Before you start shopping for your property, it is a good idea to start preparing to buy. Michelle Boggiano has extensive experience working with buyers and she will help you with this process.
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 at what price. You should check your credit rating with an experienced lending institution so that we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian, and TransUnion. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Be Careful With Your Finances When You are Preparing to Buy.
Now is not a good time to make sudden career changes or large purchases. When you are preparing to buy, you want to approach your property purchase from a position of financial stability. Lenders look for consistency in employment and a solid credit history, so maintaining a steady income is crucial. Avoid taking on new debts or making significant financial changes that could impact your credit score. It’s also wise to save for a substantial down payment, as this not only reduces your monthly mortgage payments but also demonstrates your financial responsibility to potential lenders. By presenting a strong financial profile, you enhance your chances of securing favorable loan terms and ensure a smoother, more successful home-buying process.