Before you start shopping for your property, it is a good idea to prepare.
Build Your “Green File.”
A green file contains all of your important financial documents. You will need these documents to obtain financing for the purchase. The typical green file should contain:
- Financial statements
- Bank accounts
- 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 Score.
Your credit score will have a significant impact on the loan amount and interest rate for which you are approved. The lender will pull your credit scores from the three credit reporting agencies — Equifax, Experian, and TransUnion, and typically will use the middle score.
If you need a lender recommendation, our experienced agents will provide such recommendations upon request.
Be Careful With Your Finances.
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.