The wisest thing to do, is place you valuables in a safe deposit box while you re selling your home. It s peace of mind. You have a buyer. How does the real estate agent know if the buyer is able to buy the house. The fact of the matter is that they don t, unless the buyer has been pre-approved by a mortgage lender.
Lets talk a moment about prequalify.
Prequlifing a buyer is an estimate, based upon numbers that the buyers provide, upon their ability to buy the house. That is, can they afford to buy it. Here is the formula for estimating a buyers ability. As a general guideline, lending institutions follow two ratios. These ratios are not written in stone and may be flexible depending upon the type of loan the buyer needs.