Before you start shopping for your dream home, it’s a good idea to make some preparations:
Build your green file A green file contains all your important financial documents. You’ll need it to secure financing for your home. You will need this unless it is an all cash transaction, you need to know what is your price range and you will need a pre-approval letter to submit with any offer on a property. The typical green file should contain:
Check your credit rating Your credit score will have a huge impact on what type of home you can buy, and at what price. Anything above 620 is considered good. A premium interest rate may mean a lower interest rate on your mortgage. Check your credit rating with a credit reporting agency such as:
Be Careful With Your Finances Now is not a good time to make sudden career changes or large purchases. You want to approach home buying from a position of financial stability.
Tell the Whole Truth Be up front with your loan officer from the beginning and you’ll be much more likely to be successful when it’s time to close the deal. Loan underwriters will verify and re-verify the facts on your loan application, including credit, assets, marital status, employment, and more until the last minute of signing documents.
Watch the Dates To avoid additional fees at the closing, stay on top of important deadlines for approvals of disclosures, and loan approval. A change in the closing date can affect the interest rates, closing costs, and other factors that adjust over time and ultimately have an impact on the size of the check you’ll have to write to close the deal.
For more information and for any additional questions, please feel free to contact me at any time.