Preparing to Get Pre-Approved for Your Home Purchase
If you are going to finance the purchase of your new home, it is a good idea to make some preparations for the loan pre-approval and mortgage underwriting process before you start your search.
Build Your Green File.
A green file contains all your important financial documents you will need to secure financing for your property. The typical green file should contain:
- Financial statements
- Bank accounts
- Investments
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for 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 significant impact on how much financing you can qualify for and at what interest rate a lender will finance your purchase. I recommend to checking your credit rating with an experienced lending institution so that you can determine what you level of payment you are comfortable with going forward. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. I will be happy to recommend experienced, knowledgeable lenders to assist you with this process.
Be Careful with Your Finances.
Now is not a good time to make sudden career changes or large purchases. You want to be sure that you approach your property purchase from a position of financial stability and strength.
