Unless the buyer who makes an offer on your home has the resources to
qualify for a mortgage, you may not really have a sale. If possible, try
to determine a buyer's financial status before signing the contract. Ask:

1. If the buyer has been prequalified or preapproved (better) for a mortgage.
    Such buyers will be in a much better position to obtain a mortgage promptly.

2. Does the buyer have enough money to make a downpayment and
    cover closing costs? Ideally, a buyer should have 20 percent
    of the home's price as a downpayment and between 2 and 7
    percent of the price to cover closing costs.

3. Is the buyer's income sufficient to afford your home? Ideally,
    buyers should spend no more than 28 percent of total income
    to cover PITI (principal, interest, taxes, and insurance).

4. Does your buyer have good credit? Ask if he or she has reviewed and
    corrected a credit report.

5. Does the buyer have too much debt? If a buyer owes a great deal on car
    payments, credit cards, etc., he or she may not qualify for a mortgage.