Getting Started
Start Your “Green File”
Before you apply for a mortgage, get organized. A “Green File” is your go-to folder (digital or physical) with all your key financial documents. Lenders will need to see:
- Recent pay stubs
- Tax returns (last 2 years)
- Bank & investment statements
- Credit card and auto loan balances
- Any other debt or income documentation
Pro tip: Keep this folder updated—even after pre-approval—so you’re ready to act fast when you find the right home.
Know Your Credit Score
Your credit score affects your loan options and interest rates. Here’s how it breaks down:
- 620+: Generally accepted
- 680+: Strong
- 740+: Top-tier borrower = best rates
Treat your credit like gold—avoid big purchases, late payments, or new credit inquiries. Check your score through:
Tip: Ask your lender how to improve your score before applying. Even small boosts can make a big difference in savings.
Build Savings + Cut Debt
Buying a home? Start stacking up for:
- Down payment
- Closing costs (appraisal, escrow, title, etc.)
- Home inspections + moving expenses
At the same time, work to reduce high-interest debt (especially credit cards). Lenders look at your debt-to-income ratio, and even a $500/month debt payment can reduce your purchasing power by over $80,000.
Press Pause on Major Changes
Lenders love stability. Now is not the time to:
- Switch jobs
- Move large sums between accounts
- Finance a car, furniture, or new credit card
Big financial moves can derail your approval or delay your closing. Always check with your lender before making changes.
