Can they afford to buy your home?

One of the worst mistakes you can make is prequalifying your visitors by what they are wearing or saying.  Offending someone by treating them as if they can not afford your home is not only rude, it stands to lose you the sale if they can afford it.

However, when you are deciding between offers, prequalification in the real sense can be beneficial.

Prequalification: This person has been given an estimate of what they can afford, but no salary or credit history has been verified.  It’s not binding and there’s no surety they’ll even be approved.  The loan officer just looked at what they said they made and prepared a prequalify judgement.  This is much less sure than a preapproval or approval.

Preapproval:  This person is preapproved from a bank for X amount of money, but has not signed any paperwork.  They’ve had their credit history pulled, their income tax, W2s, etc pulled and are completely ready to buy a home at that bank, they just need to find a home to buy.

Approval:  This person has been approved and has a line of credit for X amount ready to apply the money to your home sale.  Other than cash, this is your best bet.

Can they afford your home?  Choose the offer that has the best surety for your home sale.

You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.