Preparing to Buy

While it may be exciting and tempting to get on out on realtor.com and starting checking out houses, you’ll need to take some further steps to be ready for shopping. Most important–unless you’re plunking down cash–is working with a lender.

Build Your “Green File”
Your green file contains all the important financial documents you’ll need it to secure mortgage loan financing for your future purchase. Collect the following to show your mortgage qualifier:

  • Bank accounts
  • Investment account records
  • Credit cards (the good, the bad, and the ugly)
  • Auto loans
  • Recent pay stubs–several pay periods’ worth
  • Tax returns for two years at least
  • 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 how much you’ll be qualified to borrow–and so it will affect what type of property you can buy and at what price. We’ll connect you 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 are happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.

Finding a Lender

If you work with Lisa Teach or one of her Associates, you can certainly ask for our recommendations about mortgage lenders with whom we have excellent track records and relationships. Or you might start with financial institution where you do your personal banking. Either way, you’ll need to become knowledgeable about the process of “funding” your mortgage loan and all that goes with that. Click here for Financing information about how to shop for a loan, how the process works, and what it all means for you and your homeownership objectives and personal finance goals.

Now’s not the time….
You’ll want to postpone any big purchases or investments during this time. You’ll also want to avoid a job change. Anything like this will hit a “reset” button on your mortgage qualifying and delay the process. You want to approach your property purchase from a position of financial stability.

Whew! After a quick pat on your back for all the work you’ve done so far, click the Choosing a Real Estate Agent icon at the top of the page to move on to one of our favorite parts of the process.