Choosing a Qualified Buyer

• Real Estate Tips
• encinitas real estate, Encinitas real estate agent, home buying advice, homes in encinitas, Linda Moore, real estate tips
• November 30, 2015

If your home is on the market, it may be overwhelming when the first offers start coming in. Working with a great real estate agent ensures that you’ll have another discerning set of eyes to evaluate these offers- here are general guidelines to review before accepting any offers.

Good Credit

The best candidates actively monitor and work to improve their credit score. If there have been any errors or points of concern, they should have attempted to correct them in the past.

Prequalified

The ideal buyer is prequalified for a mortgage—even better, pre-approved, which means the lender has already reviewed their application and has given a commitment for a specific amount.

Manageable Debt

Those with excessive credit card debt, car payments, or other forms of financial commitment may not be the best choice even if the offer is the highest. Again, this factor is also related to whether or not they have prequalified for a mortgage.

Sufficient Income

A good point of reference is 28%- meaning that the PITI (principle, interest, tax, and insurance) of the real estate transaction should not take more than 28% of the buyer’s income to cover.

Prepared to Make the Right Offer

If the buyer is not able to offer 20% or more for the down payment, an amount that does not include the 2-7% required for closing costs, they may need mortgage insurance from either a federal program or private lender. The most qualified buyers will offer above 20% for a down payment.