Create a Financial Document File.
Before you start shopping for your property, it is a good idea to make some preparations.
The financial document file contains all your important financial documents. You will need it to secure financing for your property. The typical financial documents 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.
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.
Buying a House: Get Pre-Approved for a Mortgage
Do you know how much house you can afford? Probably not. Unless you have recently talked with a mortgage lender.
Loan pre-approval is 10% for the agent's benefit and 90% for the buyer's benefit!
Loan pre-approval is to prove a buyer's credibility to the seller! More and more of today's seller's are instructing their real estate agent
to only show their homes to pre-approved or pre qualified buyers. Since it is foolish to buy a home without physically seeing it and inspecting every detail of the home yourself.
The best course you can take is to get a pre-approval letter as soon as you start searching for homes.
Pre-approval helps you in other ways.
A home seller gets three similar offers. One is accompanied by a pre-approval letter from the buyer's bank that states they are pre-approved for a mortgage in the amount of the offer. One has a pre-qualified document and the other has no supporting documents. Which offer do you think the seller will consider first?
A buyer is on day one of their home searches and finds a fantastic deal on a home and it has everything they are looking for in a home. Plus the price has just been reduced. These type of deals usually sell very fast and attract several buyers.
The first thing you want to do is go see the house and inspect it to make sure there are no reasons this house is being sold for a great price that will not end up costing you money in repairs.
But like most seller's a pre-approval letter is required to see the home. By the time you get the pre-approval letter to take a tour of the home. The property might be sold and you missed out on a good deal because you were not prepared.