Preparing to Buy
Before you start shopping for your property, it is a good idea to make some preparations. It’s essential to get pre-approved before you begin shopping for a home.
If you’re not already talking to a lender you know and trust, talk to your agent about the best choice for you. Agents know the local lenders and can recommend specific people or companies depending on where and what you’re looking to buy.
Gather your files.
You will need to secure financing for your property. Locate all your important financial documents, such as the following:
- Financial statements
- Bank accounts
- Investments
- 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 you can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union.
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.