Like surprises?


By Kathy Henne

Contributing columnist

Have you ever signed up for a bargain fare on a cruise or group tour, then been dumbfounded by the incredibly poor accommodations provided? Ever attended a play or concert without first checking the reviews? If so, you’ve undoubtedly experienced the unhappy thrill of the unexpected surprise.

When selling your home, there’s one unexpected surprise you shouldn’t have to experience. It’s called mortgage loan rejection. It most often occurs when you accept a buyer’s purchase offer which is almost always contingent upon loan approval, then learn three days before closing that the buyer is not financially qualified to purchase your home. It’s usually avoidable – if you follow a few simple guidelines.

First, be represented. Don’t attempt to sell your home alone, without an agent’s experience and guidance. Second, expect buyers for your home to have a pre-approval letter from a mortgage lender before making an offer on your home. If they have been pre-approved for a loan, the chances for a surprise-free closing rise dramatically.

If a prospective buyer has not been pre-approved, ask your agent to help the buyer get in contact with a great local lender and have the lender qualify the buyers for their financial ability to purchase your home – before you sign and accept the contract. It’s better to learn their inability to complete the purchase up-front, not a few days before closing.

Most local lenders will get the buyer pre-approved at no cost to the buyer. They will check their credit history, verify their employment and give the buyer the ability to shop for their new home with confidence. The buyer will know how much they can afford to pay for their next home and know what the monthly payments will be. The buyer wouldn’t want to be surprised to find out the amount of the monthly payments after they already have a contract on a home. The payments may be quite a bit higher than they expected and the buyer may be trapped in a home that has them strapped for money. This is not a happy ending for the buyer or seller.

As a seller, ask for and expect to receive sufficient financial information about the prospective buyers before you enter into a contract to sell your home to them. As a buyer, get pre-approved for your loan before you start shopping for a home. Ask your agent for a referral to a great local lender and you’ll be able to shop for your new home with the confidence your pre-approval gives you and the knowledge that you’ll be comfortable with the monthly payments. A happy ending for the buyer and seller will result!

Contact the Kathy Henne Team RE/MAX by calling 937-778-3961.

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