P R E P A R I N G T O B U Y
Preparing now will save you a lot of headaches later.
BUILD YOUR GREEN FILE. A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green 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.
TAKE CHARGE OF THE PROCESS. If you approach the home buying process intelligently and with confidence, you are much more likely to buy a house you'll be proud to call home. Approaching the task of buying a home can be overwhelming; there's so much to consider:
- How much house can I afford?
- How can I find the best loan?
- Where will I come up with a down payment, and how much will I need?
- Should I buy a new or resale home, and which will go up in value?
- Should I work with an agent or look at homes on my own?
And these questions are just the beginning. Buying a home is one of the largest financial transactions in your lifetime - do your research so you know what you’re doing. Here are the two most important things to remember no matter where you are on the road to home ownership:
- You can and should understand everything that is happening in the home buying process. There is nothing that is so complex that it can't be easily explained to anyone with average intelligence. Just because you don't apply for a thirty year mortgage once a week doesn't mean you have to take the first one that comes along. You'll need to learn some new terms, apply some new concepts and take the time to understand what you're getting into. If, at any point, something happens that doesn't make sense to you, simply ask for a full and complete explanation. If it still doesn't make sense, seek help from someone you trust like your CPA or banker.
- In the world of real estate sales, The Buyer Is King. It's easy to think that everyone else carries more weight than you. The agent talks fast and has an answer for everything. The lender may decline your loan application, and on and on. But the truth is that you, the buyer, are the one person in the transaction that makes it all happen. If you decide to not buy, the entire process comes to a grinding halt. Surround yourself with a team of professionals that you have confidence in and make them work for you. Approach home buying with intelligence and confidence, and by doing your homework, and you are more likely to buy a house you’re happy with and to know that you made the right decision.