Jeff’s Carlsbad Blog for First Time Home Buyers

What I Need to Know About Your Financial Situation

Posted in Financial,Mortgage info by Jeff Dowler on May 11, 2007

loans_jpg.jpgI just wrote a post about not lying about your financial situation when discussing getting pre-approved, and when applying for a loan for you new home. Good advice, I think.

Here is what I like to know about your financial situation if you have not yet gotten pre-approved (and this is likely true of most agents). It just makes sense. Why?

Well, real estate is my job and I like being a good user of time. Showing homes to people who cannot afford to buy is a waste of time – for them, for the sellers, and for me. It is also a disservice. Sellers should not be asked to vacate their homes or open their homes up to people who just want to take a tour. It doesn’t happen often, fortunately. Plus as a professional, licensed real estate agent it is my duty to show homes to people who are qualified.

So it’s important for me to know that:

  • someone can afford to buy a certain price range of home, based on income, debts (e.g., loans, credit cards)
  • the buyer has shown responsibility for paying loans and credit cards regularly and on time (i.e., they have a credit history that is positive)
  • the buyer has not had a home foreclosed or declared bankruptcy recently (unless extraordinary circumstances occurred and credit hisstory since has been strong)
  • someone has the capacity to repay the loan, based on income, and is not overburdened by debt

And doesn’t that make sense to you , too, as a buyer?

It’s difficult, especially as a first time buyer who may not have a lot of money to put down on a home, but who has excellent credit and more than sufficient income, because loan programs have changed. So I need to know that buyers ARE qualified. Sellers need to know. And YOU need to know too. So don’t be surprised if I ask you about these matters, if you have not already had a discussion with your mortgage broker.


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