In order to make the home loan process easy for you and your lender, you should be financially organized. At the beginning of the year, most people are inclined to have that in order for tax filing purposes. However, it is a great practice to maintain year-round. Especially if you’re ready to begin your home search long after you’ve filed your taxes in the earlier months of the year.
Maintain all your financial records - including your tax records - in one place. You may want to buy a box and keep your separate information in different labeled folders (tax information together, for example, and bills in another folder) for easy referencing. But, don't just keep a file of your bills. Track your progress with them.
* Place a note directly on the bills (on the remaining stub of the bill or on the copy of the bill) indicating the days you paid them.
* Keep a log of how much you owe, where you owe money and when you make payments on those debts.
Seeing all your financial life in one place makes it easier for you to see where your credit and your financial life still needs work. Whatever system you use, you will find it much easier to manage your finances - and your credit - if you don’t have to hunt for random pieces of paper.
Some of the information you may want to keep in your financial file includes:
* Bills
* Tax receipts and forms
* Articles and pamphlets about debt
* Your credit reports and scores (It’s a good idea to order a copy of your report before you meet with your lender as well)
* A list of contacts that affect your financial life (such as your bank and credit agencies, for example)
* Your written emergency plan, detailing what you should do in case of a sudden loss of job or other problem
* Banking information
* Financial forms
* Investment information
* Deeds to your assets (such as your house)
* Agreements you have signed for loans and other financial services
* Insurance forms
* A list of your financial goals
This organized filing process will help you and your lender work together smoothly so you can get the loan for your new home.
For further information about credit, visit our Prosperity and Credit Repair page.
