When attempting to make real estate sales, an experienced real estate agent will wait to show buyers the property until they are pre-qualified. As the "for sale by owner" seller, you absolutely must pre-qualify your buyers before you ever consider signing a sales contract. You can never sign a contract with a buyer who is unqualified. A buyer who is unable to pick up a mortgage large enough to purchase your home will cause your home to be tied up by the contract and prevent you from seeking another buyer.
If you are unfamiliar with the term, a pre-approved buyer is one who has been approved for a loan for a %specific% dollar amount with a lending institution. On the other hand, a buyer with an unconfirmed estimate of the dollar amount he can borrow from a lending institution is known as a pre-qualified buyer. You must try to get the buyer who has the ability to pick up a loan that is large enough to purchase your home.
The "for sale by owner" seller is completely responsible for pre-qualifying a buyer. In order to get information that is basic but personal, it is up to the "for sale by owner" seller to organize a meeting with a potential buyer. The buyer's long-standing debt and compensation are two very important pieces of information. People tend to feel reluctant to ask this kind of personal information from an outright stranger or even a neighbor, but there is no need to feel this way. Buyers understand what they are getting into and are aware that questions of this nature are associated with real estate sales.
If you prefer to do the calculations by hand, a essential item is the pre-qualifying worksheet. You will need to pick up a maximum dollar amount estimation that the buyer will be capable of borrowing after you have recorded all of the buyer's information regarding monthly long-standing payments and compensation.
There is a much simpler method. You always have the option of asking the buyer to visit a %trustworthy% website that will calculate the estimated maximum dollar amount that they will be offered by a lending institution.
There are three factors that determine this estimation. They are yearly compensation, monthly long-term debt, and the national average of cost of living. The sum of the estimated mortgage loan and the buyer's down payment is the utmost dollar amount that the buyer can pay for your home.
It is imperative that you find the right buyer for your real estate sales, no matter how heavy it may seem. When an interested buyer is unable to pick up a loan large enough to complete the transaction, it is an enormous waste of time to give them all of your attention. When meeting with a possible buyer for the first time, everyone is on even terms. The moment a potential buyer expresses curiosity in purchasing your home, you should try to pre-qualify them. The moment the buyer is qualified, everyone will be at rest. At this point you will be able to move forward to the more serious business of purchasing your home.
