Important Steps to know Before Selling Your Home; Why should you confirm the buyer's financial capabilities before signing an agreement? PART 4
Why should you confirm the buyer's financial capabilities before signing an agreement? It is essential that before you get into a contract with a buyer, as a seller, you want to make sure the buyer can afford your home and make good on the presented offer. An experienced listing real estate agent can verify the buyer's financial capabilities by several suitable methods.
The Pre-approved Letter. The standard approach is to request to see the pre-approved letter. Despite having the pre-approved letter, the listing agent should contact the loan officer and inquire about the pre-approve process. The experienced agents will know better, not to assume. They should be ready to ask the loan officer questions to ensure the buyer's income, assets, and employment situation?
Proof of funds. In case the buyer is using large sums of cash to purchase the property, it makes sense to get a proof of funds letter, which could be a bank account or similar. The sensitive information can be masked from the statement, leaving what is necessary, like their name and available funds.
For several reasons, a closing may fail, including title-insurance, lean on the property, inspection failures, and lowball appraisals; however, the main reason is the buyer financing rejections.
As a seller, you are stuck with a buyer who cannot close the deal, wasting your valuable time and money. Hence, confirming the buyer's financial capability should be part of the selling process to uphold the seller's best interest and ensure closing works smoothly and professionally.
Important Steps to know Before Selling Your Home; Why you should be a respectful and collaborative seller? PART 5
About the author: The above Real Estate article was provided by David Khosravi, a leader in his field in Willowdale, North York, Toronto. Reach out to David via email: email@example.com or by phone: 416.990.2424