When you have someone interested in your house, ask for a pre-qualification letter from a lender.
Sell House Fast – North Charleston SC: When the housing sales market is so tight why would it make sense to prescreen your buyers? Wouldn’t it be great just to find any interested buyer at all without being picky about it? The answer to that is a resounding NO.
The reason you will want to show your house to prescreened buyers is that so many of today’s potential buyers can’t get their mortgage loan approved. You don’t find out about that until you believe the deal is already done and you are heading to the final closing. Many sellers are quite disappointed when they have gone through the entire process including negotiating final price and details only to be let down when the buyer doesn’t qualify for a loan. Banks today are quite a bit more stringent with their requirements from buyers than they were a few years ago.
“Banks today are quite a bit more stringent with their requirements from buyers than they were a few years ago.”
The vast numbers of foreclosures that have occurred are due to the loose lending practices that existed back then. People were given loans that they couldn’t afford. That led to mass numbers of defaulted mortgage loans. This is why banks and other lenders require much more documentation and solid income and credit from their borrowers. Many are turned down, which not only puts the buyer in a bad position, it puts the seller in a very bad position as well. This is very true especially if you must sell your house for financial reasons and don’t have much time to do so. Putting your house sale on hold for two months while you get the deal worked out with the buyer just puts you that far behind if the buyer can’t get the loan at the last minute.
You will be forced to start all over again with your sale. This can be avoided with one simple step on your part as the seller. When you have someone interested in your house, ask for a pre-qualification letter from a lender. That’s a letter that’s given to buyers who have approached a lender with their loan qualifications and have had a lender agree to give them a loan for up to a certain amount. If the buyer is qualified for a $120k loan and your house is for sale at $99k you know that the interested buyer will most likely get a loan. This will protect you from the disappointment of believing your house is sold, only to find out that the buyer has no loan to pay for the house.
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