Before you start shopping for your new property, it is a good idea to get prepared.
Do Your Homework.
Create a file that contains all your important financial documents. You will need it to secure financing for your property and typically it should contain:
- Financial statements
- Bank account information
- Investment statements
- Credit card information and statements
- Auto loan info
- Recent pay stubs
- Tax returns for the previous two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks/bonds and mutual account information.
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 lending institution so that we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and TransUnion. Silvia is always happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Be Careful With Your Finances.
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability. lenders like to see a solid employment history (typically at least 2 years) and do not want to see recent large purchases on credit cards etc.
Select your lender – if you do not have a competent local lender with which you are familiar, Silvia can offer you the names of several extremely competent lenders in town for you to select from. You will need to provide them with documentation so that they can pre-approve you BEFORE touring homes.
You will want to review estimated closing costs so that you can work this into the equation when it comes time to write an offer – Do you have the cash to pay at closing, do you need to wrap it into your loan or would you like to ask for the Sellers to cover the cost?
Now, onto the next step…