Is Your Buyer Qualified?

Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale. If possible, try to determine a buyer’s financial status before signing the contract.

1. Has the buyer been prequalified or preapproved (better) for a mortgage. Such buyers will be in a much better position to obtain a mortgage promptly.
2. Does the buyer have enough money to make a downpayment and cover closing costs? Ideally, a buyer should have 20 percent of the home’s price as a downpayment and between 2 percent and 7 percent of the price to cover closing costs.
3. Is the buyer’s income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).
4. Does your buyer have good credit? Ask if he or she has reviewed and corrected a credit report.
5. Does the buyer have too much debt? If a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage.

45909 wildrye, Van Buren Township Price: $28000 Gorgeous second floor ranch in Meadows. Pond outside door, one of the best settings. Kitchen with oak cabinets and all appliances stay. Neutral color throughout; separate laundry room, appliances included. Huge master bedroom has walk in closet. Nice deck. Building 20, Unit 4.

6216 LODEWYCK ST Detroit Price: $20000 Short Sale! Offer already up to the bank. Beautiful home, well maintained. Owners must be present for all showings, after 6pm only please.