Before You Start House Hunting, Get Financially Ready
Before diving into the home search, it’s important to get your finances in order. A little preparation now can make the buying process smoother—and set you up for success.
Step 1: Build Your “Green File”
This is your go-to folder of important financial documents. Lenders will need this information to assess your qualifications and get you pre-approved. Your green file should include:
- Recent pay stubs
- Bank statements
- Investment account info
- Credit card and auto loan details
- Two years of tax returns
- 401(k), life insurance, stock, bond, and mutual fund statements
- Copies of leases if you own rental properties
Having everything organized ahead of time makes the mortgage process much more efficient.
Step 2: Know Your Credit Score
Your credit score plays a big role in determining the type of loan you qualify for and your interest rate. Before applying for a mortgage, check your credit with a trusted lender. They’ll pull reports from all three major credit bureaus—Equifax, Experian, and TransUnion—to give you a complete picture.
Not sure where to start? I can connect you with knowledgeable lenders who specialize in residential, construction, or investment property financing.
Step 3: Maintain Financial Stability
Now is not the time to switch jobs, open new lines of credit, or make big purchases like a car or furniture. Lenders want to see consistent income, stable employment, and manageable debt. Keeping your financial picture steady will help you qualify for better terms and keep your transaction on track.
