Financing Options

by Alex Mendel

Start a Green File

Ready to streamline your home financing process? Start a 'Green File' containing all your essential financial documents. Regardless of the loan type, lenders will need detailed information about you. Be sure to make copies of financial statements, bank accounts, investments, credit cards, auto loans, recent pay stubs, and two years of tax returns.

Check Your Credit Rating

Your credit score is crucial when securing a loan. Scores range from 400 to 800, with 620+ considered "good" and 680+ deemed "premium," potentially earning you a lower interest rate. Contact the three major credit reporting agencies to determine your credit rating. If needed, ask your lender how to improve your score. Treat your credit like gold!

Savings & Debt

When buying real estate, aim to accumulate funds for your down payment, closing costs (appraisal, miscellaneous fees, escrow, title insurance, etc.), and inspection expenses. Additionally, try to pay down existing high-interest debt like credit cards.

Toe the Line

Lenders value stability. Now is not the time to change careers, move money around, or make large purchases. If considering significant changes, consult your lender first. For instance, a $500 monthly debt payment (like a credit card or auto loan) could reduce your home affordability by about $83,000 (based on a 30-year mortgage at 6% interest).