Before you start shopping for your property, it is a good idea to make some preparations. Learn about the city you want to move to and what there is to do.
Build Your Green File When Preparing to Buy.
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
- Bank accounts
- 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 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 Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Be Careful With Your Finances When Preparing to Buy.
When you are ready to make the move, be sure that your finances will support it. You don’t want a sudden change in lifestyle or large purchases right now because of how uncertain things might feel for both parties involved with this transition into something new and different than what we’re used to before!
When you are making your budget, don’t neglect to factor in closing costs. Normally, closing costs will make up around 3–4% of your home’s overall purchase price. Your lender will provide you with an exact number so that you’re not caught off guard when closing day arrives.