One of the most, if not the most, important thing to do before you begin shopping for your property, is to make some key preparations.
Financial Status File
In order to secure financing for your new property, you should put together a “financial status file” of documents which will be required by your chosen financing institution to secure your loan. The file should contain documentation for the following:
- Statements to include 401K, life insurance, stocks, bonds and mutual fund accounts as well as any other investments.
- Bank accounts
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for two years
- Copies of leases for investment properties
Your credit score has a large impact on what type of property you may buy and at what price. You should check your credit rating from the three credit reporting agencies Equifax, Experian and Trans Union, as this will be information any lender will be looking at prior to loaning money.
Be Cautious When It Comes to Your Finances
In order to approach your property purchase from a position of stability, now is not a good time to make any career changes or large purchases which might impact your ability to receive financing.