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Never Mind The Buyer, is Your HOUSE Pre-Qualified?

By Shiela Heg

Real Estate Broker/Owner with Lake to Lake Realty LLC

September 26, 2011 11:15 AM

Cute house

Homeowners should be aware that they can have their home "pre-qualified". It's one thing to clean, de-clutter, and stage your home, but all of that is for naught if your house doesn't qualify for a mortgage package.

There are many different loan packages out there, and a good Realtor can get your house "Pre-Qualified".

VA and FHA standards are little more strict than the conventional loans, but not impossible to qualify for. Because more buyers are using the FHA loans, you do not want to eliminate that market share of buyers. Your Realtor can share with you the FHA guide lines that you will need to meet, in order to qualify.

If your house qualifies for a USDA loan, the buyer can buy with no money down! NOW THAT SHOULD BE ADVERTISED as part of your marketing plan.

Condo owners should be aware that your entire condo association needs to qualify for FHA certification in order for a buyer to get an FHA loan.

Also, if you as a homeowner have no mortgage, did you know that you could possibly offer the home for sale with a Land Contract? Be sure to check with your attorney and/or accountant on how this could benefit you. Although there are some risks, with a sufficient down payment this could be a win-win for both you and the buyer.

Many lenders have nice colorful signs that can be posted in your yard letting buyers know of the loan program available.

What ever program your house qualifies for, your home will stand out if your agent can advertise "This home is pre-qualified for (xyz) loan program." A good Realtor will be able to help you get the right lender and your home "working together".

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David Burrows

Classic Realty - Fairfax, VA

No Pressure, Just Seriously Devoted to Real Estate

Very well written..... The USDA is really a great program and you are right - the Sellers can have their house ready to go!

Sep 26, 2011 11:17 AM

Donne Knudsen

Los Angeles & Ventura Counties in CA - Simi Valley, CA

CalState Realty Services

Shiela - AMEN!!! I don't know what your market is like but here in Los Angeles & Ventura counties, there are so many homes that are just simply not eligible for financing. Yet very few listing agents will properly market these home accurately by disclosing that the homes are not eligible for financing and will refuse to market the property as cash offers only.

So they waste a lot of peoples time by not only entertaining financed offer but allowing these financed buyers to get halfway through escrow before they (the buyers) discover that the property isn't eligible for financing when the seller and listing agent knew it wasn't all along. AAARRRGGGHHH!!!

Sep 26, 2011 11:27 AM

Yvonne Van Camp REALTOR

To Buy and Sell Real Estate, see me at Southwest Missouri Realty - Springfield, MO

"Home"work, I have the Answers!

So true. I see lots of agents just mark boxes on listings, without real knowledge of how a house will sell. And more importantly I see houses left out of searches because agents search by methods of financing and sometimes miss houses because an agent did not mark appropriately.

Sep 26, 2011 11:30 AM

Shiela Heg

Lake to Lake Realty LLC - Kenosha, WI

Broker-Owner - Find Homes in Southeastern WI

David: Thank you, hopefully USDA won't run out of money before the end of the year.

Donne & Yvonne - Thanks for commenting. Sellers could be so far ahead and sometimes they are more than willing to make the repairs to qualify for FHA, but they tell me "my agent never told me!"

Sep 30, 2011 11:09 AM

Ed Gillespie

WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 - Folsom, CA

Stopping by at Donne's mention. This is a great post, Shiela! Very important to get the word out to buyers (and even agents) that the property can dictate the loan options in some cases. I strongly suggest that agents talk to knowledgeable MLOs before listing a property.

Oct 02, 2011 07:51 AM

Lisa Dunham

Alexandria, VA

Associate Broker, Alexandria Virginia Real Estate

Nice post Shiela! This is definitely something that should be introduced to home sellers during the listing appointment. As you stated, it could greatly enhance our marketing efforts.

Oct 02, 2011 09:26 AM

Melissa Ostrom & Melville Capps Newton MA - The Mel and Mel Team

(617) 388-3151 | Century 21 Commonwealth - Newton, MA

In our market, in Newton MA, house condition for loan approval is really not an issue. I have seen a few really old (100 years or so) houses that would need a substantial amount of work to qualify for a govt loan. Most of the loans are jumbo loans anyway. These houses are usually advertised as "tear downs." And that is what people do. They buy the house for the lot, tear down the house, and put up a huge new house.

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Shiela Heg

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