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Will You Add? - Everything A Real Estate Agent Doesn't Want A Home Seller To Know! Part-3
Your Credit Score is one of your biggest financial assets. If your credit score is high, your borrowing rates will be low and therefore save you hundreds of dollars. The big mystery is how to maintain a high credit score. Well if you want to either maintain or repair your credit score, you are in luck, it can take as little as two months to raise your credit rating.Your credit score is based on a few prime factors, there is no particular order in which I will discuss them (Some of them have higher weights in regards to the score). Repayment history, current debt owed, recent credit checks, and registered income (there are other factors as well). In or
Why would a seller do this? What if a cash buyer wanted to put an offer on your property a few days later? What if a truly qualified buyer came along within the next week or so? What if either of these two scenarios occurred and your property was tied up, off the market for an unqualified borrower and you didn’t find out for 30 days that you were dealing with a dud? Again, you want to talk to your attorney about the exact language you should use in your area.
Here’s something else home seller should know. Loan officers at banks tend to be on a salary, loan officers for mortgage brokerage companies are most often not—they eat when the real estate deal closes. Mortgage brokers tend to work harder to get a borrower financed because they don’t earn any money unless they close the deal. If I was selling a home, and the borrowe
Fuel prices these days are quite high and they take their toll on a service business. It is time to strike back. If you own a cleaning business that uses pressure washers why not clean service stations and get some of your money back as you pay $2.30 per gallon for fuel? Gas Stations are usually franchises and have cleanliness commitments as part of their franchise agreements with the oil companies they sign on with. This means they have no choice they must keep their gasoline stations spiffy. Currently with unemployment rates so low 5% on average many stations do not have the extra labor needed to keep up with the cleaning.Our company, The Car Wash G
So let’s assume that you have retained an agent, your home is listed and you get an offer on your home. Sounds great right? Maybe, maybe not. When you accept an offer, depending on the language of the offer, you are effectively removing your home from the market until you determine whether the buyer can, in fact, buy the home. You would hope that there has been (and often is) some financial pre-qualification of the buyer by the agent before the offer is presented to you and accepted. But agents are not loan officers and sometimes buyers who appear to be able to borrow a mortgage can’t.
When I was a loan officer I saw nice people in nice clothes driving nice cars with decent down payments unable to borrow a mortgage. Why? A variety of reasons including but not limited to bankruptcy, legal claims, insufficient time on the job, over extended credit, divorce in process, etc. In other words, people who “look like they could do a deal” sometimes can’t. And there you are…with your property possibly off the market for 30 days or more to find out the buyer can’t buy.
Briefly: there are two kinds of credit reports--an in-file report and a mortgage credit report. An in-file is kind of like a quick report whereas a mortgage credit report is much more thorough and can pick up things an in-file may miss. The point is, sometimes things are discovered over time about buyers. This is especially important in “chain deals” where a seller is also “buying” and needs to sell to buy. And like a chain, it’s only as strong as the weakest link. Agents are aware of this but like I have previously stated, sometimes agents throw offers on the wall and hope they stick
What should you do? Well, that depends. There are basically two kinds of home buyers and sellers on the planet---The elite few and everybody else. If you are selling a high dollar property geared toward an upper crust society you will probably be working with a top producing agent, not a new, inexperienced or part time agent. In that case you probably don't need to read this article. However, if you fall into the everybody-else category you may want to consider the following:
***Use a written protective clause when you accept a purchase offer from a potential buyer.
Your goal is to determine whether the prospective home buyer is a green light, yellow light or red light for financing and any qualified loan officer can determine this information quickly during the loan application process.
What you want the buyer to do is get qualified by a loan officer of a reputable lending organization for financing quickly and to have that tentative qualification for loan approval in writing before you remove your property from the market. You should have an attorney review the purchase offer and modify it to make sure the buyer gets loan approval within a short period of time from a lender. I am not an attorney nor am I giving legal advice—I am suggesting a common sense approach to protecting yourself. One quick fix, only as an example, is to accept the purchase offer with a protective acceptance clause something like this:
“Acceptance of this offer subject to buyer written qualification for loan approval within (48) hours”
If you or your agent get written notice of pre-qualification and tentative loan approval from a lender and the buyer looks like a green light for home financing, then you can pretty much relax. If not, you have options…
Why would a seller do this? What if a cash buyer wanted to put an offer on your property a few days later? What if a truly qualified buyer came along within the next week or so? What if either of these two scenarios occurred and your property was tied up, off the market for an unqualified borrower and you didn’t find out for 30 days that you were dealing with a dud? Again, you want to talk to your attorney about the exact language you should use in your area.
