How to Financially Qualify Home Buyers — and Home Builders

One of the things you get pretty good at (hopefully) in the course of representing home Sellers for 12+ years is, how to qualify — that is, get comfortable with — the Buyer’s financing.

To be sure, I have a preferred list of questions I like to pepper lenders with.

But, ultimately, what I like to hear is a chuckle, followed by something like, “I wish I had 10 more Borrowers just like them!,” or, “Relax!  This Buyer qualifies for that home in their sleep.”

“Due Diligence” Steps

In the same vein, there are lots of ways to do due diligence on a home builder.

They include checking the builder’s references; seeing their “work product” (recently completed homes); personally interviewing them; verifying their state license with the Department of Commerce, etc.

But, how can you not love a builder who says — as I heard Twin Cities builder Kyle Hunt say to a roomful of Edina Realty agents last week:  “We aren’t expensive, but we have clients who ask us to do expensive things.”

If that isn’t a deal clincher, I don’t know what is . . .

See also, “Contractor “Win, Place, or Show’“; “Has Your Contractor Lost Their Mojo?”; “Realtor Referrals“; “Contractor Etiquette“; “Giving Good Invoice“; and “Doing Due Diligence on Small Home Builders.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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