What this step involves
You don't control how your buyer finances — but you need to understand it. Financing type affects closing certainty, timeline, and appraisal requirements. Knowing the difference protects you from deals that fall apart at the finish line.
How to do it yourself
DIY Path
- Request a pre-approval letter from a lender (not pre-qualification) with every offer
- Understand the difference: cash closes in 7–14 days, conventional in 30–45, FHA/VA in 45–60
- If appraisal is required (all non-cash offers), your price must justify. Price your home correctly.
- Ask the buyer's lender directly about their timeline — underwriting delays are the #1 reason closings slip
- For FHA offers: review FHA property condition requirements. Your home must pass FHA inspection.
Common pitfalls
What goes wrong
- Accepting pre-qualification as pre-approval: Pre-qual is a guess. Pre-approval means a lender checked income, assets, and credit.
- Ignoring appraisal risk: If the home doesn't appraise at sale price, you may need to reduce price or the deal dies.
- Not understanding buyer contingencies: A financing contingency protects the buyer — not you.