Sellers can minimize the risk of a denied mortgage by requiring buyers to furnish
The seller should be careful not to over-price the home because, even if a buyer is willing to pay, the lender will balk if the appraisal says the home isn't worth enough to serve as collateral on the loan. 3. Specify mortgage terms
The seller can insist that the sales contract specify a buyer seek a mortgage with terms the lenders are likely to approve, such as a down payment of at least 20% and an interest rate that's not so low it will be difficult to find. 4. Allow plenty of time for mortgage approval
At least 60 day to 90 days is a good benchmark for making sure the mortgage approval process doesn't cause your sale to fail, instead of a 30 day to 45 day period. 5. Know your buyer's income source(s)
A self-employed buyer, or one dependent on bonuses or commissions, is less likely to get a loan than a salaried employee who's been with the same employer for many years.