In real estate, a qualified buyer is one whose financial position has been evaluated by a professional mortgage company and found to possess the means to buy the property he or she is wanting to buy. If Buyer is qualified to buy a $200,000 house, it means they have the ability to pay for it.
When I started as a residential Realtor, I was presented with 13 buyers in a row who were not qualified. That is, they didn't have enough money or good enough credit to become qualified.
One fellow, a young guy we'll call John, came to me and said "It's my time. I deserve a house." He was just back from Iraq and didn't have a job yet and had done a "voluntary repo" of his car to his car company. But he said not to worry, his mother was going to cosign with him.
By this time, I knew that the first thing you do when a buyer comes to you and asks you to help him look for a house, you get him to get mortgage qualified. John turned out to have terrible credit and his mother to have worse credit than his.
My mortgage consultant called John and discussed what he could do to get himself mortgage qualified and I never saw him again.
The first thing to do when looking to buy a house--Get mortgage qualified. That hasn't changed since before the bubble and isn't likely to change in the foreseeable future.
I'm trying to create a more informed real estate customer. Is this working?
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Thanks for the nice comment on my book, Some Place Like Home. BTW, I give a 3 -session workshop to help people actually open up their treasure chest of places to help them find some place that is the ideal place for THEM. Next series beginning in June. Check in at www.designpsychology.net
ReplyDeleteToby Israel, Ph.D.
Dr. Israel, I love your book. I intend to issue more commentary on it. I wish more realtors gave a more thoughtful approach to their work. Their clients would be better served.
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