Preparing to Buy
Purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully purchasing a property is most likely the biggest financial decision you will ever make. Whether this is your first purchase or you are an experienced buyer, this decision must be made carefully.
- Why Do You Want To Buy?
- Are you tired of paying rent?
- Have you decided to pay your own mortgage and not your landlord’s? Have you outgrown your current home?
- Are you looking for an investment portfolio?
- Are you looking for a rental property?
- Would you like a larger yard?
- Would you rather live in a different area?
- Do you want to shorten your commute?
Having a clear sense of your reasons for buying will help you choose the right property. Additionally, before you start shopping for your property, it is a good idea to make some preparations. Before you start shopping for your property, it is a good idea to make some preparations.
Prepare a File for Important Documents
Your files should contain all the important financial documents that you will need it to secure financing for your property. Your document file should contain:
- Financial Statements
- Bank Accounts
- Credit Card
- 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. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, commercial and investment real estate fields.
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.
1. Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets, and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most and is free.
2. While a "pre-qual" is non-binding to the lender (because the information you provide has not been verified), it does serve as a good indication to potential sellers of your general creditworthiness.
3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.
Time to go SHOPPING!