Mr. Georgia Homes: Buyers Information
Prepare To Purchase
Stage 2 of acquiring property: The Buyers Green file
Preparing Your Buyers Green File in Real Estate.
The buyer’s green file is an essential tool in the real estate industry that helps potential buyers navigate the complex process of purchasing a property. This file serves as a comprehensive record of all relevant documents and information related to the purchase, ensuring a smooth and efficient transaction.
One of the key components of the buyer’s green file is financial documentation. This includes bank statements, tax returns, and proof of income, which are necessary for securing a mortgage loan. By organizing these documents in one place, buyers can easily provide them to lenders when needed, expediting the loan approval process.
Before meeting with your lender if you require a mortgage, please gather the information below:
Income Items
*May or May not include the following*
- W2 forms from the previous two years
- Pay stubs from the most recent 30 days
- If you are self-employed, you must provide federal tax returns (1040s) for the last two years.
- Capital Gain Earnings
- Rental Property Income
- Profit and Loss Statement for the Fiscal Year (if self-employed)
- Tax returns for corporations or partnerships (if you hold more than 25% of the company)
- Letter of Pension Award (for Retirees)
- Letters of Social Security Award (for people receiving Social Security)
Asset Items
*May or May not include the following*
- Bank statements on all accounts for the last two months (possibly three).
- Statements for the previous two months on all equities, mutual funds, and bonds.
- Copy of most recent 401K statement (or any retirement assets that can count as reserves).
- Explanations for big deposits, as well as the source of those funds
- Copy of HUD1 Settlement Statement for recent home sales.
- If a former home is for sale but has not yet been closed, a copy of the estimated HUD1 settlement statement is required.
- Gift letter (the lender will offer a blank form if any of the funds are a gift from a relative). Gifts might also require:
- A bank statement as evidence of the donor’s ability to pay.
- A copy of the check presented as payment for the donation.
- A copy of the deposit receipt proving the money was put into the escrow account or bank account.
Credit Items
*May or May not include the following*
- Name, contact information, and address of your landlord if you rent.
Verify your credit score.
Your credit score will have a big impact on what kind of home you can buy and at what price. To assist me in determining what you can afford, I suggest that you have your credit record verified by a reputable lending organization. The lender will check your credit history using data from Equifax, Experian, and TransUnion. I am glad to recommend qualified lenders in the categories of residential, commercial, construction, and investment real estate.
Be prepared to justify any of the following elements that might be listed on your credit report:
- Untimely payments
- Credit inquiries in the last 90 days
- Charge-offs
- Collections
- Judgments Liens
- If you have filed for bankruptcy within the last seven years, have a copy of your bankruptcy documents.
Be Careful With Your Finances.
Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.
Various Documents You May or May Not Need
*May or May not include the following*
- If you have already made an offer, a copy of the purchase agreement
- Child support documentation (IF IT IS CONSIDERED INCOME),
- Divorce settlement, including the dollar amount
- Loans from the FHA
- VA Loans
- A copy of your social security card
- A copy of your driver’s license
- For people receiving Social Security, a copy of the DD214 Social Security Award letters.
The five stages of acquiring property
Have you ever considered what happens during the property acquisition process or what you might need during your preparation to acquire it? If so, click one of the options below to learn more.
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