The purpose of getting a potential buyer a pre-qualification letter, is to:
Arm
the buyer and their agent with a tool that will save time for everyone.
You will only look at homes that a potential buyer’s prices range that
they realistically qualify for. ·
Increase confidence to know that you have the ability to make a purchase if you see a home you fall in love with
Many sellers and their agents will not show or waste their time unless a buyer is armed with pre-qualification letter
Short sale and bank owned foreclosure homes demand a prequalification or even a pre-approval letter
What we do in the pre-qualification process, is to get an idea of what
your income capability is (now and in the future); how much current
debt, a potential a borrower currently has; We than break the income
and debt into monthly amounts, the result will be a ratio called a Debt
to Income. With this information we would know, how much in payments
one would be able to handle, including a new mortgage payment on a
month-to-month basis. Of course we take into consideration your assets,
including other real estate owned, the release of an old mortgage with
the sale of a home or release of a rental lease obligation.
