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 the following in a PDF form:
- Last two years W-2s or 1099s
- Last thirty days paystubs
- Last two months bank statements*
- Last two years tax returns **
- Picture of driver’s license
- Picture of social security card
* Only the statements for the account(s) that will be used for the down payment and closing costs
** Only if you have 1099 income (self employed borrowers, rental income, etc)
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 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 Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, commercial, and investment real estate fields.
For the credit check, you can also use
www.annualcreditreport.com for free if you want, or the lender can do a soft credit pull so you don’t have a hard credit pull if you aren’t ready to move forward yet.
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.
