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.

Detroit Price: $21000 Spacious 4 bedroom home, currently tenant occupied. 24 hour notice required for showings. Some updates, 2 car attached garage, and full unfinished basement. Some appliances included. All offers are subject to bank approval.

Dearborn Price: $160000 Beautiful brick condo. Excellent curb appeal!! This end unit features an extra dining room window, open floor plan, oak cabinets in kitchen. Floors feature hardwood, carpet and tile. Cathedral ceilings. Very large bedrooms; master bedroom, with walk in closet a must see! Patio area great for relaxing or entertaining. Other features need to be seen to believe. Also available for lease.