Before you start shopping for a property, it helps to get your finances and documentation organized. Understanding your credit, reviewing your financing options, and establishing a realistic budget can help you approach your home search with greater confidence.
Build Your Green File
Keep your important financial documents together so they’re readily available when you apply for financing. Your lender may request items such as:
- Financial statements
- Bank account information
- Investment statements
- Credit card information
- Auto loan information
- Recent pay stubs
- Two years of tax returns
- Leases for investment properties
- 401(k) statements
- Life insurance information
- Stock and bond statements
- Mutual fund information
Having these documents organized can make it easier to respond when your lender needs additional information during the financing process.
Check Your Credit Rating
Your credit history and score can affect the financing options available to you. Before you begin shopping, talk with an experienced lending institution about your financial situation and what you may be able to afford.
Lenders review credit information from major credit reporting agencies, including Equifax, Experian, and TransUnion. Jamie can also recommend experienced lenders who work in residential, construction, commercial, and investment real estate.
Be Careful With Your Finances
Once you’re preparing to buy, financial stability matters. Avoid making major purchases or significant financial changes without first understanding how they could affect your financing.
Your lender can help you understand what financial changes may affect your loan application or purchasing power.