Show Me the Money!

An offer or multiple offers come in for your home.

Expect your Realtor to do the following to verify the buyer is able and qualified to purchase your home. In Southern California, the following is common practice. The qualified offer should come with…

1. Copy of buyers deposit check (known as earnest money deposit).
2. Current statements. Where is the money for down payment and closing costs? Bank account? IRA? 401k? .
3. Letter of pre-approval from buyer’s lender. Is it from a bank or direct lender? A Broker? Type of financing.
Listing agents and their sellers are looking for prequalification letters from the top banks, Wells, B of A etc.

4. Ask questions…Does the loan rep know the buyer personally?
5. Has the lender received complete application, verified income, employment, money? Is the money seasoned? If the loan officer is not cooperating, have the buyer pre qualify with another lender.
6. Will a home need to be sold before this escrow can close?

7. How does the buyer’s agent know their client? Past client? Referral? Craig’s list contact?

8. Both parties should be filling out a Statement of Identification form to verify information is correct and accurate.

The more information you get, the more secure you will be with this buyer and expect a smooth closing.