10 Questions Every Buyer Should Be Prepared to Answer
A great Realtor should have a clear understanding of their client's goals, priorities, and comfort level before ever writing an offer. The questions below aren't meant to pry into your personal finances. They're designed to help us build a strategy that sets you up for success and avoids unnecessary stress, disappointment, or surprises along the way.
In today's market, especially when multiple offers are involved, preparation matters. Having these conversations upfront allows me to advocate for you effectively, structure the strongest possible offer, and help you make confident decisions when the right home comes along.
So if you're thinking about buying a home with a great agent (hi, it's me!), be prepared for some thoughtful conversations. The more I understand your goals and circumstances, the better I can guide you toward a smooth, successful transaction. At the end of the day, my goal is simple: to help you get the home you love while feeling informed, supported, and confident every step of the way.
Is your income straight salary, hourly, commission/bonus, or self-employed?
A Buyer’s type of employment will determine the qualification and documentation requirements for their loan. For example, if you recently switched to a self-employed situation, it would be the income “history”, not the amount, that would prevent you from qualifying.
Have you had a bankruptcy, short sale, or foreclosure in the past? If so, how many years ago?
Certain credit events have specific waiting periods and documentation requirements that may delay a buyer’s eligibility when qualifying for a new home loan.
Do you have available and verified cash to close?
Funds for closing generally need to be seasoned for 60 days, and large deposits, (ie: cash loans) must be sourced. While a buyer may have the funds to close, it’s important to confirm those funds will be eligible for qualification.
Has your loan been approved through Desktop Underwriter or Loan Prospector?
This may not cause a loan to be ineligible; however, it’s important that all parties understand the documentation and timing requirements of any transfers.
Can you provide your tax returns for the past two years?
Tax returns may reveal certain expenses or undisclosed businesses that weren’t discussed during the application. A buyer may not be aware that these things can be reduced from qualifying income, thus creating unforeseen challenges once in the midst of the underwriting process.
Do you require gift funds from a family member in order to purchase your home?
If the buyer is relying on these gift funds and they are no longer available, this could effect the loan qualification for the buyer. (See #3)
Do you own any other Real Estate?
Underwriting guidelines have specific qualification requirements on additional Real Estate owned, and many expenses that are often applied to investment or rental purchases will nullify or even reduce a buyer’s qualification for a new home.
Is your Pre-Approval contingent upon the sale of your existing residence, if applicable?
While not a deal-stopper, it’s important to ensure the seller knows all 3rd party contingencies affecting their transaction, especially when they’re out of the buyer’s control.
Can your lender commit to a 10-day loan approval, including the appraisal? Have you run either a DU or LP for an appraisal waiver?
With loan approval periods having to include the appraisal completion, it is imperative that the lender commit to having the appraisal completed within the loan approval period. Both Desktop Underwriters and Loan Prospectors give lenders the ability to receive appraisal waivers (appraisal not needed) depending on borrower’s qualification, property type, and purchase price.
Have you checked your pre-approval specific to varying terms, such as interest rate fluctuation, taxes, insurance and HOA fees?
Whether a similar pre-qualification or a more thorough pre-approval review, assumptions must be for these amounts of your loan approval. If a buyer’s debt-to-income ratio is on the cusp of program guidelines, a change in monthly HOA fees may cause an unforeseen credit denial.
*Questions sourced from the Gullick Group | Cross-Country Mortgage
