Before you start shopping for your property, it is a good idea to make some preparations.
Build Your Green File
A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:
- Bank account statements
- Investment statements
- Credit card statements
- Auto loan information
- Recent pay stubs
- Tax returns for the previous two years
- Copies of lease agreements for any investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Check Your Credit Rating
Your credit score will have a large impact on what type of property you can buy and at what price. We recommend you check your credit rating with an experienced lending institution so we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, commercial, and investment real estate fields.
Be Careful With Your Finances
When you are preparing to buy a home, it is best to not make any sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.