---
title: Offers, Pre Approvals and Choosing the Right Buyer
description: New to FSBO? Chapter 1 breaks down what selling your home on your own really involves so you can decide if FSBO is the right move.
---

[blog](https://www.joedoeshomeloans.com/blog)

# [Offers, Pre Approvals and Choosing the Right Buyer](https://www.joedoeshomeloans.com/blog/offers-pre-approvals-and-choosing-the-right-buyer)

 Written by [Joe Does Mortgages](https://www.joedoeshomeloans.com/blog/author/joe-does-mortgages) | Dec 28, 2025, 4:57:57 AM

The highest offer is not always the best offer. This chapter shows you how to read the offer like a pro, spot weak financing, ask for proof of funds without sounding rude, and choose the buyer most likely to close on time.

## The real problem with offers

FSBO sellers usually think the hard part is getting an offer.

The hard part is picking the offer that actually closes.

Because here is the truth, people say things when they fall in love with a house.  
They mean it in the moment.  
Then reality hits, paperwork hits, underwriting hits, and the “perfect buyer” suddenly has excuses.

So your job is not to be paranoid.  
 Your job is to verify.

## First, the one mindset shift

ou are not calling anyone a liar.  
You are just assuming buyers are optimistic when they talk.

They will say:  
“I am fully approved.”  
“I have the money.”  
“We can close fast.”  
“My cousin is a contractor, nothing will come up.”

Cool story.

Now we confirm.

## Pre qualification vs pre approval

These two words get thrown around like they mean the same thing. They do not.

### Pre qualification

his is usually a quick conversation.  
The buyer tells a lender their income, debts, and credit score, and the lender gives a rough estimate.

What it tells you:  
They might qualify.

What it does not tell you:  
 That anything was verified.

### Pre approval

This is stronger.  
A real pre approval usually means the lender reviewed documents like paystubs, W2s, bank statements, and pulled credit.

What it tells you:  
This buyer is far more likely to make it through underwriting.

What you want as a FSBO seller:  
A real pre approval letter, and the lender’s contact info so you can confirm details.

## How to review an offer like a pro

When you look at an offer, you are really judging 5 things.

### 1) Price

Obvious. But do not stop here.

### 2) Financing type

Conventional, FHA, VA, USDA, cash.  
Some loans are easier on the seller than others depending on your property condition.

### 3) Down payment and reserves

More down payment does not automatically mean better, but it often means more cushion if something changes.

### 4) Timeline

Fast close sounds great.  
But only if they can actually do it.

### 5) Contingencies

Inspection, appraisal, financing, sale of buyer’s home.  
Contingencies are not bad. Unclear contingencies are.

## How to ask for proof of funds without scaring people off

This is where FSBO sellers get awkward.  
They either sound aggressive, or they avoid it and get burned later.

Use a calm, professional line like this:

“Just so we keep everything clean and simple, can you send proof of funds for the down payment and closing costs, plus your pre approval letter. You can black out account numbers, I just need to confirm the funds are available.”

That one sentence does three things:

- It sounds normal, not personal
- It protects the buyer’s privacy
- It sets the expectation that you run this like a real transaction

### What counts as proof of funds

- Recent bank statement page showing available funds
- Brokerage statement
- If gift funds will be used, a note that gift funds are planned, plus the buyer should confirm with their lender that gift funds are allowed for their loan type

If they are a cash buyer:  
Ask for a bank statement or letter from their financial institution showing funds.

## How to tell if they are a serious buyer

You are not looking for perfection.  
You are looking for momentum and clarity.

### Serious buyer signals

- They send documents fast, pre approval, proof of funds, ID info if needed
- They have a real lender with a phone number you can call
- They can explain their plan in simple terms, “We are putting 10% down, conventional, closing in 30 days”
- They do not get offended by normal questions
- They show up on time, communicate clearly, and follow up

### Red flags

- “I do not want to provide that, just trust me”
- Their lender is impossible to reach
- They keep changing the story, first cash, then FHA, then “maybe we will get a co signer”
- They want you to accept the offer before they show proof of funds
- They are pushing you to rush, but they are slow with paperwork

## The best question to ask the buyer’s lender

Do not overcomplicate it. Ask this:

“Have you reviewed their income, assets, and credit yet, and is this a full pre approval or just a pre qual.”

Then ask:

 “Any known issues that could delay closing, like overtime not usable, self employed income, recent job change, large deposits, or credit events.”

A good lender will answer cleanly.  
A weak lender will dodge.

## Choosing the right buyer

Here is the simple truth.

The best buyer is the one who:

- Has verified approval
- Has verified funds
- Has a reasonable timeline
- Has fewer deal breaking contingencies
- Has a lender who will actually close

Sometimes that buyer is not the highest price.  
But they are the highest probability.

And probability is what gets you paid.

## Quick offer comparison cheat sheet

If you are choosing between 2 or 3 offers, write these five lines for each:

- Price
- Loan type
- Down payment
- Contingencies
- Closing timeline

Then ask yourself:

 Which one has the cleanest path to closing.

That is your winner.

[View full post](https://www.joedoeshomeloans.com/blog/offers-pre-approvals-and-choosing-the-right-buyer)

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