What your loan officer needs from you

Question

When it comes to touching base with your loan officer, it seems the more information the better, besides W2 and taxes what do you folks bring to your loan officer to make yourself more appealing to a better deal.

Zach Wain · Answer

@Reggie Rearden - I think meeting people in person is the best way to build and form long lasting partnerships as well.  But, when it comes to rental properties, we as lenders can only use a few things for income calculations.  If you rented the property in previous years, we must go off of the previous years tax returns.  There is a form 1038 we have to fill out.  Rent rolls can not be used, 100% based off tax returns.  If its a new rental property, we can use 75% of the rental income off of a lease.  That is pretty much it...

We have almost no leeway when it comes to income numbers.  Some lenders know how to review the information better than others, or have looser guidelines than others.  We do not make the rules,  but we have to follow them.

Reggie Rearden · Answer

In addition to my tax returns, I provide my rent-roll and print out/send the analysis from the BP calculators. I always like meeting in person. I bring my binder with all of my analysis and before/after pictures of projects. To me, this gives the loan officer the "warm and fuzzy" that you are serious and competent in what your doing. By using this method, I successfully BRRRR'd multiple doors in 2021. I firmly believe that presentation is 90% of the battle when it comes to loans.

Zach Wain · Answer

@Ryan Gardent - there is only so much we as Loan Officers/Lenders can do when it comes to income analysis.  Most lenders can use basics - W2 wages or if you are business of self; tax returns will show that income.  On occasion, we can get creative and use assets held in Trust accounts as income, or for borrowers that are 59.5 or older we can use their IRA/retirement assets as income.  Those are the two big ones.

Mason Hickman · Answer

@Ryan Gardent

You should bring whatever they need in order to get you pre approved. They will have a slightly varying list based on your personal situation.