Preparation – What to do When Buying a Home

[Buyer]

Before you start shopping for your property, it will help you greatly 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:

  • Financial statements
  • Bank accounts
  • Investments
  • Credit cards
  • Auto loans
  • Recent pay stubs
  • Tax returns for two years
  • Copies of leases for investment properties
  • 401K statements, life insurance, stocks, bonds, and mutual account information.

Check Your Credit Rating.

Your credit score will have a huge impact on what type of property you can buy and help determine the price you can afford. First, check your credit rating with an experienced lending institution so that you can determine your budget. Next, the lender will research your credit rating from the three reporting agencies Equifax, Experian and Trans Union. Tony will be happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.

Be Careful With Your Finances.

You want to approach your property purchase from a position of financial stability so now is not a good time to make sudden career changes or large purchases. Keep your finances consistent.