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.
Get Preapproved With A Local, Reputable Lender
Now that you have decided to buy a home, the big question becomes “how much home can I afford?” The only way to find out for sure how much you qualify for is to get preapproved with a strong, local lender. Preapprovals are based on more than just credit scores which is why we don’t recommend using online mortgage calculators as a means to determine your budget, We will be happy to recommend experienced, local, knowledgeable lenders in the area who have very strong reputations for getting the job done for our clients.
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.