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Pre-Screening Your Buyers
Posted on 08. Jul, 2011 by hope-mitigation in Blog, Foreclosures, My Blog, News, Real Estate
Why is it so important to pre-screen your buyers? Well a few day ago we had an issue that has to do with this. We received the approval for a short sale and had a tinitive date to close. The approval only took us 60 days to receive. At the time of the offer the buyer was pre qulified for over $80,000. I didnt think we would have a problem since the offer on the property was $76,000. A few days after the approval was sent to the buyers agent, I called the buyers agent and he informed me that the buyer was no longer qualified for a mortgage. WHAT?!?! Thats what I said. 
What had happened was this. The buyer went and opened an account witch dropped her credit down below the acceptable score needed to qualify.
Take these steps to ensure that your buyer doesn't have this problem because of the time frame it takes to get a short sale approved.
Before you head out on the town and show buyers properties take theese steps so that you dont end up with wasted time invested with a buyer who can not buy!
1. Have your buyer talk with a mortgage lender and start getting pre-qualified for a mortgage.
2. Talk with the mortgage lender and verify that the buyer is "Good to Go".
3. Inform your buyer that if they submit an offer on a short sale property, it will take time. Roughly 90-120 days. Let them know the importance of not doing anything that will affect their credit within the time needed.
4. After your buyer gets pre-approved, start looking at properties that are UNDER the amount pre-qualified for. Never at the same value or above of the pre-approval.
You follow these easy steps and you will have a successful transaction. I have found that if you stay on top of the buyer and the financials, it will make everything run smooth. I know this is a little bit more work that we would all like to do but it will result in money in your pocket at closing.
For more information please get a hold of Hope Mitigation at info@Hope-Mitigation.com or by calling 815-312-1476. We will work with you and or your buyer to ensure a smooth short sale transaction.
Nick Mancuso
Hope Mitigation
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