Lana-Ricky Perez
How to Recognize a Qualified Buyer
Lana-Ricky Perez's profile image
Sep 16·1 min read

Offers can be exciting, but unless your potential buyer has the resources to qualify for a mortgage, you may not really have a sale. Your real estate professional will try to determine a buyer's financial status before you sign the contract. But it's good for you to know what buyers would follow through potential looks like.

✔ They are pre-qualified-or even better, pre-approved -for a mortgage. Such buyers will be in a much better position to obtain a mortgage promptly.

✔ They have enough money to make a down payment and cover closing costs. Ideally, buyers should have 20% of the home's price as a down payment and between 2% and 7% of the price to cover closing costs.

✔ Their income is sufficient to afford the home over the long term, too. Ideally, buyers should spend no more than 28% of their total income to cover the principal, interest, taxes, and insurance associated with the sale.

✔ They have good credit, which they are monitoring and maintaining.They will have recently reviewed their credit report and have actively worked to correct any blemishes or errors found.

✔ They’re not managing too many other debts to take on a mortgage.If buyers owe a great deal on car payments, credit cards, and other depths, they may not qualify for a mortgage.

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