Preparing to Buy
Before you start shopping for a property in Colorado, it is a good idea to make a few important preparations. Getting your finances and documentation organized ahead of time can make the buying process smoother and help you move quickly when you find the right property.
Build Your Green File.
A green file contains your important financial documents and can help you prepare for the mortgage and purchase process. Your lender may request many of these documents when evaluating your financing. A typical file should contain:
- Financial statements
- Bank account information
- Investment account statements
- Credit card information
- Auto loan information
- Recent pay stubs
- Tax returns for the previous two years
- Copies of leases for investment properties
- 401(k) statements, life insurance, stocks, bonds, and mutual fund information
Check Your Credit Rating.
Your credit score can have a significant impact on your financing options, interest rate, and the amount you may be able to borrow. Before beginning your Colorado property search, it is recommended that you speak with an experienced lending professional to understand your financing options and determine a comfortable price range. Lenders may review credit information from major reporting agencies, including Equifax, Experian, and TransUnion. Golesh Team can help connect you with experienced lenders familiar with residential, construction, commercial, and investment real estate.
Be Careful With Your Finances.
Now is not the best time to make sudden career changes, take on significant new debt, or make large purchases without first discussing them with your lender. You want to approach your Colorado property purchase from a position of financial stability so that your financing remains on track and you are prepared to move forward when the right opportunity comes along.