What is a qualified buyer?
The term "qualified buyer" is one of the commonly used terms in the real estate profession. If a real estate agent or other person involved in the process refers to a qualified buyer, in general, this means that the buyer has already considered the bank to be the funds for the purchase of the property. However, this may mean that the buyer has been qualified or approved in advance, which are actually two very different things. Obviously, it can make the buyer easier. It also facilitates the process of the real estate agent because it knows what price range to hold the buyer's property. It also offers an offer to buy more attractive to sellers when the agent is able to add that the potential buyer is a qualified buyer.
The buyer can ask the bank for preliminary qualifications. In most cases, pre -qualification is relatively simple, fast and free. The buyer can generally pre -qualify over the phone or online by simply providing a general giant to the creditorIzek about his financial condition, such as revenue, debts and what he believes that his credit rating is. In most cases, the creditor uses only information provided to the potential debtor in a pre -qualified decision; On this basis, however, the buyer may be considered as a qualified buyer when he does not have to have funds.
On the other hand, preliminary approval is much more detailed and often requires the buyer to actually apply for a loan and pay a loan request. The creditor usually verifies the information provided and also carries out an official credit check in the determination of preliminary approval. The qualified buyer has actually received preliminary approval, it is really what the term qualified buyer describes.
While the buyer who has been qualified in advance can give him an idea of the exception to what loans he will be entitled to, there is no guarantee that the creditor will approve the loan at all because pre -qualification was based on the informationCH that the buyer offers. If any of the information is inaccurate, intentionally or mistakenly, the creditor may drop to lending any money at all. For this reason, most sellers prefer work with pre -approved qualified buyers whenever possible.