It is never fun to have a buyer of your listing back out because their loan fell through. Usually this can be prevented by more carefully scrutinizing the pre-approval. See below for several questions to ask of the buyer’s lender....
It is always a great idea to personally call a buyer's lender before accepting their offer on your listing.
Here is a checklist of questions to ask:
- Did you run the buyer’s credit? (you would be surprised what some lenders leave out)
- Did you gather all applicable income documentation such as tax returns, W2’s and paystubs?
- Did you verify funds needed for closing? Will there be any issues verifying these funds and getting them to escrow in time?
- Do you foresee any issues whatsoever with the buyers being approved for their loan and being able to close?
- Do you foresee any issues with time frames?
- How quickly do you expect to have the appraisal report cleared? (make sure they are on top of this time waster and deal killer)
We would suggest asking each question, and then quietly listening. Often times a lender will elaborate. If there is hesitation or you don’t feel 100% comfortable with any response, use this as a warning!
HOW YOU CAN USE THIS:
- When representing a seller, always exercise diligence in checking out a buyer’s lender...ask the above questions to validate the pre-approval.
- When representing a buyer, make sure the listing agent knows your buyer’s lender is available to speak with him/her. This will help solidify your offer. We always suggest & provide this service to our buyers and their agents to help get offers accepted!
- Share this information with other agents who are friends of yours. Make sure their business is protected as well!
Contact us any time with questions...we’re here to help grow your business!