Financing Options

Start A Green File

A Green File should contain all of your important financial documents. Regardless of the loan type, lenders will need information about you. Make copies of financial statements; bank accounts, investments, credit cards, auto loans, recent pay stubs and two years’ tax returns. Here’s a list to go by to have as part of your Green File if they apply:

General:

1. Driver’s License
2. Resident Alien Card or Visa – If Applicable

Income:

1. W-2 form and or 1099 (past 2 years)
2. Verification of other income such as: social security – provide award letter for current year, alimony or child support -provide divorce decree
3. Most current 2 years tax returns – (Federal only including all schedules)
4. If you have rental property income: Copies of all lease/rental agreements

Assets:

1. Copies of most recent 2 months bank statements from checking/savings accounts (all pages even if page is blank)
2. Copies of most recent 2 months stock/bond certificates and/or retirement accounts(all pages even if page is blank)

Properties Owned: If Applicable

1. Copy of current Mortgage statement on all properties owned
2. Property tax information on all properties
3. Insurance Declarations page on all properties

Other: If Applicable

1. Bankruptcy – Copy of discharge and schedule of creditors
2. Divorced? – If so please provide your Divorce Decree
3. VA only – Copy of Form DD214
4. Self Employed – Copy of current business license

Check Your Credit Rating

Credit scores range between 400 and 800. 620 + is considered "good". 680 + is considered "premium" and may possibly help get you a lower interest rate.

Below you will find the contact information for the 3 major credit reporting agencies to help you determine your credit rating. Ask your lender how to improve your credit score if you need to. Going forward, treat your credit like gold.

Equifax	http://www.equifax.com	800.685.1111
Experian	http://www.experian.com	800.392-1122
Trans Union	http://www.transunion.com	800.888-4213

Savings & Debt

If you are buying real estate, try to accumulate funds towards your down payment, closing costs (appraisal, miscellaneous fees, escrow, title insurance, etc.) and expenses such as inspections. Furthermore, try to pay down existing revolving and high interest rate debt like credit cards.

Toe The Line

Now is not a ideal time to change careers, move your money around, or buy big ticket items. If you are considering any major changes, it’s best to check in with your lender and ask them how to proceed before you make any changes! If you are tempted to buy a big ticket item, consider the following:

A $500 a month debt payment (like a credit card or auto loan) could lower the amount of home you can afford by about $83,000! *

* Based on a 30 year mortgage at 6% interest.