If are not a real estate professional, you may be surprised to learn how commonly buyers report that they will have no problem financing the property they might want to purchase.
If only. . .
Generally speaking, buyers have a good idea of their credit scores and, of course, their assets. Yet they often inflate their ability to pay for their next home on the basis of a mysterious mental calculation. Interestingly, many buyers also underestimate their purchasing power.
Because of such thinking, I almost always ask buyers to fill out a financial statement such as that provided by the Real Estate Board of New York (REBNY). Only when the form is completed can I feel assured that my clients are searching for property in the correct price range.
That’s where the rubber meets the road. Continue reading