Are Your Buyer's Really Ready? Here Are Four Signs To Find Out!

You have prospects who contact you expressing an interest in purchasing a home, but how do you know if they’re really serious, or able, to purchase a home? MRIS, a large multiple listing service serving the Mid-Atlantic region, asked its real estate member network for some of the best signs for understanding whether potential buyers are really ready for the task of taking on home ownership.

Here’s what they found:

• Buyers are increasing their savings: MRIS suggests home buyers save enough money for six months of mortgage payments and at least 3.5 percent of the purchase price for a down payment and closing costs. Buyers also haven’t forgotten about moving and possible home repair costs in setting up a savings plan for a home purchase.
• Buyers have their credit in shape: Home buyers know their FICO score and know how it can impact the mortgage rate they get.
• Buyers know what they can afford: Home buyers are already pre-qualified for a mortgage so they know how much they can afford, what types of loans they can qualify for, and set a comfortable monthly mortgage payment goal.
• Buyers are not making other major purchases: Big-ticket purchases, like a car, should be put off until after they buy a home. Potential buyers ready to go know that it’s best to keep their cash reserves high to prove to lenders they can take on mortgage debt.