Additional Information on Preferred Lenders, CLICK Individual Picture:
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:
- 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 Rating
Your credit score will have a huge impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating with an experienced lending institution to determine your price range. The lender will research your credit ratings from the three credit reporting agencies:
- Equifax: http://equifax.com – (800) 685-1111
- Experian: http://experian.com – (800) 392-1122
- Trans Union: http://trasunion.com – (800) 888-4213
Ask your lender how to improve your credit score if you need to. Going forward, treat your credit like gold.
Savings & Debt
If you are buying real estate, try to accumulate funds towards your down payment, closing costs (appraisal, miscellaneous fees, escrow, title insurance, etc.) and expenses such as inspections. Furthermore, try to pay down existing revolving and high interest rate debt like credit cards.
Toe the Line (Be Careful With Your Finances)
Now is not a good time to make sudden careers changes, move your money around, or buy big ticket items (large purchases). Lenders like stability. So, if you are considering any major changes, it pays to meet with a lender and ask them how to proceed before you make any changes! You want to approach your property purchase from a position of financial stability.