Build Your Green File:
Before you start shopping for your new property, it’s a good idea to be prepared and informed!
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:
- Recent pay stubs
- Financial statements
- Auto loan statements
- Credit card statements
- Tax returns for two years
- Bank account statements
- 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 loan you can obtain, your interest rate, and your monthly payment. It is first recommended that you check your credit rating with an experienced lending institution so that we can determine what you can afford. In most cases, the lender will research your credit ratings from the three credit reporting agencies (Equifax, Experian, and Transunion). We will be happy to recommend experienced and knowledgeable lenders in the residential, new construction, commercial, and investment real estate fields.
Be Careful With Your Finances:
There are several things that can cause buyers to become disqualified even after they receive an approval from their lender. Two common mistakes that approved buyers often make are, making large purchases and deciding to make a sudden career change. You want to approach your property purchase from a position of financial stability. It is imperative to remain in the same position that you were in when you applied for your loan (unless otherwise instructed by your lender). Speak with your lender before making any substantial changes or large purchases!