Build Your Green File (Preparation Package for Lender)
A green file contains all your important financial documents. You will need it to secure financing for your property. The typical green file should contain:
- Copy of one month’s recent and consecutive pay stubs
- Copy of last two years of W-2 statements
- Copy of last two years of personal tax returns (1040s)- all pages
- Two months of asset account statements- all pages and all accounts
- Copy of fully executed contract of sale
- Copy of photo identification, such as a valid driver’s license or passport
- Credit Inquiry letter- A letter explaining if any recent credit inquires have resulted in any new debt
- You own additional properties
- You have had credit issues in the past
- You are receiving gift funds to use as a down payment on your purchase transaction
- You are a permanent resident alien, or are in the U.S. on a work visa
- You receive or are required to pay alimony or child support
- You receive social security, pension benefits or disability income
Your credit score will have a huge impact on what type of property you can buy, and at what price. It is first recommended to check your credit rating with an experienced lending institution so that Darren can determine what you can afford. The lender will research your credit ratings from the three credit reporting agencies Equifax, Experian and Trans Union. Darren will be happy to recommend experienced, knowledgeable lenders in the residential, construction, and commercial and investment real estate fields.
Be Careful With Your Finances.
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.