Preparation

Before you start shopping for your dream home, it’s a good idea to make some preparations.

Build your green file & Cash On Hand
A green file contains all your important financial documents. You’ll need it to secure financing for your home. The typical green file should contain:

• Financial statements
• Bank accounts
• Investments
• Credit card
• Auto loans
• Recent pay stubs
• Tax returns for two years
• Pre-qualification letter
• Cash on hand for 1 to 3% of the home purchase price for initial deposit

Choose a Mortgage Broker
Please contact me and I can suggest an experienced mortgage broker who will work with you early in the home buying process. One critical early step is for your mortgage broker to generate a pre-qualification letter for you. An experienced mortgage broker will be able to assess your credit rating (and work to improve it, if necessary) and help you determine how much home you should be able to afford. In addition, a good mortgage broker will be able to shop on your behalf for loans from various banks to obtain rate and financing options.

Your credit rating will have a huge impact on how much you can finance for your home. A solid credit rating usually allows you to qualify for a lower interest rate and better terms on your mortgage.

Be Careful With Your Finances
During the home buying process, it is not recommended that you make sudden career changes or large purchases. It is best to approach home buying from a position of financial stability.

For more information and for any additional questions, please feel free to contact me at any time.