Preparing to Buy
Before you begin shopping for a property, it’s important to take a few key steps to prepare yourself for a successful purchase.
Build Your “Green File”
A green file contains all of your essential financial documents and will be required when securing financing for your property. Having these items organized early will help streamline the mortgage approval process. A typical green file should include:
-
Recent financial statements
-
Bank account information
-
Investment accounts
-
Credit card statements
-
Auto or personal loan details
-
Recent pay stubs
-
Personal tax returns for the past two years
-
Copies of leases for any investment or rental properties
-
RRSP statements, life insurance details, stocks, bonds, and mutual fund information
Check Your Credit Rating
Your credit score plays a significant role in determining what type of property you can purchase and at what price point. It’s strongly recommended to review your credit with an experienced lending professional early in the process to understand what you can comfortably afford.
In Canada, lenders typically review credit reports from Equifax and TransUnion. I’m happy to recommend knowledgeable and trusted mortgage professionals experienced in residential, construction, and investment real estate.
Be Careful With Your Finances
This is not the time to make major financial changes. Avoid large purchases, opening new credit accounts, or changing careers if possible. Approaching your purchase from a position of financial stability will help ensure a smoother approval process and a more confident buying experience.
