Buyers, Get Your Act Together!
By Jim Palmer Jr.

An average day in the life of a Realtor® includes calls from customers who ask to be shuttled around to view homes for sale. Usually, only a small number of these buyers are actually prepared to make an offer, yet they get indignant when an experienced broker invites them to first prove they’ve done the required preparation. Most listing brokers promise that they will only allow qualified buyers, and will shield sellers from curious unqualified eyes. Until a buyer is prequalified, most brokers are happy to expend energy coaching those who aren’t quite ready yet, and to help them do the things that will prepare them for home ownership. In other words, don’t get the cart before the horse!

In order to be prepared to purchase, a buyer must have their ducks on row… or at least in the same pond. I’m talking about the type of buyer who doesn’t have the cash in hand to secure financing and/or doesn’t even know if they qualify for a loan. A solid relationship with a loan officer is very important! Buyers should have face-time with them to build a level of trust and build a resume that appeals to sellers. Buyers should offer up as much information as possible about their financial situation so they can accurately assess their real financial status. The tendency for some buyers is to conceal facts that are detrimental to obtaining financing. That stonewalling attitude may not be considered by some as fraudulent, but such reluctance to reveal all, will jeopardize the loan once the purchase gets down to brass tacks.

In one transaction, which flubbed the day before a scheduled closing, it was discovered that the borrower had concealed an unsecured debt that had not been documented on their loan application. This caused the underwriter to reject the loan as soon as this fact was discovered.

Any potential borrower should be ready to provide tax returns, debt information, child support obligations and even regularly committed charitable donations. They should give consent to the lender to verify all of this information, as well as consent to research credit worthiness. Once the applicant has gone through that approval process, the buyer has credibility to begin their property search in earnest. Armed with documentation of that preparation, the broker will have the confidence to move forward as their agent. In a difficult sellers market, buyers need every edge they can get!