Preparing to Buy

Before you start shopping for your property, it is a good idea to make some preparations.  The first step is to contact a mortgage company and find out how much home you can afford (or want to afford!). I have relationships with several mortgage companies and am happy to refer you to someone I know and trust. In preparations for applying for a mortgage, here are a few things to keep in mind:

Build A Mortgage File.

A mortgage file contains all your important financial documents. You will need it to secure financing for your home. The typical mortgage file should contain:

• Financial statements
• Bank accounts
• Investments
• Credit card balances
• Auto loan balances
• Recent pay stubs
• Tax returns for two years
• Copies of leases for investment properties
• 401K statements, life insurance, stocks, bonds, and other retirement 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. Before you start your search, it might be helpful to check your credit score to make sure you don’t have any credit surprises. The mortgage company will also pull your credit ratings from the three credit reporting agencies: Equifax, Experian and TransUnion. Once your credit score has been determined, the mortgage company can provide you with information regarding the terms of your mortgage (length of mortgage, interest rate, etc).

Be Careful With Your Finances.

When you are in the process of obtaining a mortgage, everything needs to remain status quo…Now is not a good time to make sudden career changes or large purchases. You want to approach your home purchase from a position of financial stability and any strange deposits, career changes or large purchases may hinder your ability to obtain a mortgage!