Some General Mortgage Information for an Upcoming Appointment
Hello BP Family,
After researching, analyzing many deals, networking, and understanding potential markets around me, I’m finally taking a few steps forward. Specifically with my first mortgage. I have an appointment this Thursday to meet with a lender. I have read many posts, articles, and books regarding financing, BUT I am always looking for guidance. If you have any small tips, tricks, questions that I can ask/utilize while talking to my lender, I would appreciate it.
THROW IT AT ME
@Ahmed Sublaban If you are going to meet with the lender to discuss your intentions of purchasing real estate for investment purposes, I would be very clear with him/her on the type of strategies you are looking to do: Short-term/long-term rentals, fixed and flips, Airbnb, etc. Be prepared to provide proof of income, proof of funds for down payment (Bank statements, 401(k)s, IRAs, other), past two year tax returns, and the list of all other assets. I would make it a goal to walk out of that meeting knowing that you were pre-approved for an amount and also the type of loan programs available to you once you make a decision to acquire a property.
@Rex Celle Yes! I have all of that in check. I will be renting the other unit/s out, and going for the 30 year loan. Thank you very much for that information!
@Ahmed Sublaban thats great Ahmed. It would also be advisable to bring a projected P&L statement to share with the lender so they have a good idea of how the asset will perform. Good luck and keep us posted, will be a good meeting on Thursday
Wow, I would have never thought of that. Thank you for that. Do you think if I downloaded the PDf for the home I am looking at, showing the numbers, will help? Or should I stick with the P&L statement (Where can I download a nice template?). I definitely will keep you posted @Rex Celle
@Ahmed Sublaban I think a simple template will do that shows the annual estimated rent less the following: (economic vacancy at 5% of rent, annual tax, annual insurance, annual property management at 10% of rent, annual estimated mortgage amount, and 10% of rent for capital expenditures and repairs). This will show the lender that you were thinking and planning for the real estate acquisition from all angles
@Rex Celle
Great news! I was pre-approved for the amount I was looking for! I gave my lender specifics and the multi-homes I was already looking at.
I posted in deal diaries, and wrote a lot more information there, but just wanted to keep you informed!
Congrats Ahmed! Would be great to hear further developments, feel free to share your progress and let me know if I can be of any support throughout the property acquisition process!