Preparing to Buy
There is some homework to do before we start touring houses, and it is a lot easier to do now than in the middle of a negotiation.
Put your paperwork in one place
A lender is going to ask for a stack of financial documents. Start one folder (the old name for it is a green file) and keep everything in it:
- Bank statements
- Investment and brokerage statements
- 401(k) and other retirement account statements
- Credit card statements
- Auto loans and any other loans
- Recent pay stubs
- Two years of tax returns
- Leases on any investment property you own
- Life insurance, stocks, bonds and mutual fund information
Your lender will tell you exactly what they need for your situation.
Have a lender check your credit
Your credit has a lot to do with what you can borrow and what it will cost you. The cleanest way to find out where you stand is to talk to a lender early. With your permission they pull your history from the three credit reporting agencies (Equifax, Experian and TransUnion) and tell you what they see. If something needs fixing, it is much better to hear it now than after you have found a house.
We know lenders around Bellingham who do residential loans, and others who handle construction, commercial and investment property. Ask and we will give you a few names.
Keep your finances boring
From here until closing is a bad time to change jobs or buy a car or a boat on credit. Lenders like stability. If a big change is coming anyway, talk to your lender before you make it.
The financing track goes through the loan side in more detail. On the buying side, the next step is choosing an agent.