There are soooo many fingers that can point when financing fails.....the Buyer should/should not have/didn't... The Selling agent should....the Lender could...the excuses are many and varied...to our minds, very few of them valid if everyone does their homework.
Once a long time ago in the darkest days of the fall of the market, we had a listing and the buyer lost his job the day before closing...everyone cried...for him, the Seller who thought they were moving...it was very sad and that situation is no longer prevalent and to date was a once in a lifetime experience.
We promise EVERY seller that we "have their back" in every part of the transaction.
Tell the Buyer's agent that the Seller requests a pre approval be supplied from one of the lenders on the list. There is nothing dishonest about this practice. It is part of what we promise EVERY Seller...we want to be sure that when we (effectively) take your home off the market and it is "Active with Offer" or "Pending" status...it is with Buyer who has been approved by a reputable loan officer...not one no one has ever heard of...or worse...the Bank of the Internet. They may flinch...scream or threaten to leave the transaction...sometimes if they are "Buyer's agents" they know better...or the Buyer's Sister's Cousin's nephew is the loan officer and of course must be good.
At least half a dozen times in the past year.....we got "Pre Approvals" that were not what they appeared to be....the Buyer was either not qualified at all or needed a kind of loan not offered by that Lender. We averted the "Failed due to a Financing" issue and do it every time. It's easy.....make your list make sure the loan officer's name and all contact information is on it. Make Points with the lenders and tell them they are ON YOUR LIST ! You may choose a variety of kinds of lenders who offer different programs...a mortgage broker, a banker and a credit union for example....a specific loan officer and you are on your way to another safeguard for your Sellers.....and the Buyers even though they may not recognize it at the time.
This has been a professional service post brought to you courtesy of Sally K. & David L. Hanson, Broker Associates with Keller Williams Realty, honored to be of service throughout southeastern Wisconsin.