Where do you begin to secure finances for purchasing a new home, refinancing an existing home, or obtaining a real estate equity line of credit? Loan acquisition can get confusing, but you can simplify the process and avoid a lot of potential headaches by getting off to a good start. Here are a couple of ways to do so:

Get it together.
Organizing and compiling all pertinent financial documents into a file is an absolute must for any potential borrower. Think of this file as a resume or profile that will give lenders an idea of what kind of debtor you might be. The typical green file should contain:

. Bank accounts
. W-2 forms
. Recent pay stubs
. Tax returns for two years (if self-employed)

Consider your credit rating.
Another means by which lenders gauge your trustworthiness as a borrower is through your credit rating. These indicate your credit history, which includes such crucial information as the number of your open loans and the punctuality of your past payments.

. Treat your credit like gold.

Credit ratings are important because they often determine whether or not you will be approved for a loan and what your interest rate will be. Thus, you cannot take your credit seriously enough! We suggest checking your credit reports at least once a year or before making any major purchase to ensure the accuracy of the information contained there.

. What the scores mean.

Ratings usually vary between 400 and 850. Most programs have a minimum credit score requirement of 620. Anything above 660 is good. If you exceed 700, you are considered premium and may even get a lower interest rate.

. Determine your credit rating.

We do this for you at no-cost. Contact us and we would be happy to let you know where you stand. We also can provide you with strategies to improve your credit rating.