Before you start shopping for your property, there are some ways you will want to prepare.
Build Your Green File.
A green file is the term we use to describe the collection of all the important financial documents you will need to secure financing for your property. The typical green file should contain:
- Financial statements
- Bank account information
- Investment information
- Credit card information and recent statements
- Auto loans
- Recent pay stubs for all income earners in household
- 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.We recommend checking your credit rating with an experienced lending institution so that it can inform our discussion around what is affordable. The lender will research your credit ratings from the three credit reporting agencies (Equifax, Experian and Trans Union). Should you need a recommendation, we will be happy to point you towards experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Be Careful With Your Finances.
As a reminder, lenders are looking for financial stability when determining and pre-approving a mortgage. Now is not a good time to make sudden career changes or pursue other large purchases, like a car. You want to approach your property purchase from a position of consistency and predictability.