As you prepare for your purchase, it’s crucial to plan ahead financially.
Build your Green File.
A green file contains all your important financial documents. You’ll need it to secure financing for your home. Most lenders will help you build this file. The typical green file contains:
- Financial statements
- Bank accounts
- Investments
- Credit card
- Auto loans
- Recent pay stubs
- Tax returns for two years
Check your credit score.
Your credit score will have a huge impact on what type of home you can buy, and at what price. A premium credit score may mean a lower interest rate on your mortgage. Check your credit rating with a credit reporting agency such as Equifax , Experian or Trans Union. Most mortgage planners will be able to take care of this for you. There are certain myths about the negative effects of pulling your credit score multiple times in a short period of time. Feel free to ask us about clarifying this.
Be careful with your finances.
Since you are trying to qualify for a loan with a bank, now is not a good time to make sudden career changes or large purchases. You want to approach home buying from a position of financial stability.