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Whether it’s your First property or your 20th, keeping great records and files for your Paperwork in really important.
Imagine: You finally find the perfect Cash Flowing Property of your dreams! You want to put an offer in immediately before anyone else has the opportunity to snatch it away....
But you need to get Pre-Approved first....And then your lender sends you a list of 15,000 documents she needs to do that. As you read down the list, you feel your anxiety go up. Trust me, I know that feeling!
Now, I keep everything I need on hand electronically so I can send over documents that are needed with just the click of a button!
So, here is what you should have ready to go:
1. Bank Statements
A lender is going to want to see what you have in the bank. So have these ready to go and remember you will be asked to provide updated statements all the way through closing.
2. Credit Card Statements
Just as much as they want to see what you have in the bank, they are going to want to see your spending habits are and what type of debt you have. If you know you are going to be buying a place soon, try to put off any large purchases until after you close if you can.
3. Current Pay Stubs
Yes, current. They want to know that you are employed (or self-employed) in a very stable way. Just as much as this is not the time to go buy a new car, it's also not the best time to change professions. Pay Stubs will also need to be kept current through Closing.
4. Tax Returns
Yup, all the pages for the past two years. So use the Notes App on your iPhone or Genius Scan to to make a digital file of your tax returns every year. Now, I request an electronic copy from my accountant before I even walk out of her door during Tax Time.
PS- Make sure you find an AMAZING Accountant! If you need a referral for one, just ask here!
5. Investment Statements
If you have money in ANY other type of Investment Account, like a 401k, CDs, Cash Value of Universal Life Insurance, make sure to have copies of your statements ready to go. These are going to help reinforce to a lender that you are responsible financially and also have the money needed to get the deal closed!
Want more tips on what to Prepare BEFORE Buying?
Take our Beginner Guide to Real Estate Investing Course to gain the knowledge and confidence you need to complete your deal. Learn what's included here and read testimonials from other Lady Landlords that have found success through the program!