Financial's Guide


To Get Started

In real estate financing, refinancing, or equity line of credit, the following information should help you get started:

Start an SP Purple File:  A Signature Properties (SP) Purple File should contain all of your important financial documents.  Regardless of the loan type, lenders will need information about you.  Make copies of financial statements; bank accounts, investments, credit cards, auto loans, recent pay stubs and two years’ tax returns.

Check Your Credit Rating:  You will find that credit scores can range from 400 to 800.  A score of 620 or so is considered “good”.  A credit score of 680 or more considered “premium”.  The later score or better can possibly help get you a lower interest rate.

Below you will find the contact information for the three major credit reporting agencies to help you determine your credit rating.  Ask your lender how to improve your credit score if you are not satisfied with your findings.  Now, as you go forward, treat your credit like gold.


Firm  
Web Site
Phone Number
Equifax
(800) 685-1111
Experian
(800) 392-1122
Trans Union
(800) 888-4213

Savings & Debt:  If you are buying real estate, you need to do all you can to try to accumulate funds towards a down payment, closing costs (appraisal, miscellaneous fees, escrow, title insurance, etc.) and expenses such as inspections.  Moreover, try to pay down existing revolving and high interest rate debt like credit cards.

Credit Behavior:  When you are considering the purchase of a major ticket item like a new home which you are going to want to finance, it is not a good time to change careers, move your money around, or buy other big ticket items.  Lenders like stability.  So if you are considering any major changes, it pays to meet with a lender and ask them how to proceed before you make any changes!  If you are tempted to buy a big ticket item, consider the following:

A debt payment of $500 a month such as a credit card or auto loan debt could lower the amount of a home you could afford by about $83,000! *

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* Based on a 30 year mortgage at 6% interest.

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