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Home » Buyers » Preparation

Preparation



Decide
To Buy


Preparation

Choosing A
Real Estate
Agent

Time to Go
Shopping

Escrow
Inspections
& Appraisals


Moving In

Before you start shopping for your property, you will need to make certain preparations. This includes ensuring that all your financial documents are in check, and having your credit in good standing. This may seem intimidating at first, but don’t let that deter you. Our team are happy to assist you with any questions you may have about documentation and credit ratings. Making the correct preparations ensures a smooth transaction process.

Have Your Documents in Order

You should ensure that you have all the correct documents necessary for a property purchase. This is known as a green file. You will need it to secure financing for your property. It will give lenders a complete overview of your financial situation and determine how much you can afford to spend on a property. The more thorough your documentation, the easier the buying process. The typical green file should contain:

  • Financial statements
  • Bank accounts
  • Investments
  • Recent pay stubs
  • Tax returns for two years
  • Credit card statements
  • Auto loans (if applicable)
  • Copies of leases for investment properties (if applicable)
  • 401K statements, life insurance, stocks, bonds, and mutual account information.

Check Your Credit Rating

Your credit score has a large impact on the type of property you can buy. It also affects how much you can borrow to finance your purchase. We recommend you check your credit with an experienced lending institution before you begin searching for property. This allows you to determine what you can afford, and prevent any unforeseen problems further down the line. In turn, we can then select properties within your budget. The lender will research your credit ratings from the three credit reporting agencies: Equifax, Experian and Trans Union. Your credit rating is determined by your income and your previous borrowing and repayment history. We are happy to recommend experienced, knowledgeable lenders in the across all real estate fields.

Be Intelligent with Your Finances

Buying a property is a big financial commitment. A commitment you want to approach from a position of financial stability. Therefore, it is wise to not make any sudden large purchases before entering the market. Home expenses should be below 30% of your monthly income, so don’t add any extra big expenses before you plan to buy a house. You should also ensure stability in your career before looking to purchase a house. Having your finances in good standing will make your property purchase a stress-free process.