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Preparation

Before you start shopping for your property, it is a good idea to make some preparations.

Build Your Green File

A green file contains all of your important financial documents. You will need it to secure
financing for your property. The typical green file should contain:
  • Bank accounts
  • Investments
  • Credit cards
  • Auto loans
  • Recent pay stubs
  • Tax returns for two years
  • Copies of leases for investment properties
  • 401K statement, life insurance, stocks, bonds and mutual funds

Check your credit rating

Your credit score will have a huge impact on what type of property you can buy and
at what price. I recommended that you check your credit rating with an experienced
lending institution, so that you can determine how much you can afford. The lender
will research your credit ratings from the three credit reporting agencies. Experian,
Equifax and Trans Union. I will be happy to recommend experienced, knowledgeable
lenders in the residential, construction and investment real estate fields.
Note: Experian rates are generally closest to the reports that lenders use.


Be Careful With Your Finances

Now is not a good time to make sudden career changes or large purchases. You want
to approach your property purchase from a position of financial stability


NEXT: CHOOSING A REALTOR