Before you start shopping for your property, it is a good idea to make some preparations. Your preparing to buy checklist starts with two very important steps.
Build Your Green File
A green file contains all your important financial documents and is one of the first steps in preparing to buy. 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. One of the most important items on your preparing to buy checklist is to verify your credit score. It is first recommended to 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
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.