Prior to hiring a Realtor and beginning the house shopping adventure, plan on doing some homework.
Build Your Green File
Important when it comes to securing a mortgage on your new home, your green file is a compendium of important financial documents. Your green file should contain:
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
Of significant importance to the type and price of the home you are qualified to purchase, your credit rating should be evaluated before you proceed with contacting lending institutions. You – and, ultimately, the potential lender — will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. Lin Vlacich will be happy to recommend lenders with expertise in residential and investment real estate.
NOTE: If you are considering a career change or large purchases, perhaps now is not the time to think about attempting to secure a mortgage. Financial strength and stability are key to success with any reputable financial institution. Complete the preparations above, then find the right property for your needs.