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. Ask the following:
1. Has the buyer been prequalified or preapproved (even 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 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.
Rick’s knowledge and professional personalize approach in assisting clients began in 1976, after graduating from the University of Illinois with a B.S. Degree in Finance, with special concentration in Real Estate and Urban Economics. He is the firms Designated Managing Broker.
Besides yearly sales achievement awards, Rick was twice elected President of the Quincy Association of REALTORS® and was honored by the Q.A.R. with Realtor of the Year and the Outstanding Career Realtoraward. Rick is experienced in residential and commercial sales and leasing, with an added background in the Management and Rehabilitation of rental property. He served as Commissioner and Chairman of the Quincy Housing Authority for over 17 years, providing oversight to over 300 subsidized housing units; which functions to ensure the availability of clean, safe and affordable housing for low income residents in our area.
For nearly 10 years, Rick held a Pre-License Instructor license, teaching the necessary coursework for those seeking Real Estate careers, while continuing to mentor and train new agents in development of successful careers.