After you’ve located your desired lending agency, make no significant purchases, rather within a year of if you plan to buy. The reason is that lenders will see this as a portion of your debt to income ratio if you have purchased it on a credit card. Possessing your car free and clear, as an example, places you in the best position to get the sum of money you truly want.
Expect to need to produce at least a two-month “money trail.” Your prospective lender will request to find all your financial statements, such as your checking account, retirement, savings, money market accounts, inventory, and CDs. It’s very important to not be transferring money around at this point when you’re purchasing real estate because lenders don’t like seeing large withdrawals. Do not change banks. Doing business with the bank you’ve used for a long time can save yourself plenty of hassles since they have access to their documents.
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