Preparing to Buy

by Alex Mendel

Before you start shopping for your property, making some key preparations can ensure a smoother and more successful buying process. Here’s how to get started.

Build Your Green File

A green file contains all your important financial documents, which you’ll need to secure financing for your property. Your green file should include:

Financial statements
Bank account details
Investment information
Credit card statements
Auto loan documents
Recent pay stubs
Tax returns for the past two years
Copies of leases for investment properties
401K statements, life insurance, stocks, bonds, and mutual fund account information

Check Your Credit Rating

Your credit score significantly impacts the type of property you can buy and at what price. Check your credit rating with an experienced lending institution to determine what you can afford. The lender will review your credit ratings from the three major credit reporting agencies: Equifax, Experian, and TransUnion. We can recommend experienced, knowledgeable lenders in the residential, construction, commercial, and investment real estate fields.

Be Careful With Your Finances

Now is not the time to make sudden career changes or large purchases. Approach your property purchase from a position of financial stability to enhance your loan approval chances and ensure better terms.