If you are using a real estate broker, your agent will perform a cursory prequalification on the buyer, if this has not already been done by the buyer’s agent or by a loan consultant ahead of time. The process involves an analysis of income, debts, assets, credit scores, and available cash to determine whether the buyer is financially capable of purchasing your home.
If you are selling on your own, you need the same assurance before you accept an offer and take your home off the market. The buyer who is serious should not mind being asked to get a loan prequalification, or even a full preapproval, before you make a firm commitment to sell. If you are confident that the buyer will check out favorably with a lender, you may begin to negotiate, but with the stipulation that the offer be contingent upon the buyer’s preapproval by an agreed-upon date. One of the seller’s worst mistakes is tying up the house for months, only to find that the prospective buyer is financially unable to complete the purchase. The more you know about prospective buyers, the more likely you are to have a problem-free sale |
