Are You As The Buyer Qualified?
Follow these steps to determine your financial status before signing the contract.
- Have you been prequalified or preapproved for a mortgage? Buyers who are will be in a much better position to obtain a mortgage promptly.
- Do you have enough money to make a downpayment and cover closing costs? Ideally, a buyer should have 20 percent of the home’s price as a downpayment and between 2 and 7 percent of the price to cover closing costs.
- Is your income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).
- Good credit? Have you reviewed and corrected your credit report?
- Too much debt? If a buyer owes a great deal on car payments, credit cards, etc., the buyer may not qualify for a mortgage.