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What is an appropriate amount of time to allow potential buyers to acquire financing for a property?

  • April 19 2012 - Bland
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Answers (7)

Best Answer

Interesting question- Consider the following:

1. Did the buyers include a prequalification letter with their offer?
2. What type of loan are they getting - conventional, FHA, USDA, etc..
3. What part of the country are you located?

Most buyers have a REALLY GOOD idea if they will qualify or not in 30 days. They may not have 100% loan approval but they should know if there are any items that need further clarification or if their credit scores and income are enough to qualify. If they are motivated and doing their part in getting the approporaite documents to their lender, 30 days is ample time for a really good idea if the loan has a chance of getting approved or not.
  • April 19 2012
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In addition, I typical give 21 days for the finance contingency.  This is plenty enough time for a buyer to know that he or she will be funded.  To protect the seller, you must push to have contingencies short.  Yes, a buyer want know a 100% that the loan will be funded, but at some point the buyer has to take that risk.  We truly never know if the bank will fund until the day of closing for anyone. 30 days is too much room for the buyer to walk away.  I can't stress enough how important it is to get a pre-qual letter before accepting an offer!!!!  This eliminates head aches before they occur.
  • April 27 2012
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I require a pre-qual letter before accepting an offer.  When you put the listing under contract and find out later the person has bad credit, you and your seller lose out on other potential buyers.  Good credit buyers can get a pre-qual letter in minutes.  For the finance contingency I prefer less than 30 days.  Contingencies are an open door for the buyer to walk away.  Put pressure on that buyer!!
  • April 27 2012
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Profile picture for NinaHarris
A lot of times a buyer can get a pre-qual the same day. It should take no longer than a couple of weeks if all documents are provided on time.

In the future, ask for this information prior to taking a buyer out to shop for homes.  If they aren't, advise them to do so and then take them out to view homes based on affordability.

A pre-approval lets a buyer know what he can afford.  There's nothing more frustrating than shopping, falling in love with a house and in the end finding out that you can't have it because you can't afford it.

















  • April 27 2012
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Check the first two pages of your Residential Purchase Agreement.  For California, it specifies the times the financial information and monies need to be supplied right in the contract that all parties agreed to.
  • April 27 2012
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Hi - I require a pre-approval letter when writing an offer with my buyer applying for a formal mortgage within 5 days.  I hope this helps. Thank you.

Cindy Schlee, Realtor
  • April 19 2012
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Profile picture for loveb
No prequalification letter provided but said they were prequalified. In state of Virginia and don't know loan type but thru a credit union. We thought 30 days but have been getting "well meaning" advice that we were allowing too much time.
  • April 19 2012
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