Here’s something else home seller should know. Loan officers at banks tend to be on a salary, loan officers for mortgage brokerage companies are most often not—they eat when the real estate deal closes. Mortgage brokers tend to work harder to get a borrower financed because they don’t earn any money unless they close the deal. If I was selling a home, and the borrower
Internet Marketers who are looking to capitalize on a niche market will generally focus on one sub category of that particular market and run with it. While niche marketing is good, this does not mean that you shouldn’t pay attention to the broad market as a whole. Understanding what drives the market and what direction the trends are leading to will make it that more possible for you to succeed.What Is The Big Picture?Understanding the current status of your chosen markets means you have to first identify the current economic variables. There can be many factors that you should look for but I suggest focusing on:How is business in your
When I was a loan officer I saw nice people in nice clothes driving nice cars with decent down payments unable to borrow a mortgage. Why? A variety of reasons including but not limited to bankruptcy, legal claims, insufficient time on the job, over extended credit, divorce in process, etc. In other words, people who “look like they could do a deal” sometimes can’t. And there you are…with your property possibly off the market for 30 days or more to find out the buyer can’t buy.
Briefly: there are two kinds of credit reports--an in-file report and a mortgage credit report. An in-file is kind of like a quick report whereas a mortgage credit report is much more thorough and can pick up things an in-file may miss. The point is, sometimes things are discovered over time about buyers. This is especially important in “chain deals” where a seller is also “buying” and needs to sell to buy. And like a chain, it’s only as strong as the weakest link. Agents are aware of this but like I have previously stated, sometimes agents throw offers on the wall and hope they stick
What should you do? Well, that depends. There are basically two kinds of home buyers and sellers on the planet---The elite few and everybody else. If you are selling a high dollar property geared toward an upper crust society you will probably be working with a top producing agent, not a new, inexperienced or part time agent. In that case you probably don't need to read this article. However, if you fall into the everybody-else category you may want to consider the following:
***Use a written protective clause when you accept a purchase offer from a potential buyer.
Your goal is to determine whether the prospective home buyer is a green light, yellow light or red light for financing and any qualified loan officer can determine this information quickly during the loan application process.
What you want the buyer to do is get qualified by a loan officer of a reputable lending organization for financing quickly and to have that tentative qualification for loan approval in writing before you remove your property from the market. You should have an attorney review the purchase offer and modify it to make sure the buyer gets loan approval within a short period of time from a lender. I am not an attorney nor am I giving legal advice—I am suggesting a common sense approach to protecting yourself. One quick fix, only as an example, is to accept the purchase offer with a protective acceptance clause something like this:
“Acceptance of this offer subject to buyer written qualification for loan approval within (48) hours”
If you or your agent get written notice of pre-qualification and tentative loan approval from a lender and the buyer looks like a green light for home financing, then you can pretty much relax. If not, you have options…
Why would a seller do this? What if a cash buyer wanted to put an offer on your property a few days later? What if a truly qualified buyer came along within the next week or so? What if either of these two scenarios occurred and your property was tied up, off the market for an unqualified borrower and you didn’t find out for 30 days that you were dealing with a dud? Again, you want to talk to your attorney about the exact language you should use in your area.
Here’s something else home seller should know. Loan officers at banks tend to be on a salary, loan officers for mortgage brokerage companies are most often not—they eat when the real estate deal closes. Mortgage brokers tend to work harder to get a borrower financed because they don’t earn any money unless they close the deal. If I was selling a home, and the borrowe
It's a long word, entrepreneur, and it can be a bit intimidating, conjuring images of outgoing people who seem to always know where the next big thing in business is coming from. However, there are qualities to the entrepreneur that are in many of us, and you can find your inner entrepreneur and work toward a more satisfying career, whether you choose to work in a traditional format or open your own business.Develop Your Inner Entrepreneur Many qualities of the entrepreneur can be learned and developed. The spirit that drives successful businesswomen is sometimes an innate thing, and this shouldn't be disqualified. However, this spirit
What should you do? Well, that depends. There are basically two kinds of home buyers and sellers on the planet---The elite few and everybody else. If you are selling a high dollar property geared toward an upper crust society you will probably be working with a top producing agent, not a new, inexperienced or part time agent. In that case you probably don't need to read this article. However, if you fall into the everybody-else category you may want to consider the following:
***Use a written protective clause when you accept a purchase offer from a potential buyer.
Your goal is to determine whether the prospective home buyer is a green light, yellow light or red light for financing and any qualified loan officer can determine this information quickly during the loan application process.
