Before you start shopping for your property, it is a good idea to make some preparations. If you’re purchasing with a loan that means meeting with a lender and getting a pre-approval. If you’re purchasing with cash, then having your finances liquid for your purchase.
Build What I Call Is Your Green File (Money 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:
- Financial statements for the last 2 months
- Bank accounts
- Credit cards
- Auto loans
- Recent pay stubs for the last three months
- Tax returns for two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
- If you’re a veteran or a spouse of a veteran, having discharge and any documents that correlate with your service in order
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 lender to determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian, and Trans Union. I’m happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Be Careful With Your Finances.
Try your best not to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.