Qualifying the Buyer: Before and After He Shops
In This Chapter
• Preapproval for a mortgage makes buying easier
• Taking the “guesstimate” out of how much a client can afford
• Understanding income, assets, and liabilities
• The good, the bad, and the downright ugly about credit
“Getting your ducks lined up in a row” is an old adage, but actually makes a lot of sense for buyers in a hot housing market. Mortgage brokers can prequalify shoppers to give them a nonbinding idea of how much of a loan they can expect a lender to approve. The mortgage broker will need to review information on the client’s income and debt load, but the client doesn’t provide any documentation to verify the data. It’s an informal process, but gives the buyer ...