Getting Started

Whether you are financing a real estate purchase, refinancing your existing loan, or obtaining a real estate equity line of credit, the following tips will help get you started.

Start a Green File: A Green File should contain all of your important financial documents. Regardless of the loan type, lenders will need information about you. Make copies of financial statements; bank accounts, investments, credit cards, auto loans, recent pay stubs and two years' tax returns.

Check Your Credit Rating: Credit scores range between 400 and 800. 620 + is considered "good ". 680 + is considered "premium " and may possibly help get you a lower interest rate.

Below you will find the contact information for the 3 major credit reporting agencies to help you determine your credit rating. Ask your lender how to improve your credit score if you need to. Going forward, treat your credit like gold.

• Equifax http://www.equifax.com (800) 685-1111
• Experian http://www.experian.com (800) 392-1122
• Trans Union http://www.transunion.com (800) 888-4213

Savings & Debt: If you are buying real estate, try to accumulate funds towards your down payment, closing costs (appraisal, miscellaneous fees, escrow, title insurance, etc.) and expenses such as inspections. Furthermore, try to pay down existing revolving and high interest rate debt like credit cards.

Toe The Line: Now is not a good time to change careers, move your money around, or buy big ticket items. Lenders like stability. So if you are considering any major changes, it pays to meet with a lender and ask them how to proceed before you make any changes! If you are tempted to buy a big ticket item, consider the following:

• A $500 a month debt payment (like a credit card or auto loan) could lower the amount of home you can afford by about $83,000! *

* Based on a 30 year mortgage at 6% interest.