Before touring homes, a little preparation goes a long way. Taking the right steps up front can make the process smoother and set the buyer up for success.
Get Financial Documents Ready
Buyers should think of this as their financial snapshot. If financing is needed, lenders require a clear picture of the buyer’s finances to secure the best loan options. It’s helpful to gather:
- Recent financial statements and bank accounts
- Investment and retirement accounts (401k, stocks, bonds, etc.)
- Credit card and auto loan information
- Pay stubs and tax returns (usually the past two years)
- Copies of leases for any rental properties
- Student loan information
Having these ready early makes the loan process much smoother.
Check Your Credit Rating
A buyer’s credit score has a significant impact on what they can purchase and the terms they’ll receive. It’s smart to check credit with a trusted lender at the start so everyone knows exactly where the buyer stands. Lenders review reports from the three major agencies: Equifax, Experian, and TransUnion. An experienced Realtor® can connect buyers with knowledgeable lenders in residential, construction, or investment financing.
Be Careful with Finances
During this stage, stability is key. Buyers should avoid major changes such as switching jobs, making large purchases, or opening new lines of credit. Even actions like trading in a vehicle, applying for new credit, or paying off existing balances can affect loan approval. When in doubt, it’s best to check with the lender first before making financial changes.
