|
How_to_Qualify_a_Buyer
| How to Qualify a Buyer
How to Qualify a Buyer
Does your customer or client need to be pre-qualified? I am a
licensed Real Estate broker and Loan officer and here is how I
did it before becoming a loan officer. No matter the state; math
is still math. However, an agent can only pre-qualify a person
to an extent. That credit report is a BIG must. The best thing
to do is refer the buyer to a lender. If you are lucky you have
an in house lender. Bless your heart. I have found that a
typical person can qualify for a home that is approximately 2
1/2 times their yearly income before taxes (include spouses
yearly gross income if any). Depending on the debt to income
Ratio's of 28% or 36% and some Refinances of 45 % along with the
amount of the down payment and the amount of the property you
are buying or refinancing, will be the determining factor in
your ability to purchase. (not to mention credit reports) you
should have a beacon score of at least 675 to even qualify for a
sub prime loan. Obviously higher is better. unless were talking
about a different kind of scoring system, (which is a whole
other article). Qualifying ratios are: 28%= total monthly debts
36%= living expenses + long term debts. A prudent agent will
Pre-qualify a prospective buyer as soon as possible and even
before showing that possible buyer properties. Any agent that
does not get a pre-qual may find out later that they have not
acted in the best interest of the buyer or the seller. Now past
all that. The agent has two things that he may choose from. 1.
Get the financial information from the buyer them selves to do
the appropriate income/expense analysis. Minus the Credit
Report. (which is never a good thing) OR 2. Refer the buyer to a
lender. The last solution is always the best. It can help to
speed up the loan process, also it can help you better decide on
what contingencies to present an offer to the seller and what
properties the buyer should be looking at. Another benefit to
Pre-Qualifying, is that you can weed out the serious buyers from
the casual lookers. although you should be nice to the casual
lookers and handle them with care, , they could come back later
as pre-qualified buyers. but until then do not waste al lot of
your time on them. A good way to handle this is to talk to them
about what they would like, ask how interested they are and tell
them that your office likes to have pre-quals before you show
properties. On the other hand, if they insist, try to schedule a
time that you are the least busiest to show them a property. You
may say, "Yeah but they will go some where else, and someone
else, will show it to them." True. And if they still are not pre
qualified then someone else can waste their time and you can
concentrate on the real buyers. I have had both instances happen
to me. Not withstanding the fact that I have learned, quantity
of time spent with a person does not reap as many benefits as
the quality of time spent with the right people. And saving time
by not wasting it allows for more time with real customers with
real money. You can still be nice polite and give courtesy to
everyone, You just have to require the same policy for everyone.
Thanks for reading. I hope the articles I write help all who
read them and make a decision as to whether they like them or
not. Most of all I hope it helps you to make up your mind as to
the direction you need to go. Author Kawana Barnard
You may reproduce this material as long as you keep it in its
original form giving all credit to the author. You may also have
it emailed to you by an auto mailer. Send message to
Qualifying@agentguide2re.com visit www.agentguide2re.com for
more interesting original content.
About the author:
Professional Real Estate Broker/Licensed Loan Officer
Entrepreneur/Writer
|
|
| |
| |
