Preparing to buy a property, whether it is a new home or an investment property, should include these steps for a smooth transaction.
Build Your Green File.
A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:
- Financial statements
- Bank accounts
- Credit cards
- Auto loans
- Recent pay stubs
- Tax returns for two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Here is a thorough list of documents you will need for each type of loan: Conventional loan, FHA, Investment Property.
Check Your Credit Rating.
Your credit score will have a huge impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating with an experienced lending institution so that we can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. We will be happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Every consumer is entitled to an annual, free credit report, you can access yours here.
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.
To help your research focus on the important concerns that most home-buyers have, we have curated some of our favorite neighborhood research tools. They are useful and offer plenty of information.
Buying and selling a house at the same time.
Almost two-thirds of sellers are trying to buy and sell a home at the same time. Follow our top 3 tips to help relieve the stress when navigating the challenges of timing and double mortgage payments.
- Get pre-approved for a loan.
When a seller is presented with multiple offers yours will be more competitive if your financing is in place.
- Get a pre-inspection of your current home.
Having a home inspector identify the critical repairs can remove any surprises…surprises can hold up the selling process. Selling a home can take twice as long as buying a home so if you are able to tackle the punch list do it. If you have a limited budget speak with us and we will let you know what to focus on.
- Start to pre-pack.
Packing early can give you a sense of control and preparedness. it also helps to save time and makes it easier to move when the time comes. But the most important benefit of clearing the clutter is it greatly increases the chance of a quicker sale. Almost 50% of all buyers say it’s important to see a home free of personal belongings and mementoes.
Remember DuPre Real Estate is a goldmine of information on San Diego County and its various regions. We know how to focus in on what is important to you. We are here to help and prepare you to buy a property.