Before you embark on your Denver property search, it’s essential to make some preparations. To begin with, one of the initial steps involves selecting your Realtor; we’ll delve into that aspect in the next section. It’s worth noting that your Realtor likely maintains connections with local Mortgage Lending experts. Following these guidelines can simplify your pre-approval process.
Build Your Green File.
First, focus on building your Green File, Your Green File should encompass various documents which your lender will likely ask you about and may eventually need copies for your file and to complete your loan approval process. Having these ready ahead of time will save you time and added stress. Buying a home is a big undertaking, being prepared by hiring an experienced Realtor will make your home purchase process more enjoyable by knowing what to expect
- Financial statements (3 months bank statements)
- Bank accounts (Account numbers)
- Credit cards (past 3 statements)
- Auto loans (have an idea of how much you owe)
- Recent pay stubs (previous 2 months)
- Tax returns for two years
- Copies of leases for investment properties
- 401K statements, life insurance, stocks, bonds, and mutual account information.
Check Your Credit Rating.
Next, it’s crucial to check your credit rating, which will be one of the primary steps you take with your selected lender. If you haven’t already chosen a lender, don’t hesitate to contact me and request a recommendation. Your credit score significantly impacts the type of property you can purchase and its price. It’s advisable to verify your credit rating with an experienced local Denver Mortgage lender to determine your affordability. These lenders will evaluate your credit ratings from the three major reporting agencies: Equifax, Experian, and Trans Union. I can provide recommendations for experienced and knowledgeable lenders across residential, construction, commercial, and investment real estate fields. Based on your property plans, we can determine which lenders are the best fit.
Be Careful With Your Finances.
Lastly, exercise caution in managing your finances during this period. Avoid making abrupt career changes or significant purchases. A stable financial position is crucial when approaching your property purchase. Any sudden job changes, major expenditures, debt repayments, or account closures may negatively affect your ability to buy a home. It’s advisable to consult with your Realtor and lender before making any alterations to your current financial situation.
