Start A Green File
A Green File should contain all of your important financial documents. Regardless of the loan type, lenders will need information about you. Make copies of financial statements; bank accounts, investments, credit cards, auto loans, recent pay stubs and two years’ tax returns.
Check Your Credit Rating
Credit scores range between 400 and 800. 620+ is considered "good", 680+ is "premium" and may help get a lower interest rate. Below is contact information for the 3 major credit reporting agencies to help you determine your credit rating. Ask your lender how to improve your credit score if needed. Going forward, treat your credit like gold.
Savings & Debt
If you are buying real estate, try to accumulate funds for your down payment, closing costs, and expenses such as inspections. Also, try to pay down existing revolving and high-interest-rate debt like credit cards.
Toe The Line
Now is not a good time to change careers, move your money around, or buy big-ticket items. Lenders like stability. If you are considering major changes, meet with a lender and ask how to proceed before making changes. If tempted to buy a big-ticket item, remember: a $500/month debt payment could lower the home you can afford by about $83,000* *Based on a 30-year mortgage at 6% interest.
