Home Sale Qualifications
By Jim Palmer Jr.

Selling a home can be a process fraught with frustration.  Most of that frustration can be generated because of a lack of understanding of the qualification process.  When sellers or buyers are ignorant of the total process, tensions can rise more easily and create conflict.  When both parties in the transaction are aware of all of the qualification process, things usually go smoother.   There are basically two qualification processes in a real estate transaction, one for the buyer and one for the home. 

Hopefully before a buyer makes an offer on a home they have already been to a lender and can offer a pre-qualification letter.  That letter puts the seller on notice that the buyer has done some due diligence and started their qualification process.  The problem with most of these letters is that they are superficial in nature, meaning it’s just a first glance at this buyer. 
The lender must dig deeper into the finances of the buyer verifying their true status, including income reliability, previous payment history and debt load.  Sometimes issues come up that disqualify a buyer after a Purchase Agreement is signed around, which can be extremely frustrating for both parties.

The second part is really a two-pronged qualification process since the home must qualify to meet buyer’s expectations and must satisfy that it has proper value and condition to serve as collateral for the loan. 

The home inspection is a free look by the buyer concerning the home’s systems, structure, and appliances, assessing all for general condition and defects.  Any negotiating for repairs or replacements is typically done in a 10 day period.  Seller may or may not agree to any buyer demands during this time period, but the bottom line is that the buyer is free to walk away from the transaction if they are not satisfied.  Sometimes sellers come away from this part of the process feeling beat up and wearied, even though the process to qualify the home is not done yet!

Once the inspection is satisfied or waived, the lender gives the green light to the appraiser, who then inspects the property for value and any conditions that may need to be satisfied before underwriters will approve the loan.  Often there are work requirements (such is a railing on a deck or curing peeling paint) that leave sellers feeling like they were stuck between a rock and a hard place. 

A clear understanding of how this process goes usually makes it more tolerable for buyer and seller!