Start A Green File
A “Green File” contains all your important financial documents. Regardless of your loan type, lenders will need information about you. Make copies of your financial statements, bank accounts, investments, credit card statements, auto loans, recent pay stubs and two years’ tax returns.
Check Your Credit Rating
Credit scores range between 400 and 850. Having a 620 or higher is considered “good.” Having a 680+ is considered “premium” and may possibly help get you a lower interest rate.
Below you’ll find the 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 you need to.
| Equifax | http://www.equifax.com | 800.685.1111 |
| Experian | http://www.experian.com | 800.392.1122 |
| Trans Union | http://www.transunion.com | 800.888.4213 |
Savings & Debt
If you’re buying real estate, try to accumulate funds towards your down payment, closing costs (appraisal, miscellaneous fees, escrow, title insurance, etc.) and expenses such as inspections. Furthermore, try to pay down existing revolving and high interest rate debt, like credit cards.
Steady and Stable
Now is not a good time to change careers, move your money around, or buy big-ticket items. Lenders like stability. So if you’re considering any major changes, it pays to meet with a lender and ask him or her how to proceed, before you make any changes. If you’re tempted to buy a big-ticket item, consider the following:
| A $500 a month debt payment (like a credit card or auto loan) could lower the amount of home you can afford by about $100,000 (assumes a 30-year fixed at 4%)* |