How to Recognize a Qualified Buyer – The Cin-Day Group Explains

Not every interested buyer is ready—or able—to close the deal. When selling your home in Greater Cincinnati/Dayton, it’s important to recognize the signs of a qualified buyer. From financial readiness to mortgage pre-approval, knowing what to look for can save you time, stress, and disappointment. In this post, the Cin-Day Group explains how to spot a serious buyer and move confidently toward a successful sale.

They are prequalified—or even better, preapproved—for a mortgage.
Such buyers will be in a much better position to obtain a mortgage promptly.

They have enough money to make a down payment and cover closing costs.
Ideally, buyers should have 20 percent of the home’s price as a down payment and between 2 percent and 7 percent of the price to cover closing costs. If they plan to make a smaller down payment, they will need to purchase mortgage insurance, through either a government guarantee program or a private mortgage insurer. Their ability to provide earnest money in a timely fashion will be an indicator of liquid reserves.

Their income is sufficient to afford the home over the long term, too.
Ideally, buyers should spend no more than 28 percent of their total income to cover the principal, interest, taxes, and insurance associated with the sale (often abbreviated as “PITI.”)

They have good credit, which they are monitoring and maintaining.
They will have recently reviewed their credit report and have actively worked to correct any blemishes or errors found. 

They’re not managing too many other debts to take on a mortgage.
If buyers owe a great deal on car payments, credit cards, and other debts, they may not qualify for a mortgage.

Recognizing a qualified buyer is one of the smartest moves a seller can make. By focusing on buyers who are financially prepared and motivated, you’ll increase your chances of a smooth transaction and a stronger offer. If you’re selling in the Greater Cincinnati and Dayton areas, the Cin-Day Group will guide you through the process to ensure you work with the right buyers from the start. Contact us today to get started!