Can Those People Really Buy My House? Do They Have Financing In Place?

Pamela Madore
The Pamela Madore Group
Keller Williams Realty
http://iloveamarillo.com

As a Realtor, one of the most important jobs that I have is to secure financing for our buyers.  Why?  Because I don't want to waste my seller's time, energy, and emotions on someone who couldn't purchase if they wanted to.

Nearly all of the time, when a buyer comes to us they have not been qualified by a bank.  Instead, they called on a particular house or series of houses that they saw and were interested in.

A professional Realtor will immediately seek to put financing in place.

It sometimes amazes me that a buyer will refuse, or try to refuse, to get financing until they "find something they want".  My response to that is simply, "what if we find the perfect house and you can't buy it?"

Sellers need help finding buyers that have financing in place.  If you are a FSBO this is one of the most difficult parts of trying to sell on your own.  When a buyer wants to see your house, how will you know if they can actually buy?

The mortgage industry is constantly changing and what was good yesterday may not be good today.  Or what was not good yesterday may be good today.

A real estate transaction is a tricky endeavor at the very least.  I have been in this business more than 35 years and I have seen it go from simple to extremely complicated.

With government intervention at every turn, it is nearly impossible to even keep up with the required disclosures, paperwork, and timetables that are required.  Unfortunately, these same laws are required to be followed by FSBO's as well.  What if you don't know what all of the requirements are?

Beware of "pre-qualification" letters.  These are not the same as "pre-qualified" letters.  The prior generally consists of a computer generated application, perhaps a phone call to the buyer and then the letter.  At least one lender in town, will not issue a pre-qualification letter.  They will not issue anything until they have seen all of the W-2s, pay-stubs, and any supporting documentation.

I prefer the later.  I want my buyers and sellers to be well armed when it comes to financing in a real estate transaction.  There is enough emotion not to mention costs in the transaction only to find out half way through the transaction that the buyer can't qualify.

If you are a buyer, offer all of your documentation up front.  If you are a seller, be sure your Realtor knows the difference and insist on a full pre-qualification letter.  Better safe than sorry.