Definition
of Pre-Qualified:
A
potential borrower is “pre-qualified”
when a lender completes a cursory
review of the potential borrower’s
financial situation to determine if
the lender can give them a home loan.
The
loan processor will review the borrower's
financial info such as the Buyer's
income, Monthly bills, and Credit
History. The lender will determine
the amount they can offer, how much
money they need down, what their closing
costs will be, and what their monthly
payment will be.
If
a person contacts you to see your
home, don't be afraid to ask, “Are
you pre-qualified?" If the person
is not, ask some follow up questions
that will help determine if the person
can afford your home.
Know
your buyer
Find
out what is motivating the buyer.
Has their lease expired? Do they need
to move quickly? Learn to ask people
about their finances before you begin
negotiations. Don't be afraid to ask
if they are pre-qualified for a loan
and don’t entertain buyers who
could never afford your home. Research
their financial security. Ask about
their job. Otherwise, you are just
wasting everyone's time. But don't
give away too much information about
yourself. Don't let the buyer know
that your job is relocating you 500
miles away or that you can't buy that
beachfront home until you sell your
current home.
Phone
Calls
Watch
out for callers who ask if you'll
take no money down or carry the mortgage,
especially if they don't seem to be
interested in the amount of square
footage in the house or other important
information. They may have credit
issues. If they don't have a pre-qualified
mortgage, you may find yourself tied
up for months in a contract that eventually
goes nowhere.
Passerbyers
Don't admit a stranger who knocks
on your door into your house. Insist
on an appointment time and as a safety
precaution - a phone number, so you
can "Call to confirm the appointment."
Showing
your home to passerbyers potentially
opens the door to a lot of problems
such as a thief may want to see if
you have any valuables or see how
you have your home protected, with
locks, alarms, etc... They're not
out to buy your home; they're out
to rob you.
