‘Tis the Season to Pick Up the Best Holiday Gift: A New Property

Making a List, Checking It Twice: How to Get Ready to Buy

So, now that you know one of the best times of year to buy if you live somewhere that has a real winter—and you like the thought of picking up the best holiday gift of all (a new property)—my next question is, “Are you ready to buy?”

If you’re paying cash instead of using financing, do you have a private or hard money lender lined up and are you clear about their requirements? Alternately, do you have all the money saved up to buy the property, including closing costs?

If not and you’re using a traditional form of financing, have you sat down with a lender and reviewed all your financial numbers—and maybe even had your credit pulled to get pre-approved? Or if you need a cosigner for bank financing, have you done the work ahead of time to line everything up?

Be aware that if you’re financing a deal, now it’s much more complicated, as the bank will not only make you apply for a loan, but they’ll make you document and validate all the information you’ve given them. They’re basically looking for things that express financial stability, like W-2s, tax returns, several months’ bank statements, etc. They’ll want to verify all the information on your application, such as residency (for at least the last two years), as well as work history. This is why getting prequalified is so valuable in enabling you to move quickly when that deal drops into your lap.

Read more… https://www.biggerpockets.com/blog/tis-the-season-to-buy-property