Is a buyer financially qualified?
When a seller receives a purchase offer for their property, there is no guarantee that the potential buyer is financially capable of purchasing the home. Not all prospects are qualified buyers, and some are more capable of buying your home than others. But how do you know the difference when you receive a purchase offer from a prospective buyer? Most serious buyers enter the house hunting process with a mortgage pre-qualification, or a pre-approval. Each indicates a different level of buying power.Pre-QualifiedThis means a lending agent, or a financial advisor, has done a general review of the buyer’s finances, without an in-depth examination of credit. A simple analysis of debt to income indicates an estimate of how much money the buyer has to spend on a mortgage payment, after all other monthly expenses are met. However, someone who is pre-qualified, does not have a promise for funds from a bank, or lender.Pre-ApprovalThis indicates a more rigorous financial review. The bank, or lender, will carefully examine credit, income, and debt. The buyer will need to provide documentation for each, making the pre-approval more telling than the pre-qualification. The lender will recommend different loan programs, tell the applicant what dollar amount they would be eligible for, and at what terms and rates it would be given. A pre-approval letter outlines all this information. If a buyer is serious about purchasing your home, this letter tells you they have the potential backing to make the purchase happen.MARKETA JONAS-HAGY is a Real Estate Broker with Century 21 Gold at 507 Main Street in Frisco. She has been helping clients with their Summit County Real Estate buying, and selling, needs for over 17 years. You can reach Marketa at (970) 668-2121 ext. 215, (800) 548-0021, or via email at email@example.com. Go to c21summitcounty.com to search, and view, all properties for sale in the Summit County MLS.
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