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Prepare to Buy
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1. PREPARE TO BUY
While Shopping for your Northridge Home, it's a good idea to make some preparations

1.1 Build Your "Green File"

A green file contains all the important documents you will need to secure financing for your home. The green file should contain:

  • Financial statements
  • Bank accounts
  • Investments
  • Credit card
  • Auto loans
  • Recent pay stubs
  • Tax returns for two years

1.2 Manage your Credit Rating

A higher credit rating will allow you more flexibility in your home shopping, may require less down payment to secure your financing, and your interest rate will certainly be lower.

Credit Score Check - You can check your credit score for free without affecting your score. You will most likely have different scores from all three credit reporting agencies which are Equifax, Experian , and Transunion .

MyFico - A very good tool for maximizing your credit rating can be found at myfico.com . The Fico score is the score most banks use to determine your credit worthiness. Many people have incorrect information on their credit report that can affect them negatively or have accounts in collections they are unaware of. With myfico's scorewatch , you can track the progress of your credit score over time and you can utilize tips and techniques to improve your score.

FICO scores are calculated based on your rating in
five general categories :

FICO scores are your credit rating
They range from 300-850, higher is better
Most lenders base approval on them
Higher scores mean lower interest rates

1.3 Determine Your Budget

Determine an amount you are comfortable with for a monthly mortgage payment. Talk to your loan officer about what you can qualify for and get a pre-approval letter.

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