Preparation: A Key to Success
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Whether you are purchasing a home or building a boat, thoughtful and thorough preparation is a vital key to success. Here are a few suggestions:
Build Your Green File.
Determining your financial options is a crucial initial step and is dependent on your compiling your financial history and status,as well as your current income. Accomplishing that will greatly expedite the process. A green file should contain:
- Credit card and loan statements and other records
- Bank accounts
- Investment portfolio
- Pay stubs or ledger
- Tax returns (2 years)
- Records of investment properties and leases of rental properties
- 401K statements
- Life insurance policies
Know Your Credit Rating.
Your FICA score and credit record will be playing a major role when it comes to determining your purchase options and financing structure. Your chosen lending institution, or one recommended by Lisa Teach, will assume the task of checking with the major credit reporting agencies, although you should know your credit rating.
Spend Wisely. Be Frugal.
Needless to say, your financial stability is paramount in the eyes of any financial institution considering lending you money for a new home. Therefore, in the time leading to initiation of a property purchase, and during the process itself, significant and extravagantpurchases, career changes, or other major expenditures should be avoided.