What you want the buyer to do is get qualified by a loan officer of a reputable lending organization for financing quickly and to have that tentative qualification for loan approval in writing before you remove your property from the market. You should have an attorney review the purchase offer and modify it to make sure the buyer gets loan approval within a short period of time from a lender. I am not an attorney nor am I giving legal advice—I am suggesting a common sense approach to protecting yourself. One quick fix, only as an example, is to accept the purchase offer with a protective acceptance clause something like this:
“Acceptance of this offer subject to buyer written qualification for loan approval within (48) hours”
If you or your agent get written notice of pre-qualification and tentative loan approval from a lender and the buyer looks like a green light for home financing, then you can pretty much relax. If not, you have options…
Why would a seller do this? What if a cash buyer wanted to put an offer on your property a few days later? What if a truly qualified buyer came along within the next week or so? What if either of these two scenarios occurred and your property was tied up, off the market for an unqualified borrower and you didn’t find out for 30 days that you were dealing with a dud? Again, you want to talk to your attorney about the exact language you should use in your area.
Here’s something else home seller should know. Loan officers at banks tend to be on a salary, loan officers for mortgage brokerage companies are most often not—they eat when the real estate deal closes. Mortgage brokers tend to work harder to get a borrower financed because they don’t earn any money unless they close the deal. If I was selling a home, and the borrowe
Do you have an elevator speech? Does it get people’s attention? Do they ask you lots of questions when you tell them what you do?Every great elevator speech needs to answer these key questions:1. Who am I? (introduce yourself)2. What business am I in?3. What group of people do I service? (be specific – do you have a niche?)4. What is my USP (Unique Selling Proposition)? What makes me different from the competition?5. What benefits do my customers derive from my services?Instead of saying this:Hi - I'm Jean Hanson and I'm a virtual assistant. A virtual assistant is an off-site administrative assistant
What you want the buyer to do is get qualified by a loan officer of a reputable lending organization for financing quickly and to have that tentative qualification for loan approval in writing before you remove your property from the market. You should have an attorney review the purchase offer and modify it to make sure the buyer gets loan approval within a short period of time from a lender. I am not an attorney nor am I giving legal advice—I am suggesting a common sense approach to protecting yourself. One quick fix, only as an example, is to accept the purchase offer with a protective acceptance clause something like this:
“Acceptance of this offer subject to buyer written qualification for loan approval within (48) hours”
If you or your agent get written notice of pre-qualification and tentative loan approval from a lender and the buyer looks like a green light for home financing, then you can pretty much relax. If not, you have options…
Why would a seller do this? What if a cash buyer wanted to put an offer on your property a few days later? What if a truly qualified buyer came along within the next week or so? What if either of these two scenarios occurred and your property was tied up, off the market for an unqualified borrower and you didn’t find out for 30 days that you were dealing with a dud? Again, you want to talk to your attorney about the exact language you should use in your area.
Here’s something else home seller should know. Loan officers at banks tend to be on a salary, loan officers for mortgage brokerage companies are most often not—they eat when the real estate deal closes. Mortgage brokers tend to work harder to get a borrower financed because they don’t earn any money unless they close the deal. If I was selling a home, and the borrowe
What is debt reduction and does it really work? Debt reduction is the longer and more self-focused option many turn to when debt consolidation did not solve their financial problems. Debt reduction involves getting serious and focused about your financial state and taking control of your money. To begin, you must be willing to do whatever is needed to get out of debt. This may mean getting another job or cutting back on weekend entertainment or frequent dining out. If you feel your debt is just too much to handle alone, then you need a debt consolidation program.What is debt consolidation and is it worth all the hassle? The basic terms of debt cons
Why would a seller do this? What if a cash buyer wanted to put an offer on your property a few days later? What if a truly qualified buyer came along within the next week or so? What if either of these two scenarios occurred and your property was tied up, off the market for an unqualified borrower and you didn’t find out for 30 days that you were dealing with a dud? Again, you want to talk to your attorney about the exact language you should use in your area.
Here’s something else home seller should know. Loan officers at banks tend to be on a salary, loan officers for mortgage brokerage companies are most often not—they eat when the real estate deal closes. Mortgage brokers tend to work harder to get a borrower financed because they don’t earn any money unless they close the deal. If I was selling a home, and the borrower was a marginal buyer, I would prefer the buyer apply at a reputable mortgage company v. bank—but that’s just me. It is something to consider as a seller—where is the buyer going for financing?
Here's what we have that will help you--a FREE EBook Report: 101 Tips For Home-buyers, Sellers And Money Borrowers which gives you 101 tips to help you protect yourself before and during a real estate deal. It’s located in the freebie section on our website and you can download it at your convenience. An Ezine Articles exclusive! Until next time…
Copyright © 2006
James W. Hart, IV
All Rights reserved
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