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Thorough and conscientious preparation is a key to success of any venture into the purchase of real estate. Here are a few suggestions:
Build Your Green File.
Your fiscal records, including financial history and status, will determine your financing options and direction and greatly expedite the process. Your file should contain:
- Statements and other records pertaining to credit cards and loans
- Bank accounts
- Investment portfolio
- Pay stubs or ledger
- Tax returns (2 years)
- Records of investment properties and leases of rental properties
- 401K statements
- Life insurance policies
Check Your Credit Rating.
Of course, your FICA score and credit record will play a major role in the determination of your purchase options and financing structure. Your preferred lending institution, or one recommended by your real estate professional, can assume the task of checking with the major credit reporting agencies, although you should know your credit rating.
Be Careful with Your Finances.
Financial stability is a vital key to success in the purchase of real estate. Prior to and during the property purchase process, significant other purchases, career changes, extravagant vacations and other major expenditures should be avoided. These types of spending could cause a lending institution to change course with you.