Preparing to Buy
Having checked on your household budget, be prepared for a courageous leap to buy a home. This stage where you want to know the financial arrangement you have to make. The bank or the mortgage broker will delve deep into your financial strength and capacity. Here is the list of documents that you should collect in your Green File:
- Financial statements
- Bank accounts
- Investments
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for past two years
- 401K statements, life insurance, stocks, bonds, and mutual account information.
- Copy of your credit report and its clean up if required.
It’s good idea to get to know rough estimates of closing costs and monthly payments for tentative price range of what money can buy a home for you. A downloadable file is placed below to play with numbers. You will then in better position to discuss loan arrangements with your bank or mortgage broker. Your loan officer will:
- Give you a Loan Qualification letter to acknowledge your potential for raising a loan towards purchase of a residential property.
- Advice you on types of loans available related to down payment.
- Advise you on the documents for creditworthiness you gave to the loan officer to look at.
Advise you how to set about for next stage of Loan Pre-approval.