buyer is approved ahead of time by a lender. Pre-qualification is not the same as pre-approved, so you’ll want to make sure you understand the difference, and furthermore, a buyer’s status can change if he or he goes out and buys a new car or makes another big purchase with credit cards between the time he or she was pre-approved for financing and the time you’re headed down the road towards a sale. In other words, be cautious and take care when you hear that a buyer is pre-qualified or pre-approved. But feel free to get excited when you hear that a buyer pays cash!
It’s not a simple matter of finding someone who wants to make an offer when you are selling your home. You want the right buyer to make a offer, and that is not always easy to determine upfront. If you are using a real estate agent you can insist that your agent inquire about the pre-qualification , pre-approval or cash position of the prospective buyer, but if you are selling by owner you will have to handle those inquiries yourself, which can be a little awkward.
Since I’ve bought and sold so many homes I am not shy about talking to buyers about how they will be paying for the home, but sometimes I require proof, meaning I ask to see bank statements or letters of pre-approval signed by their lender. That is not inappropriate at all. As I said, it’s easy for me but might be a little awkward for you when you’re selling your home. Just remember that the time you spend upfront to make sure you have a qualified buyer is going to save a lot of waiting and frustration during the closing process.