Selling Your Home Step #10 Financing, helping buyer's, buy!
(originally posted on FlexitRealtyBlog)
Many times buyers start looking for a home before they have secured financing. This means buyers are looking, dreaming about a new home, without the proven ability to purchase. Unless they have cash, which is rare, buyers will need to discuss lending option with a bank or mortgage broker.
Real estate agents representing sellers, know to ask, if the buyers have seen a lender to establish mortgage guidelines. Meaning the buyer knows the maximum lending limit the bank or mortgage company is willing to lend them. The buyer also knows how much money they must put down to secure the loan. The only way a real estate agent gets paid, selling to a buyer that can buy your home.
Without a pre-qualification letter, buyer's are not confirmed buyer's. Many times with a letter they cannot buy. The reason is a pre-approval letter is an estimate of the buyer's ability to buy based on verbal discussions and "without" documentation of credit by a lender. A pre-qualification letter means, or should mean, the buyer has proven to the lender (at the time of credit review) with documentation of wages, credit report, bank statements and employment.
Remember things change. This means a buyer's credit can change before the loan is granted. If the buyer loses a job, buyers furniture or a new car for their new home they may not have the right credit ratio to get the loan! Nothing is a sure thing until you have the check in your hand. So protect yourself and get backup offers, if you can.
One of the ways real estate agents and home sellers can remove this uncertainty is to have a lending program available for buyers. This will help sell the property and confirmed the buyer's ability to secure financing. NO, you do not
12 Easy Steps to Selling Your Home Step #10, Selling Your Home is more than making it look pretty! have to provide financing for buyers. You talk to your current bank where you do business or a mortgage broker you know and have them work up three (3) proposals for loans on your home. Each proposal has a different amounts down, alternative terms, 20, 30 years to pay back.
Buyer's can not expect seller's to take a home off the market without written proof of their ability to buy. Buyer's could also lose the home they stayed awake nights dreaming of living in, because someone else prepared to buy, gets the seller to accept their offer.
Preparing to sell your home is more than making it look pretty. Selling your home requires more than taking great photos and writing buyer attracting property descriptions. Selling your home is being able to have a qualified buyer present you with an acceptable offer. An offer must be backed up with proof the buyer can actually buy!
Ask for a FREE Seller Checklist if you live in the Grand Rapids Real Estate Market and considering selling your home. Expose your home to a wider range of buyers using today’s most up to date real estate technology and selling methods.
Call Flexit Realty: 616-784-2360
Email: GaryWhite@FlexitRealty.com
Website: www.FlexitRealty.com
In case you missed earlier “12 Easy Steps Selling Your Home Steps” the active links are below.
- Estimating your homes value.
- Who is your homes competition?
- Deciding to sell with a real estate agent or without.
- Marketing Methods to expose your home to the maximum number of buyers
- Property Descriptions, survey and narrative details
- Preparing the outside of your home for sale.
- Preparing the inside of your home for sale.
- Photos, the visual details to attract buyers
- Showing your home to potential buyers
- Financing
- Open Houses
- Negotiating Your Homes Sale
Thanks for Stopping By and Leaving a comment.
Gary L. White, Associate Broker
CRS, GRI, ABR, ePRO, AHS, SFR
Phone: 616-784-2360
Email: GaryWhite@FlexitRealty.com
Website: www.FlexitRealtyGrandRapids.com
Videos: YouTube.com/FlexitRealty
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Financing is critical. From the point of buying your new home to making sure that your new buyer is approved! Critical!
Hi Larry, thanks for the comment, seller's that have their sale fall through I am sure will agree. Thanks again for the comments.
Great post! So much time is saved if buyers start with the financing. Also it helps them to have realistic expectations.
Got to be good for the money for most sellers to even consider signing anything. Things go better in the long run if you do your homework up front
Hi Kevin, makes sense to have your ducks in a row, if you are a buyer so you don't miss the perfect home. Thanks for the comments Kevin.
Hi Bob, hope all is well on the other side of the state! It makes the selling decision to turn down an offer if the buyers are not qualified versus one that has already done the pre-qualification work. Thanks for the comments Bob.