In real estate, "qualifying a buyer" refers to a process of determining whether a buyer has sufficient finances to purchase a home, according to the National Association of Realtors. Qualifying a buyer helps the real estate agent know which homes are best to show the buyer. Items that qualify a buyer include credit score, income, debt ratio, down payment funds and mortgage pre-qualification from a bank.Know More
The National Association of Realtors notes that to be considered qualified, a buyer should have at least a 20 percent down payment, additional funds to cover closing costs, a pre-qualification letter or pre-approval from a financial institution for a mortgage and a current credit score. According to About.com, it is in the real estate agent's best interests to qualify a buyer so the agent does not waste valuable resources or a seller's time by presenting buyers who will not be approved for a mortgage.
About.com notes that the real estate agent has different concerns depending on whether the agent is representing the seller or buyer. When the agent represents the seller, the agent is obligated to meet the requirements of the seller for showing the property as long as the requirements are legal. The agent cannot legally prevent unqualified buyers from viewing a property, but sellers can request that only qualified buyers view the property.Learn more about Personal Loans
For a borrower to qualify for a subprime loan, a verified income and a down payment of at least 5 percent on the home are required, according to Stephanie Mojica for SFGate. A subprime loan is offered at a higher interest rate to individuals who do not qualify for prime loans.Full Answer >
People with bad credit can get loans by exploring alternative options to banks, such as credit unions or friends and family; bringing a cosigner on board; and using a home equity loan or a home equity line of credit, according to America’s Debt Help Organization. Bankrate recommends checking credit reports and fixing any errors and applying for loans at places where the requester already does business.Full Answer >
A USDA home loan is a loan funded by the United States Department of Agriculture in order to help low-income families purchase or repair a home in order to live in a safe, sanitary environment. The home must be located in a rural area.Full Answer >
A Veterans Affair, or VA, loan entitlement is a basic entitlement of $36,000 that is available to eligible veterans seeking a VA home loan; most lenders will loan up to four times the veteran's entitlement on a home without requiring the veteran to make a down payment. VA loans are still subject to credit and income qualifications and the property being purchased must appraise for the price being asked for it.Full Answer >