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The Question: “What happens if a prospective buyer of my house does not qualify for a mortgage loan?”

By
Real Estate Agent with Top Agents Atlanta Metro

This is a very interesting question and the short answer is Delay!

As your Realtor® I can help eliminate a considerable amount of the delay by screening prospects at an early stage of the home buying experience. I conduct qualifying interviews with the prospects and help them determine what price range they might qualify for. I also help them prepare to purchase your home by encouraging the prospect to speak with a qualified Mortgage Loan Officer who will check their credit, take a loan application and recommend the best loan for the Buyer. To help the buyer prepare for this meeting, I give them a complete list of information that the Mortgage Loan Officer will need to complete the loan application. This list includes documents such as:

  •  W-2 forms and 1040 forms (1040 forms are needed if income includes a bonus, overtime pay, commission, or if the person has been self-employed for at least two years.
  • Compile a list of employers for the past 24 months including the employers Names, addresses, zip codes and phone numbers.
  • Names, address, zip codes, account numbers, monthly payments and balances on all installment debts.
  • Names, bank(s) drawn on and account numbers of all revolving charges.
  • Names, addresses, account numbers and balances of all checking, savings, money market and other accounts.
  • Listing of assets and their values: house, car, jewelry, works of art, values of life insurance policies (most people do not realize that these may have cash value.)
  • Listing of liabilities (money owed-mortgages on present house, car loan, other loans and credit card balances).
  • Appraised value of the prospective buyer's present house

 Further information may be required of loan applicants if they are self-employed, divorced, retired, or if they have filed for bankruptcy (to name a few).

By knowing these requirements and by having the information available before the application appointment we eliminate unnecessary delays.

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

As you allude, buyers are buyers only if they qualify. Great post. I applaud you.

Oct 07, 2010 04:33 PM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Ted, great post & a great list of required items! It's always best to have buyers pre-qualified!

Oct 07, 2010 04:58 PM
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Good Morning Ted, great list for buyers to work off when preparing to qualify!

Oct 07, 2010 10:28 PM