Main Content

Preparing
to Buy

Before you start shopping for your property, it is a good idea to spend some time preparing.

1. Will You Be Paying Cash?

Make sure you can provide documentation regarding the availability of your funds to cover the cost of the purchase and your closing costs. Ideally, this verification of funds should be included with your offer as a way of demonstrating to the seller your ability to perform and close escrow. Otherwise, this will be due within a few days of the acceptance of your offer.

2. Will You Be Financing Your Purchase?

If so, obtaining pre-approval for your loan is a critical first step. It will not only let you know what a bank is willing to loan you so that you can make a choice around the most you are willing to pay for a home, but by having a strong pre-approval letter from the lender, it will also put you in a strong negotiating position.

In order to start this process, you will want to build your green file. A green file contains all the required financial documents. You will need it to secure financing for your property. The typical green file should contain:

  • Financial statements
  • Bank accounts
  • Investments
  • 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.

3. Choose the Right Lender

Choosing the right lender is a critical step in ensuring a smooth and successful purchase. Your lender must not only be experienced and knowledgable about changing trends and developments in the world of lending, but he/she must be more committed to your goals and objectives than consummating a quick sale. Ideally, your lender and your realtor have an established relationship, and if not, at the very least, the ability to collaborate well in a new working environment.

Your lender will review your tax returns and asset statements, verify your income and employment, and check your credit rating so that she/he can determine what you can afford. Your credit score will have a huge impact on what type of property you can buy, and at what price. Your 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, commercial and investment real estate fields.

5. Be Careful With Your Finances.

Now is not a good time to make sudden career changes or to charge large purchases on your credit card. You want to approach your property purchase from a position of financial stability and not jeopardize your chances of securing your loan.

6. Know the Market.

Understanding the local real estate market is as important as understanding what you want. Key factors to consider are sales activity, inventory levels and appreciation/deprecitaiton rates. I am a firm believer in education, and I find that this kind of information empowers my clients to make informed, responsible choices that closely align with both their values and their knowledge of current market trends and activity.

7. Choose the Right Realtor

Connect With Us

Buying and selling a home is more than just a transaction. It is a process that involves identifying your dreams, goals and objectives, creating a plan and rallying a team of best-in-class advisors to support you along your path from vision to reality.

I look forward to supporting you in this exciting dream-building journey and earning your trust and friendship for years to come.

Skip to content